Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934
(Amendment No. 1)
[ ] 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.
NOTICE OF 2013 ANNUAL MEETING OF STOCKHOLDERS
To Be Held
On September 27, 2013
To the Stockholders of CHINA BAK BATTERY, INC.:
You are cordially invited to
attend the 2013 Annual Meeting of Stockholders (the Annual Meeting) of China
BAK Battery, Inc., a Nevada corporation (the Company) on Friday, September 27,
2013, at 9:00 a.m., local time, at BAK Industrial Park, No. 1 BAK Street,
Kuichong Town, Longgang District, Shenzhen, 518119, Peoples Republic of China.
On January 28, 2013, we filed
with the Securities and Exchange Commission (the SEC) a proxy statement on
Schedule 14A relating to the Annual Meeting. However, on March 8, 2013, we filed
with the SEC a Notice of Postponement of 2013 Annual Meeting of Stockholders on
Schedule 14A due to the resignation of a director of the Company and the
withdrawal of the nomination for such directors election as a director of the
Company. The Company postponed the Annual Meeting in order to allow the Board of
Directors of the Company sufficient time to adequately consider the potential
director appointment and subsequent nomination.
On August 6, 2013, the Board of
Directors appointed Mr. Jonathan Christopher Paugh to serve as a new director of
the Company, a member of each of the Audit, Compensation and Nominating and
Corporate Governance Committees.
We are now filing this amended
proxy statement on Schedule 14A with the SEC in order to provide the disclosures
required by the rules and regulations of the SEC in connection with the Annual
Meeting, which will be held for the following purposes:
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1.
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To elect five (5) persons to the Board of Directors of
the Company, each to serve until the next annual meeting of stockholders
of the Company or until such person shall resign, be removed or otherwise
leave office;
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2.
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To ratify the appointment of Crowe Horwath (HK) CPA
Limited as the
Companys independent registered public accounting firm for the fiscal
year ending September 30, 2013; and
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3.
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To transact such other business as may properly come
before the Annual Meeting or any adjournment or postponement
thereof.
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Only stockholders of record at
the close of business on August 12, 2013 (the Record Date) are entitled to
notice and to vote at the Annual Meeting and any adjournment or postponement
thereof.
A Proxy Statement describing the
matters to be considered at the Annual Meeting is attached to this Notice. Our
2012 Annual Report is part of the full set of our proxy materials, but it is not
deemed to be part of the Proxy Statement.
It is important that your
shares are represented at the Annual Meeting. We urge you to review the attached
Proxy Statement and, whether or not you plan to attend the Annual Meeting in
person, please vote your shares promptly by casting your vote via the Internet
or, if you receive a full set of proxy materials by mail or request one be
mailed to you, and prefer to mail your proxy or voter instructions, please
complete, sign, date, and return your proxy or vote instruction form in the
pre-addressed envelope provided, which requires no additional postage if mailed
in the United States. You may revoke your vote by submitting a subsequent vote
over the Internet or by mail before the Annual Meeting, or by voting in person
at the Annual Meeting.
i
If you plan to attend the
meeting, please notify us of your intentions. This will assist us with meeting
preparations. If your shares are not registered in your own name and you would
like to attend the Annual Meeting, please follow the instructions contained in
the Notice of Internet Availability of Proxy Materials that is being mailed to
you and any other information forwarded to you by your broker, trust, bank, or
other holder of record to obtain a valid proxy from it. This will enable you to
gain admission to the Annual Meeting and vote in person.
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By Order of the Board of Directors,
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/s/
Xiangqian Li
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Secretary
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August 15, 2013
TABLE OF CONTENTS
PROXY
STATEMENT
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1
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INFORMATION
CONCERNING SOLICITATION AND VOTING
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1
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Who
May Vote
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1
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Voting
Your Proxy
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2
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Revoking
Your Proxy
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2
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Solicitation
of Proxies
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3
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Delivery
of Proxy Materials to Households
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3
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SECURITIES
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
STOCKHOLDER MATTERS
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4
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PROPOSAL
1: ELECTION OF DIRECTORS
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6
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NOMINEES
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7
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COMMITTEES
OF THE BOARD OF DIRECTORS
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10
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REPORT
OF THE AUDIT COMMITTEE FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
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13
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EXECUTIVE
COMPENSATION
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14
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Summary
Compensation Table
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14
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Summary
of Employment Agreements
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14
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Material
Terms of Standard Employment Agreement
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14
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Outstanding
Equity Awards at Fiscal Year-End 2012
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15
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Compensation
of Directors
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16
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SECTION
16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
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17
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CERTAIN
RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
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17
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PROPOSAL
2: RATIFICATION OF SELECTION OF INDEPENDENT AUDITORS
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19
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OTHER
INFORMATION
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21
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GENERAL
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21
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STOCKHOLDER
COMMUNICATIONS
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21
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STOCKHOLDER
PROPOSALS FOR THE 2014 ANNUAL MEETING
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21
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ANNUAL
REPORT ON FORM 10-K
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21
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CHINA BAK BATTERY, INC.
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BAK Industrial Park, No. 1 BAK Street
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Kuichong Town, Longgang District
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Shenzhen, 518119
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Peoples Republic of China
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______________________________________
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PROXY STATEMENT
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______________________________________
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INFORMATION CONCERNING SOLICITATION AND VOTING
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This Proxy Statement and the
accompanying proxy are being furnished with respect to the solicitation of
proxies by the Board of Directors of China BAK Battery, Inc., a Nevada
corporation (the Company or we), for the Companys 2013 Annual Meeting of
Stockholders (the Annual Meeting). The Annual Meeting is to be held at 9:00
a.m., local time, on Friday, September 27, 2013, and at any adjournment(s) or
postponement(s) thereof, at the principal executive offices of the Company,
located at BAK Industrial Park, No. 1 BAK Street, Kuichong Town, Longgang
District, Shenzhen, 518119, Peoples Republic of China.
The approximate date on which the
Proxy Statement and form of proxy card are intended to be sent or made available
to stockholders is August 16, 2013.
The purposes of the Annual
Meeting are to seek stockholder approval of two proposals: (i) electing five (5)
directors to the Board of Directors of the Company (the Board); and (ii)
ratifying the appointment of the Companys independent registered accountants
for fiscal year 2013. We will also transact such other business as may properly
come before the Annual Meeting or any adjournment thereof.
Who May Vote
Only stockholders of record of
our Common Stock, par value $0.001 per share (Common Stock), as of the close
of business on August 12, 2013 (the Record Date) are entitled to notice and to
vote at the Annual Meeting and any adjournment or adjournments thereof.
A list of stockholders entitled
to vote at the Annual Meeting will be available at the Annual Meeting and for
ten days prior to the Annual Meeting, during office hours, at the executive
offices of the Company at BAK Industrial Park, No. 1 BAK Street, Kuichong Town,
Longgang District, Shenzhen 518119, Peoples Republic of China, by contacting
the Secretary of the Company.
The presence at the Annual
Meeting of thirty-three and one-third percent (33-1/3%) of the outstanding
shares of Common Stock entitled to vote as of the Record Date, in person or by
proxy, is required for a quorum. Should you submit a proxy or voter
instructions, even if you abstain as to one or more proposals, or you are
present in person at the Annual Meeting, your shares shall be counted for the
purpose of determining if a quorum is present.
Broker non-votes are included
for the purposes of determining whether a quorum of shares is present at the
Annual Meeting. A broker non-vote occurs when a nominee holder, such as a
brokerage firm, bank or trust company, holding shares of record for a beneficial
owner does not vote on a particular proposal because the nominee holder does not
have discretionary voting power with respect to that item and has not received
voting instructions from the beneficial owner.
As of the Record Date, we had
12,619,597 shares of Common Stock outstanding. Each holder of outstanding shares
of Common Stock on the Record Date is entitled to one vote for each share then
held on all matters to be voted at the Annual Meeting. No other class of voting
securities was then outstanding.
Voting Your Proxy
You may vote by proxy over the
Internet by following the instructions provided in the Notice of Internet
Availability of Proxy Materials that is being mailed to you. If you have
received printed copies of the proxy materials by mail, or if you request
printed copies of the proxy materials by mail by following the instructions on
the Notice of Internet Availability of Proxy Materials mailed to you, you can
also vote by mail by completing, dating, and signing the proxy or vote
instruction form and mailing it in the pre-addressed envelope provided, which
requires no additional postage if mailed in the United States. You may submit
your vote over the Internet until 11:59 pm (EST) on September 25, 2013. If you
vote by mail, please be aware that we can recognize your vote only if we receive
it by close of business of the second business day before the Annual
Meeting.
You may also vote in person at
the Annual Meeting. If your shares are held through a broker, trust, bank, or
other nominee, please refer to the Notice of Internet Availability of Proxy
Materials mailed to you and any other information forwarded to you by such
holder of record to obtain a valid proxy from it. You will need to bring this
legal proxy with you to the Annual Meeting in order to vote in person.
The shares represented by any
proxy duly given will be voted at the Annual Meeting in accordance with the
instructions of the stockholder. If you are a registered holder and no specific
instructions are given the shares will be voted FOR all of the proposals. If you
are a beneficial holder (i.e., you hold your shares through a bank or broker),
the shares will be voted FOR ratification of Crowe Horwath as the Companys
independent registered public accounting firm, and will be deemed broker
non-votes as to the other proposals. In addition, if other matters properly come
before the Annual Meeting, the persons named in the accompanying form of proxy
will vote in accordance with their best judgment with respect to such
matters.
Each share of Common Stock
outstanding on the Record Date will be entitled to one vote on all matters.
Approval of Proposal 1 (Election of Directors), requires that the five nominees
proposed for election as directors at the Annual Meeting be elected by at least
a plurality of the votes cast at the Annual Meeting. Approval of Proposal 2
(Ratification of the Selection of Independent Auditors) requires that the number
of votes that stockholders cast for exceed the votes that stockholders cast
against. In counting the votes cast, only those cast as for or against a
matter are included. Please note that you cannot vote against a nominee for
director, although you may withhold your vote from a nominee. Withheld, abstain
and broker non-votes will be counted for purposes of establishing quorum
only.
Brokers are permitted, but not
required, to use discretionary authority to vote shares on routine matters such
as the ratification of the selection of the independent registered public
accounting firm, but are not permitted to use discretionary authority to vote
shares on non-routine matters including the election of directors.
Stockholders have no cumulative
voting rights or dissenters or appraisal rights relating to the matters to be
acted upon at the Annual Meeting.
Revoking Your Proxy
Even if you submit a proxy or
voter instructions, you may revoke and change your vote. You may revoke your
proxy or voter instructions by submitting a new proxy or voter instructions over
the Internet by using the procedure to vote your shares online described in the
Notice of Internet Availability of Proxy Materials that you receive. You may
also revoke your proxy by mail by requesting a copy be mailed to you, executing
a subsequently-dated proxy or vote instruction form, and mailing it in the
pre-addressed envelope, which requires no additional postage if mailed in the
United States. You may also revoke your proxy by your attendance and voting in
person at the Annual Meeting. Mere attendance at the meeting will not revoke a
proxy or voter instructions. We will vote the shares in accordance with the
directions given in the last proxy or voter instructions submitted in a timely
manner before the Annual Meeting. You may revoke your vote over the Internet
until 11:59 pm (EST) on September 25, 2013. If you revoke your vote by mail,
please be aware that we can recognize the revoked vote only if we receive it by
close of business of the second business day before the Annual Meeting.
2
If the Annual Meeting is
postponed or adjourned for any reason, at any subsequent reconvening of the
Annual Meeting, all proxies will be voted in the same manner as the proxies
would have been voted at the original convening of the Annual Meeting (except
for any proxies that have at that time effectively been revoked or withdrawn),
even if the proxies had been effectively voted on the same or any other matter
at a previous meeting.
You are requested, regardless of
the number of shares you own or your intention to attend the Annual Meeting, to
vote your shares as described above.
Solicitation of Proxies
The expenses of solicitation of
proxies will be paid by the Company. We may solicit proxies by mail, and the
officers and employees of the Company may solicit proxies personally or by
telephone and will receive no extra compensation from such activities. The
Company will reimburse brokerage houses and other nominees for their expenses
incurred in sending proxies and proxy materials to the beneficial owners of
shares held by them.
Delivery of Proxy Materials to Households
Only one copy of the Companys
2012 Annual Report, this Proxy Statement, and/or Notice of Internet Availability
of Proxy Materials, as applicable, will be delivered to an address where two or
more stockholders reside with the same last name or whom otherwise reasonably
appear to be members of the same family based on the stockholders prior express
or implied consent.
We will deliver promptly upon
written or oral request a separate copy of the 2012 Annual Report, this Proxy
Statement, and/or Notice of Internet Availability of Proxy Materials, as
applicable, upon such request. If you share an address with at least one other
stockholder, currently receive one copy of our Annual Report, Proxy Statement,
and/or Notice of Internet Availability of Proxy Materials at your residence, and
would like to receive a separate copy of our Annual Report, Proxy Statement, and
Notice of Internet Availability of Proxy Materials for future stockholder
meetings of the Company, please follow the instructions for requesting materials
indicated on the Notice of Internet Availability of Proxy Materials sent to your
residence and specify this preference in your request.
If you share an address with at
least one other stockholder and currently receive multiple copies of our Annual
Report, Proxy Statement, or Notice of Internet Availability of Proxy Materials,
and you would like to receive a single copy of our Annual Report, Proxy
Statement, or Notice of Internet Availability of Proxy Materials, please follow
the instructions for requesting materials indicated on the Notice of Internet
Availability of Proxy Materials that is addressed to you and specify this
preference in your request.
3
SECURITIES OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT
AND RELATED STOCKHOLDER MATTERS
Securities Ownership of Certain Beneficial Owners and
Management
The following table sets forth
information known to us with respect to the beneficial ownership of our Common
Stock as of the close of business on August 15, 2013 (the Reference Date) for:
(i) each person known by us to beneficially own more than 5% of our voting
securities, (ii) each named executive officer, (iii) each of our directors and
nominees, and (iv) all of our executive officers and directors as a group:
Names of Management and Names and Addresses
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Amount and Nature of
|
|
of Certain
Beneficial Owners
(1)
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Beneficial Ownership
(1)
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Number
(2)
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Percent
(3)
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Xiangqian Li
(4)
c/o China
BAK Battery, Inc.
BAK Industrial Park
No. 1 BAK Street
Kuichong Town, Longgang District
Shenzhen 518119, Peoples
Republic of China
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3,910,778
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30.99%
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Huanyu Mao
(5)
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69,961
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*
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Chunzhi Zhang
(6)
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3,500
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*
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Martha C. Agee
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0
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*
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Jonathan Christopher Paugh
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0
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*
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All executive officers and directors as a
group (5 persons)
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3,984,239
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31.52%
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*
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Denotes less than 1% of the outstanding shares of Common
Stock.
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**
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All information in and below this table gives retroactive
effect to our one-for-five reverse stock split effected on October 26,
2012.
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(1)
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The number of shares beneficially owned is determined
under Securities and Exchange Commission (SEC) rules, and the
information is not necessarily indicative of beneficial ownership for any
other purpose. Under those rules, beneficial ownership includes any shares
as to which the individual has sole or shared voting power or investment
power, and also any shares which the individual has the right to acquire
within 60 days of the Reference Date, through the exercise or conversion
of any stock option, convertible security, warrant or other right (a
Presently Exercisable security). Including those shares in the table
does not, however, constitute an admission that the named stockholder is a
direct or indirect beneficial owner of those shares.
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(2)
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Unless otherwise indicated, each person or entity named
in the table has sole voting power and investment power (or shares that
power with that persons spouse) with respect to all shares of Common
Stock listed as owned by that person or entity.
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(3)
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A total of 12,619,597 shares of Common Stock are
considered to be outstanding on the Reference Date. For each beneficial
owner above, any Presently Exercisable securities of such beneficial owner
have been included in the denominator, pursuant to Rule 13d-3(d)(1) under
the Securities Exchange Act of 1934, as amended, or the Exchange
Act.
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(4)
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Including 100,000 restricted shares of the Common Stock
granted under the Stock Option Plan on June 22, 2009, which restricted
stock is subject to a five-year vesting schedule. It vests in twenty equal
quarterly installments on the first day of each fiscal quarter beginning
on October 1, 2009.
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4
(5)
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Including an option granted on April 8, 2010 to purchase
20,000 shares of Common Stock, at a price of $12.15 per share, which
option vests over two years.
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(6)
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On June 25, 2007, Mr. Zhang was granted 1,000 shares of
restricted Common Stock. On August 6, 2008, Mr. Zhang was granted an
additional 1,000 shares of restricted Common Stock on the same terms as
those governing the June 25, 2007 grant. On June 26, 2009, Mr. Zhang was
granted an additional 1,000 shares of restricted Common Stock, on the same
terms as those governing the June 25, 2007 and August 6, 2008 grants. On
July 1, 2010, Mr. Zhang was granted an additional 1,000 shares of
restricted Common Stock on the same terms as those governing the June 25,
2007, August 6, 2008, and June 26, 2009 grants. On January 19, 2011, Mr.
Zhang waived the receipt of 500 shares of the July 1, 2010 grant in
consideration of an additional quarterly payment by the Company of $6,250
on or about January 6, 2011 pursuant to the increase, effective January 1,
2011, of each of the directors annual retainer fee under the Companys
Stock Option Plan by $25,000 in lieu of each directors receipt of
restricted shares under the Stock Option Plan.
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Changes in Control
There are no arrangements known
to us, including any pledge by any person of our securities, the operation of
which may at a subsequent date result in a change in control of the Company.
Interest of Officers and Directors in Matters to Be Acted
Upon
None of the Companys officers or
directors since the beginning of the last fiscal year, or any of their
associates, have any interest in any of the matters to be acted upon, except to
the extent that a director is named as a nominee for election to the Board of
Directors.
Securities Authorized for Issuance Under Equity Compensation
Plans
The following table sets forth
certain information about the securities authorized for issuance under our Stock
Option Plan and our Compensation Plan for Non-Employee Directors as of September
30, 2012. Options exercisable for all of the securities shown in column (a)
below were granted under our Stock Option Plan.
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Number of securities
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Number of securities
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Weighted-average
|
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remaining available for future
|
|
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to be issued upon
|
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exercise price of
|
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issuance under equity
|
|
|
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exercise of
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outstanding
|
|
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compensation plans
|
|
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outstanding options,
|
|
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options, warrants
|
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(excluding securities reflected
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|
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warrants and rights
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and rights
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in column (a))
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(a)
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(b)
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(c)
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Equity compensation plans
approved by
security
holders
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791,671
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$
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17.2
|
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222,401
(1)
|
|
|
|
|
|
|
|
|
|
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Equity compensation plans
not approved
by security
holders
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
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Total
|
|
791,671
|
|
$
|
17.2
|
|
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222,401
(1)
|
|
*All information in and below this table gives retroactive
effect to our one-for-five reverse stock split effected on October 26, 2012.
(1) Includes 92,500 shares of restricted stock that were
available for future issuance under our Compensation Plan for Non-Employee
Directors and 129,901 shares of restricted stock that were available for future
issuance under our Stock Option Plan, as of September 30, 2012.
5
PROPOSAL NO. 1 ELECTION OF DIRECTORS
The Board is responsible for
establishing broad corporate policies and monitoring the overall performance of
the Company. It selects the Companys executive officers, delegates authority
for the conduct of the Companys day-to-day operations to those officers, and
monitors their performance. Members of the Board are kept informed of the
Companys business by participating in Board and Committee meetings, by
reviewing analyses and reports, and through discussions with the Chairman and
other officers.
Effective December 8, 2006,
Article V of our articles of incorporation was amended so that the number of our
directors shall be determined in accordance with our Bylaws instead of in
accordance with provisions contained in our articles of incorporation. There are
currently five (5) directors serving on the Board. At the Annual Meeting, five
(5) directors will be elected, each to hold office until the next Annual Meeting
of Stockholders or his or her earlier death or resignation or until his or her
successor, if any, is elected or appointed. The individuals who have been
nominated for election to the Board at the Annual Meeting are listed in the
table below. Each of the nominees is a current director of the Company.
If, as a result of circumstances
not now known or foreseen, any of the nominees is unavailable to serve as a
nominee for the office of Director at the time of the Annual Meeting, the
holders of the proxies solicited by this Proxy Statement may vote those proxies
either (i) for the election of a substitute nominee who will be designated by
the proxy holders or by the present Board or (ii) for the balance of the
nominees, leaving a vacancy. Alternatively, the size of the Board may be reduced
accordingly. The Board has no reason to believe that any of the nominees will be
unwilling or unable to serve, if elected as a Director. To be elected, each of
the five nominees proposed for election as directors at the Annual Meeting must
receive at least a plurality of the votes cast at the Annual Meeting.
Director Selection
There have been no material
changes to the procedures by which stockholders may recommend nominees to our
board of directors since such procedures were last disclosed. As provided in its
Charter, the Nominating and Corporate Governance Committee of the Companys
Board is responsible for identifying individuals qualified to become Board
members and recommending to the Board nominees for election as directors. The
Nominating and Corporate Governance Committee considers recommendations for
director nominees, including those submitted by the Companys stockholders, on
the bases described below. Stockholders may recommend nominees by writing to the
Nominating and Corporate Governance Committee c/o the Secretary at BAK
Industrial Park, No. 1 BAK Street, Kuichong Town, Longgang District, Shenzhen,
518119, Peoples Republic of China; via email at IR@bak.com.cn; or via fax at
(+86) 755-89770164 ext 8537. Stockholder recommendations will be promptly
provided to the chairman of the Nominating and Corporate Governance Committee.
To be considered by the Nominating and Corporate Governance Committee for
inclusion in the proxy for the 2014 annual meeting, recommendations must be
received by the Secretary of the Company not later than the close of business on
September 30, 2013 or, if the date of the 2013 annual meeting has been changed
by more than 30 days from the date of this years meeting, by no later than 30
days prior to the date of printing and mailing our material for the annual
meeting.
In identifying and evaluating
nominees, the Nominating and Corporate Governance Committee may consult with the
other Board members, management, consultants, and other individuals likely to
possess an understanding of the Companys business and knowledge of suitable
candidates. In making its recommendations, the Nominating and Corporate
Governance Committee assesses the requisite skills and qualifications of
nominees and the composition of the Board as a whole in the context of the
Board's criteria and needs. In evaluating the suitability of individual Board
members, the Nominating and Corporate Governance Committee may take into account
many factors, including general understanding of marketing, finance and other
disciplines relevant to the success of a publicly traded company in todays
business environment; understanding of the Companys business and technology;
the international nature of the Companys operations; educational and
professional background; and personal accomplishment. The Nominating and
Corporate Governance Committee evaluates each individual in the context of the
Board as a whole, with the objective of recommending a group that can best
perpetuate the success of the Companys business and represent stockholder
interests through the exercise of sound judgment, using its diversity of
experience. The Nominating and Corporate Governance Committee also ensures that
a majority of nominees would be independent directors as defined under the
applicable rules of the SEC and The NASDAQ Stock Market LLC (NASDAQ). For a
description of the qualifications that the Nominating and Corporate Governance
Committee seeks in potential nominees, please see Nominees Qualifications for
All Directors below.
6
The Board of Directors recommends a vote FOR the election of
the nominees listed below.
NOMINEES
The names, the positions with the Company and the ages as of
the Record Date of the individuals who are our nominees for election as
directors are:
Name
|
Age
|
Position/s
|
Director Since
|
Xiangqian Li
|
44
|
Chairman, President and Chief
Executive Officer
|
January 2005
|
Huanyu Mao
|
61
|
Director, Chief Technology Officer
|
May 2006
|
Jonathan Christopher Paugh
|
38
|
Director
|
August 2013
|
Chunzhi Zhang
|
50
|
Director
|
June 2007
|
Martha C. Agee
|
58
|
Director
|
November 2012
|
Director Qualifications
Qualifications, Attributes, Skills and Experience to be
Represented on the Board as a Whole
In its assessment of each
potential candidate, including those recommended by stockholders, the Nominating
and Corporate Governance Committee considers the nominees judgment, integrity,
experience, independence, understanding of the Companys business or other
related industries and such other factors the Nominating and Corporate
Governance Committee determines are pertinent in light of the current needs of
the Board. The Nominating and Corporate Governance Committee also takes into
account the ability of a Director to devote the time and effort necessary to
fulfill his or her responsibilities to the Company.
The Board and the Nominating and
Corporate Governance Committee require that each Director be a recognized person
of high integrity with a proven record of success in his or her field. Each
Director must demonstrate innovative thinking, familiarity with and respect for
corporate governance requirements and practices, an appreciation of multiple
cultures and a commitment to sustainability and to dealing responsibly with
social issues. In addition to the qualifications required of all Directors, the
Board assesses intangible qualities including the individuals ability to ask
difficult questions and, simultaneously, to work collegially.
The Board has identified
particular qualifications, attributes, skills and experience that are important
to be represented on the Board as a whole, in light of the Companys current
needs and business priorities. The Companys services are performed in various
countries and in significant areas of future growth located outside of the
United States. Accordingly, the Board believes that international experience or
specific knowledge of key geographic growth areas and diversity of professional
experiences should be represented on the Board. In addition, the Companys
business is multifaceted and involves complex financial transactions. Therefore,
the Board believes that the Board should include some Directors with a high
level of financial literacy and some Directors who possess relevant business
experience as a Chief Executive Officer or President. Our business involves
complex technologies in a highly specialized industry. Therefore, the Board
believes that extensive knowledge of the Companys business and industry should
be represented on the Board.
The Board and the Nominating and
Corporate Governance Committee do not have a specific diversity policy, but
consider diversity of race, ethnicity, gender, age, cultural background and
professional experiences in evaluating candidates for Board membership.
Diversity is important because a variety of points of view contribute to a more
effective decision-making process.
Biographical Information and Summary of Qualifications of
2013 Nominees for Director
Xiangqian Li
has
served as the chairman of our board, our president and chief executive officer
since January 20, 2005. He has been a director of BAK International Limited, or
BAK International, our Hong Kong incorporated subsidiary, since November 2004.
Mr. Li is the founder and has served as the chairman of the board of Shenzhen
BAK Battery Co., Ltd., or Shenzhen BAK, or Shenzhen BAK, our indirect wholly
owned subsidiary, since its inception in August 2001, and served as Shenzhen
BAKs general manager since December 2003. From June 2001 to June 2003, Mr. Li
was the chairman of Huaran Technology Co., Ltd., a PRC-incorporated company
engaged in the car audio business. Mr. Li received a bachelors degree in
thermal energy and power engineering from the Lanzhou Railway Institute, China
and a doctorate degree in quantitative economics from Jilin University in
China.
7
Director Qualifications
:
Mr. Li has extensive senior management experience in the industry in which we
operate, having served as our Chief Executive Officer and Chairman since January
2005 and as the Chief Executive Officer or Chairman of various other companies
since 2001.
Huanyu Mao
has
served as a director of the Company since May 12, 2006. He has also served as
our chief technology officer since January 20, 2005 and as our chief operating
officer from June 30, 2005 to February 24, 2009. Dr. Mao has served as the
general manager of BAK International (Tianjin) Limited, or BAK Tianjin, our
indirect wholly owned subsidiary, since January 4, 2009. Dr. Mao has been the
chief scientist of Shenzhen BAK since September 2004. Prior to joining us,
between 1997 and September 2004, Dr. Mao was the chief technology officer of
Tianjin Lishen, a leading battery manufacturer in China. Dr. Mao pioneered core
technologies on lithium-ion battery before its commercialization in 1992 and was
the inventor under seven U.S. patents relating to lithium-ion technology. Dr.
Mao received a doctorate degree in electrochemistry from Memorial University of
Newfoundland, Canada where he focused on conductive polymers.
Director Qualifications
:
Dr. Mao has a rich knowledge in lithiumion battery technology, and has served
as our Chief Technology Officer since January 20, 2005. Dr. Mao pioneered core
technologies on lithium-ion batteries before its commercialization in 1992 and
was the inventor under seven U.S. patents relating to lithium-ion technology.
Dr. Mao received a doctorate degree in electrochemistry from Memorial University
of Newfoundland, Canada where he focused on conductive polymers.
Jonathan Christopher Paugh
has served as a director of the Company since August 6, 2013. Mr. Paugh
has been an associate at the law firm, Wojciechowski & Associates, P.C.
since May 2008. From January 2004 to January 2008, Mr. Paugh was an associate at
Powers & Frost L.L.P. Mr. Paughs practice primarily consists of defense
litigation involving construction defects, professional liability, personal
injury, and other commercial litigation matters. Mr. Paugh obtained his Bachelor
of Arts in Government from the University of Texas at Austin in 1998, and his
Juris Doctorate degree from South Texas College of Law in 2003. He was a member
of the Phi Delta Phi Honors Fraternity at South Texas College of Law.
Director Qualifications
:
Mr. Paugh, Chair of the Nominating and Corporate Governance Committee, is a
seasoned lawyer representing a wide array of companies, ranging from small
businesses to large corporations, counseling and litigating employment and
commercial disputes.
Chunzhi Zhang
has
served as our director since June 25, 2007. Since mid-2005, Mr. Zhang has served
as General Manager of AASTOCKS.com, Ltd., Shenzhen Branch, a software
integration and one-stop system solutions provider for financial markets in
China. From 2003 through mid-2005, Mr. Zhang served as General Manager of
Shenzhen Sharemax Management Co., Ltd, where he was involved in both private
equity business and asset management. From 1998 through 2003, Mr. Zhang served
as General Manager of Haixing Security Brokerage Co., Ltd, Shenzhen Branch,
involved in securities trading and asset management. Prior to joining Haixing
Security Brokerage, from 1985 to 1996, Mr. Zhang served as senior Management in
Hong Kong for China Resources Holding Co., Ltd., a China central
government-owned enterprise. Mr. Zhang received his bachelor degree in Economy
from Jilin University in 1985 and MBA degree from University of Wales in the
United Kingdom. Mr. Zhang is also a distinguished finance lecturer at the
Graduate School in Shenzhen of Tsinghua University.
Director Qualifications
:
Mr. Zhang, Chair of the Compensation Committee, is experienced in securities
analysis and investment. Mr. Zhang has accumulated this experience in managerial
positions in firms in the securities industry since 1998. Mr. Zhang received his
bachelor degree in Economy from Jilin University in 1985.
Martha C. Agee
has
served as our director since November 15, 2012. Since 1997, Ms. Agee has been a
senior lecturer of business law at Hankamer School of Business of Baylor
University where she teaches courses in the Legal Environment of Business,
International Business Law, and Healthcare Law & Ethics for graduate and
undergraduate students. Prior to that, Ms. Agee practiced law from 1988 to 1996.
Ms. Agee obtained her bachelors degree in Accounting in 1976 and Juris
Doctorate degree in 1988 from Baylor University.
Director Qualifications
:
Ms. Agee, Chair of the Audit Committee, was previously Certified Public
Accountant, worked as Chief Accountant for political sub-division for five and a
half years and worked as Supervisor of Accounting for large retail chain with
the responsibilities included hiring, training, and supervision of accounting
staff; preparation and analysis of 17 monthly financial statements and quarterly
consolidated financial statements; budgeting, and internal auditing.
Each director holds office until
the earlier of his or her death, resignation, removal from office by the
stockholders, or his or her respective successor is duly elected and qualified.
There are no arrangements or understandings between any of our nominees or directors and any other person pursuant to which any of our
nominees or directors have been selected for their respective positions. No
nominee or director is related to any executive officer or any other nominee or
director.
8
No director of the Company is a
party adverse to the Company or any of its subsidiaries or has a material
interest adverse to the Company or any of its subsidiaries. There are no family
relationships among our directors or officers.
Other than as described above, no
director has held any directorship during the past five years with any other
public company.
For information as to the shares
of the Common Stock held by each nominee, see Securities Ownership of Certain
Beneficial Owners and Management and Related Stockholder Matters Securities
Ownership of Certain Beneficial Owners and Management, which starts on page 4
of this Proxy Statement.
Involvement in Certain Legal Proceedings
None of our directors or executive
officers has, during the past ten years:
-
been convicted in a criminal proceeding or been subject to a pending
criminal proceeding (excluding traffic violations and other minor offences);
-
had any bankruptcy petition filed by or against the business or property of
the person, or of any partnership, corporation or business association of
which he was a general partner or executive officer, either at the time of the
bankruptcy filing or within two years prior to that time;
-
been subject to any order, judgment, or decree, not subsequently reversed,
suspended or vacated, of any court of competent jurisdiction or federal or
state authority, permanently or temporarily enjoining, barring, suspending or
otherwise limiting, his involvement in any type of business, securities,
futures, commodities, investment, banking, savings and loan, or insurance
activities, or to be associated with persons engaged in any such activity;
-
been found by a court of competent jurisdiction in a civil action or by the
Securities and Exchange Commission or the Commodity Futures Trading Commission
to have violated a federal or state securities or commodities law, and the
judgment has not been reversed, suspended, or vacated;
-
been the subject of, or a party to, any federal or state judicial or
administrative order, judgment, decree, or finding, not subsequently reversed,
suspended or vacated (not including any settlement of a civil proceeding among
private litigants), relating to an alleged violation of any federal or state
securities or commodities law or regulation, any law or regulation respecting
financial institutions or insurance companies including, but not limited to, a
temporary or permanent injunction, order of disgorgement or restitution, civil
money penalty or temporary or permanent cease-and-desist order, or removal or
prohibition order, or any law or regulation prohibiting mail or wire fraud or
fraud in connection with any business entity; or
-
been the subject of, or a party to, any sanction or order, not subsequently
reversed, suspended or vacated, of any self- regulatory organization (as
defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any
registered entity (as defined in Section 1(a)(29) of the Commodity Exchange
Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or
organization that has disciplinary authority over its members or persons
associated with a member.
Director Independence
Our Board has determined that
each of our non-employee directors, Mr. Zhang, Ms. Agee and Mr. Paugh, is an
independent director as defined by the applicable rules of the SEC and NASDAQ.
Each of our non-employee directors serves on the Boards committees, and
therefore all of the members of our board committees are independent as defined
under the NASDAQ listing standards and by the SEC. There were and are no
transactions, relationships or arrangements not otherwise disclosed in this
Proxy Statement that were considered by the Board of Directors under the
applicable independence definitions in determining that each of these directors
is independent.
9
Governance Structure
Currently, our Chief Executive
Officer is also our Chairman. The Board of Directors believes that, at this
time, having a combined Chief Executive Officer and Chairman is the appropriate
leadership structure for the Company. In making this determination, the Board of
Directors considered, among other matters, Mr. Lis experience and tenure of
having been Chairman and Chief Executive Officer since 2005, and felt that his
experience, knowledge, and personality allowed him to serve ably as both
Chairman and Chief Executive Officer. Among the benefits of a combined Chief
Executive Officer/Chairman considered by the Board of Directors is that such
structure promotes clearer leadership and direction for our Company and allows
for a single, focused chain of command to execute our strategic initiatives and
business plans.
The Boards Role in Risk Oversight
The Board oversees that the
assets of the Company are properly safeguarded, that the appropriate financial
and other controls are maintained, and that the Companys business is conducted
wisely and in compliance with applicable laws and regulations and proper
governance. Included in these responsibilities is the Board of Directors
oversight of the various risks facing the Company. In this regard, the Board
seeks to understand and oversee critical business risks. The Board does not view
risk in isolation. Risks are considered in virtually every business decision and
as part of the Companys business strategy. The Board recognizes that it is
neither possible nor prudent to eliminate all risk. Indeed, purposeful and
appropriate risk-taking is essential for the Company to be competitive on a
global basis and to achieve its objectives.
While the Board oversees risk
management, Company management is charged with managing risk. The Company has
robust internal processes and a strong internal control environment to identify
and manage risks and to communicate with the Board. The Board and the Audit
Committee monitor and evaluate the effectiveness of the internal controls and
the risk management program at least annually. Management communicates routinely
with the Board, Board Committees and individual Directors on the significant
risks identified and how they are being managed. Directors are free to, and
indeed often do, communicate directly with senior management.
The Board implements its risk
oversight function both as a whole and through Committees. Much of the work is
delegated to various Committees, which meet regularly and report back to the
full Board. All Committees play significant roles in carrying out the risk
oversight function. In particular:
-
The Audit Committee oversees risks related to the Companys financial
statements, the financial reporting process, accounting and legal matters. The
Audit Committee oversees the internal audit function. The Audit Committee
members meet separately with representatives of the Companys independent
auditing firm; and
-
The Compensation Committee evaluates the risks and rewards associated with
the Companys compensation philosophy and programs. The Compensation Committee
reviews and approves compensation programs with features that mitigate risk
without diminishing the incentive nature of the compensation. Management
discusses with the Compensation Committee the procedures that have been put in
place to identify and mitigate potential risks in compensation.
-
The Nominating and Corporate Governance Committee evaluates risk associated
with management decisions and strategic direction and reports concerns to the
full Board. In addition, this committee evaluates the performance of
independent directors and makes suggestions to the full Board concerning
director qualifications and number of independent directors. The committee
also oversees the Companys ethics programs, including the Code of Business
Ethics and Conduct.
COMMITTEES OF THE BOARD OF DIRECTORS
Committees and Meetings
Our Board currently has three
standing Committees which, pursuant to delegated authority, perform various
duties on behalf of and report to the Board: (i) Audit Committee, (ii)
Compensation Committee and (iii) Nominating and Corporate Governance Committee.
Each of the three standing Committees is comprised entirely of independent
directors as that term is defined under the NASDAQ listing standards applicable
to each of these committees. From time to time, the Board may establish other
committees.
During the fiscal year ended
September 30, 2012, the Board held a total of 6 meetings. Each director attended
100% of the total number of meetings of the Board and 100% of the meetings of
all Committees on which he or she served. We do not have a policy requiring Board members to attend the annual meeting of
our stockholders. Two members of the Board attended our 2012 annual meeting of
stockholders.
10
Each of the Charters of our
Audit, Compensation and Nominating and Corporate Governance Committees contains
a definition for determining whether members of the respective Committee are
independent for purposes of that committee. Current copies of these Charters are
posted on our Internet website at www.bak.com.cn.
Audit Committee
During the fiscal year ended
September 30, 2012, our Audit Committee consisted of Richard B. Goodner (former
director), Charlene Spoede Budd (former director) and Chunzhi Zhang. Pursuant to
the determination of our Board of Directors, Dr. Budd served as the chair of the
Audit Committee and as our Audit Committee financial expert as that term is
defined by the applicable SEC rules. Each director who has served or is serving
on our Audit Committee was or is independent as that term is defined under the
NASDAQ listing standards for Audit Committee members at all times during their
service on such Committee.
The Audit Committee, which was
established in accordance with Section 3(a)(58)(A) of the Exchange Act, oversees
our accounting and financial reporting processes and the audits of the financial
statements of our company. During the fiscal year ended September 30, 2012, the
Audit Committee held five meetings, in compliance with its Charter. The Audit
Committee is responsible for, among other things:
-
selecting our independent auditors and pre-approving all auditing and
non-auditing services permitted to be performed by our independent auditors;
-
reviewing with our independent auditors any audit problems or difficulties
and managements response;
-
reviewing and approving certain proposed related-party transactions, as
defined in Item 404 of SEC Regulation S-K;
-
discussing the annual audited financial statements with management and our
independent auditors;
-
reviewing major issues as to the adequacy of our internal controls and any
special audit steps adopted in light of significant internal control
deficiencies;
-
annually reviewing and reassessing the adequacy of our Audit Committee
Charter;
-
such other matters that are specifically delegated to our Audit Committee
by our Board from time to time;
-
meeting separately and periodically with management and our internal and
independent auditors; and
-
reporting regularly to the full Board.
Compensation Committee
During the fiscal year ended
September 30, 2012, our Compensation Committee consisted of Richard B. Goodner,
Charlene Spoede Budd and Chunzhi Zhang, with Mr. Zhang as chair of the
Compensation Committee. Each director who has served or is serving on our
Compensation Committee was or is independent as that term is defined under the
NASDAQ listing standards at all times during their service on such Committee.
The Compensation Committee has a charter, which is available on our website at
www.bak.com.cn.
Our Compensation Committee
assists the Board in reviewing and approving the compensation structure of our
directors and executive officers, including all forms of compensation to be
provided to our directors and executive officers. Our Chief Executive Officer
may not be present at any Committee meeting during which his compensation is
deliberated. The Compensation Committee is permitted to delegate its authority
in accordance with Nevada law unless prohibited by the Companys Bylaws or the
Compensation Committee Charter. The Compensation Committee held two meetings
during the fiscal year ended September 30, 2012, in compliance with its
Charter.
The Compensation Committee is
responsible for, among other things:
-
determining the compensation package for our executive officers (other
than our Chief Executive Officer);
-
reviewing and making recommendations to the Board with respect to the
compensation of our directors and Chief Executive Officer;
-
reviewing and approving corporate goals and objectives relevant to the
compensation of our Chief Executive Officer;
-
evaluating the performance of our Chief Executive Officer in light of
those goals and objectives, and recommending the compensation level of our
chief executive officer based on this evaluation;
-
reviewing periodically and making recommendations to the Board regarding
any long-term incentive compensation or equity plans, programs or similar
arrangements; and
11
-
reviewing and approving any employment agreements, retirement agreements,
severance arrangements, change-in- control arrangements or special or
supplemental employee benefits and any material amendments to the foregoing,
applicable to executive officers, including the Chief Executive Officer.
The Compensation Committee may
delegate all or a portion of its duties and responsibilities to a subcommittee
of the Committee. The Compensation Committee also has the authority and sole
discretion to retain compensation consultants as it deems necessary.
The Chief Executive Officer makes
recommendations concerning the performance and compensation of the Companys
other executive officers. The Committee oversees these recommendations and makes
final determinations as to the other executive officers compensation.
Neither the Compensation Committee nor
management engaged any compensation consultants during the 2011 fiscal year.
Compensation Committee Interlocks and Insider
Participation
Richard B. Goodner, Charlene
Spoede Budd, and Chunzhi Zhang served on the Compensation Committee during the
fiscal year ended September 30, 2012. None of them was an employee, an officer,
or former officer of the Company. No member of the Compensation Committee had
any relationship with us requiring disclosure under Item 404 of SEC Regulation
S-K during the fiscal year ended September 30, 2012. None of our executive
officers has served on the board of directors or compensation committee (or
other committee serving an equivalent function) of any other entity, one of
whose executive officers served on our Board or Compensation Committee.
Nominating and Corporate Governance Committee
During the fiscal year ended
September 30, 2012, our Nominating and Corporate Governance Committee consisted
of Richard B. Goodner, Charlene Spoede Budd and Chunzhi Zhang. Mr. Goodner
served as chair of this Committee. Each director who has served or is serving on
our Nominating and Corporate Governance Committee was or is independent as
that term is defined under the NASDAQ listing standards at all times during
their service on such Committee.
The Nominating and Corporate
Governance Committee assists the Board in identifying individuals qualified to
become our directors and in determining the composition of the Board and its
committees. The Nominating and Corporate Governance Committee held two meetings
during the fiscal year ended September 30, 2012, in compliance with its Charter.
The Nominating and Corporate Governance Committee is responsible for, among
other things:
-
identifying and recommending to the Board nominees for election or
re-election to the Board, or for appointment to fill any vacancy;
-
reviewing annually with the Board the current composition of the Board in
light of the characteristics of independence, business experience, and
specific areas of expertise;
-
identifying and recommending to the Board the directors to serve as
members of the Boards committees;
-
evaluating risk associated with management decisions and strategic
direction and reporting concerns to the full Board;
-
evaluating the performance of independent directors and making suggestions
to the full Board concerning director qualifications and number of independent
directors; and
-
monitoring compliance with our Code of Business Ethics and Conduct.
Code of Business Ethics and Conduct
We have adopted a Code of
Business Ethics and Conduct relating to the conduct of our business by our
employees, officers and directors. We intend to maintain the highest standards
of ethical business practices and compliance with all laws and regulations
applicable to our business, including those relating to doing business outside
the United States. During the fiscal year ended September 30, 2012, there were
no amendments to or waivers of our Code of Business Ethics and Conduct. If we
effect an amendment to, or waiver from, a provision of our Code of Business
Ethics and Conduct, we intend to satisfy our disclosure requirements by posting
a description of such amendment or waiver on our Internet website at
www.bak.com.cn or via a current report on Form 8-K. A current copy of our Code
of Business Ethics and Conduct is posted on our Internet website at
www.bak.com.cn.
12
REPORT OF THE AUDIT COMMITTEE
FOR THE FISCAL YEAR
ENDED SEPTEMBER 30, 2012
The Audit Committee of the Board
is comprised of three non-employee Directors, each of whom has been determined
by the Board to be independent under the meaning of Rule 10A-3(b)(1) under the
Exchange Act. Dr. Budd, the chair of the Audit Committee, is an audit committee
financial expert within the meaning of Item 407(d)(5)(ii) of SEC Regulation
S-K. The Audit Committee assists the Boards oversight of the integrity of the
Companys financial reports, compliance with legal and regulatory requirements,
the qualifications and independence of the Companys independent registered
public accounting firm, the audit process, and internal controls. The Audit
Committee operates pursuant to a written Charter adopted by the Board. The Audit
Committee is responsible for overseeing the corporate accounting and financial
reporting practices, recommending the selection of the Companys registered
public accounting firm, reviewing the extent of non-audit services to be
performed by the auditors, and reviewing the disclosures made in the Companys
periodic financial reports. The Audit Committee also reviews and recommends to
the Board that the audited financial statements be included in the Companys
Annual Report on Form 10-K.
During fiscal year 2012, the
Audit Committee (1) reviewed and discussed the audited financial statements for
the fiscal year ended September 30, 2012, with Company management; (2) discussed
with the independent auditors the matters required to be discussed by Statement
on Auditing Standards No. 61, as amended (AICPA,
Professional Standards
,
Vol. 1. AU section 380), as adopted by the PCAOB in Rule 3200T; and (3) received
the written disclosures and the letters from the independent accountants
required by applicable requirements of the PCAOB regarding the independent
accountants communications with the Audit Committee concerning independence,
and has discussed with the independent accountants their independence.
Based on the review and
discussions referred to above, the Audit Committee had recommended to the Board
of Directors that the audited financial statements be included in the Companys
Annual Report on Form 10-K for the fiscal year ended September 30, 2012 for
filing with the SEC.
/s/ The Audit
Committee
|
|
Charlene Spoede Budd, Chair
|
|
Chunzhi Zhang
|
|
Martha C. Agee
|
|
13
EXECUTIVE COMPENSATION
Summary Compensation Table
The following table sets forth
information concerning all compensation awarded to, earned by or paid to the
following persons for services rendered in all capacities during fiscal years
2012 and 2011: Xiangqian Li, our Chief Executive Officer, President and
Chairman, and Ke Marcus Cui, who is our former Chief Financial Officer and
resigned on August 8, 2012, and Kenneth G. Broom, our former Chief Operating
Officer and resigned on January 31, 2013. No other executive officers received
total compensation in excess of $100,000 in either fiscal year.
|
|
|
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Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Awards
|
|
|
Option
|
|
|
|
|
Name and Principal Position
|
|
Year
|
|
|
Salary ($)
(1)
|
|
|
($)
(2)
|
|
|
Awards ($)
(2)
|
|
|
Total
($)
|
|
Xiangqian Li, President, Chief
|
|
2012
|
|
|
37,957
|
|
|
-
|
|
|
-
|
|
|
37,957
|
|
Executive Officer
|
|
2011
|
|
|
36,663
|
|
|
-
|
|
|
-
|
|
|
36,663
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ke Marcus Cui, former Chief
|
|
2012
|
|
|
30,365
|
|
|
-
|
|
|
-
|
|
|
30,365
|
|
Financial Officer
|
|
2011
|
|
|
29,330
|
|
|
-
|
|
|
102,912
|
|
|
132,242
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kenneth G. Broom, former Chief
|
|
2012
|
|
|
249,990
|
|
|
-
|
|
|
-
|
|
|
249,990
|
|
Operating Officer
|
|
2011
|
|
|
239,895
|
|
|
-
|
|
|
-
|
|
|
239,895
|
|
(1) The amounts reported in this table have been converted from
Renminbi to U.S. dollars based on the average conversion rate between the U.S.
dollar and Renminbi for the applicable fiscal year, or $1.00 to RMB 6.323
(fiscal year 2012 exchange rate), $1.00 to RMB 6.5461 (fiscal year 2011 exchange
rate), except with respect to the salary payments to Mr. Broom, which payments
were in U.S. dollars.
(2) The amounts represented in the stock and option awards
columns reflect the compensation expense recognized by the Company in fiscal
year 2011 determined pursuant to Statement of Financial Accounting Standards
(SFAS) No. 123 (Revised 2004), Share-Based Payment (SFAS 123(R)), as
superseded by SFAS No. 168 The FASB Accounting Standards Codification
TM
and the Hierarchy of Generally Accepted Accounting Principles, a
replacement of FASB Statement No. 162 (SFAS No. 168), as superseded by The
FASB Accounting Standards Codification
TM
(ASC), now included in ASC
Topic 718 (ASC 718), and no forfeitures are assumed. The assumptions used to
calculate the value of option and restricted stock awards are set forth under
Note 21 of the Notes to Consolidated Financial Statements of our Annual Report
on Form 10-K for the fiscal year ended September 30, 2012.
Summary of Employment Agreements
The base salary shown in the
Summary Compensation Table is described in each named executive officers
respective employment agreement. The material terms of those employment
agreements are summarized below.
With the exception of Mr. Broom,
the named executive officers entered into the Companys standard employment
agreement. On December 20, 2006, Shenzhen BAK entered into a non-standard
employment agreement with Mr. Broom in connection with his employment in Canada
as Executive Vice President for BAK Canada Ltd. Mr. Brooms employment agreement
entitles him to a grant of 100,000 stock options, an allowance for monthly car
expenses, and the cost of legal representation and indemnification for damages
in the event Mr. Brooms prior employer files any claims or demands against him
relating to his employment with the Company. In the event the Company terminates
Mr. Brooms employment without cause prior to the expiration of the minimum
two-year term of the agreement, he is entitled to a lump sum payment or salary
continuation equal to the amount he would have received had no termination
occurred. Neither the Company nor Mr. Broom has incurred any legal costs or
damages relating to Mr. Brooms former employment. The compensation terms of Mr.
Brooms agreement have not changed since his appointment as Chief Operating
Officer of the Company.
Material Terms of Standard Employment Agreement
.
With the exception of Mr. Li, whose employment agreement has a three-year
initial term, we entered into employment agreements with two-year initial terms
with our named executive officers with standard employment agreements. We
entered into the employment agreement with Mr. Li on June 30, 2006 and with Mr.
Cui on December 27, 2010 (replaced with a new employment agreement on May 26,
2011). Each of our standard employment agreements is automatically extended by a year at the expiration of the
initial term and at the expiration of every one-year extension, until terminated
in accordance with the termination provisions of the agreements, which are
described below.
14
Our standard employment agreement
permits us to terminate the executives employment for cause, at any time,
without notice or remuneration, for certain acts of the executive, including but
not limited to a conviction or plea of guilty to a felony, negligence or
dishonesty to our detriment and failure to perform agreed duties after a
reasonable opportunity to cure the failure. An executive may terminate his
employment upon one months written notice if there is a material reduction in
his authority, duties and responsibilities or if there is a material reduction
in his annual salary before the next annual salary review. Furthermore, we may
terminate the executives employment at any time without cause by giving one
months advance written notice to the executive officer. If we terminate the
executives employment without cause, the executive will be entitled to a
termination payment of up to three months of his or her then base salary,
approximately $2,530 to $9,489, depending on the length of such executives
employment with us. Specifically, the executive will receive salary continuation
for: (i) one month following a termination effective prior to the first
anniversary of the effective date of the employment agreement; (ii) two months
following a termination effective prior to the second anniversary of the
effective date; and (iii) three months following a termination effective prior
to or any time after the third anniversary of the effective date. The employment
agreements provide that the executive will not participate in any severance
plan, policy, or program of the Company.
Our standard employment agreement
contains customary non-competition, confidentiality, and non-disclosure
covenants. Each executive officer has agreed to hold, both during and after the
employment agreement expires or is earlier terminated, in strict confidence and
not to use, except as required in the performance of his duties in connection
with the employment, any confidential information, technical data, trade secrets
and know-how of our company or the confidential information of any third party,
including our affiliated entities and our subsidiaries, received by us. The
executive officers have also agreed to disclose in confidence to us all
inventions, designs and trade secrets which they conceive, develop or reduce to
practice and to assign all right, title and interest in them to us. In addition,
each executive officer has agreed to be bound by non-competition restrictions
set forth in his or her employment agreement. Specifically, each executive
officer has agreed not to, while employed by us and for a period of one year
following the termination or expiration of the employment agreement,
-
approach our clients, customers or contacts or other persons or entities,
and not to interfere with the business relationship between us and such
persons and/or entities;
-
assume employment with or provide services as a director for any of our
competitors, or engage in any business which is in direct or indirect
competition with our business; or
-
solicit the services of any of our employees.
Outstanding Equity Awards at Fiscal Year-End 2012
The following table sets forth
the equity awards outstanding at September 30, 2012 for each of the named
executive officers.
Option Awards
|
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Stock Awards
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|
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|
|
|
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|
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|
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Market
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Number of
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Number of
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|
|
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|
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Number of
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Value of
|
|
|
|
Securities
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Securities
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|
|
|
|
|
|
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Shares or
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Shares or
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Underlying
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Underlying
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Units of
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Units of
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Unexercised
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Unexercised
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|
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Option
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|
|
|
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Stock That
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Stock That
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Options (#)
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Options (#)
|
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Exercise Price
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Option
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Have Not
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Have Not
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Name
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Exercisable
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Unexercisable
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($)
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Expiration Date
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Vested (#)
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Vested ($)
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|
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|
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|
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Xiangqian Li
(1)
|
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216,000
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-
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20.9
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May 28, 2013
|
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40,000
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562,000
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|
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|
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Ke Marcus Cui
(2)
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|
-
|
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|
-
|
|
|
-
|
|
|
-
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|
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-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
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|
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Kenneth G.
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20,000
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-
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16.34
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July 1, 2013
|
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|
-
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-
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Broom
(3)
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8,000
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-
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21.5
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January 28, 2013
|
|
|
|
|
|
|
|
15
*All information in and below this table gives retroactive
effect to our one-for-five reverse stock split effected on October 26, 2012.
(1) Mr. Li was granted an option to purchase 216,000 shares of
our common stock on May 29, 2008 under the Stock Option Plan. The option is
subject to a three-year vesting schedule, with the first 1/12 vesting on the
last day of the full fiscal quarter following the date of grant (September 30,
2008), and the remaining 11/12 vesting in eleven equal installments on the last
day of each following fiscal quarter. The exercise price is $20.9. The option
expires on May 28, 2013. Mr. Li was also granted 500,000 restricted shares of
the Companys common stock, par value $0.001, under the Stock Option Plan. The
restricted stock is subject to a five-year vesting schedule. It vests in twenty
equal quarterly installments on the first day of each fiscal quarter beginning
on October 1, 2009.
(2) Mr. Cui was granted an option to purchase 3,600 shares of
Common Stock on June 22, 2009, at a price of $14.05 per share. In addition, Mr.
Cui was granted an option to purchase 16,080 shares of Common Stock on May 26,
2011, at a price of $6.4 per share. All of Mr. Cuis options were terminated and
cancelled upon Mr. Cuis resignation from the Company on August 8, 2012.
(3) On June 25, 2007, Mr. Broom was granted an option to
purchase 20,000 shares of Common Stock at a price of $16.34 per share. The
option vests over four years. On January 28, 2008, Mr. Broom was granted an
option to purchase 8,000 shares of Common Stock at a price of $21.5 per share.
All of Mr. Brooms options were terminated and cancelled upon Mr. Brooms
resignation from the Company on January 31, 2013.
Compensation of Directors
Under our Compensation Plan for
Non-Employee Directors, or the Directors Plan, each eligible non-employee
director of the Company may receive an annual retainer fee. Pursuant to the
Directors Plan, the annual retainer fee under the Directors Plan is subject to
adjustments determined by our Board from time to time. Each independent director
is also eligible to be granted 5,000 restricted shares of our common stock for
serving as a director.
In December 2010, our Board of
Directors unanimously approved a change in the annual retainer fee for
independent directors in accordance with the Directors Plan. Effective January
1, 2011, our independent directors will be paid an annual retainer fee of
$45,000. As was previously our policy, the chair of the Audit Committee will
continue to receive an additional $5,000 in recognition of the added
responsibility of this position. In connection with this change, the Board
unanimously determined that the independent directors will no longer receive an
annual issuance of restricted shares under the Directors Plan. Each of the
independent directors has waived all rights to such annual issuances, including
with respect to 2,500 of the shares that were to be issued to each of the
independent directors during calendar year 2011 in connection with their grants
on July 1, 2010.
The following table sets forth
the total compensation earned by our non-employee directors during our fiscal
year ended September 30, 2012:
|
|
Fees Earned or
|
|
|
|
|
|
|
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Name
|
|
Paid
in Cash ($)
|
|
|
Stock Awards ($)
|
|
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Total ($)
|
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Charlene Spoede Budd
|
|
50,000
|
|
|
-
|
|
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50,000
|
|
Chunzhi Zhang
|
|
45,000
|
|
|
-
|
|
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45,000
|
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Richard B. Goodner
|
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45,000
|
|
|
-
|
|
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45,000
|
|
Dr. Budd received a $50,000 fee
because of the added responsibility of serving as the chairperson of our Audit
Committee during fiscal year 2012.
We do not maintain a medical, dental or retirement benefits
plan for the directors.
We have not compensated, and will
not compensate, our non-independent directors, Mr. Xiangqian Li and Dr. Huanyu
Mao, for serving as our directors, although they are entitled to reimbursements
for reasonable expenses incurred in connection with attending our board
meetings.
The directors may determine
remuneration to be paid to the directors with interested members of the Board
refraining from voting. The Compensation Committee will assist the directors in
reviewing and approving the compensation structure for the directors.
16
SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING
COMPLIANCE
Under U.S. securities laws,
directors, certain executive officers and persons beneficially owning more than
10% of our Common Stock must report their initial ownership of the Common Stock,
and any changes in that ownership, to the SEC. The SEC has designated specific
due dates for these reports. Based solely on our review of copies of such
reports filed with the SEC and written representations of our directors and
executive offers, we believe that all persons subject to reporting filed the
required reports on time in fiscal year 2012.
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
We have several outstanding
short-term bank loans, long term bank loans and bills payable to (i)
Agricultural Bank of China (Shenzhen Eastern Branch), (ii) China Construction
Bank (Tianjin Branch), (iii) Shenzhen Development Bank (Longgang Branch), (iv)
China CITIC Bank (Shenzhen Branch), (v) Bank of China (Shenzhen Longgang
Branch), (vi) China Bohai Bank ( Tianjin Branch), (vii) China Everbright Bank,
(viii) China Development Bank (Shenzhen Branch), and (ix) Tianjin Branch, Bank
of Dalian, respectively, the proceeds of which were used primarily to fund the
operations of our manufacturing facility located at the BAK Industrial Park and
for general working capital requirements. As of September 30, 2012, we had
short-term bank loans of $151.4 million, long-term bank loans of $23.7 million
maturing in over one year, and bills payable of $75.4 million. The short-term
loans bore interest rates ranging from 5.16% to 8.53% per annum, and had
maturity dates ranging from three to twelve months. The long-term loan was
borrowed under a four-year long-term loan credit facility from China Development
Bank, bearing interest at the benchmark rate of the Peoples Bank of China for
three-year to five-year long-term loans, which is currently 6.4% per annum. Each
loan is guaranteed by Mr. Li, our director, Chairman, President, and Chief
Executive Officer. Some of the loans are also guaranteed by BAK International,
BAK Tianjin, and/or Shenzhen BAK. Mr. Li, BAK International, BAK Tianjin, and
Shenzhen BAK did not receive nor are entitled to receive any consideration for
the above-referenced guarantees, and we are not independently obligated to
indemnify any of those guarantors for any amounts paid by them pursuant to any
guarantee.
On December 28, 2011, Shenzhen
BAK entered into a loan agreement with Shenzhen BAK Haoze Investment Co.,
Ltd.(Shenzhen Haoze), under which Shenzhen Haoze extended a loan in an amount
RMB 1,750,000 (approximately $278,410) to Shenzhen BAK as working capital, which
loan is non-interest bearing and unsecured. The loan matures on December 27,
2013. Shenzhen Haoze is a company established in China and mainly engages in the
business of industry investment and investment consultation. Approximately 96
percent of equity interest in Shenzhen Haoze is currently owned by Mr. Xiangqian
Li. As of March 31, 2013, Shenzhen BAK had paid off the above loan.
On July 12, 2012, Shenzhen BAK
entered into a loan agreement with Tianjin BAK New Energy Research Institute
Co., Ltd. (Tianjin New Energy), under which Tianjin New Energy extended a loan
in an amount of RMB 10,000,000 (approximately $1,590,913) to Shenzhen BAK as
working capital, which loan is non-interest bearing and unsecured. The loan
matures on July 11, 2014. Shenzhen BAK repaid RMB 4,054,500 (approximately
$645,036 ) of the loan on July 17, 2012, reducing the balance of the loan to RMB
5,945,500 (approximately $ 945,877). On November 14, 2012, Shenzhen BAK repaid
another RMB 2,706,706 (approximately $430,613) of the above loan. As of March
31, 2013, Shenzhen BAK had paid off the rest of the above loans. Tianjin New
Energy is a company established in China and mainly engages in the business of
researching, developing and selling new energy related materials. Approximately
59 percent of equity interest in Tianjin New Energy is currently owned by Mr.
Li.
On October 16, 2012, Shenzhen BAK
entered into a loan agreement with Tianjin New Energy, under which Tianjin New
Energy extended a loan in an amount of RMB8,600,000 (approximately $1,368,185)
to Shenzhen BAK as working capital, which loan is non-interest bearing,
unsecured and repayable on demand. As of October 16, 2012, the total amount of
non-interest loans between Shenzhen BAK and Tianjin New Energy was RMB
11,838,794 (approximately $1,899,891). As of March 31, 2013, the total amount of
non-interest loans between Shenzhen BAK and Tianjin New Energy was RMB 552,509
(approximately $89,005).
In addition, on March 24, 2011,
Shenzhen BAK entered into a guarantee agreement with Jilin Province Trust &
Investment Co., Ltd. (Jilin Trust & Investment), under which Shenzhen BAK
agreed to guarantee a loan of Tianjin New Energy, in a total amount of RMB
50,700,000 (approximately $8.1 million) that it borrowed from Jilin Trust &
Investment. In addition, Mr. Li and his wife entered into a guarantee agreement
with Jilin Trust & Investment under which they pledged all of their personal
assets to Jilin Trust & Investment to provide unlimited liability guarantees
for the loan. Shenzhen BAK has terminated its guarantee obligations as Tianjin
New Energy repaid the loan on the maturity date of March 23, 2013. Tianjin New
Energy is a related party of the company under the control of Mr. Li. However,
Tianjin New Energy is not engaged in the business that competes with the Company
and did not have any transactions with the Company except for the guarantee
relationship between them.
17
On July 2, 2012, Shenzhen BAK
also entered into a guarantee agreement with Bank of Dalian, under which
Shenzhen BAK agreed to guarantee a loan of Tianjin New Energy in a total amount
of RMB20,000,000 (approximately $3.2 million) that it borrowed from Bank of
Dalian. In addition, Mr. Li entered into a guarantee agreement with Bank of
Dalian and assumed joint and several liabilities to guarantee the loan.
On October 15, 2012, Shenzhen BAK
also entered into a guarantee agreement with Bank of Dalian, under which
Shenzhen BAK agreed to guarantee a loan of Tianjin New Energy in a total amount
of RMB 10,000,000 (approximately $1.6 million) that it borrowed from Bank of
Dalian. In addition, Mr. Li entered into a guarantee agreement with Bank of
Dalian and assumes joint and several liability to guarantee the loan. Shenzhen
BAK expects to terminate its guarantee obligations when Tianjin New Energy
repays the loan on the maturity date of October 15, 2013.
Shenzhen BAK believes that
Tianjin New Energy owns sufficient assets, including buildings measuring 24,000
square meters and land use rights over a parcel of land of 233,450 square
meters, to repay the above RMB 70,700,000 loans without incurring Shenzhen BAKs
guarantor liability.
Promoters and Certain Control Persons
We did not have any promoters at any time during the past five
fiscal years.
18
PROPOSAL NO. 2 RATIFICATION OF SELECTION OF INDEPENDENT
AUDITORS
The consolidated balance sheets
of the Company as of September 30, 2012, and the related consolidated statements
of operations and comprehensive loss, shareholders equity, and cash flows for
the year ended September 30, 2012, were audited by PKF, Certified Public
Accountants, Hong Kong, China, a member firm of PKF International Limited
network of legally independent firms (PKF). As the Company disclosed in the
Current Report on Form 8-K, filed with the SEC on January 8, 2013, PKF resigned
as the Companys the independent registered public accounting firm on January 2,
2013. On January 16, 2013, the Companys Audit Committee appointed Crowe Horwath
(HK) CPA Limited (Crowe Horwath) as the Companys independent registered
public accounting firm for the fiscal year ending September 30, 2013.
Our management believes that
Crowe Horwath is knowledgeable about our operations and accounting practices and
is well qualified to act as our independent registered public accounting firm.
We are asking our stockholders to ratify the selection of Crowe Horwath as our
independent registered public accounting firm. Although ratification is not
required by our bylaws or otherwise, the Board is submitting the selection of
Crowe Horwath to our stockholders for ratification as a matter of good corporate
practice. In the event our stockholders fail to ratify the appointment, the
Audit Committee may reconsider this appointment.
Representatives of Crowe Horwath
will be available via teleconference during the Annual Meeting, at which time
they may make any statement they consider appropriate and will respond to
appropriate questions raised at the Annual Meeting.
Independent Registered Public Accounting Firms Fees and
Services
Audit Fees
PKF has billed us $234,500, in
the aggregate, for professional services rendered to audit our annual financial
statements for the fiscal year ended September 30, 2012, and to review the
interim financial statements included in our quarterly reports on Form 10-Q
filed during such fiscal year. For similar services rendered during the fiscal
year ended September 30, 2011, PKF billed us $230,000 in the aggregate.
Audit-Related Fee
s
PKF billed us $11,128, in the
aggregate, for charges for consent services for registration statement filings
for the fiscal year ended September 30, 2012. PKF billed us $11,181, in the
aggregate, for charges for consent services for registration statement filings
for the fiscal year ended September 30, 2011.
Tax Fees
We were not billed for any
services for professional services rendered by PKF for tax compliance, tax
advice, or tax planning for either of our fiscal years ended September 30, 2012
or September 30, 2011.
All Other Fees
We were not billed for any other
products or services provided by PKF for either of our fiscal years ended
September 30, 2012 or September 30, 2011.
Pre-Approval Policies and Procedures
All auditing services and
permitted non-audit services (including the fees and terms thereof) to be
performed for the Company by our independent auditor must be approved by the
Audit Committee in advance, except non-audit services (other than review and
attestation services) if such services fall within exceptions established by the
SEC. The Audit Committee will pre-approve any permissible non-audit services to
be provided by the Companys independent auditors on behalf of the Company that
do not fall within any exception to the pre-approval requirements established by
the SEC. The Audit Committee may delegate to one or more members the authority
to pre-approve permissible non-audit services, but any such delegate or
delegates must present their pre-approval decisions to the Audit Committee at
its next meeting. All of our accountants services described above were
pre-approved by the Audit Committee or by one or more members under the delegate
authority described above.
19
The Board of Directors
recommends a vote FOR ratification of the selection of Crowe Horwath as the
Companys independent registered public accounting firm for the fiscal year
ending September 30, 2013.
20
OTHER INFORMATION
The Report of the Audit Committee
set forth in this Proxy Statement shall not be deemed to be soliciting
material or to be filed with the SEC or subject to Regulation 14A or 14C
under the Exchange Act or to the liabilities of Section 18 of the Exchange Act.
In addition, it shall not be deemed incorporated by reference by any statement
that incorporates this Proxy Statement by reference into any filing under the
Securities Act or the Exchange Act, except to the extent that we specifically
incorporate this information by reference.
GENERAL
At the date of this Proxy
Statement, management is not aware of any matters to be presented for action at
the meeting other than those described above. However, if any other matters
should come before the Annual Meeting, it is the intention of the persons named
in the accompanying proxy to vote such proxy in accordance with their judgment
on such matters.
STOCKHOLDER COMMUNICATIONS
The Company has a process for
stockholders who wish to communicate with the Board. Stockholders who wish to
communicate with the Board may write to it at the Companys address given above.
These communications will be reviewed by one or more employees of the Company
designated by the Board, who will determine whether they should be presented to
the Board. The purpose of this screening is to allow the Board to avoid having
to consider irrelevant or inappropriate communications.
STOCKHOLDER PROPOSALS FOR THE 2014 ANNUAL MEETING
If you wish to have a proposal
included in our proxy statement for next years annual meeting in accordance
with Rule 14a-8 under the Exchange Act, your proposal must be received by the
Secretary of the Company at BAK Industrial Park, No. 1 BAK Street Kuichong Town,
Longgang District, Shenzhen 518119, Peoples Republic of China, no later than
September 30, 2013 or, if the date of the 2014 annual meeting has been changed
by more than 30 days from the date of this years meeting, by no later than 30
days prior to the date of printing and mailing our material for the annual
meeting. A proposal which is received after the applicable date or which
otherwise fails to meet the requirements for stockholder proposals established
by the SEC will not be included. The submission of a stockholder proposal does
not guarantee that it will be included in the proxy statement.
Rule 14a-4 under the Exchange Act
governs the use by the Company of discretionary voting authority with respect to
stockholder proposals submitted outside the process of Rule 14a-8. Rule
14a-4(c)(1) provides that, if the proponent of a stockholder proposal fails to
notify the Company at least forty-five (45) days prior to the month and day of
mailing the prior years proxy statement, the proxies of the Companys
management would be permitted to use their discretionary authority to vote on
this proposal at the Companys next annual meeting of stockholders. For purposes
of the Companys 2014 annual meeting, the deadline is December 14, 2013 or, if
the date of the 2013 annual meeting has been changed by more than 30 days from
the date of this years meeting, by no later than 30 days prior to the date of
printing and mailing our material for the annual meeting. Notifications must be
received by the applicable deadline by the Secretary of the Company at BAK
Industrial Park, No. 1 BAK Street Kuichong Town, Longgang District, Shenzhen
518119, Peoples Republic of China.
ANNUAL REPORT ON FORM 10-K
We will provide without charge
to each person solicited by this Proxy Statement, on the written request of such
person, a copy of our Annual Report on Form 10-K with any amendments, including
the financial statements and financial statement schedules, as filed with the
SEC for our most recent fiscal year. Such written requests should be directed to
the Secretary of the Company, at our address listed on the top of page one of
this Proxy Statement.
A copy of our Annual Report on Form 10-K, with any
amendments, is also made available on our website at
www.bak.com.cn
after
it is filed with the SEC.
August 15, 2013
|
By Order of the Board of Directors
|
|
|
|
/s/
Xiangqian Li
|
|
Secretary
|
21
CHINA BAK BATTERY, INC.
|
ANNUAL MEETING OF STOCKHOLDERS
|
TO BE HELD ON SEPTEMBER 27, 2013
|
____________________________________________
|
|
Annual Meeting Proxy Card
|
____________________________________________
|
|
This Proxy is Solicited on Behalf of the Board of
Directors
|
The undersigned stockholder of
CHINA BAK BATTERY, INC., a Nevada corporation (the Company), acknowledges
receipt of the Notice of Annual Meeting of Stockholders and Proxy Statement,
dated August 15, 2013, and hereby constitutes and appoints Mr. Xiangqian Li, the
Companys Chairman, President, Chief Executive Officer and Secretary, and Mr.
Huanyu Mao, the Companys Chief Technology Officer, or either of them acting
singly in the absence of the other, with full power of substitution in either of
them, the proxies of the undersigned to vote with the same force and effect as
the undersigned all shares of the Companys Common Stock which the undersigned
is entitled to vote at the 2013 Annual Meeting of Stockholders to be held on
September 27, 2013, and at any adjournment or adjournments thereof, hereby
revoking any proxy or proxies heretofore given and ratifying and confirming all
that said proxies may do or cause to be done by virtue thereof with respect to
the following matters:
The undersigned hereby instructs said
proxies or their substitutes:
The Board of Directors recommends that you vote FOR the
following:
1.
|
Elect as Directors the nominees listed
below:
|
01
|
Xiangqian Li
|
FOR
|
[ ]
|
WITHHOLD
|
[ ]
|
02
|
Huanyu Mao
|
FOR
|
[ ]
|
WITHHOLD
|
[ ]
|
03
|
Jonathan Christopher Paugh
|
FOR
|
[ ]
|
WITHHOLD
|
[ ]
|
04
|
Chunzhi Zhang
|
FOR
|
[ ]
|
WITHHOLD
|
[ ]
|
05
|
Martha C. Agee
|
FOR
|
[ ]
|
WITHHOLD
|
[ ]
|
The Board of Directors recommends that you vote FOR the
following:
2. Approve the ratification of Crowe Horwath as the Companys
independent registered public accounting firm for fiscal year 2013.
FOR
[ ]
|
AGAINST
[ ]
|
ABSTAIN
[ ]
|
NOTE
: In their discretion, the proxies are authorized to
vote upon such other business as may properly come before the Annual Meeting,
and any adjournment or adjournments thereof.
THIS PROXY, WHEN PROPERLY EXECUTED, WILL BE VOTED IN THE
MANNER DIRECTED; IF NO DIRECTION IS MADE, THIS PROXY WILL BE VOTED FOR EACH OF
THE NOMINEES IN PROPOSAL ONE AND FOR PROPOSAL TWO. IN THEIR DISCRETION, THE
PROXIES ARE ALSO AUTHORIZED TO VOTE UPON SUCH OTHER MATTERS AS MAY PROPERLY COME
BEFORE THE MEETING, INCLUDING THE ELECTION OF ANY PERSON TO THE BOARD OF
DIRECTORS WHERE A NOMINEE NAMED IN THE PROXY STATEMENT DATED August 15, 2013 IS
UNABLE TO SERVE OR, FOR GOOD CAUSE, WILL NOT SERVE.
I (we) acknowledge receipt of the Notice of Annual Meeting of
Stockholders, the Proxy Statement dated August 15, 2013, and the 2012 Annual
Report, and ratify all that the proxies, or either of them, or their substitutes
may lawfully do or cause to be done by virtue hereof and revoke all former
proxies.
If you are voting by mail, please sign, date and mail this
proxy immediately in the enclosed envelope. You are also permitted and
encouraged to vote online by following the instructions on the Notice of
Internet Availability of Proxy Materials that was separately mailed to
you.
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Name
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Name (if joint)
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___________________________________________________
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Date _____________, 2013
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Please sign your name exactly as it appears hereon. When
signing as attorney, executor, administrator, trustee or guardian, please
give your full title as it appears hereon. When signing as joint tenants,
all parties in the joint tenancy must sign. When a proxy is given by a
corporation, it should be signed by an authorized officer and the
corporate seal affixed. No postage is required if returned in the enclosed
envelope, if mailed in the United States.
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CBAK Energy Technology, Inc. (NASDAQ:CBAK)
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CBAK Energy Technology, Inc. (NASDAQ:CBAK)
過去 株価チャート
から 7 2023 まで 7 2024