IWI HOLDING LIMITED
Oakmont Centre
1010 Executive Court, Suite 300
Westmont, Illinois 60559
NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
TO BE HELD JUNE 22, 2001
To the Shareholders of IWI Holding Limited:
An Annual Meeting of Shareholders of IWI Holding Limited (the
"Company") will be held at the Company's offices, at Oakmont Centre, 1010
Executive Court, Suite 300, Westmont, Illinois at 10:00 a.m.,on Friday, June 22,
2001 for the following purposes:
1. To elect six directors of the Company to hold office until the next annual
meeting of shareholders or until their successors are duly elected and
qualified.
2. To consider and act upon a proposal to ratify the appointment of Blackman,
Kallick, Bartelstein, L.L.P. as the independent auditors of the books and
accounts of the Company for the year ending December 31, 2001.
3. To transact such other business as may properly come before the meeting or
any adjournment thereof.
Shareholders of record at the close of business on May 3, 2001 are
entitled to notice of and to vote at the meeting and any adjournment thereof.
You are cordially invited to attend the meeting. Whether or not you are
planning to attend the meeting, you are urged to complete, date and sign the
enclosed proxy card and return it promptly.
YOUR VOTE IS IMPORTANT! PLEASE PROMPTLY MARK, DATE, SIGN, AND RETURN
YOUR PROXY IN THE ENCLOSED ENVELOPE. IF YOU ARE ABLE TO ATTEND THE MEETING AND
WISH TO VOTE YOUR SHARES PERSONALLY, YOU MAY DO SO AT ANY TIME BEFORE THE PROXY
IS VOTED.
By Order of the Board of Directors
/s/
Joseph K. Lau
President
Westmont, Illinois
May 18, 2001
IWI HOLDING LIMITED
Oakmont Centre
1010 Executive Court, Suite 300
Westmont, Illinois 60559
PROXY STATEMENT
FOR
ANNUAL MEETING OF SHAREHOLDERS
TO BE HELD JUNE 22, 2001
INTRODUCTION
This Proxy Statement is being furnished in connection with the
solicitation of proxies on behalf of the Board of Directors of IWI Holding
Limited (the "Company") for use at the 2001 Annual Meeting of Shareholders of
the Company and at any adjournment thereof (the "Annual Meeting"). The Annual
Meeting is scheduled to be held at the Company's offices at Oakmont Centre, 1010
Executive Court, Suite 300, Westmont, Illinois on Friday, June 22, 2001 at 10:00
a.m. local time.
Proxies
The shares represented by any proxy in the enclosed form, if such proxy
is properly executed and is received by the Company prior to or at the Annual
Meeting prior to the closing of the polls, will be voted in accordance with the
specifications made thereon. Proxies on which no specification has been made by
the shareholder will be voted (i) for the election to the Board of Directors of
the nominees of the Board of Directors named herein and (ii) in favor of the
proposal to appoint Blackman, Kallick, Bartelstein, L.L.P. as the independent
auditors of the books and accounts of the Company for the year ending December
31, 2001. Proxies are revocable by written notice received by the Secretary of
the Company at any time prior to their exercise or by executing a later dated
proxy. Proxies will be deemed revoked by voting in person at the Annual Meeting.
Voting Securities
Shareholders of record at the close of business on May 3, 2001 (the
"Record Date") are entitled to notice of and to vote at the Annual Meeting. On
the Record Date, the total number of shares of common stock of the Company, no
par value per share (the "Common Stock"), outstanding and entitled to vote was
2,554,700. The holders of all outstanding shares of Common Stock are entitled to
one vote for each share of Common Stock registered in their names on the books
of the Company at the close of business on the Record Date. In addition to the
Common Stock, the Company had 3,644,880 shares of preferred stock (the
"Preferred Stock") outstanding and entitled to one-half vote for each share of
Preferred Stock registered in their names on the books of the Company at the
close of business on the Record Date.
Quorum and Other Matters
The presence at the Annual Meeting, in person or by proxy, of the
holders of not less than one-third of the eligible votes represented by the
outstanding shares of Common Stock and Preferred Stock entitled to vote at the
Annual Meeting is necessary to constitute a quorum. The Board of Directors is
not aware of any matters that are expected to come before the Annual Meeting
other than those referred to in this Proxy Statement. If any other matter should
come before the Annual Meeting, the persons named in the accompanying proxy
intend to vote such proxies in accordance with their best judgement.
Shares of Common Stock and Preferred Stock represented by a properly
dated, signed and returned proxy will be counted as present at the Annual
Meeting for purposes of determining a quorum without regard to whether the proxy
is marked as casting a vote or abstaining. Directors will be elected by a
plurality of the votes cast at the Annual Meeting. The appointment of the
independent auditors of the Company requires the approval of a majority of the
votes cast at the Annual Meeting. Therefore, abstentions and broker non-votes
will have no effect on the election of directors or any such other matter.
Under the laws of the British Virgin Islands, dissenters rights are not
available to shareholders of the Company with respect to any matter scheduled to
be brought before the Annual Meeting.
ELECTION OF DIRECTORS
(Proxy Proposal No. 1)
Six directors are to be elected to serve until the next annual meeting
of shareholders and until their successors are elected and shall have qualified.
Directors shall be elected by shareholders holding a plurality of the votes
represented by the shares of Common Stock and Preferred Stock present at the
Annual Meeting. It is the intention of the persons named in the form of proxy,
unless authority is withheld, to vote the proxies given them for the election of
all nominees hereinafter named. In the event, however, that any one of them is
unable or declines to serve as a director, the appointees named in the form of
proxy reserve the right to substitute another person of their choice as nominee,
in his place and stead, or to vote for such lesser number of directors as may be
presented by the Board of Directors in accordance with the Company's Articles of
Association. The Board of Directors has no reason to believe that any nominee
will be unable to serve or decline to serve as a director. Any vacancy occurring
between shareholders' meetings, including vacancies resulting from an increase
in the number of directors, may be filled by the Board of Directors. A director
elected to fill a vacancy shall hold office until the next annual shareholders'
meeting.
Nominees for Election
The following table sets forth information with respect to each nominee
for election as a director. The information as to age, principal occupation and
directorships held has been furnished by each such nominee.
Served as
Director
Name and Age Principal Occupation Continuously Since Committee Membership
- -------------------------- --------------------------- -------------------- ----------------------
Joseph K. Lau (52). . . . Chairman of the Board of 1986 Compensation
Directors; President of IWI
Holding Limited
Richard J. Mick (60). . . Vice President 1996
Connie S. Yui (50). . . . Inventory Manager 1997
Norman S.W. Chui (29). . Director/ Secretary 1997
Joseph A. Benjamin (58). Director 1997 Audit and
Compensation
Samuel Lou (47). . . . . Director 1997 Audit and
Compensation
2
THE BOARD OF DIRECTORS RECOMMENDS THAT THE SHAREHOLDERS VOTE FOR THE ELECTION OF
ALL NOMINEES NAMED ABOVE TO THE BOARD OF DIRECTORS.
Committees and Attendance of the Board of Directors
In order to facilitate the various functions of the Board of Directors, the
Board has created a standing Audit Committee and Compensation Committee.
The functions of the Company's Audit Committee are to review the Company's
financial statements with the Company's independent auditors; to determine the
effectiveness of the audit effort through regular periodic meetings with the
Company's independent auditors; to determine through discussion with the
Company's independent auditors that no unreasonable restrictions were placed on
the scope or implementation of their examinations; to inquire into the
effectiveness of the Company's financial and accounting functions and internal
controls through discussions with the Company's independent auditors and
officers of the Company; to recommend to the full Board of Directors the
engagement or discharge of the Company's independent auditors; and to review
with the independent auditors the plans and results of the auditing engagement.
The members of the Audit Committee are Mr. Benjamin and Mr. Lou.
The functions of the Company's Compensation Committee include reviewing the
existing compensation arrangements with officers and employees, periodically
reviewing the overall compensation program of the Company and recommending to
the Board modifications of such program which, in the view of the development of
the Company and its business, the Committee believes are appropriate,
recommending to the full Board of Directors the compensation arrangements for
senior management and directors, and recommending to the full Board of Directors
the adoption of compensation plans in which officers and directors are eligible
to participate and granting options or other benefits under such plans. The
members of the Compensation Committee are Mr. Lau, Mr. Benjamin and Mr. Lou.
During the year ended December 31, 2000, the Board of Directors held four
formal meetings. The Audit and Compensation Committees each held one meeting.
Each director (during the period in which each such director served) attended at
least 75% of the aggregate of (i) the total number of meetings of the Board of
Directors, plus (ii) the total number of meetings held by all committees of the
Board of Directors on which the director served.
Directors are elected on an annual basis. The present terms for each
director will expire at the next annual meeting of shareholders or at such time
as a successor is duly elected. Officers serve at the discretion of the Board of
Directors.
EXECUTIVE COMPENSATION AND OTHER MATTERS
The aggregate cash compensation paid by the Company to all directors and
officers as a group during 2000 was approximately $480,000.
Certain officers of the Company will be entitled to bonuses from the
Company based on performance criteria to be established by the Compensation
Committee of the Board of Directors. Additionally, the Company has a Stock
Option Plan (the "Option Plan") to assist the Company and its subsidiaries in
retaining the service of current employees, motivating selected key personnel,
and attracting new management by providing the opportunity for such personnel to
acquire a proprietary interest in the Company and thereby share in its growth
and success. Participation in the Option Plan and the granting of options under
the Option Plan are recommended by the Compensation Committee of the Board,
subject to ratification by the Board. Pursuant to the Option Plan, a total of
150,000 shares of common stock are reserved for issuance. The option plan
requires that the exercise price of the option be the fair market value of the
Company's stock on the date of the grant of the option but not less than $8.50
per share. The fair market value for purposes of the Option Plan is, for so long
as common stock is quoted on the OTCBB, the final closing sales price per share
on the date of the grant. The exercise price with respect to any option must be
paid in cash. As of the date hereof, there are no options to purchase shares of
Common Stock outstanding under the Option Plan.
3
The Company also has a Non-Qualified Stock Option Plan (the
"Non-Qualified Plan"). A total of 600,000 shares are reserved for issuance under
the Non-Qualified Plan. The Non-Qualified Plan provides for the granting of
options and stock appreciation rights to non-employee directors, key management
employees, and consultants and is administered by the Compensation Committee.
The terms of any options and/or stock appreciation rights granted under the
Non-Qualified Plan shall be determined by the Compensation Committee provided
that the options may not be exercisable for a term longer than ten years and may
not be exercisable at a price less than the stated value of the common stock. No
options or stock appreciation rights had been granted under the Non-Qualified
Plan as of May 18, 2001.
In addition, the Company maintains a defined contribution plan which
has both a profit sharing feature and a 401(k) savings feature (the "Plan").
Under the profit sharing portion of the Plan, contributions are an amount
determined by the Company's Board of Directors. Subject to certain limitations
required by law, the Company's contribution is allocated to each participant who
is employed by the Company at the end of the Plan year in the proportion that
the total compensation paid by the Company to each participant bears to the
aggregate compensation paid by the Company to all participants during such Plan
year. Under the 401(k) savings feature, eligible employees may elect, subject to
certain limitations required by law, to defer payment of up to 15% of their
compensation. The Plan provides that if an employee defers payment, the Company
will contribute 50% of the first 2% of compensation deferred (which was
increased to 6% effective July 1, 1998), by making a cash payment to the Plan on
behalf of such participant. Contributions by the Company to the profit sharing
feature of the plan, and earnings thereon, vest based on the participant's years
of service with the Company, vesting 20% per year after one year of service and
being fully vested after six years of service. Contributions by the Company to
the 401(k) savings feature vest on the employee's first day of employment.
Employee contributions are always 100% vested. All contributions vest,
regardless of years of service, upon termination of employment by reason of
death or disability attainment of age 62 or the termination of the Plan. After
termination of employment, an employee is entitled to receive the distribution
of his or her entire vested interest in the Plan in a lump sum, in installments
for a specific period of time or an annuity for life. The amounts held under the
Plan are invested according to the instructions of the participant in investment
funds designated by the plan administrator. The Company made contributions to
the Plan during 2000 of $47,000.
BENEFICIAL OWNERSHIP OF STOCK
The following table is furnished as of May 3, 2001, to indicate
beneficial ownership of shares of the Company's Common Stock and Preferred Stock
by (1) each shareholder of the Company who is known by the Company to be a
beneficial owner of more than 5% of the Company's Common Stock or Preferred
Stock, (2) each director and nominee for director of the Company, individually,
and (3) all officers and directors of the Company as a group. The information in
the following table was provided by such persons.
4
Percent of
Name and Address of Beneficial Amount and Nature of Title of Percent of Voting
Owner Beneficial Ownership(1) Class Class Power
- ------------------------------ ------------------------ ----------- ------------- ------------
Bamberg Company Limited(2) 918,750 Common 35.96% 20.99%
Bamberg Company Limited(2) 3,644,880 Preferred 100% 41.64%
Joseph K. Lau 15,000 Common .59% .34%
Richard J. Mick 30,000 Common 1.17% .69%
Joseph A. Benjamin 10,000 Common .39% .23%
------
All executive officers and 55,000 Common 2.15% 1.26%
directors as a group (five 0 Preferred 0.0% 0.0%
persons)
(1) The persons named in the table have sole voting and investment power
with respect to all shares of Common Stock and Preferred Stock shown as
beneficially owned by them, subject to community property laws, where
applicable, and the information contained in the footnotes to the
table.
(2) Address is P.O. Box 71 Road Town, Tortola, BVI.
EXECUTIVE OFFICERS OF THE COMPANY
The following table sets forth the names, ages and offices of the executive
officers and directors of the Company.
Name and Age Office
- ------------- -----------
Joseph K. Lau (52) Chairman of the Board, President, Chief Executive
Officer and Director Vice President and Director
Richard J. Mick (60) Inventory Manager and Director
Connie S. Yui (50) Director / Secretary
Norman S.W. Chui (29) Director
Joseph A. Benjamin (58) Director
Samuel H. Lou (47)
Executive Officers
Joseph K. Lau joined the Company in November, 1982 and was elected Senior
Vice President, Chief Operating Officer, Secretary and Director in February,
1986 and Chairman of the Board, President and Chief Executive Officer in 1998.
For the 11 years prior to joining the Company, he held a management position in
the restaurant industry and owned a trading company in Hong Kong.
Richard J. Mick joined the Company in February, 1996 as Vice President and
Director. For the six years prior to joining the Company, Mr. Mick was President
of Ronald C. Mick Company, a sales and marketing firm selling jewelry and
related products. Prior thereto, Mr. Mick was employed by J.C. Penny, Inc. for
26 years.
Connie S. Yui joined the Company in March, 1985 and has served as the
Product Development Manager and is responsible for inventory control and pearl
assembly.
5
Norman S.W. Chui joined the Company in December 1997 as Senior
Manager/Secretary and Director. Prior to joining the Company, Mr. Chui was a
consultant with Eclipse Information Systems of Darien, IL and prior thereto was
a consultant for Arthur Andersen & Co. which he joined following graduation from
the University of Illinois in 1994. Mr. Chui resigned from the Company in
January 2001, but remained an active Director and is now a consultant with
Trading Technologies Consulting.
Joseph A. Benjamin has served as a Director of the Company since December,
1997. Mr. Benjamin is a CPA and is the Managing Partner of Benjamin &
Birkenstein, P.C., a business and tax consulting firm in Chicago, Illinois.
Samuel H. Lou has served as a Director of the Company since December, 1997.
Mr. Lou is a business consultant with his own firm in Chicago, Illinois.
CERTAIN RELATIONSHIPS AND TRANSACTIONS
During 2000 there are no transactions involving the Company and its
officers and directors directly, other than those of employer/employee.
All transactions between the Company, its officers, directors, principal
shareholder or affiliates, whether presently existing are, or in the future will
be, in the belief of management, on terms no less favorable to the Company than
may be obtained from unaffiliated third parties.
Other than the elections to office, no director, nominee for director,
executive officer or associate of any of the foregoing persons has any
substantial interest, direct or indirect, by security holdings or otherwise, in
any matter to be acted upon at the Annual Meeting.
INDEPENDENT AUDITORS
(Proxy Proposal No. 2)
The shareholders will be asked to ratify the appointment of Blackman,
Kallick, Bartelstein, L.L.P. as independent auditors of the books and accounts
of the Company for the year ending December 31, 2001. Such ratification will
require the favorable vote of the holders of a majority of the shares of Capital
Stock present and voting in person or by proxy, at the Annual Meeting.
Representatives of Blackman, Kallick, Bartelstein, L.L.P. will be present
at the Annual Meeting, will be afforded an opportunity to make a statement, and
will be available to respond to appropriate inquiries from shareholders.
COMPLIANCE WITH SECTION 16(a) OF EXCHANGE ACT
Under the securities laws of the United States, the Company's directors,
its executive officers, and any persons holding more than ten percent of the
Company's Common Stock are required to report their initial ownership of the
Company's Common Stock and any subsequent changes in that ownership to the
Securities and Exchange Commission. Specific due dates for these reports have
been established and the Company is required to disclose in this Proxy Statement
any failure to file by these dates during 2000. All of the filing requirements
were satisfied on a timely basis in 2000. In making these disclosures, the
Company has relied solely on written statements of its directors, executive
officers and shareholders and copies of the reports that they filed with the
Commission.
DATE FOR SUBMISSION OF SHAREHOLDER PROPOSALS
In order for shareholder proposals to be included in the Company's Proxy
Statement and proxy relating to the Company's 2000 Annual Meeting of
Shareholders, such proposals must be received by the Company at its principal
executive offices not later than June 18, 2001.
6
EXPENSES OF SOLICITATION
All of the expenses of soliciting proxies from shareholders, including the
reimbursement of brokerage firms and others for their expenses in forwarding
proxies and proxy statements to the beneficial owners of the Company's Common
Stock, will be borne by the Company.
OTHER MATTERS
The Board of Directors does not intend to bring any other matters before the
Annual Meeting and has not been informed that any other matters are to be
presented by others. In the event any other matters properly come before the
Annual Meeting, the persons named in the enclosed form of proxy will vote all
such proxies in accordance with their best judgement on such matters.
Whether or not you are planning to attend the Annual Meeting, you are urged to
complete, date and sign the enclosed proxy and return it in the enclosed stamped
envelope at your earliest convenience.
By Order of the Board of Directors
/s/
-----------------------------------
Joseph K. Lau
President
Westmont, Illinois
May 18, 2001
7
IWI HOLDING LIMITED
Oakmont Centre
1010 Executive Court, Suite 300
Westmont, Illinois 60559
Proxy for Annual Meeting of Shareholders
to be held on June 22, 2001
This Proxy is solicited on behalf of the Board of Directors
The undersigned hereby appoints Joseph K. Lau as Proxy with full power of
substitution in the name, place and stead of the undersigned to vote at an
Annual Meeting of Shareholders (the "Meeting") of IWI Holding Limited, a British
Virgin Island corporation (the "Company"), on June 22, 2001 at 10:00 a.m., or at
any adjournment or adjournments thereof, in the manner designated below, all of
the shares of the Company's common stock that the undersigned would be entitled
to vote if personally present.
1. Granting authority to vote for the election as directors of the Company the
following nominees: Joseph K. Lau; Richard J. Mick; Norman S.W. Chui;
Connie S. Yui, Joseph A. Benjamin, and Samuel H. Lou.
---- FOR ALL NOMINEES LISTED ABOVE ---- WITHHOLD AUTHORITY FOR ALL
NOMINEES LISTED ABOVE
(Instructions: To withhold authority to vote for any individual nominee, strike
a line through the nominee's name.)
2. Proposal to ratify the appointment of Blackman, Kallick, Bartelstein,
L.L.P. as independent auditors of the books and accounts of the Company for
the year ending December 31, 2001.
FOR AGAINST ABSTAIN
--- --- ---
3. In their discretion, the Proxy is authorized to vote upon such other
business as may properly come before the Meeting or any adjournments
thereof.
(Please sign on reverse side)
THIS PROXY WILL BE VOTED IN ACCORDANCE WITH THE INSTRUCTIONS GIVEN ABOVE. IF NO
INSTRUCTIONS ARE GIVEN, THIS PROXY WILL BE VOTED FOR PROPOSAL 2 AND FOR THE
ELECTION OF ALL NOMINEES AS DIRECTORS.
Please sign exactly as your name appears
hereon. When shares are held by joint
tenants, both should sign. When signing
as an attorney, executor, administrator,
trustee, guardian, or corporate officer,
please indicate the capacity in which
signing.
Date: , 2001
--------
-------------------------
Signature
-------------------------
Signature if held jointly