SCHEDULE 14A
(Rule 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a)
of the Securities Exchange Act of 1934 (Amendment No. )
Filed by the registrant |X|
Filed by a party other than the registrant |_|
Check the appropriate box:
|_| Preliminary Proxy Statement
|_| Confidential, for Use of the Commission only (as permitted by
Rule 14a-6(e)2)
|X| Definitive Proxy Statement
|_| Definitive Additional Materials
|_| Soliciting Material Pursuant to Rule 14a-11(c) or Rule
14(a)-12
The Millbrook Press Inc.
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(Name of Registrant as Specified in Charter)
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(Name of Person(s) filing Proxy Statement, if other than Registrant)
Payment of filing fee (check the appropriate box):
|X| No fee required.
|_| Fee computed on table below per Exchange Act Rules 14a-6(i)(1)
and 0-11.
(1) Title of each class of securities to which transaction
applies:
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(2) Aggregate number of securities to which transaction applies:
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(3) Per unit price or other underlying value of transaction
computed pursuant to Exchange Act Rule 0-11 (Set forth the
amount on which the filing fee is calculated and state how it
was determined):
--------------------------------------------------------------------------------
(4) Proposed maximum aggregate value of transaction:
(5) Total fee paid:
|_| Fee paid previously with preliminary materials.
|_| Check box if any part of the fee is offset as provided by
Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting
fee was paid previously. Identify the previous filing by registration statement
number, or the form or schedule and the date of its filing.
(1) Amount Previously Paid:
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(2) Form, Schedule or Registration Statement no.:
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(3) Filing Party:
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(4) Date Filed:
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THE MILLBROOK PRESS INC.
--------------
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
TO BE HELD NOVEMBER 30, 2000
--------------
To the Stockholders:
NOTICE IS HEREBY GIVEN that the Annual Meeting of Stockholders (the
"Meeting") of THE MILLBROOK PRESS INC., a Delaware corporation (the "Company"),
will be held at The Harmonie Club, 4 East 60th Street, New York, New York 10022,
on November 30, 2000, at 10:00 A.M., Local Time, for the following purposes:
1. To elect six (6) members of the Board of Directors to serve
until the next annual meeting of stockholders and until their
successors have been duly elected and qualified;
2. To ratify the appointment of Arthur Andersen LLP as the
Company's independent auditors for the year ending July 31, 2001; and
3. To transact such other business as may properly be brought
before the Meeting or any adjournment thereof.
The Board of Directors has fixed the close of business on October 30,
2000 as the record date for the Meeting. Only stockholders of record on the
stock transfer books of the Company at the close of business on that date are
entitled to notice of, and to vote at, the Meeting.
By Order of the Board of Directors
DAVID ALLEN,
Secretary
Dated: November 2, 2000
WHETHER OR NOT YOU EXPECT TO BE PRESENT AT THE MEETING, YOU ARE URGED
TO FILL IN, DATE, SIGN AND RETURN THE ENCLOSED PROXY IN THE ENVELOPE THAT IS
PROVIDED, WHICH REQUIRES NO POSTAGE IF MAILED IN THE UNITED STATES.
<PAGE>
THE MILLBROOK PRESS INC.
2 OLD NEW MILFORD ROAD
BROOKFIELD, CONNECTICUT 06804
----------------
PROXY STATEMENT
FOR
ANNUAL MEETING OF STOCKHOLDERS
NOVEMBER 30, 2000
----------------
INTRODUCTION
This Proxy Statement is being furnished to stockholders by the Board of
Directors of THE MILLBROOK PRESS INC., a Delaware corporation (the "Company"),
in connection with the solicitation of the accompanying Proxy for use at the
2000 Annual Meeting of Stockholders of the Company (the "Meeting") to be held at
The Harmonie Club, 4 East 60th Street, New York, New York 10022, on November 30,
2000, at 10:00 A.M., Local Time, or at any adjournment thereof.
The principal executive offices of the Company are located at 2 Old New
Milford Road, Brookfield, Connecticut 06804. The approximate date on which this
Proxy Statement and the accompanying Proxy will first be sent or given to
stockholders is November 2, 2000.
RECORD DATE AND VOTING SECURITIES
Only stockholders of record at the close of business on October 30,
2000, the record date (the "Record Date") for the Meeting, will be entitled to
notice of, and to vote at, the Meeting and any adjournment thereof. As of the
close of business on the Record Date, there were 2,859,887 outstanding shares of
the Company's common stock, $.01 par value (the "Common Stock"). Each of such
shares is entitled to one vote. There was no other class of voting securities of
the Company outstanding on that date. All shares of Common Stock have equal
voting rights. A majority of the outstanding shares of Common Stock present in
person or by proxy is required for a quorum.
VOTING OF PROXIES
Shares of Common Stock represented by Proxies, which are properly
executed, duly returned and not revoked will be voted in accordance with the
instructions contained therein. If no specification is indicated on the Proxy,
the shares of Common Stock represented thereby will be voted (i) for the
election as Directors of the persons who have been nominated by the Board of
Directors, (ii) for the ratification of the appointment of Arthur
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Andersen LLP as the Company's independent auditors for the year ending July 31,
2001, and (iii) for any other matter that may properly be brought before the
Meeting or any adjournment thereof in accordance with the judgment of the person
or persons voting the Proxies.
The execution of a Proxy will in no way affect a stockholder's right to
attend the Meeting and vote in person. Any Proxy executed and returned by a
stockholder may be revoked at any time thereafter if written notice of
revocation is given to the Secretary of the Company prior to the vote to be
taken at the Meeting, or by execution of a subsequent proxy which is presented
to the Meeting, or if the stockholder attends the Meeting and votes by ballot,
except as to any matter or matters upon which a vote shall have been cast
pursuant to the authority conferred by such Proxy prior to such revocation. For
purposes of determining the presence of a quorum for transacting business at the
Meeting, abstentions and broker "non-votes" (i.e., proxies from brokers or
nominees indicating that such persons have not received instructions from the
beneficial owner or other persons entitled to vote shares on a particular matter
with respect to which the brokers or nominees do not have discretionary power)
will be treated as shares that are present but which have not been voted. Broker
non-votes will have no effect on the election of directors. Abstentions may be
specified on all proposals (except the election of directors) and will be
counted as present for purposes of the item on which the abstention is noted.
The cost of solicitation of the Proxies being solicited on behalf of
the Board of Directors will be borne by the Company. In addition to the use of
the mails, proxy solicitation may be made by telephone, telegraph and personal
interview by officers, directors and employees of the Company. The Company will,
upon request, reimburse brokerage houses and persons holding Common Stock in the
names of their nominees for their reasonable expenses in sending soliciting
material to their principals.
SECURITY OWNERSHIP
The following table sets forth information concerning ownership of the
Company's Common Stock, as of the Record Date, by each person known by the
Company to be the beneficial owner of more than five percent of the Common
Stock, each director, each executive officer, and nominee for election as a
director and by all directors and executive officers of the Company as a group.
Unless otherwise indicated, the address for directors, executive offices and 5%
stockholders is 2 Old New Milford Road, Brookfield, Connecticut 06804.
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Name and Address Shares Percentage
Of Beneficial Owner Beneficially Owned of Class(1)
------------------- ------------------ -----------
Barry Fingerhut 1,466,035 (2)(24) 45.0%
767 Fifth Avenue, 45th Floor
New York, NY 10153
Irwin Lieber 1,441,535 (3)(24) 44.2%
767 Fifth Avenue, 45th Floor
New York, NY 10153
Barry Rubenstein 1,437,536 (4)(24) 44.1%
68 Wheatley Road
Brookville, NY 11545
Harvey Sandler 1,096,261 (5)(24) 36.7%
767 Fifth Avenue, 45th Floor
New York, NY 10153
John Kornreich 1,085,917 (6)(24) 36.4%
767 Fifth Avenue, 45th Floor
New York, NY 10153
Barry Lewis 1,085,917 (7)(24) 36.4%
767 Fifth Avenue, 45th Floor
New York, NY 10153
Michael J. Marocco 1,085,917 (8)(24) 36.4%
767 Fifth Avenue, 45th Floor
New York, NY 10153
Andrew Sandler 1,072,988 (9)(24) 35.9%
767 Fifth Avenue, 45th Floor
New York, NY 10153
21st Century Communications 1,068,678(10)(24) 35.8%
Foreign Partners, L.P.
c/o Fiduciary Trust (Cayman) Limited
P.O. Box 1062
Grand Cayman, B.W.I.
21st Century Communications 1,068,678(11)(24) 35.8%
Partners, L.P.
767 Fifth Avenue, 45th Floor
New York, NY 10153
21st Century Communications 1,068,678(12)(24) 35.8%
T-E Partners, L.P.
767 Fifth Avenue, 45th Floor
New York, NY 10153
Applewood Capital Corp. 200,000(13)(24) 6.5%
80 Cutter Mill Road
Great Neck, NY 11021
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Name and Address Shares Percentage
Of Beneficial Owner Beneficially Owned of Class(1)
------------------- ------------------ -----------
Jonathan Lieber 208,310(14)(22) 6.8%
767 Fifth Avenue, 45th Floor
New York, NY 10153
Seth Lieber 208,310(15)(24) 6.8%
767 Fifth Avenue, 45th Floor
New York, NY 10153
Wheatley Partners II, L.P. 200,000(16)(24) 6.5%
(formerly Applewood
Associates, L.P.)
80 Cutter Mill Road
Great Neck, NY 11021
Pamela Fingerhut 197,357(17)(24) 6.7%
767 Fifth Avenue, 45th Floor
New York, NY 10153
Frank J. Farrell 172,422 (18) 5.8%
Howard Graham 198,525 (19) 6.7%
Jean E. Reynolds 68,672 (20) 2.3%
Jeffrey Conrad 117,500 (21) 3.9%
David Allen 15,000 (22) *
Richard McCullough - (22) *
Hannah Stone 2,586 *
Bruno A. Quinson - (22) *
Joseph Kanon - (22) *
All directors and executive 574,705 (23) 17.6%
officers as a group (9 persons)
--------------------
*Less than 1%
(1) Beneficial ownership is determined in accordance with the rules of the
Securities and Exchange Commission ("Commission") and generally
includes voting or investment power with respect to securities, shares
of Common Stock upon the exercise of options, warrants currently
exercisable, or exercisable or convertible within 60 days, are deemed
outstanding for computing the percentage ownership of the person
holding such options or warrants but are not deemed outstanding for
computing the percentage ownership of any other person.
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(2) Represents (i) 108,357 shares of Common Stock owned by Mr. Fingerhut,
(ii) an aggregate of 943,678 shares of Common Stock owned by 21st
Century Communications Partners, L.P. ("21st Partners"), 21st Century
Communications T-E Partners, L.P. ("21st T-E") and 21st Century
Communications Foreign Partners, L.P. ("21st Foreign"),(iii) 200,000
shares of Common Stock issuable upon the exercise of presently
exercisable warrants ("Bridge Warrants") held by Wheatley Partners II,
L.P., formerly Applewood Associates, L.P. ("Wheatley") issued in an
August 1996 Bridge Financing ("Bridge Financing"), (iv) 125,000 shares
of Common Stock issuable upon the exercise of presently exercisable
Bridge Warrants held by 21st Partners, 21st T-E, and 21st Foreign, (v)
14,000 shares owned by Pamela Fingerhut, the wife of Mr. Fingerhut and
(vi) 75,000 shares of Common Stock issuable upon exercise of Bridge
Warrants held by Mr. Fingerhut. By virtue of being a shareholder,
officer and director of InfoMedia Associates, L.P. ("InfoMedia") which
is a general partner of 21st Partners, 21st T-E and 21st Foreign, a
general partner of Wheatley, and the husband of Pamela Fingerhut, Mr.
Fingerhut may be deemed to have shared power to vote and to dispose of
1,282,678 shares of Common Stock owned by such recordholders, of which
Mr. Fingerhut disclaims beneficial ownership, except to the extent of
his equity interest in such recordholders.
(3) Represents (i) 97,857 shares owned by Mr. Lieber, (ii) 943,678 shares
of Common Stock owned by 21st Partners, 21st T-E and 21st Foreign,(iii)
200,000 shares of Common Stock issuable upon the exercise of presently
exercisable Bridge Warrants held by Wheatley, (iv) 125,000 shares of
Common Stock issuable upon the exercise of presently exercisable Bridge
Warrants held by 21st Partners, 21st T-E and 21st Foreign and (v)
75,000 shares of Common Stock issuable upon the exercise of presently
exercisable Bridge Warrants held by Mr. Lieber. By virtue of being a
shareholder, officer and director of InfoMedia which is a general
partner of 21st Partners, 21st T-E and 21st Foreign, and a general
partner of Wheatley, Mr. Lieber may be deemed to have shared power to
vote and dispose of the shares of Common Stock owned by 21st Partners,
21st T-E and 21st Foreign and Wheatley. Mr. Lieber disclaims beneficial
ownership of the securities owned by 21st Partners, 21st T-E and 21st
Foreign and Wheatley, except to the extent of his equity interest in
such recordholders.
(4) Represents (i) an aggregate of 943,678 shares of Common Stock owned by
21st Partners, 21st T-E and 21st Foreign, (ii) 89,858 shares of Common
Stock owned by Woodland Partners ("Woodland"), (iii) 275,000 shares of
Common Stock issuable upon the exercise of presently exercisable Bridge
Warrants held by Wheatley and Woodland, (iv) 125,000 shares of Common
Stock issuable upon presently exercisable Bridge Warrants held by 21st
Partners, 21st T-E and 21st Foreign and (v) 4,000 shares owned by Brian
Rubenstein, the son of Barry Rubenstein. By virtue of being a
shareholder, officer and director of InfoMedia which is a general
partner of 21st Partners, 21st T-E and 21st Foreign and a general
partner of Wheatley and Woodland, Mr. Rubenstein may be deemed to have
shared power to vote and dispose of the securities owned by
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21st Partners, 21st T-E and 21st Foreign, Wheatley and Woodland and the
father of Brian Rubenstein. Mr. Rubenstein disclaims beneficial
ownership of all of the above securities except to the extent of his
equity interest in such recordholders.
(5) Represents (i) 27,583 shares of Common Stock owned by Mr. Sandler, (ii)
943,678 shares of Common Stock owned by 21st Partners, 21st T-E and
21st Foreign and (iii) 125,000 shares of Common Stock issuable upon the
exercise of presently exercisable Bridge Warrants held by 21st
Partners, 21st T-E and 21st Foreign. By virtue of being the majority
shareholder and director of an entity which is a general partner of an
entity which is the general partner of another entity which is a
general partner of 21st Partners, 21st T-E and 21st Foreign, Mr.
Sandler may be deemed to have shared power to vote and to dispose of
the securities owned by 21st Partners, 21st T-E and 21st Foreign, of
which Mr. Sandler disclaims beneficial ownership.
(6) Represents (i) 17,239 shares of Common Stock owned by Mr. Kornreich,
(ii) 943,678 shares of Common Stock owned by 21st Partners, 21st T-E
and 21st Foreign and (iii) 125,000 shares of Common Stock issuable upon
the exercise of presently exercisable Bridge Warrants held by 21st
Partners, 21st T-E and 21st Foreign. By virtue of being the majority
shareholder and director of an entity which is a general partner of an
entity which is the general partner of another entity which is a
general partner of 21st Partners, 21st T-E and 21st Foreign, Mr.
Kornreich may be deemed to have shared power to vote and to dispose of
the securities owned by 21st Partners, 21st T-E and 21st Foreign, of
which Mr. Kornreich disclaims beneficial ownership.
(7) Represents (i) 17,239 shares of Common Stock owned by Mr. Lewis, (ii)
943,678 shares of Common Stock owned by 21st Partners, 21st T-E and
21st Foreign and (iii) 125,000 shares of Common Stock issuable upon the
exercise of presently exercisable Bridge Warrants held by 21st
Partners, 21st T-E and 21st Foreign. By virtue of being the majority
shareholder and director of an entity which is a general partner of an
entity which is the general partner of another entity which is a
general partner of 21st Partners, 21st T-E and 21st Foreign, Mr. Lewis
may be deemed to have shared power to vote and to dispose of the
securities owned by 21st Partners, 21st T-E and 21st Foreign, of which
Mr. Lewis disclaims beneficial ownership.
(8) Represents (i) 17,239 shares of Common Stock owned by Mr. Marocco, (ii)
an aggregate of 943,678 shares of Common Stock owned by 21st Partners,
21st T-E and 21st Foreign and (iii) 125,000 shares of Common Stock
issuable upon the exercise of presently exercisable Bridge Warrants
held by 21st Partners, 21st T-E and 21st Foreign. By virtue of being
the sole shareholder, officer and director of an entity which is a
general partner of an entity which is the general partner of another
entity which is a general partner of 21st Partners, 21st T-E and 21st
Foreign, Mr. Marocco may be deemed to have shared power to vote and to
dispose of the securities owned by 21st Partners, 21st T-E and 21st
Foreign, of which Mr. Marocco disclaims beneficial ownership.
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(9) Represents (i) 4,310 shares of Common Stock owned by Mr. Sandler, (ii)
an aggregate of 943,678 shares of Common Stock owned by 21st Partners,
21st T-E and 21st Foreign and (iii) 125,000 shares of Common Stock
issuable upon the exercise of presently exercisable Bridge Warrants
held by 21st Partners, 21st T-E and 21st Foreign. By virtue of being
the majority shareholder and director of an entity which is a general
partner of an entity which is the general partner of another entity
which is a general partner of 21st Partners, 21st T-E and 21st Foreign,
Mr. Sandler may be deemed to have shared power to vote and to dispose
of the securities owned by 21st Partners, 21st T-E and 21st Foreign, of
which Mr. Sandler disclaims beneficial ownership.
(10) Represents (i) 86,142 shares of Common Stock owned by 21st Foreign,
(ii) 639,840 shares of Common Stock and 217,696 shares of Common Stock
owned by 21st Partners and 21st T-E, respectively, of which 21st
Foreign disclaims beneficial ownership, (iii) 11,500 shares of Common
Stock issuable upon the exercise of presently exercisable Bridge
Warrants held by 21st Foreign and (iv) 28,500 and 85,000 shares of
Common Stock issuable upon the exercise of presently exercisable Bridge
Warrants held by 21st T-E and 21st Partners, respectively. The general
partners of 21st Foreign are Sandler Investment Partners, L.P., a New
York limited partnership ("Sandler General Partner") and InfoMedia. The
general partner of the Sandler General Partner is Sandler Capital
Management, a New York general partnership ("SCM"). The general
partners of SCM are corporations that are affiliates of Harvey Sandler,
Barry Lewis, John Kornreich, Michael Marocco and Andrew Sandler.
Infomedia's shareholders are Irwin Lieber, Barry Fingerhut and Barry
Rubenstein.
(11) Represents (i) 639,840 shares of Common Stock owned by 21st Partners,
(ii) 217,696 shares of Common Stock and 86,142 shares of Common Stock
owned by 21st T-E and 21st Foreign, respectively, of which 21st
Partners disclaims beneficial ownership (iii) 85,000 shares of Common
Stock issuable upon the exercise of presently exercisable Bridge
Warrants held by 21st Partners and (iv) 11,500 and 28,500 shares of
Common Stock issuable upon the exercise of presently exercisable Bridge
Warrants held by 21st Foreign and 21st T-E, respectively, of which 21st
Partners disclaims beneficial ownership. The general partners of 21st
Partners are the Sandler General Partner and InfoMedia. The general
partner of the Sandler General Partner is SCM. The general partners of
SCM are corporations that are affiliates of one or more of Harvey
Sandler, Barry Lewis, John Kornreich, Michael Marocco and Andrew
Sandler. InfoMedia's shareholders are Irwin Lieber, Barry Fingerhut and
Barry Rubenstein.
(12) Represents (i) 217,696 shares of Common Stock owned by 21st T-E, (ii)
639,840 shares of Common Stock and 86,142 shares of Common Stock owned
by 21st Partners and 21st Foreign, respectively, of which 21st T-E
disclaims beneficial ownership, (iii) 28,500 shares of Common Stock
issuable upon the exercise of
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presently exercisable Bridge Warrants held by 21st T-E and (iv) 11,500
and 85,000 shares of Common Stock issuable upon the exercise of
presently exercisable Bridge Warrants held by 21st Foreign and 21st
Partners, respectively, of which 21st T-E disclaims beneficial
ownership. The general partners of 21st Partners are the Sandler
General Partner and InfoMedia. The general partner of the Sandler
General Partner is SCM. The general partners of SCM are corporations
that are affiliates of one or more of Harvey Sandler, Barry Lewis, John
Kornreich, Michael Marocco and Andrew Sandler. Infomedia's shareholders
are Irwin Lieber, Barry Fingerhut and Barry Rubenstein.
(13) By virtue of being a general partner of Wheatley, Applewood Capital
Corp. ("Applewood Capital") has shared dispositive and voting power
with respect to 200,000 shares of Common Stock issuable upon exercise
of presently exercisable Bridge Warrants held by Wheatley.
(14) Represents (i) 8,310 shares of Common Stock owned by Mr. Lieber, and
(ii) 200,000 shares of Common Stock issuable upon the exercise of
presently exercisable Bridge Warrants held by Wheatley. By virtue of
being an affiliate of an entity which is a general partner of Wheatley,
Mr. Lieber may be deemed to have shared power to vote and dispose of
the shares of Common Stock owned by Wheatley. Mr. Lieber disclaims
beneficial ownership with respect to the securities owned by Wheatley,
except to the extent of his equity interest in such recordholder.
Jonathan Lieber is the son of Irwin Lieber.
(15) Represents (i) 8,310 shares of Common Stock owned by Mr. Lieber, and
(ii) 200,000 shares of Common Stock issuable upon the exercise of
presently exercisable Bridge Warrants held by Wheatley. By virtue of
being an affiliate of an entity which is a general partner of Wheatley,
Mr. Lieber may be deemed to have shared power to vote and dispose of
the shares of Common Stock owned by Wheatley. Mr. Lieber disclaims
beneficial ownership with respect to the securities owned by Wheatley,
except to the extent of his equity interest in such recordholder. Seth
Lieber is the son of Irwin Lieber.
(16) Represents 200,000 shares of Common Stock issuable upon the exercise of
presently exercisable Bridge Warrants. The general partners of Wheatley
are Irwin Lieber, Barry Rubenstein, Barry Fingerhut and Applewood
Capital.
(17) Represents (i)14,000 shares of Common Stock owned by Pamela Fingerhut
and (ii) 108,357 shares of Common Stock and 75,000 shares of Common
Stock issuable upon the exercise of presently exercisable Bridge
Warrants owned by Barry Fingerhut, the husband of Pamela Fingerhut.
Pamela Fingerhut disclaims beneficial ownership of the shares of Common
Stock and Bridge Warrants owned by Barry Fingerhut.
(18) Includes 102,913 shares of Common Stock issuable upon presently
exercisable options.
(19) Represents 111,246 shares of Common Stock issuable upon presently
exercisable options, 12,500 shares of Common Stock issuable upon
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presently exercisable Bridge Warrants which are owned by Mr. Graham and
his wife as joint tenants, and 74,779 shares of Common Stock which are
owned by Mr. Graham and his wife as joint tenants.
(20) Includes 54,166 shares of Common Stock issuable upon presently
exercisable options.
(21) Consists of 105,000 shares of Common Stock issuable upon presently
exercisable options and 12,500 shares of Common Stock issuable upon
presently exercisable Bridge Warrants.
(22) Consists of shares issuable upon presently exercisable options.
(23) Includes 373,325 shares of Common Stock issuable upon presently
exercisable options, 12,500 shares of Common Stock issuable upon
presently exercisable Bridge Warrants held by Mr. Graham and 12,500
shares of Common Stock issuable upon presently exercisable Bridge
Warrants held by Mr. Conrad. Does not include shares or presently
exercisable Bridge Warrants held by 21st Foreign, 21st Partners and
21st T-E. Hannah Stone is Managing Director of SCM which is the
general partner of Sandler General Partner which is a general partner
of 21st Partners, 21st Foreign and 21st T-E.
(24) With respect to Wheatley, Barry Rubenstein, Irwin Lieber, Barry
Fingerhut, Applewood Capital, Seth Leiber, Jonathan Lieber and Pamela
Fingerhut the foregoing information is derived from a Schedule 13D
filed with the Commission by such individuals or entities on June 29,
1997, as amended through March 13, 2000. With respect to 21st Partners,
21st T-E, 21st Foreign, Harvey Sandler, Barry Lewis, Michael J.
Marocco, John Kornreich and Andrew Sandler, the foregoing information
is derived from a Schedule 13D filed with the Commission by such
individuals or entities on June 29, 1997.
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PROPOSAL I--ELECTION OF DIRECTORS
Nominees
Unless otherwise specified, all Proxies received will be voted in favor
of the election of the persons named below as directors of the Company, to serve
until the next Annual Meeting of Stockholders of the Company and until their
successors shall be duly elected and qualified. Directors shall be elected by a
plurality of the votes cast, in person or by proxy, at the Meeting. Abstentions
from voting and broker nonvotes on the election of directors will have no effect
since they will not represent votes cast at the Meeting for the purpose of
electing directors. All nominees are currently directors of the Company. The
terms of the current directors expire at the Meeting and when their successors
are duly elected and qualified. Management has no reason to believe that any of
the nominees will be unable or unwilling to serve as a director, if elected.
Should any of the nominees not remain a candidate for election at the date of
the Meeting, the Proxies will be voted in favor of those nominees who remain
candidates and may be voted for substitute nominees selected by the Board of
Directors. The names of the nominees and certain information concerning them are
set forth below:
First
Year
Became
Name Age Director
---- --- --------
Howard Graham 70 1989
Jeffrey Conrad 57 1997
Frank J. Farrell 64 1989
Hannah Stone 35 1997
Bruno A. Quinson 62 1999
Joseph Kanon 54 1999
HOWARD GRAHAM, one of the Company's founders, has been a director of
the Company since its inception in 1989, served as a Vice-President since the
Company's inception in 1989 until December 1997 and has been Chairman of the
Board of the Company since October 1997. From 1970 to 1988, Mr. Graham served in
various senior management positions at Grolier, Inc. ("Grolier") and its
subsidiaries, including President of Grolier International and executive Vice
President of Grolier. He also served on Grolier's board of directors from 1983
to 1988. Mr. Graham currently serves as a director of the Save the Children
Fund, a nonprofit corporation.
JEFFREY CONRAD served as President and Chief Executive Officer of the
Company since October 1996. From March 1992 to October 1996, Mr. Conrad served
in various capacities at Larousse Kingfisher Chambers Inc., a subsidiary of the
British publishing company Larousse PLC, most recently as President and Chief
Executive Officer from January 1993 to October
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1996. Prior thereto, Mr. Conrad was the Executive Vice President of Garland
Press, an academic and reference publisher from 1981 to March 1992.
FRANK J. FARRELL, one of the Company's founders, has been a director of
the Company since its inception and served as a Vice President and Secretary
since its inception until December 1996. From 1978 to 1989, Mr. Farrell served
in various senior management positions with Grolier and its subsidiaries,
including President of Grolier Educational Corporation and President of Grolier
Electronic Publishing, Inc. and Group Vice President of Grolier's domestic
reference materials operations. He also served on Grolier's board of directors
from 1988 to 1989.
HANNAH STONE has served as a director of the Company since June 1997.
Ms. Stone is Managing Director of Sandler Capital Management, which she joined
in 1993. Sandler Capital Management, through affiliates, is involved in the
management of 21st Partners, 21st T-E and 21st Foreign. Ms. Stone also serves as
a director of several private companies.
BRUNO A. QUINSON has served as a director of the Company since November
1999. Mr. Quinson served as Chief Executive Officer of Henry Holt and Co., Inc.
Prior to that Mr. Quinson was President of the General Books Division at the
Macmillan Publishing Co. Currently Mr. Quinson serves as a consultant to the
Publishing Industry.
JOSEPH KANON has served as a director of the Company since November
1999. Mr. Kanon served as Executive Vice President for Trade and Reference
Publishing at Houghton Mifflin Inc. from 1995 to 1997. Prior to that Mr. Kanon
was Chief Executive Officer of E.P. Dutton. Mr. Kanon is currently an author and
has published two best-selling novels.
The Board of Directors has a Stock Option and Compensation Committee
which administers the Company's 1994 Stock Option Plan (the "Plan") and makes
recommendations concerning salaries, incentive compensation for employees of and
consultants to the Company, and an Audit Committee which reviews the results and
scope of the audit and other services provided by the Company's independent
accountants. The Stock Option and Compensation Committee is composed of Mr.
Graham and Ms. Stone. The Audit Committee is composed of Mr. Farrell, Ms. Stone
and Mr. Quinson. The Company also has a Finance Committee to review potential
equity or debt financings. Such Finance Committee consists of Mr. Graham, Ms.
Stone and Mr. Kanon. The Company presently does not have a Nominating Committee,
the customary functions of such committee being performed by the entire Board of
Directors.
Director Compensation
The Company's internal directors are not compensated for attendance at
meetings. The Company currently compensates its outside directors for services
rendered in their capacity as directors at a rate of $1,000 per meeting.
11
<PAGE>
Meetings
The Board of Directors held three (3) meetings, during the year ended
July 31, 2000. From time to time, the members of the Board of Directors act by
unanimous written consent pursuant to the laws of the State of Delaware.
Other Executive Officers
JEAN E. REYNOLDS, 58, one of the Company's founders, has served as
Senior Vice President-Publisher since October 1996 and as President of the
Company from its inception in 1989 to October 1996. From 1970 to 1981, Ms.
Reynolds served in various management positions at Grolier, including the
editor-in-chief of Young People's Publications and of The New Book of Knowledge.
Ms. Reynolds is a director of the Book Industry Study Group and chairs its
Juvenile Interest Group, which monitors industry statistics. She is a director
of the industry trade organization, The Children's Book Council. She also serves
as a director of Kiper Enterprises, Inc., a private company specializing in
first aid materials and Wellington Leisure Products, Inc., a private company
specializing in the manufacturing of rope, craft and watersports material. On
June 1, 2000, Ms. Reynolds was elected Executive Vice President and Publisher of
the Company.
DAVID ALLEN, 45, has been Vice President and Chief Financial Officer of
the Company since February 1999. Prior thereto, Mr. Allen was (i) Vice President
of JDM, Inc. from December 1996 to December 1998, and (ii) Vice President, Atlas
Editions, Inc. formerly GMH Marketing, from June 1985 to December 1996. On June
1, 2000, Mr. Allen was named Executive Vice President and Chief Operating
Officer of the Company.
RICHARD McCULLOUGH, 50, has served as Vice President of Trade Sales for
the Company since July 1999. Previously, Mr. McCullough was (i) an independent
consultant from July 1997 to July 1999, (ii) Director Trade Sales and Marketing
for McGraw Hill from 1993 to 1997, and (iii) Vice President Sales for John Wiley
& Sons from 1980 to 1993.
Recommendation
THE BOARD OF DIRECTORS RECOMMENDS A VOTE FOR THE ELECTION OF EACH OF THE
NOMINEES FOR DIRECTOR.
Executive Compensation
The following table sets forth, for the Company's 2000 fiscal year, all
compensation awarded to, earned by or paid to the President and Chief Executive
Officer ("CEO") and the most highly compensated executive officers of the
Company other than the CEO who were executive officers of the Company at the end
of the fiscal year ended July 31, 2000 and whose salaries and bonus exceeded
$100,000 (three individuals) with respect to the fiscal year ended July 31,
2000.
12
<PAGE>
SUMMARY COMPENSATION TABLE
<TABLE>
<CAPTION>
Annual Compensation Long Term Compensation
------------------- ----------------------
Other Annual All Other
Name and Principal Compensation Number of Compensation
Position Year Salary($) Bonus($) ($)(1) Options ($)
-------- ---- --------- -------- ------ ------- ---
<S> <C> <C> <C> <C> <C> <C>
Jeffrey Conrad, 2000 $200,000 $30,000 - 20,000 -
President and Chief 1999 200,000 - - - -
Executive Officer 1998 200,000 - - 50,000 -
Jean E. Reynolds, 2000 $137,500 $7,000 - 10,000 -
Executive Vice 1999 130,000 - - - -
President and 1998 130,000 - - - -
Publisher
David Allen (2), 2000 $153,000 $15,000 - 25,000 -
Chief Financial 1999 75,000 - - - -
Officer, Executive
Vice President,
Chief Operating
Officer and
Secretary
Richard McCullough, 2000 $125,000 $20,000 - 10,000 -
Vice President Trade
Sales and Marketing (3)
</TABLE>
(1) Perquisites and other personal benefits, securities or property to each
executive officer did not exceed the lesser of $50,000 or 10% of such
executive officer's salary and bonus.
(2) Mr. Allen's employment with the Company commenced February 1999.
(3) Mr. McCullough's employment with the Company commenced July 1999.
Aggregated Option Exercises in Last Fiscal Year and Fiscal Year End Option
Values
No options were exercised by the named executive officers during the
fiscal year ended July 31, 2000. The following table provides information
related to the number of options held by the named executive officers at fiscal
year end. All of such options have an exercise price which is greater than $2.00
, which was the closing price of the Common Stock on July 31, 2000 as reported
on the NASDAQ SmallCap market. Accordingly, as of July 31, 2000, none of such
options were in the money.
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<PAGE>
Number of Securities Underlying
Name Unexercised Options at FY-End
(#)
-----------------------------------
Exercisable Unexercisable
----------- -------------
Jeffrey Conrad . . . . . . 105,000 45,000
Jean E. Reynolds . . . . . 54,166 10,000
David Allen . . . . . . . . . 0 25,000
Richard McCullough . . 0 10,000
Employment Contracts with Executive Officers
The Company has entered into an employment agreement with Jeffrey
Conrad pursuant to which he is employed on a full-time basis as the Company's
Chief Executive Officer and President. The term of the employment agreement
expires in July 2002, and is automatically renewable for a one-year term unless
either party terminates the employment agreement at least thirty (30) days prior
to the expiration of the initial term or any subsequent term. Mr. Conrad's
annual base cash compensation under the employment agreement is $215,000 for the
fiscal years ending July 31, 2001 and 2002. For the fiscal year ended July 31,
2000 Mr. Conrad's base compensation was $200,000 and Mr. Conrad also received a
bonus of $30,000. In the event of a change of control of the Company as deemed
in Mr. Conrad's employment agreement, Mr. Conrad shall be entitled to his annual
salary for one year. Mr. Conrad has agreed not to compete with the Company
during the term of his employment agreement and for a period of two years
thereafter.
The Company has entered into an employment agreement with Jean E.
Reynolds pursuant to which she is employed on a full-time basis as the Company's
Executive Vice President - Publisher. The term of the employment agreement
expires in September 2001. Ms. Reynolds annual base cash compensation under the
employment agreement is $145,000. Ms. Reynolds' base salary will be reviewed
annually by the Board of Directors. Ms. Reynolds has agreed not to compete with
the Company during the term of her employment agreement and for a period of two
years thereafter.
On February 1, 1999, the Company entered into an employment agreement
with David Allen pursuant to which he is employed on a full-time basis as the
Company's Chief Financial Officer. The term of the employment contract expires
February 1, 2001. Mr. Allen's annual base compensation under the employment
agreement is $150,000. For the fiscal year ended July 31, 2000, Mr. Allen
received a bonus of $15,000. Mr. Allen has agreed not to compete with the
Company during the term of his employment agreement and for a period of one year
thereafter. On June 1, 2000, Mr. Allen was promoted to Executive Vice President
and Chief Operating Officer under the terms of the existing contract.
On July 12, 1999, the Company entered into an employment agreement with
Richard McCullough pursuant to which he is employed on a full-time basis as the
Company's Vice President of Trade Sales and
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<PAGE>
Marketing. The term of the employment contract expires July 31,2001. Mr.
McCullough's annual base compensation under the employment agreement is
$125,000. For the fiscal year ended July 31, 2000, Mr. McCullough received a
bonus of $20,000.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
On December 16, 1999, the Company purchased 595,113 shares of Common
Stock in a private transaction from Wheatley, the beneficial owner of more than
5% of the outstanding shares of Common Stock of the Company, for an aggregate
price of $967,000 or $1.625 per share. Upon consummation of the transaction, the
repurchased shares of Common Stock were placed in treasury. The following
persons, or entities, who may be deemed to be the beneficial owners of more than
5% of the outstanding shares of Common Stock, are general partners or are
affilited with general partners of Wheatley: Barry Fingerhut, Irwin Lieber,
Barry Rubenstein, Applewood Capital, Jonathan Lieber and Seth Lieber.
There were no other transactions involving the Company and its
subsidiaries and its executive officers and/or Directors from August 1, 1998
which exceeded $60,000.
15
<PAGE>
PROPOSAL II--RATIFICATION OF APPOINTMENT OF
INDEPENDENT AUDITORS
The Board of Directors appointed Arthur Andersen LLP, certified public
accountants, as the Company's independent auditors for the fiscal year ending
July 31, 2001. Although the selection of auditors does not require ratification,
the Board of Directors has directed that the appointment of Arthur Andersen LLP
be submitted to stockholders for ratification due to the significance of their
appointment to the Company. If stockholders do not ratify the appointment of
Arthur Andersen LLP, the Board of Directors will consider the appointment of
other certified public accountants. The approval of the proposal to ratify the
appointment of Arthur Andersen LLP requires the affirmative vote of a majority
of the votes cast by all shareholders represented and entitled to vote thereon.
An abstention, withholding of authority to vote or broker non-vote, therefore,
will not have the same legal effect as an "against" vote and will not be counted
in determining whether the proposal has received the required shareholder vote.
The Company's auditors for the fiscal year ended July 31, 2000 were
Arthur Andersen LLP.
Recommendation
THE BOARD OF DIRECTORS OF THE COMPANY RECOMMENDS A VOTE FOR THE
RATIFICATION OF THE APPOINTMENT OF ARTHUR ANDERSEN LLP AS THE COMPANY'S
INDEPENDENT AUDITORS FOR THE YEAR ENDING JULY 31, 2001.
ANNUAL REPORT
All stockholders of record as of the Record Date, have been sent, or
are concurrently herewith being sent, a copy of the Company's 2000 Annual Report
for the year ended July 31, 2000, which contains certified financial statements
of the Company for the year ended July 31, 2000.
ANY STOCKHOLDER OF THE COMPANY MAY OBTAIN WITHOUT CHARGE A COPY OF THE
COMPANY'S ANNUAL REPORT ON FORM 10-KSB FOR THE YEAR ENDED JULY 31, 2000 (WITHOUT
EXHIBITS), AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, BY WRITING TO
DAVID ALLEN, CHIEF FINANCIAL OFFICER AND SECRETARY AT THE MILLBROOK PRESS INC.,
2 OLD NEW MILFORD ROAD, BROOKFIELD, CONNECTICUT 06804.
STOCKHOLDER PROPOSALS
In order to be considered for inclusion in the proxy materials to be
distributed in connection with the next Annual Meeting of Stockholders of the
Company, stockholder proposals for such meeting must be submitted to the Company
no later than July 7, 2001.
On May 21, 1998 the Securities and Exchange Commission adopted an
amendment to Rule 14a-4, as promulgated under the Securities and Exchange Act of
1934, as amended. The amendment to Rule 14a-4(c)(1) governs the Company's use of
its discretionary proxy voting authority
16
<PAGE>
with respect to a stockholder proposal which is not addressed in the Company's
proxy statement. The new amendment provides that if a proponent of a proposal
fails to notify the Company at least 45 days prior to the month and day of
mailing of the prior year's proxy statement, then the Company will be allowed to
use its discretionary voting authority when the proposal is raised at the
meeting, without any discussion of the matter in the proxy statement.
With respect to the Company's 2001 Annual Meeting of Stockholders, if
the Company is not provided notice of a stockholder proposal, which the
stockholder has not previously sought to include in the Company's proxy
statement, by September 20, 2001, the Company will be allowed to use its voting
authority as outlined above.
OTHER MATTERS
As of the date of this Proxy Statement, management knows of no matters
other than those set forth herein which will be presented for consideration at
the Meeting. If any other matter or matters are properly brought before the
Meeting or any adjournment thereof, the persons named in the accompanying Proxy
will have discretionary authority to vote, or otherwise act, with respect to
such matters in accordance with their judgment.
David Allen
Secretary
November 2, 2000
17
<PAGE>
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS
THE MILLBROOK PRESS INC.
Proxy - Annual Meeting of Stockholders
November 30, 2000
The undersigned, a stockholder of The Millbrook Press Inc., a Delaware
corporation (the "Company") does hereby appoint Jeffrey Conrad and David Allen,
and each of them, the true and lawful attorneys and proxies with full power of
substitution, for and in the name, place and stead of the undersigned, to vote
all of the shares of Common Stock of the Company which the undersigned would be
entitled to vote if personally present at the 2000 Annual Meeting of
Stockholders of the Company to be held at The Harmonie Club, 4 East 60th Street,
New York, New York 10022, on November 30, 2000, at 10:00 a.m. Local Time, or at
any adjournment or adjournments thereof.
The undersigned hereby instructs said proxies or their substitutes:
1. ELECTION OF DIRECTORS:
The election of the following directors: Howard Graham, Jeffrey Conrad,
Frank J. Farrell, Bruno A. Quinson, Joseph Kanon and Hannah Stone to
serve until the next annual meeting of stockholders and until their
successors have been duly elected and qualified.
/ / FOR / / WITHHOLD TO WITHHOLD AUTHORITY TO VOTE FOR
VOTE ANY NOMINEE(S), PRINT NAME(S) BELOW
-----------------------------------
2. RATIFICATION OF APPOINTMENT OF AUDITORS:
To ratify the appointment of Arthur Andersen LLP as the independent
auditors of the Company for the year ending July 31, 2001.
/ / FOR / / AGAINST / / ABSTAIN
3. DISCRETIONARY AUTHORITY:
To vote with discretionary authority with respect to all other matters
which may come before the Meeting.
THIS PROXY WILL BE VOTED IN ACCORDANCE WITH ANY DIRECTIONS HEREINBEFORE GIVEN.
UNLESS OTHERWISE SPECIFIED, THIS PROXY WILL BE VOTED TO ELECT DIRECTORS AND TO
RATIFY THE APPOINTMENT OF ARTHUR ANDERSEN LLP AS THE COMPNAY'S INDEPENDENT
AUDITORS.
The undersigned hereby revokes any proxy
or proxies heretofore given, and
ratifies and confirms that all the
proxies appointed hereby, or any of
them, or their substitutes, may lawfully
do or cause to be done by virtue hereof.
The undersigned hereby acknowledges
receipt of a copy of the Notice of
Annual Meeting and Proxy Statement, both
dated November 2, 2000, and a copy of
the Company's Annual Report on Form
10-KSB for the year ended July 31, 2000.
Dated ____________________________ 2000
---------------------------------------
