UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
Filed by the Registrant [X]
Filed by a Party other than the Registrant [ ]
Check the appropriate box:
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Preliminary Proxy Statement |
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Confidential for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) |
[X] |
Definitive Proxy Statement |
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Definitive Additional Materials |
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Soliciting Material Pursuant to Rule 14a-12 |
inTEST Corporation
Payment of Filing Fee (Check the appropriate box):
[X] |
No fee required. |
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Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. |
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Title of each class of securities to which transaction applies: |
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Aggregate number of securities to which transaction applies: |
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Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined): |
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Proposed maximum aggregate value of transaction: |
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Total fee paid: |
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Fee paid previously with preliminary materials. |
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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. |
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Amount Previously Paid: |
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Form, Schedule or Registration Statement No.: |
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Filing Party: |
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Date Filed: |
inTEST CORPORATION
7 Esterbrook Lane
Cherry Hill, New Jersey 08003
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
To Be Held August 2, 2006
NOTICE IS HEREBY GIVEN that the 2006 Annual Meeting of Stockholders of inTEST Corporation will be held in our offices located at 7 Esterbrook Lane, Cherry Hill, New Jersey, on Wednesday, August 2, 2006, at 11:00 A.M. Eastern Daylight Time, to consider and vote on the following matters described in the accompanying Proxy Statement:
1. |
Election of the members of the Board of Directors; |
2. |
Such other business as may properly be brought before the meeting or any adjournment thereof. |
The Board of Directors has fixed June 7, 2006, at the close of business, as the record date for the determination of stockholders entitled to notice of, and to vote at, the meeting.
By Order of the Board of Directors,
/s/ Hugh T. Regan, Jr.
Hugh T. Regan, Jr.
Secretary
June 30, 2006
YOUR VOTE IS IMPORTANT
Whether or not you plan to attend the meeting, please complete, date, sign and mail your proxy card promptly in order that the necessary quorum may be represented at the meeting. If your shares are held in a brokerage account or by another nominee record holder, please be sure to mark your voting choices on the voting instruction card that accompanies this proxy statement. The enclosed envelope requires no postage if mailed in the United States.
inTEST CORPORATION
7 Esterbrook Lane
Cherry Hill, New Jersey 08003
PROXY STATEMENT
ANNUAL MEETING OF STOCKHOLDERS
To Be Held August 2, 2006
This proxy statement and the enclosed proxy card are intended to be sent or given to stockholders of inTEST Corporation on or about June 30, 2006, in connection with the solicitation of proxies on behalf of our Board of Directors for use at the 2006 Annual Meeting of Stockholders, to be held on Wednesday, August 2, 2006, at 11:00 A.M. Eastern Daylight Time, in our offices located at 7 Esterbrook Lane, Cherry Hill, New Jersey.
The following questions and answers present important information pertaining to the meeting:
Q: |
Who is entitled to vote? |
A: |
Stockholders of record as of the close of business on June 7, 2006 may vote at the annual meeting. |
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Q: |
How many shares can vote? |
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There were 9,219,249 shares issued and outstanding as of the close of business on June 7, 2006. Every stockholder may cast one vote for each share owned. |
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Q: |
What may I vote on? |
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You may vote on the following items: |
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Will any other business be presented for action by stockholders at the meeting? |
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Management knows of no business that will be presented at the meeting other than that which is set forth in this proxy statement. If any other matter properly comes before the meeting, the persons named in the accompanying proxy card intend to vote the proxies (which confer discretionary authority to vote on such matters) in accordance with their best judgment. |
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Q: |
How does the Board recommend that I vote in the election of directors? |
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The Board recommends a vote "FOR" each of the director nominees. |
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How do I vote my shares? |
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The answer depends on whether you own your inTEST shares directly (that is, you hold stock certificates that show your name as the registered stockholder) or if your shares are held in a brokerage account or by another nominee holder. |
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If you own inTEST shares directly: your proxy is being solicited directly by us, and you can vote by paper, telephone or Internet, or you can vote in person if you attend the meeting. |
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If you vote by paper , please do the following: (1) sign and date the enclosed proxy card, (2) mark the boxes indicating how you wish to vote, and (3) return the proxy card in the prepaid envelope provided. If you sign your proxy card but do not indicate how you wish to vote, the proxies will vote your shares "FOR" each of the nominees named on the proxy card and in their discretion on any other matter that properly comes before the meeting. |
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If you vote by telephone or over the Internet , you will find instructions on the enclosed proxy card that you should follow. There may be costs associated with telephonic or electronic access, such as usage charges from Internet access providers and telephone companies, that must be borne by the stockholder. |
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If you hold your inTEST shares through a broker, bank or other nominee: you will receive a voting instruction card directly from the nominee describing how to vote your shares. If you receive a voting instruction card, you can vote by completing and returning the voting instruction card. You may also be able to vote by telephone or via the Internet. Please refer to the instructions provided with your voting instruction card for information about voting in these ways. |
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If you hold your shares through a nominee and want to vote at the meeting: you must obtain a "legal proxy" from the nominee recordholder authorizing you to vote at the meeting. |
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If I hold shares through a nominee, what is the effect if I fail to give instructions to the nominee? |
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Generally, banks, brokers and other nominees have discretionary authority to vote shares on matters that are deemed routine. The election of directors at this meeting is considered a routine matter. Therefore, brokers, banks and other nominees will have discretion to vote on the proposal without instructions from the stockholder, so if you fail to give instructions to your broker, your shares will be voted "FOR" each of the nominees for director. |
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What if I want to change my vote or revoke my proxy? |
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A registered stockholder may change his or her vote or revoke his or her proxy, at any time before the meeting by notifying our corporate secretary, Hugh T. Regan, Jr., in writing, that you revoke your proxy. You may then vote in person at the meeting or submit a new proxy card. You may contact our Transfer Agent to get a new proxy card. We will count your vote in accordance with the last instructions we receive from you prior to the closing of the polls, whether they are received by Internet, telephone or paper. If you hold your shares through a broker, bank or other nominee and wish to change your vote, you must follow the procedures required by your nominee. |
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What is a quorum? |
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The presence at the meeting (in person or by proxy) of a majority of the shares entitled to vote at the meeting constitutes a quorum. A quorum must be present in order to convene the meeting. |
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How will directors be elected? |
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A plurality of the votes cast at the meeting is required for the election of directors. |
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Do the directors and officers of inTEST have an interest in the outcome of the election? |
A: |
Our directors and officers will not receive any special benefit as a result of the outcome of the election, except that our non-employee directors will receive compensation for such service as described elsewhere in this proxy statement under the heading "Director Compensation." |
Q: |
How many shares do the directors and officers of inTEST beneficially own, and how do they plan to vote their shares? |
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Directors and executive officers, who, as of June 7, 2006, had beneficial ownership (or had the right to acquire beneficial ownership within sixty days following June 7, 2006) of approximately 23% of our outstanding common stock, are expected to vote, or direct the voting of their shares, in favor of the election of the seven nominees for director. |
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Q: |
Who will count the votes? |
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Our Transfer Agent will count the votes cast by proxy. The Assistant Secretary of inTEST will count the votes cast in person at the meeting and will serve as the Inspector of Election. |
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What is the effect if I withhold my vote? |
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Withheld votes will have no effect on the outcome of the election of directors. |
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Who can attend the meeting? |
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All stockholders are invited to attend the meeting. |
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Are there any expenses associated with collecting the stockholder votes? |
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We will reimburse brokerage firms and other custodians, nominees and fiduciaries for their reasonable out-of-pocket expenses for forwarding proxy and other materials to our stockholders. We do not anticipate hiring an agency to solicit votes from stockholders at this time. Officers and other employees of inTEST may solicit proxies in person or by telephone but will receive no special compensation for doing so. |
VOTING SECURITIES AND PRINCIPAL STOCKHOLDERS
The following table sets forth certain information known to us regarding the beneficial ownership of our common stock as of June 7, 2006 (except where otherwise noted) by:
Percentage ownership in the following table is based on 9,219,249 shares of common stock outstanding as of June 7, 2006. We have determined beneficial ownership in the table in accordance with the rules of the Securities and Exchange Commission ("SEC"). In computing the number of shares beneficially owned by any person and the percentage ownership of that person, shares of common stock subject to options held by such person that are currently exercisable, or that will become exercisable by August 6, 2006, are deemed to be outstanding. However, we have not deemed these shares to be outstanding for computing the percentage ownership of any other person. To our knowledge, except as set forth in the footnotes below, each stockholder identified in the table possesses sole voting and investment power with respect to all shares of common stock shown as beneficially owned by such stockholder.
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Shares |
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Directors and Named Executive Officers : |
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Alyn R. Holt (3)(4) |
1,532,556 |
16.6% |
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Robert E. Matthiessen (5) |
218,219 |
2.3% |
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Hugh T. Regan, Jr. (6) |
37,350 |
* |
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Daniel J. Graham (7) |
196,010 |
2.1% |
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Dale E. Christman (8) |
48,750 |
* |
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Stuart F. Daniels, Ph.D. (9) |
43,282 |
* |
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Richard O. Endres (10) |
22,697 |
* |
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James J. Greed, Jr. (11) |
16,000 |
* |
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Thomas J. Reilly, Jr. (12) |
16,000 |
* |
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Joseph A. Savarese (13) |
15,000 |
* |
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James W. Schwartz, Esq. (14) |
16,000 |
* |
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All directors and executive officers as a group (12 individuals) (15) |
2,200,089 |
23.2% |
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Five Percent Stockholders : |
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Rutabaga Capital Management (16) |
1,678,258 |
18.2% |
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Wasatch Advisors, Inc. (17) |
934,395 |
10.1% |
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FMR Corp. (18) |
909,300 |
9.9% |
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___________________________________ |
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(1) |
Includes shares that may be acquired within sixty days after June 7, 2006 ("Option Shares") through the exercise of stock options. |
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(2) |
Includes shares of unvested restricted stock ("Restricted Shares"), that will vest 1/3, 1/3, 1/3 on each of the next three anniversaries of the grant date (November 23, 2004), subject to certain conditions, including, but not limited to, the continued employment by, or service to, the Corporation of the respective beneficial owner through each such vesting date, with full vesting upon death, disability, or change of control. The beneficial owner will not have investment power over such Restricted Shares, and such Restricted Shares will not be delivered to the beneficial owner, until such Restricted Shares are vested. Each beneficial owner has sole voting power over all of the Restricted Shares awarded to him, notwithstanding such future vesting of the other rights of ownership of the Restricted Shares. |
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The address of the stockholder is: c/o inTEST, 7 Esterbrook Lane, Cherry Hill, New Jersey 08003. |
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Includes 200,000 shares owned by The Alyn R. Holt Trust f/b/o Kristen Holt Thompson, 115,000 shares owned by The Holt Charitable Remainder Trust and 24,000 shares owned by The Alyn R. Holt Year 2001 Irrevocable Trust. Excludes 150,427 shares owned by Mr. Holt's spouse. Mr. Holt disclaims beneficial ownership of the shares owned by his spouse. |
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Excludes 61,618 shares owned by Mr. Matthiessen's spouse. Mr. Matthiessen disclaims beneficial ownership of the shares owned by his spouse. Includes 124,000 Option Shares and 26,250 Restricted Shares. |
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Includes 12,500 Option Shares and 15,000 Restricted Shares. |
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(7) |
Excludes 129,000 shares owned by Mr. Graham's spouse and 11,000 shares held by custodian for the benefit of Mr. Graham's child. Mr. Graham disclaims beneficial ownership of the shares owned by his spouse and child. Includes 15,000 Restricted Shares. |
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(8) |
Includes 30,000 Option Shares and 15,000 Restricted Shares. |
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(9) |
Includes 20,000 Option Shares and 9,000 Restricted Shares. |
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(10) |
Excludes 10,000 shares owned by Mr. Endres' spouse. Mr. Endres disclaims beneficial ownership of the shares owned by his spouse. Includes 3,750 Restricted Shares. |
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(11) |
Includes 10,000 Option Shares and 3,750 Restricted Shares. |
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(12) |
Includes 10,000 Options Shares and 3,750 Restricted Shares. |
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(13) |
Includes 10,000 Options Shares and 3,750 Restricted Shares. |
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(14) |
Includes 1,000 shares owned by Mr. Schwartz's spouse, 10,000 Option Shares and 3,750 Restricted Shares. |
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(15) |
Includes 246,500 Option Shares and 114,000 Restricted Shares. |
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(16) |
According to a Schedule 13G filed with the SEC on February 9, 2006, as of December 31, 2005, Rutabaga Capital Management, an investment advisor in accordance with Section 203 of the Investment Advisors Act of 1940, reported that it is the beneficial owner of 1,678,258 shares of inTEST common stock. The principal business office of Rutabaga Capital Management is located at 64 Broad Street, 3rd Floor, Boston, MA 02109 |
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(17) |
According to a Schedule 13G filed with the SEC on February 14, 2006, as of December 31, 2005, Wasatch Advisors, Inc., an investment advisor in accordance with Section 203 of the Investment Advisors Act of 1940, reported that it is the beneficial owner of 934,395 shares of inTEST common stock. The principal business office of Wasatch Advisors, Inc. is located at 150 Social Hall Avenue, Salt Lake City, Utah 84111. |
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(18) |
According to a Schedule 13G filed with the SEC on February 14, 2006, as of December 31, 2005, Fidelity Management & Research Company, a wholly-owned subsidiary of FMR Corp., reported that it is the beneficial owner of the 909,300 shares as a result of acting as investment adviser to Fidelity Low Priced Stock Fund, an investment company registered under Section 8 of the Investment Company Act of 1940 that owns the 909,300 shares. The address or principal business office of each of Fidelity Management & Research, FMR and Fidelity Low Priced Stock Fund is 82 Devonshire Street, Boston MA 02109. Edward C. Johnson 3d, Chairman of FMR, and Abigail P. Johnson, a director of FMR, and other members of the Edward C. Johnson 3d family and trusts for their benefit, through their ownership of voting common stock of FMR and the execution of a stockholders' voting agreement, may be deemed, under the Investment Company Act of 1940, to form a controlling group with respect to FMR. Edward C. Johnson 3d, Fidelity Management & Research, FMR (through its control of Fidelity Management & Research) and Fidelity Low Priced Stock Fund each has sole power to dispose of the shares. Neither FMR nor Edward C. Johnson 3d has the sole power to vote or direct the voting of the shares owned by Fidelity Low Priced Stock Fund, which power resides with, and is directed by, the Board of Trustees of Fidelity Low Priced Stock Fund. |
ELECTION OF DIRECTORS
Our bylaws provide that our Board of Directors shall consist of not less than five directors, as determined by the Board of Directors, and that each director shall hold office until the next Annual Meeting of Stockholders and until a successor shall be duly elected and qualified, or until his earlier resignation, retirement or removal. The number of directors that presently constitute the entire Board is eight; however, in keeping with our ongoing assessment of our corporate governance policies and costs of compliance with regulatory changes following the enactment of the Sarbanes-Oxley Act of 2002, the Board of Directors has determined to reduce the number of directors constituting the entire Board from eight to seven, and Mr. Savarese has agreed that he will not stand for re-election at the Annual Meeting. Mr. Endres has notified the Board of his retirement, to be effective November 1, 2006. Following Mr. Endres' retirement, the number of directors constituting the entire Board is expected to be red
uced to six directors, provided that, at that time, the Board determines that a majority of the then incumbent directors are independent as required by Nasdaq Marketplace Rule 4350.
Listed below are the seven nominees for director. The persons designated as proxies in the accompanying proxy card intend to vote "FOR" each such nominee, unless a contrary instruction is indicated on the proxy card. If for any reason any such nominee should become unavailable for election, the persons designated as proxies in the proxy card may vote the proxy for the election of another person nominated as a substitute by the Board of Directors, if any person is so nominated. We have no reason to believe that any of the nominees will be unable or unwilling to serve if elected, and all nominees have expressed their intention to serve the entire term for which election is sought, with the exception of Mr. Endres who will retire as discussed above.
The names of the persons nominated for election, each of whom presently serves as a director, are listed below, together with their ages and certain other information regarding the nominees.
Name |
Age |
Position |
Alyn R. Holt |
68 |
Chairman |
Robert E. Matthiessen |
61 |
President, Chief Executive Officer and Director |
Richard O. Endres |
81 |
Director |
Stuart F. Daniels, Ph.D. |
65 |
Director |
James J. Greed, Jr. |
67 |
Director |
James W. Schwartz, Esq. |
71 |
Director |
Thomas J. Reilly, Jr. |
66 |
Director |
Biographical and Other Information Regarding inTEST's Directors
EXECUTIVE OFFICERS OF inTEST
Our executive officers and their ages are as follows:
Name |
Age |
Position |
Alyn R. Holt |
68 |
Chairman |
Robert E. Matthiessen |
61 |
President, Chief Executive Officer and Director |
Hugh T. Regan, Jr. |
46 |
Secretary, Treasurer and Chief Financial Officer |
Daniel J. Graham |
60 |
General Manager-Manipulator and Docking Hardware Product Segment |
James Pelrin |
54 |
General Manager-Temperature Management Product Segment |
Dale E. Christman |
55 |
General Manager-Tester Interface Product Segment |
Biographical and Other Information Regarding the Executive Officers of inTEST
EXECUTIVE COMPENSATION
The following table sets forth certain information with respect to the compensation we paid for services rendered during the years ended December 31, 2005, 2004, and 2003, to our Chief Executive Officer and our four other most highly compensated executive officers who were serving as such at December 31, 2005. These officers are referred to elsewhere in this proxy statement as our "Named Executive Officers."
Summary Compensation Table
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Long-Term |
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Restricted |
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Securities |
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Robert E. Matthiessen |
2005 |
$254,294 |
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-- |
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-- |
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$ 997 |
(4) |
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Alyn R. Holt |
2005 |
$189,331 |
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-- |
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-- |
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-- |
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$ 997 |
(5) |
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Hugh T. Regan, Jr. |
2005 |
$181,764 |
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-- |
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-- |
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-- |
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$ 992 |
(6) |
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Dale E. Christman |
2005 |
$176,500 |
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-- |
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$ 997 |
(7) |
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Daniel J. Graham |
2005 |
$165,070 |
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-- |
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$ 997 |
(8) |
_______________________
(1) |
Paid in March 2005. |
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(2) |
On November 23, 2004, restricted stock awards were granted to certain directors, officers and key employees, including awards granted to Messrs. Matthiessen (35,000 shares), Regan (20,000 shares), Graham (20,000 shares) and Christman (20,000 shares) subject to vesting over four years with 25% of the shares vesting each year beginning on November 23, 2005, and full vesting upon death, disability or change of control. The aggregate number of shares still subject to restriction held by each of these officers at December 31, 2005 was 26,250, 15,000, 15,000 and 15,000, respectively. The value of such unvested shares, based upon the closing price of the shares on December 30, 2005 (the last business day of 2005), was $86,888, $49,650, $49,650 and $49,650, respectively. Dividends, if any, are payable on shares of restricted stock to the same extent as paid on our common stock, generally. |
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(3) |
These options were issued six months and one day after the cancellation of a like number of options pursuant to a voluntary stock option exchange program commenced August 16, 2002. Under the program, participants were given the right to forfeit outstanding stock options previously granted to them with an exercise price greater than or equal to $9.5625 per share, in exchange for the right to receive a new option to buy shares of our common stock to be granted on February 24, 2003. The exercise price of the new options was equal to $3.04, the fair market value of our common stock on the new grant date. The exchange program did not result in any compensation charges or variable option plan accounting, as it complied with Interpretation No. 44, Accounting for Certain Transactions Involving Stock-Based Compensation. |
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(4) |
Includes $997, $1,102 and $1,102 for premiums paid on life insurance for Mr. Matthiessen in 2005, 2004 and 2003, respectively; $4,750 for matching contributions to Mr. Matthiessen's 401(k) Plan account in 2004; and $19,729 and $33,839 for serving as a director of inTEST Kabushiki Kaisha and inTEST PTE Ltd. in 2004 and 2003, respectively. |
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(5) |
Includes $997, $1,102 and $1,102, for premiums paid on life insurance for Mr. Holt in 2005, 2004 and 2003, respectively; $4,750 for matching contributions to Mr. Holt's 401(k) Plan account in 2004; and $4,451 and $18,496 for serving as a director of inTEST Kabushiki Kaisha in 2004 and 2003, respectively. |
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(6) |
Includes $992, $1,100 and $1,102 for premiums paid on life insurance for Mr. Regan in 2005, 2004 and 2003, respectively; and $4,750 for matching contributions to Mr. Regan's 401(k) Plan account in 2004. |
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(7) |
Includes $997 and $1,098 for premiums paid on life insurance in 2005 and 2004, respectively; and $4,750 for matching contributions to Mr. Christman's 401(k) Plan account in 2004. |
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(8) |
Includes $997, $1,102 and $1,102 for premiums paid on life insurance for Mr. Graham in 2005, 2004 and 2003, respectively; and $4,750 for matching contributions to Mr. Graham's 401(k) Plan account in 2004. |
Stock Options
Aggregated Option Exercises in 2005 and December 31, 2005 Option Values
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Number of Shares |
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Value of Unexercised |
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Name |
Exercisable |
Unexercisable |
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Exercisable |
Unexercisable |
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Robert E. Matthiessen |
0 |
$0 |
124,000 |
0 |
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$33,480 |
$0 |
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Hugh T. Regan, Jr |
0 |
$0 |
12,500 |
0 |
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$ 3,375 |
$0 |
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Dale E. Christman |
0 |
$0 |
30,000 |
0 |
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$ 0 |
$0 |
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(1) |
Based upon the closing price for our common stock as reported on the Nasdaq National Market System on December 30, 2005 of $3.31 less the exercise price. Value of unexercised in-the-money options does not reflect the value of any stock options where the exercise price is greater than, or equal to, the closing price of our common stock on December 30, 2005. |
Stock Performance Graph
The following graph shows a comparison of cumulative total returns during the period commencing on December 31, 2000, and ending on December 31, 2005, for inTEST, the Nasdaq Market Composite Index and a composite index (the "Peer Group Index") of public companies engaged in manufacturing back-end automatic test equipment with five or more years of public trading. The companies included in the Peer Group Index consist of Aehr Test Systems, Aetrium Incorporated, Cohu, Inc., Credence Systems Corporation, Electroglas, Inc., LTX Corporation, Micro Component Technology, Inc. and Teradyne, Inc. The comparison assumes $100 was invested on December 31, 2000 in our common stock and in each of the foregoing indices and assumes the reinvestment of all dividends, if any.
[CHART EXCLUDED]
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12/31/00 |
12/31/01 |
12/31/02 |
12/31/03 |
12/31/04 |
12/31/05 |
inTEST Corporation |
$100.00 |
$80.00 |
$75.14 |
$95.53 |
$68.86 |
$ 51.92 |
Nasdaq Market Composite Index |
$100.00 |
$85.11 |
$65.73 |
$87.57 |
$89.25 |
$105.32 |
Peer Group Index |
$100.00 |
$88.93 |
$37.97 |
$70.81 |
$48.43 |
$ 40.79 |
Compensation Committee:
Stuart F. Daniels, Ph.D., Chairman
Richard O. Endres
James J. Greed, Jr.
Alyn R. Holt
Joseph A. Savarese
James W. Schwartz, Esq.
Thomas J. Reilly, Jr.
Change of Control Agreements
On April 17, 2001, we entered into Change of Control Agreements with Messrs. Matthiessen and Regan. These Change of Control Agreements provide that, upon termination of their employment with us without cause (as defined in the agreements) within two years following a change of control (as defined in the agreements), or termination by the executive officer for good reason (as defined in the agreements) within two years following a change of control, each is entitled to the following for a period of one year following termination:
a. |
payment of base salary on the same basis paid immediately prior to termination; |
b. |
payment of any bonus the executive officer would otherwise be eligible to receive for the year in which the termination occurs and for that portion of the following year which falls within a period of one year following termination; and |
c. |
continuation of all fringe benefits the executive officer was receiving immediately prior to the termination. |
Notwithstanding the above, the benefits under the Change of Control Agreements will be reduced to the extent that the payments would not be deductible by us (in whole or in part) under Section 280G of the Internal Revenue Code.
On November 23, 2004, certain of our Named Executive Officers were granted awards of restricted stock, as described in Footnote 2 to the Summary Compensation Table. Pursuant to the applicable Restricted Stock Award Agreements, these awards of restricted stock are subject to full vesting upon a change of control (as defined in such agreements).
Compensation Committee Interlocks and Insider Participation
During 2005, the members of the Compensation Committee included Stuart F. Daniels, Ph.D., Richard O. Endres, Alyn R. Holt, James J. Greed, James W. Schwartz, Joseph A. Savarese, Gregory W. Slayton and Thomas J. Reilly. Mr. Holt is one of our executive officers. The Company utilizes the legal services of Saul Ewing LLP, a Philadelphia law firm. James W. Schwartz, Esq., a director of the Company, was a partner in that law firm until his retirement in December 2003. Mr. Schwartz is presently Of Counsel to Saul Ewing LLP.
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
KPMG LLP has been our independent registered public accounting firm ("IRPA Firm") since our incorporation in 1981. KPMG LLP audited our consolidated financial statements for the year ended December 31, 2005. A representative of KPMG LLP is expected to be present at the meeting. The representative will be given an opportunity to make a statement if desired and will be available to respond to appropriate questions by stockholders. As negotiations with KPMG LLP for the 2006 audit fees have not been completed, the Audit Committee has not yet appointed an IRPA Firm to audit our consolidated financial statements for the year ended December 31, 2006.
The following table sets forth the aggregate fees billed by KPMG LLP for audit services rendered in connection with the consolidated financial statements and reports for years 2005 and 2004 and for other services billed during 2005 and 2004.
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|
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Audit Fees |
$340,851 |
$344,857 |
Audit-Related Fees |
- |
- |
Tax Fees |
3,222 |
21,906 |
All Other Fees |
- |
- |
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Total Fees |
$344,073 |
$366,763 |
Audit Fees:
Consists of fees billed for professional services rendered in connection with the audit of our consolidated financial statements and review of the interim condensed consolidated financial statements for 2005 and 2004, respectively that are included in quarterly reports during those years and services that are normally provided by KPMG LLP in connection with statutory and regulatory filings or engagements, and attest services, except those not required by statute or regulation.Audit Committee:
Thomas J. Reilly, Jr., Chairman
Richard O. Endres
James J. Greed, Jr.
Joseph A. Savarese
James W. Schwartz, Esq.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
The Company utilizes the legal services of Saul Ewing LLP, a Philadelphia law firm. James W. Schwartz, Esq., one of our directors, was a partner in that law firm until his retirement in December 2003. Mr. Schwartz has been Of Counsel to Saul Ewing LLP since January 2005.
SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
Section 16(a) of the Exchange Act requires our directors, certain officers and persons who own more than ten percent of a registered class of our equity securities, to file reports of ownership and changes in ownership with the SEC. These officers, directors and greater than ten-percent shareholders are required by SEC regulation to furnish us with copies of all Section 16(a) forms they file.
Based solely on review of the copies of such forms furnished to us, or written representations that no Forms 5 were required, we believe that, during 2005, all Section 16(a) filing requirements applicable to these officers, directors and greater than ten-percent beneficial owners were timely met.
STOCKHOLDER PROPOSALS
Stockholders intending to submit proposals to be included in our proxy statement for our Annual Meeting of Stockholders to be held in 2007 must send their proposals to Hugh T. Regan, Jr., Secretary (at 7 Esterbrook Lane, Cherry Hill, New Jersey 08003), not later than March 2, 2007. These proposals must relate to matters appropriate for stockholder action and be consistent with regulations of the Securities and Exchange Commission relating to stockholders' proposals in order to be considered for inclusion in our proxy statement relating to that meeting.
Stockholders intending to present proposals at our Annual Meeting of Stockholders to be held in 2007 and not intending to have such proposals included in our next proxy statement must send their proposals to Hugh T. Regan, Jr., Secretary (at the address given above) not later than May 16, 2007. If notification of a stockholder proposal is not received by such date, management's proxies may vote, in their discretion, any and all of the proxies received in that solicitation.
ANNUAL REPORT
Our Annual Report to Stockholders (which includes our consolidated financial statements for the year ended December 31, 2005) accompanies this proxy statement. The Annual Report to Stockholders does not constitute a part of the proxy solicitation materials.
By Order of the Board of Directors,
/s/ Hugh T. Regan, Jr.
Hugh T. Regan, Jr.
Secretary
June 30, 2006
APPENDIX A
PROXY CARD
Proxy - inTEST Corporation
ANNUAL MEETING OF STOCKHOLDERS
AUGUST 2, 2006
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS OF inTEST CORPORATION
The undersigned, revoking any contrary proxy previously given, hereby appoints Robert E. Matthiessen and Hugh T. Regan, Jr. (the "Proxies"), and each of them jointly and severally, as attorneys and proxies of the undersigned, with full power of substitution, for and in the name, place and stead of the undersigned, to appear at the Annual Meeting of Stockholders of inTEST Corporation to be held August 2, 2006, and at any postponement or adjournment of the Annual Meeting of Stockholders, and to vote, as designated on the reverse side of this proxy card, all shares of Common Stock of inTEST Corporation held of record by the undersigned on June 7, 2006, with all the powers and authority the undersigned would possess if personally present. The undersigned confers discretionary authority by this proxy as to matters which may properly come before the meeting or any postponement or adjournment of the Annual Meeting of Stockholders and which are not known to the Board of Directors of inTEST Corporation a reaso
nable time before this solicitation of proxies.
THE BOARD OF DIRECTORS RECOMMENDS A VOTE "FOR" THE ELECTION OF EACH OF THE SEVEN NOMINEES TO SERVE AS DIRECTORS.
THIS PROXY WHEN PROPERLY EXECUTED WILL BE VOTED AS SPECIFIED ON THE REVERSE SIDE OF THIS PROXY CARD. IF NO DIRECTION IS GIVEN WITH RESPECT TO THE ELECTION OF DIRECTORS, THIS PROXY WILL BE VOTED "FOR" EACH OF THE NOMINEES FOR DIRECTOR.
The undersigned hereby acknowledges receipt of the proxy statement relating to the foregoing proposals.
PLEASE MARK, SIGN, DATE AND RETURN THIS PROXY CARD PROMPTLY USING THE ENCLOSED ENVELOPE, UNLESS VOTING BY TELEPHONE OR INTERNET.
Telephone and Internet Voting Instructions
You can vote by telephone OR Internet! Available 24 hours a day 7 days a week!
Instead of mailing this proxy card, you may choose one of the two voting methods outlined below to vote your proxy.
To vote using the Telephone (within U.S. and Canada) |
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To vote using the Internet |
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VALIDATION DETAILS ARE LOCATED ON THE FRONT OF THIS FORM IN THE COLORED BAR.
If you vote by telephone or Internet, please DO NOT mail back this proxy card.
Proxies submitted by telephone or Internet must be received by 12:00 a.m., Eastern Time, on August 2, 2006.
THANK YOU FOR VOTING
Annual Meeting Proxy Card
PLEASE REFER TO THE REVERSE SIDE FOR TELEPHONE AND INTERNET VOTING INSTRUCTIONS.
A Election of Directors
1. The Board of Directors recommends a vote FOR the listed nominees.
(Term to expire at 2007 Annual Meeting)
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For |
Withhold |
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For |
Withhold |
01 |
Alyn R. Holt |
[ ] |
[ ] |
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05 |
James J. Greed, Jr. |
[ ] |
[ ] |
02 |
Robert E. Matthiessen |
[ ] |
[ ] |
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06 |
James W. Schwartz, Esq. |
[ ] |
[ ] |
03 |
Richard O. Endres |
[ ] |
[ ] |
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07 |
Thomas J. Reilly, Jr. |
[ ] |
[ ] |
04 |
Stuart F. Daniels, Ph.D. |
[ ] |
[ ] |
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B Other Matters
2. |
In their discretion, the Proxies are authorized to vote upon such other business as may properly come before the meeting and any adjournment thereof and matters incident to the conduct of the meeting. |
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Mark this box with an X if you have made comments below ____________________________________________ ____________________________________________ ____________________________________________ ____________________________________________ |
[ ] |
C Authorized Signatures - Sign Here - This section must be completed for this proxy to be effective.
Please sign exactly as the stockholder name(s) appear above. When shares are held by joint tenants, both should sign. When signing as attorney, executor, administrator, trustee or guardian, please give full title as such. If a corporation, please sign in full corporate name by president or other authorized officer and affix corporate seal. If a partnership, please sign in partnership name by general partner.
Signature 1 - Please keep signature within the box |
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Signature 2 - Please keep signature within the box |
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Date (mm/dd/yyyy) |
________________________________________ |
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