MPM TECHNOLOGIES, INC.
199 Pomeroy Road
Parsippany, NJ 07054
NOTICE OF 2003 ANNUAL STOCKHOLDERS' MEETING
To: The Stockholders of MPM Technologies, Inc.
NOTICE IS HEREBY GIVEN that the 2003 Annual Stockholders' Meeting of MPM
Technologies, Inc. will be held at company headquarters 199 Pomeroy Road,
Parsippany, NJ 07054, on June 27, 2003.
1. To Elect Three Directors of the Company;
2. To Amend the 1989 Stock Option Plan;
3. To consider and act upon any other matters which may properly come before the
meeting.
The Board of Directors has fixed the close of business on May 30, 2003 as the
Record Date for the determination of shareholders entitled to notice of and to
vote at the meeting. This notice and Proxy Statement and the enclosed form of
proxy are being sent to stockholders of record at the close of business on or
about June 2, 2003 to enable such stockholders to state their instructions with
respect to the voting of the shares. Proxies should be returned to Computershare
Trust Company, Inc. P.O. Box 1596, Denver, Colorado 80201 in the reply envelope
enclosed.
By Order of the Board of Directors,
Michael J. Luciano
Chief Executive Officer and
Chairman of the Board
June 2, 2003/Date of Mailing
WE URGE EACH STOCKHOLDER WHO IS UNABLE TO ATTEND THE MEETING TO VOTE BY PROMPTLY
SIGNING, DATING AND RETURNING THE ACCOMPANYING PROXY CARD IN THE REPLY ENVELOPE
PROVIDED.
PROXY STATEMENT RELATING TO THE
2003 ANNUAL MEETING OF STOCKHOLDERS
INTRODUCTION
This Proxy Statement is being furnished by the Board of Directors of MPM
Technologies, Inc., (MPM) a Washington corporation, to holders of shares of MPM
stock, in connection with the solicitations by the Board of Directors of proxies
to be voted at the 2003 Annual Meeting of Stockholders to be held at 199 Pomeroy
Road, Parsippany, NJ 07054 on June 27, 2003, at 9:00 a.m. local time, and any
adjournment or adjournments thereof, for the purpose set forth in the
accompanying Notice of Annual Meeting. This Proxy Statement and Annual Report on
Form 10-KSB for the year ended December 31, 2002, are first being mailed to
shareholders on or about June 2, 2003. The executive offices of the Company are
located at 199 Pomeroy Road, Parsippany, NJ 07054.
VOTING AT ANNUAL MEETING
The Board of Directors of the Corporation has fixed the close of business on May
30, 2003, as the date of record (the "Record Date") for determination of the
shareholders entitled to notice of, and to vote at, the Annual Meeting. As of
the Record Date, there were 3,081,074 issued shares of common stock entitled to
vote. A majority of such shares will constitute a quorum for the transactions of
business at the Annual Meeting. The holders of record on the Record Date of the
shares entitled to be voted at the Annual Meeting are entitled to cast one vote
per share on each matter submitted to vote at the Annual Meeting. All action
proposed herein may be taken upon a favorable vote of the holders of a majority
of such shares of common stock represented at the Annual Meeting, provided a
quorum is present at the meeting in person or by proxy.
Proxy. Shares of common stock which are entitled to be voted at the Annual
Meeting and which are represented by properly executed proxies will be voted in
accordance with the instructions indicated in such proxies. If no instructions
are indicated, such shares will be voted: (a) FOR the election of three
individuals to the Board of Directors; (b) FOR the amendment to the Company's
Stock Option Plan and (c) at the discretion of the proxy holder, any other
matters which may properly come before the Annual Meeting. A shareholder who has
executed and returned a proxy may revoke it at any time before it is voted at
the Annual Meeting by executing and returning a proxy bearing a later date, by
giving written notice of revocation to the Secretary of the Corporation or by
attending the Annual Meeting and voting in person. A proxy is not revoked by the
death or incompetence of the maker unless before the authority granted
thereunder is exercised, written notice of such death or incompetence is
received by the Company from the executor or administrator of the estate or from
a fiduciary having control of the shares represented by such proxy.
The Corporation will bear all the costs and expenses relating to the
solicitation of proxies, including the costs of preparing, printing and mailing
this Proxy Statement and accompanying material to shareholders. In addition to
the solicitation of proxies by use of the mails, directors, officers, employees
or consultants without compensation, may solicit proxies personally or by
telephone or telegram.
Voting Power. Shareholders of the Common Stock of MPM are entitled to one
vote for each share held.
Dissenters' Rights. None of the actions contemplated to be taken at the MPM
Shareholder Meeting give rise to the dissenters' rights under the Washington
Business Corporations Act.
THE ACCOMPANYING PROXY IS SOLICITED ON BEHALF OF MANAGEMENT
PURPOSE OF ANNUAL MEETING
Election of Directors
- ---------------------
It is intended that the proxies solicited hereby will be voted FOR election of
the nominees for director listed below, unless authority to do so has been
withheld. The Board of Directors knows of no reason why the nominees will be
unable to accept election. However, if any present member becomes unable to
accept election, the Board of Directors will select substitute nominees. If
substitute nominees are selected, proxies will be voted in favor of such
nominees.
The Board of Directors is divided into three classes, with the term of office of
each class ending in successive years. The term of Directors of Class I expires
with the 2004 Annual Meeting, Directors of Class II expires with the 2005 Annual
Meeting and Class III expires with the 2003 Annual Meeting.
CLASS III - Three Year Term Expiring in 2003
Richard E. Appleby, age 63, is Vice President and Director of the Company.
Mr. Appleby was Superintendent and Manager of A-L Services and Farm Harvesting
from 1957-1973. From 1973-1980, he was Vice President of A-L Services and has
been President of A-L Services since 1980. Mr. Appleby was a partner in MADD
Exploration, an affiliate of the Company from 1980 - 1988. Director Since 1985
Compensation Committee
Dr. Richard Kao, age 62 has been a Director since 1998. Dr. Kao has a Ph.D. and
MS in Chemical Engineering from Illinois Institute of Technology in Chicago, and
a B.S. in Chemical Engineering from Tunghai University in Taiwan. He is
presently serving as Senior Vice President of Unitel Technologies, Inc., and is
responsible for the research, development, economic evaluation, assessment and
upgrade of new technologies for commercial application for chemical, petroleum,
solid/semi-solid/liquid waste, synthetic fuel, food, pulp and paper industries.
Prior to joining Unitel, he was Director of Technologies for Xytel Corporation
(1988-1996) and Chemical Engineer for the Gas Technology Institute (1967-1982).
He is a Registered Professional Engineer in Illinois and a member of Sigma Xi
and the National Society of Professional Engineers. Dr. Kao resides in
Northbrook, Illinois.
Director Since 1999
Audit Committee
L. Craig Cary Smith, age 53, is a Director of the Company. He is a 1981 graduate
of Gonzaga University Law School and was admitted to the Washington State Bar
that same year. Mr. Smith is a partner in general practice at Smith, Hemingway
and Anderson, P.S., in Spokane, Washington.
Director Since 1985
MANAGEMENT RECOMMENDS THAT THE STOCKHOLDERS VOTE FOR THE NOMINEES TO THE BOARD
OF DIRECTORS OF THE COMPANY.
MEMBERS OF THE BOARD OF DIRECTORS CONTINUING IN OFFICE
CLASS I - Three-Year Term Expiring in 2004
Michael J. Luciano, age 49, is Chairman of the Board and Chief Executive Officer
of the company. Mr. Luciano was co-owner of Morris County Sanitation Services,
E. Hanover, NJ, where he was involved in acquisitions, governmental regulatory
permitting and compliance. He is the owner of MJL Associates, a company
providing consulting services in solid waste facilities, permitting,
construction and operations.
Director Since 1998
Executive Committee
Glen Hjort, age 50, is Chief Financial Officer and Director of the Company. Mr.
Hjort received a B.S. in Accounting at the University of Illinois in 1979,
C.P.A. Certificate in 1980 and C.I.S.A. Certificate in 1993. From 1993-1996 he
was CFO for a small publicly traded franchiser and retailer where he was
responsible for all accounting, personnel and administrative functions for the
corporate offices and corporate stores. From 1996 to present, Mr. Hjort has been
sole proprietor - Accounting and Consulting Practice - servicing numerous
corporate clients in a wide variety of industries. He is a member of the
American Institute of Certified Public Accounts, Illinois CPA Society and
Information Systems Audit and Control Association.
Director Since 1998
Audit Committee, Executive Committee
CLASS II - Three-Year Term expiring 2005
Frank E. Hsu, age 57, is Chief Operating Officer and a director. He is a
registered professional engineer with 27 years of experience in design,
manufacturing and construction of air pollution control equipment and solid
waste disposal systems. Mr. Hsu holds a B.S. Degree in Civil Engineering from
Taiwan Chen Kung University, M.S. Degree in Environmental Engineering from New
Jersey Institute of Technology and an MBA Degree in Management from Fairleigh
Dickinson University, New Jersey. Prior to joining AirPol in 1990 he was the
Engineering Director of Belco Pollution Control Corp., New Jersey. In addition
to his engineering and business management background he also has extensive
experience in international sales, marketing and project execution.
Director Since 2002
Daniel D. Smozanek, age 77, is Treasurer and Director of the Company. Mr.
Smozanek was owner and President of Spring House Tree Service in Summit, New
Jersey from 1947-1972. From 1972 to Present, he has been a partner in land
development and real estate sales in Montana. During this time he was engaged in
the exploration of 29 mining claims in the Flathead National Forest. From
1980-1988, Mr. Smozanek was a partner in MADD Exploration, an affiliate of the
Company. Director Since 1985 Compensation Committee
AMEND THE COMPANY'S STOCK OPTION PLAN
The Board of Directors is proposing to amend the Company's Stock Option Plan
(the "Plan") to increase the number of shares of common stock issuable under the
Plan by THREE HUNDRED THOUSAND (300,000) shares of common stock.
The Company currently does not pay any cash compensation to its Directors,
although they are reimbursed for out-of-pocket expenses incurred in attending
meetings. Directors are compensated for their time and efforts solely through
the occasional grant of stock options. The Company believes that increasing the
number of shares in the Plan would, among other things, continue to promote the
interests of the Company and its subsidiaries and its stockholders by
attracting, retaining and stimulating the performance of officers, directors and
key salaried employees. The Board of Directors feels the proposed amendment to
increase the number of options in the Plan is of vital importance to further the
goal for future acquisitions.
MANAGEMENT RECOMMENDS A VOTE FOR ADOPTION OF THE AMENDMENT TO THE 1989
STOCK OPTION PLAN
OTHER BUSINESS
As of the date of this Proxy Statement, the Board of Directors is not aware of
any matters that will be presented for action at the 2003 Annual Meeting other
than those described above. Should other business properly be brought before the
Annual Meeting, it is intended that the accompanying Proxy will be voted thereon
in the discretion of the persons named as proxies. The Company's Annual Report
on Form 10-KSB for the fiscal year ended December 31, 2002, is enclosed with
this Proxy Statement.
PRINCIPAL SHAREHOLDERS
As of the Record Date there were 604 shareholders of record. The Company
estimates that there are approximately 2,000 beneficial shareholders. The
following table sets forth the identity of the beneficial owners of more than
five percent (5%) of the fully diluted shares of MPM Common Stock:
Common Percentage
Shareholder Stock Owned of Outstanding
- ----------- ------------ --------------
Michael J. Luciano 352,020 [1] 11.42
Richard E. Appleby 221,155 7.18
[1] Does not include 396,509 shares (12.87%) of the Company's outstanding stock
owned by a Trust for which Mr. Luciano is the Trustee.
As of the Record Date no other person or group was known by the Registrant to
own more than five percent of its common stock.
TRANSACTIONS WITH MANAGEMENT
The Company has contracted with R.D. Little Company to provide shareholder
and investor relations services. Robert D. Little, Secretary of the Company owns
R.D. Little Company.
EXECUTIVE COMPENSATION
Current Remuneration
Except as noted below during 2002, none of the officers or directors was
compensated for his services as an officer or director. Each is reimbursed for
out-of-pocket expenses incurred on Company business.
The following tables show the remuneration of officers and directors in 2002 and
2001.
SUMMARY COMPENSATION TABLE
ANNUAL COMPENSATION
Name and
Principal
Position Year Salary Bonus Compensation Award(s)($)SARsPayout(s)Compensation
Michael J. Luciano 2002 $ 25,000
Chairman & CEO 2001 $ 25,000
Robert D. Little 2002 $ 61,776
Corporate Secretary 2001 $ 71,897
Option Grants In 2002 Fiscal Year
Individual Grants
Market
% of Total Price on
Options Options Granted Exercise or Date of Expiration
Name Granted In Fiscal Year Base Price Grant Date
- ------- ------- ------------------ ---------- --------- ------------
Frank E.
Hsu 50,000 100% $0.60 $0.60 8/7/12
Aggregated Option/SAR Exercises in Last Fiscal Year and
FYE 2002 Option/SAR Values
Number of
Securities Value of
Underlying Unexercised
Unexercised In-The-Money
Options/SARs Options/SARs
Shares At FY-End (#) At FY-End
Acquired Value Exercisable/ Exercisable/
Name On Exercise Realized ($) Unexercisable Unexercisable
- ----- ----------- ------------ -------------- --------------
Michael J.
Luciano None 521,890 $130,473
Exercisable
L. Craig
Cary Smith None 200,389 $ 50,097
Exercisable
Robert D.
Little 10,000 195,223 $ 48,806
Exercisable
Glen
Hjort None 90,000 $ 22,500
Exercisable
Richard E.
Appleby None 38,000 $ 9,500
Exercisable
Daniel D.
Smozanek None 8,000 $ 2,000
Exercisable
Proposed Remuneration
- ---------------------
Except as noted above none of the directors is compensated for their services as
a director. Each is reimbursed for out-of-pocket expenses incurred on company
business. It is not contemplated that any salaries will be paid unless, and
until such time as, the company may require full time commitments from any
director.
Incentive and Compensation Plans and Arrangements
- -------------------------------------------------
The Company has a $1 million key man insurance policy on Michael J. Luciano. The
Company has no retirement, profit sharing, pension, or insurance plans covering
its other officers and directors. No advances have been made, nor are any
contemplated, by the Company to any of its officers or directors.
1989 Stock Option Plan
- ----------------------
The shareholders of the Company, at the Annual Shareholders Meeting on May 22,
1989, voted to approve the 1989 Stock Option Plan (the "Plan") a stock option
plan for selected officers, directors and employees of the Company. The purpose
of the Plan is to promote the interests of the Company and its stockholders by
attracting, retaining and stimulating the performance of selected officers,
directors and employees and giving them the opportunity to acquire a proprietary
interest in the Company's business and an increased personal interest in this
continued success and progress.
The Compensation Committee, (the "Committee") comprised of three members of the
Board of Directors, administers this Plan. The Committee has the authority in
its discretion to determine all matters relating to the options to be granted
under the Plan, including selection of the individuals to be granted options,
the number of shares to be subject to each grant, the date of grant, the
termination of the options, the option term, vesting schedules, and all other
terms and conditions thereof. Options and Stock Appreciation Rights are
evidenced by written agreements, which contain such terms and conditions as may
be determined by the Committee. The Option price at which shares may be
purchased upon exercise of a particular option are such price as may be fixed by
the Committee. The term during which options and Stock Appreciation Rights may
be granted under the Plan expires as set in the discretion of the Committee.
The aggregate number and class of shares on which options and Stock Appreciation
Rights may be granted under this Plan, the number and class of shares covered by
each outstanding option, and the exercise price per share thereof (but not the
total price), of each such option, are proportionately adjusted for any increase
or decrease in the number of issued shares of common stock of the Company
resulting from a split up or consolidation of shares, or any spin-off, spin-out,
split-up, or other distribution of assets to shareholders or any like capital
adjustment or the payment of any such stock dividend, or any other increase or
decrease in the number of shares of common stock of the Company without the
receipt of consideration by the Company or assumption and conversion of
outstanding grants due to an acquisition.
Change of Control Arrangement
- -----------------------------
There are currently no changes of control arrangements in place.
Change in and Disagreements with accountants on Accounting and Financial
Disclosure
- ------------------------------------------------------------------------
There was no change in or disagreements with accountants on Accounting and
Financial Disclosure.
Indemnification of Directors
- ----------------------------
The Washington Business Corporation Act (the "Washington Business Act") provides
that a company may indemnify its directors and officers as to certain
liabilities. The Company's Articles of Incorporation and Bylaws provide for the
indemnification of its directors and officers to the fullest extent permitted by
law. The effect of such provisions is to indemnify the directors and officers of
the Company against all costs, expenses and liabilities incurred by them in
connection with any action suit or proceeding in which they are involved by
reason of their affiliation with the Company, to the fullest extent permitted by
law.
Compliance with Section 16(a) of the Securities Exchange and Act of 1934
- ------------------------------------------------------------------------
Section 16(a) of the Securities Exchange Act of 1934 requires the directors and
executive officers, and persons who own beneficially more than five (5%) percent
of the common stock of the Company, to file reports of ownership and changes in
ownership, with the Securities and Exchange Commission. Copies of all reports
are required to be furnished to the Company pursuant to Section 16(a). Based on
the reports received by the Company, the Company believes that the directors,
officers, and greater than five (5%) percent beneficial owners, complied with
all applicable reporting requirements during the year ended December 31, 2002.
Information on Committees of the Board of Directors and Meetings
- ----------------------------------------------------------------
During the fiscal year ended December 31, 2002, the Board of Directors met ten
times. The Board of Directors has an Executive Committee, Audit Committee and
Compensation Committee. The Company has no Nominating Committee and the full
Board of Directors selects nominees for election as directors.
The Audit Committee makes recommendations concerning the engagement of
independent public accountants, reviews with the independent public accountants
the scope and results of the audit, reviews management's evaluation of the
Company's system of internal controls, and reviews non-audit professional
services provided by the independent accountants and the range of audit and
non-audit fees. The Audit Committee will also review at least annually
reimbursement of costs by the company and subsidiaries. As of December 31, 2002,
the Audit Committee consisted of Glen Hjort, Chief Financial Officer of the
Company and independent directors, Richard Kao and Anthony Lee. Mr. Lee retired
from the Board of Directors on March 6, 2003.
The Compensation Committee establishes salaries, incentives and other forms of
compensation for directors, officers and other key employees of the Company,
administers the 1989 Stock Option Plan and recommends policies relating to
benefit plans. The Compensation Committee currently consists of Daniel D.
Smozanek and Richard E. Appleby.
The Executive Committee possesses all of the powers of the Board except the
power to issue stock, approve mergers and acquisitions with nonaffiliated
corporations, or declare dividends and certain other powers specifically
reserved by Washington State law to the Board. The Executive Committee currently
consists of Michael J. Luciano and Glen Hjort.
STOCKHOLDER PROPOSALS FOR 2002 ANNUAL MEETING
The deadline for submitting stockholder proposals for inclusion in the Company's
Proxy Statement and form of Proxy for the Company's annual meeting was March 1,
2003. Such proposals must be submitted in writing and should be sent to the
attention of the Secretary of the Corporation.
FORM 10-KSB
Any shareholder of record may obtain a copy of the Corporation's Annual Report
on Form 10-KSB for the fiscal year ended December 31, 2002, by written request
to the Company. Executive Offices are located at 199 Pomeroy Road, Parsippany,
NJ 07054.
BY ORDER OF THE BOARD OF DIRECTORS
Robert D. Little
Corporate Secretary
MPM TECHNOLOGIES INC.
THIS PROXY IS SOLICITED BY THE BOARD OF DIRECTORS FOR
THE 2003 ANNUAL MEETING OF STOCKHOLDERS AT 199 POMEROY ROAD
PARSIPPANY, NEW JERSEY ON JUNE 27, 2003, 9:00 A.M.
-------------------
The undersigned appoints Michael J. Luciano and Robert D. Little, or each of
them proxies of the undersigned, with full power of substitution, to vote all
shares of MPM Technologies, Inc., the undersigned is entitled to vote at the
Annual Meeting of Stockholders to be held or at any adjournment thereof, with
all powers the undersigned would have if personally present.
THE SHARES WILL BE VOTED AS DIRECTED WITH RESPECT TO OTHER MATTERS OF BUSINESS
PROPERLY BROUGHT BEFORE THE MEETING, AS THE PROXIES SHALL DECIDE. IF NO
DIRECTION IS MADE, THIS PROXY WILL BE VOTED FOR PROPOSALS 1 and 2.
MANAGEMENT RECOMMENDS VOTING FOR THE FOLLOWING PROPOSALS.
1. ELECTION OF DIRECTORS
[ ] FOR all nominees listed below (except as marked). To withhold
authority for any individual, place an N next to that person's name.
___ Richard E. Appleby ___ Richard Kao ___ L. Craig Cary Smith
[ ] WITHHOLD AUTHORITY to vote for all nominees listed above.
2. TO APPROVE THE AMENDMENT TO THE 1989 STOCK OPTION PLAN
[ ] FOR [ ] AGAINST [ ] ABSTAIN
3. IN THEIR DISCRETION, THE PROXIES ARE AUTHORUZED TO VOTE UPON SUCH OTHER
BUSINESS AS PROPERLY MAY COME BEFORE THE MEETING.
Sign exactly as your name appears hereon. When signing in a representative or
fiduciary capacity, indicate title. If shares are held jointly, each holder
should sign. For a corporation, a duly authorized officer who should state
his/her title should sign the full corporation name. For a partnership, an
authorized person should sign in partnership name.
Date _________________, 2003.
Signature_______________________ Signature Partnership_________________________
Signature_______________________ Signature Corporation ________________________
(If jointly held)