<PAGE> 1
SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(a) OF THE SECURITIES
EXCHANGE ACT OF 1934 (AMENDMENT NO. )
Filed by the Registrant /X/
Filed by a Party other than the Registrant / /
Check the appropriate box:
<TABLE>
<S> <C>
/ / Preliminary Proxy Statement / / Confidential, for Use of the Commission
Only (as permitted by Rule 14a-6(e)(2))
/X/ Definitive Proxy Statement
/ / Definitive Additional Materials
/ / Soliciting Material Pursuant to sec.240.14a-11(c) or sec.240.14a-12
</TABLE>
TRIDEX CORPORATION
- --------------------------------------------------------------------------------
(Name of Registrant as Specified In Its Charter)
- --------------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
/X/ $125 per Exchange Act Rules 0-11(c)(1)(ii), or 14a-6(i)(1), or 14a-6(i)(2)
or Item 22(a)(2) of Schedule 14A.
/ / $500 per each party to the controversy pursuant to Exchange Act Rule
14a-6(i)(3).
/ / Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.
(1) Title of each class of securities to which transaction applies:
----------------------------------------------------------------------
(2) Aggregate number of securities to which transaction applies:
----------------------------------------------------------------------
(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the
filing fee is calculated and state how it was determined):
----------------------------------------------------------------------
(4) Proposed maximum aggregate value of transaction:
----------------------------------------------------------------------
(5) Total fee paid:
----------------------------------------------------------------------
/ / Fee paid previously with preliminary materials.
/ / Check box if any part of the fee is offset as provided by Exchange Act Rule
0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number,
or the Form or Schedule and the date of its filing.
(1) Amount Previously Paid:
----------------------------------------------------------------------
(2) Form, Schedule or Registration Statement No.:
----------------------------------------------------------------------
(3) Filing Party:
----------------------------------------------------------------------
(4) Date Filed:
----------------------------------------------------------------------
<PAGE> 2
TRIDEX CORPORATION
61 WILTON ROAD
WESTPORT, CONNECTICUT 06880
NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
TO BE HELD ON MAY 30, 1996
Notice is hereby given that the Annual Meeting of Shareholders of
Tridex Corporation (the "Company"), a Connecticut corporation, will be held on
May 30, 1996, at 10:00 am Eastern Daylight Savings Time, at The Westport Inn,
1595 Post Road East, Westport, Connecticut for the following purposes, all of
which are more completely set forth in the accompanying Proxy Statement:
(1) To consider and act upon a proposal to elect five Directors to
serve until the next Annual Meeting of Shareholders or until
their successors have been duly elected and qualified;
(2) To consider and act upon a proposal to ratify the selection of
Price Waterhouse LLP, Certified Public Accountants, as
independent public accountants of the Company for the year
ending December 31, 1996; and
(3) To receive the reports of Officers (without taking any action
thereon) and transact such other business as may legally come
before the Meeting.
Shareholders of record at the close of business on April 19, 1996 are
entitled to notice of and to vote at the Meeting. The transfer books will not be
closed for the Meeting.
The Company's Proxy Statement, Form of Proxy and Transition Report for
the nine months ended December 31, 1995 are submitted herewith.
By Order of the Board of Directors,
George T. Crandall
Assistant Secretary
Westport, Connecticut
April 26, 1996
YOUR VOTE IS IMPORTANT
WHETHER OR NOT YOU PLAN TO ATTEND THE MEETING, THE COMPANY REQUESTS THAT YOU
FILL IN, DATE, SIGN AND RETURN THE ENCLOSED PROXY. A RETURN ENVELOPE, WHICH
REQUIRES NO POSTAGE IF MAILED IN THE UNITED STATES, IS ENCLOSED FOR THAT
PURPOSE. IF YOU DO ATTEND THE MEETING, YOU MAY REVOKE YOUR PROXY AND VOTE IN
PERSON. PROMPT RESPONSE IS HELPFUL AND YOUR COOPERATION IS APPRECIATED.
<PAGE> 3
(Left Blank Intentionally)
2
<PAGE> 4
TRIDEX CORPORATION
61 WILTON ROAD
WESTPORT, CONNECTICUT 06880
------------------------------------------
PROXY STATEMENT FOR ANNUAL MEETING
OF SHAREHOLDERS
------------------------------------------
SOLICITATION AND REVOCATION OF PROXY
The following information concerning the enclosed proxy and matters to
be acted upon under the authority of such proxy is furnished to shareholders of
Tridex Corporation (the "Company") in connection with the solicitation by the
Company of proxies to be voted at the Annual Meeting to be held on May 30, 1996.
Any shareholder who executes and returns the enclosed proxy has the
power to revoke the same anytime prior to it being voted.
The shares represented by the proxy will be voted unless the proxy is
mutilated or otherwise received in such form or at such time as to render it not
votable. The proxy is in ballot form so that a specification may be made to
grant or withhold authority to vote for the election of Directors and to
indicate separate approval or disapproval as to each of the other matters
presented to shareholders. All of the proposals will be presented by the Board
of Directors. The shares represented by the proxy will be voted for the election
of each of the Directors named thereon, unless authority to do so is withheld.
With respect to each proposal presented to shareholders other than the election
of Directors, the shares represented by the proxy will be voted in accordance
with the specifications made. Where a choice is not so specified, the shares
represented by the proxy will be voted "FOR" the proposals. The Proxy Committee
consists of Messrs. Seth M. Lukash and Paul J. Dunphy. A majority of the shares
entitled to vote, present in person or represented by proxy, will constitute a
quorum to transact business at the Annual Meeting. A majority of the votes cast
is required for the approval of the proposals to be considered by the
shareholders at the Annual Meeting.
This Proxy Statement is being mailed to shareholders on or about April
29, 1996.
Certain information provided in this Proxy Statement relates to the
Company's transitional fiscal year, which consists of the nine month period
ended December 31, 1995 (the "Transition Year").
3
<PAGE> 5
VOTING SECURITIES AND PRINCIPAL HOLDERS THEREOF
Shareholders of record on April 19, 1996 are entitled to cast one vote
for each share of common stock held by them on April 19, 1996. There were
3,817,831 shares of common stock issued and outstanding and entitled to vote at
the close of business on April 19, 1996.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table sets forth information as to the beneficial
ownership of the Company's common stock as of April 19, 1996 for each person who
is known by the Company to own beneficially more than five percent of the
Company's issued and outstanding common stock, and each person who is, or was,
as of December 31, 1995, a Director, a nominee for Director, or an individual
named in the Summary Compensation Table, and all Directors and Executive
Officers of the Company as a group. The persons named in such table have
furnished the information set forth opposite their respective names:
<TABLE>
<CAPTION>
NAME OF BENEFICIAL OWNER AMOUNT AND NATURE OF PERCENT OF
MANAGEMENT BENEFICIAL OWNERS BENEFICIAL OWNERSHIP(1) CLASS(2)
<S> <C> <C>
Seth M. Lukash
61 Wilton Road, Westport, CT 06880 ......... 539,920(3) 13.5
Alvin Lukash
7 Laser Lane, Wallingford, CT 06492 ........ 116,603(4) 3.1
Graham Y. Tanaka ................................. 79,460(5) 2.1
Richard T. Bueschel .............................. 44,950(6) 1.2
Paul J. Dunphy ................................... 34,950(7) *
Richard W. Sonnenfeldt ........................... 29,950(8) *
C. Alan Peyser ................................... 0(9) *
Thomas R. Schwarz ................................ 0(10) *
Richard L. Cote .................................. 24,006(11) *
S. Scott Kumpf ................................... 53,865(12) 1.4
Dennis J. Lewis .................................. 108,391(13) 2.8
Bart C. Shuldman ................................. 26,600(14) *
Hugh T. Burnett .................................. 4,500(15) *
All Directors and Executive Officers
as a group (14 persons) ........................ 991,093(16) 23.0
OTHER BENEFICIAL OWNERS
Jack Silver
150 East 58th Street, New York, NY 10155 .... 249,707(17) 6.6
</TABLE>
(1) Except as otherwise indicated, each of the persons named in the table
has sole voting power and sole investment power with respect to the
shares set forth opposite his name.
4
<PAGE> 6
(2) An asterisk denotes beneficial ownership of less than 1%.
(3) Includes (a) 11,110 shares issuable upon the conversion of $100,000
principal amount of the Company's 10.5% Senior Subordinated Convertible
Debentures due December 31, 1997 (the "10.5% Debentures"), (b) 1,000
shares issuable upon exercise of the detachable Warrant to Purchase
Common Stock of Tridex Corporation (the "Private Placement Warrants"),
issued in conjunction with the 10.5% Debentures, (c) 96,303 shares
subject to an option granted to Seth M. Lukash by Alvin Lukash which
expires on December 31, 1997, (d) 10,000 shares held of record by Seth
M. Lukash as trustee of The Alvin Lukash Grantor Trust, (e) 48,000
shares subject to options currently exercisable under the Company's
1989 Long Term Incentive Plan (the "1989 Plan") and (f) 16,500 shares
issuable upon exercise of an option agreement dated March 30, 1994
between Mr. Lukash and the Company, which may be purchased at a price
of $7.25 per share prior to March 30, 2000. Does not include (a) 10,000
shares held of record by Ralph I. Fine as a trustee of The Seth M.
Lukash Trust of February 5, 1987, an irrevocable trust for the benefit
of the nieces and nephews of Seth M. Lukash, under which Mr. Lukash
retains no voting or investment power, (b) 62,000 shares subject to
options not presently exercisable under the Company's 1989 Plan or (c)
8,500 shares subject to an option agreement dated March 30, 1994
between Mr. Lukash and the Company, which may be purchased at a price
of $7.25 per share prior to the fifth anniversary of the date of the
option becoming exercisable on March 30, 1997.
(4) Includes (a) 10,000 shares held of record by Ralph I. Fine as trustee
of The Alvin Lukash Grantor Trust, (b) 96,303 shares subject to an
option granted to Seth M. Lukash by Alvin Lukash which expires on
December 31, 1997, (c) 5,350 shares held of record by his wife, Mildred
Lukash and (d) 4,950 shares issuable upon exercise of an option
agreement dated March 30, 1994 between Mr. Lukash and the Company,
which may be purchased at a price of $7.25 per share prior to March 30,
2000. Does not include 2,550 shares subject to an option agreement
dated March 30, 1994 between Mr. Lukash and the Company, which may be
purchased at a price of $7.25 per share prior to the fifth anniversary
of the date of the option becoming exercisable on March 30, 1997.
(5) Includes (a) 7,500 shares subject to a warrant agreement, dated
February 8, 1993, between Mr. Tanaka and the Company, which may be
purchased at a price of $9.25 per share at any time prior to February
8, 1998, (b) 11,110 shares issuable upon the conversion of $100,000
principal amount of the 10.5% Debentures (c) 1,000 shares issuable upon
the exercise of Private Placement Warrants and (d) 4,950 shares
issuable upon exercise of an option agreement dated March 30, 1994
between Mr. Tanaka and the Company, which may be purchased at a price
of $7.25 per share prior to March 30, 2000. Does not include (a) 2,550
shares subject to an option agreement dated March 30, 1994 between Mr.
Tanaka and the Company, which may be purchased at a price of $7.25 per
share prior to the fifth anniversary of the date of the option becoming
exercisable on March 30, 1997, or (b) 2,500 shares subject to an option
agreement dated September 19, 1995 between Mr. Tanaka and the Company,
which may be purchased at a price of $9.00 per share prior to the fifth
anniversary of the date of the option becoming exercisable, such
exercisability to be 825 shares on September 19, 1996, 825 shares on
September 19, 1997 and 850 shares on September 19, 1998.
(6) Includes (a) 7,500 shares subject to a warrant agreement, dated April
16, 1992, between Mr. Bueschel and the Company, which may be purchased
at a price of $5.25 per share at any time prior to April 16, 1997, (b)
7,500 shares subject to a warrant agreement, dated February 8, 1993,
between Mr. Bueschel and the Company, which may be purchased at a
5
<PAGE> 7
price of $9.25 per share at any time prior to February 8, 1998 and (c)
4,950 shares issuable upon exercise of an option agreement dated March
30, 1994 between Mr. Bueschel and the Company, which may be purchased
at a price of $7.25 per share prior to March 30, 2000. Does not include
(a) 2,550 shares subject to an option agreement dated March 30, 1994
between Mr. Bueschel and the Company, which may be purchased at a price
of $7.25 per share prior to the fifth anniversary of the date of the
option becoming exercisable on March 30, 1997, or (b) 2,500 shares
subject to an option agreement dated September 19, 1995 between Mr.
Bueschel and the Company, which may be purchased at a price of $9.00
per share prior to the fifth anniversary of the date of the option
becoming exercisable, such exercisability to be 825 shares on September
19, 1996, 825 shares on September 19, 1997 and 850 shares on September
19, 1998.
(7) Includes (a) 7,500 shares subject to a warrant agreement, dated April
16, 1992, between Mr. Dunphy and the Company, which may be purchased at
a price of $5.25 per share at any time prior to April 16, 1997, (b)
7,500 shares subject to a warrant agreement, dated February 8, 1993,
between Mr. Dunphy and the Company, which may be purchased at a price
of $9.25 per share at any time prior to February 8, 1998 and (c) 4,950
shares issuable upon exercise of an option agreement dated March 30,
1994 between Mr. Dunphy and the Company, which may be purchased at a
price of $7.25 per share prior to March 30, 2000. Does not include (a)
2,550 shares subject to an option agreement dated March 30, 1994
between Mr. Dunphy and the Company, which may be purchased at a price
of $7.25 per share prior to the fifth anniversary of the date of the
option becoming exercisable on March 30, 1997, or (b) 2,500 shares
subject to an option agreement dated September 19, 1995 between Mr.
Dunphy and the Company, which may be purchased at a price of $9.00 per
share prior to the fifth anniversary of the date of the option becoming
exercisable, such exercisability to be 825 shares on September 19,
1996, 825 shares on September 19, 1997 and 850 shares on September 19,
1998.
(8) Includes (a) 7,500 shares subject to a warrant agreement, dated April
16, 1992, between Mr. Sonnenfeldt and the Company, which may be
purchased at a price of $5.25 per share at any time prior to April 16,
1997, (b) 7,500 shares subject to a warrant agreement, dated February
8, 1993, between Mr. Sonnenfeldt and the Company, which may be
purchased at a price of $9.25 per share at any time prior to February
8, 1998 and (c) 4,950 shares issuable upon exercise of an option
agreement dated March 30, 1994 between Mr. Sonnenfeldt and the Company,
which may be purchased at a price of $7.25 per share prior to March 30,
2000. Does not include (a) 2,550 shares subject to an option agreement
dated March 30, 1994 between Mr. Sonnenfeldt and the Company, which may
be purchased at a price of $7.25 per share prior to the fifth
anniversary of the date of the option becoming exercisable, such
exercisibility on March 30, 1997, or (b) 2,500 shares subject to an
option agreement dated September 19, 1995 between Mr. Sonnenfeldt and
the Company, which may be purchased at a price of $9.00 per share prior
to the fifth anniversary of the date of the option becoming
exercisable, such exercisability to be 825 shares on September 19,
1996, 825 shares on September 19, 1997 and 850 shares on September 19,
1998.
(9) Does not include 5,000 shares subject to an option agreement dated
September 19, 1995 between Mr. Peyser and the Company, which may be
purchased at a price of $9.00 per share prior to the fifth anniversary
of the date of the option becoming exercisable, such exercisability to
be 1,650 shares on September 19, 1996, 1,650 shares on September 19,
1997 and 1,700 shares on September 19, 1998.
(10) Does not include 5,000 shares subject to an option agreement dated
September 19, 1995 between Mr. Schwarz and the Company, which may be
purchased at a price of $9.00 per
6
<PAGE> 8
share prior to the fifth anniversary of the date of the option becoming
exercisable, such exercisability to be 1,650 shares on September 19,
1996, 1,650 shares on September 19, 1997 and 1,700 shares on September
19, 1998.
(11) Includes 22,000 shares subject to options currently exercisable under
the 1989 Plan. Does not include 48,000 shares subject to options not
currently exercisable under the 1989 Plan.
(12) Includes 26,000 shares subject to options currently exercisable under
the 1989 Plan. Does not include 25,000 shares subject to options not
presently exercisable under the 1989 Plan.
(13) Includes (a) 69,626 shares issuable upon conversion of $835,512
principal amount of 8% Subordinated Convertible Term Promissory Notes
due 1997 (the "8% Notes"), (b) 16,665 shares issuable upon conversion
of $150,000 principal amount of 10.5% Debentures, (c) 1,500 shares
issuable upon exercise of Private Placement Warrants and (d) 19,600
shares subject to options currently exercisable under the 1989 Plan.
Does not include 21,900 shares subject to options not presently
exercisable under the 1989 Plan.
(14) Includes 19,900 shares subject to options currently exercisable under
the 1989 Plan. Does not include 45,500 shares subject to options not
presently exercisable under the Plan.
(15) Includes 2,500 shares subject to options currently exercisable under
the 1989 Plan. Does not include 20,000 shares subject to options not
presently exercisable under the Plan.
(16) In addition to those set forth above, includes 22,200 shares subject to
options currently exercisable under the 1989 Plan. Does not include
7,800 shares subject to options not presently exercisable under the
1989 Plan.
(17) Based solely upon the Schedule 13D filed by Mr. Silver with the
Securities and Exchange Commission on October 11, 1995, (a) Mr. Silver
has sole voting power and sole dispositive power with respect to all
249,707 shares and (b) 147,707 of such shares are held of record by Mr.
Silver directly, 82,000 are held of record by the Siar Money Purchase
Pension Plan, and 20,000 are held of record by Shirley Silver, Mr.
Silver's wife, as custodian for his children.
Seth M. Lukash, Chairman of the Board, President, Chief Executive
Officer, Chief Operating Officer and a Director of the Company, is the
beneficial owner of $100,000 principal amount of the 10.5% Debentures
(approximately 3% of the total outstanding debentures) and Private Placement
Warrants to purchase 1,000 shares of common stock (approximately 2% of the total
outstanding Private Placement Warrants).
Graham Y. Tanaka, a Director of the Company, is the beneficial owner of
$100,000 principal amount of the 10.5% Debentures and Private Placement Warrants
to purchase 1,000 shares of common stock.
Dennis J. Lewis, President of the Ultimate Technology Corporation, is
the beneficial owner of $150,000 principal amount of the 10.5% Debentures,
Private Placement Warrants to purchase 1,500 shares of common stock and $835,512
principal amount of the 8% Notes.
Except as set forth above, none of the other Directors or Executive
Officers of the Company owns any of the Company's common stock, 10.5%
Debentures, Private Placement Warrants, or 8% Notes.
7
<PAGE> 9
COMPLIANCE WITH SECTION 16(A).
Section 16(a) of the Securities Exchange Act of 1934 requires the
Company's Directors and Executive Officers and persons who beneficially own more
than 10% of a registered class of the Company's equity securities ("10% Owners")
to file with the Securities and Exchange Commission ("SEC") and the NASDAQ
National Market System reports of ownership and reports of changes in ownership
of common stock and other equity securities of the Company. Directors, Executive
Officers and 10% Owners are required by SEC regulation to furnish the Company
with copies of all Section 16(a) reports they file.
To the Company's knowledge, based solely on review of the copies of
such reports furnished to the Company, or written representations that no other
reports were required for those persons, the Company believes that during the
Transition Year all Section 16(a) filing requirements applicable to Directors,
Executive Officers and 10% Owners were complied with, except that one report
submitted by Mr. Shuldman was nine days late and one report submitted by Mr.
Burnett was two days late.
ELECTION OF DIRECTORS
At the Annual Meeting of Shareholders, five persons are to be elected
to hold office as Directors until the next Annual Meeting of Shareholders or
until their successors are duly elected and qualified. In the absence of
instructions to the contrary, the persons named in the enclosed form of proxy as
members of the Proxy Committee will vote such proxy "FOR" fixing the number of
Directors at five and the election of the five nominees named below. Should any
of the nominees become unavailable, which is not anticipated, it is intended
that proxies will be voted for the election of such other person as the Board of
Directors may recommend in place of such nominee.
Seth M. Lukash C. Alan Peyser
Paul J. Dunphy Thomas R. Schwarz
Graham Y. Tanaka
INFORMATION CONCERNING NOMINEES FOR ELECTION AS DIRECTORS AND EXECUTIVE OFFICERS
SETH M. LUKASH, 50, has been a senior Executive Officer of the Company
since 1977 and has been a Director since 1979. He has served as Chairman of the
Board of Directors of the Company since November 1988, Chief Executive Officer
since August 1987 and President and Chief Operating Officer since June 1989. Mr.
Lukash previously served as President of the Company from September 1983 to
August 1988 and as Chief Operating Officer from September 1983 to August 1987.
Mr. Lukash is the son of Alvin Lukash, Director Emeritus of the Company.
PAUL J. DUNPHY, 76, has been a Director of the Company since 1989. Mr.
Dunphy has been a management consultant from 1988 until the present. Mr. Dunphy
was Chairman of the Board, Chief Executive Officer and President of Towle
Manufacturing Company, from 1985 through 1988. Mr. Dunphy was Executive Vice
President of Anchor Hocking, a glass and metal manufacturer, from 1970 through
1984. Mr. Dunphy is a Director of Midwest Fabricating Co. and Four Johns
Corporation. He also is a member of the Board of Trustees of Mt. Ida College,
the President's Advisory Council of Bentley College and the Executive Council
for Ohio University.
8
<PAGE> 10
GRAHAM Y. TANAKA, 48, has been a Director of the Company since 1988.
Mr. Tanaka has been President of Tanaka Capital Management, Inc., an investment
management firm, since 1986. From 1980 to 1986, Mr. Tanaka served as Chairman of
Milbank, Tanaka & Associates. Mr. Tanaka is a limited partner of McFarland Dewey
& Co., a financial advisor to the Company. Mr. Tanaka is a member of the Board
of Directors of the Japanese American National Museum.
C. ALAN PEYSER, 62, has been a Director of the Company since 1995. Mr.
Peyser has been President of Country Long Distance Incorporated, a provider of
long distance telecommunications services, since founding the firm in 1995. Mr.
Peyser was Chief Executive Officer of Cable & Wireless, Inc. ("CWI"), a
world-wide provider of long distance, private line and enhanced
telecommunications services, from 1980 to 1995, when he retired. Mr. Peyser
founded CWI in 1975, has been a director since 1982 and continues to serve as a
director. Mr. Peyser is also a director of Mercury Communications, Limited, a
provider of telecommunications services in the United Kingdom, a director of TCI
International, Inc., an equipment supplier to the telecommunications industry, a
director of Spaceworks Incorporated, a provider of specialized E-Mail services,
a director of the Fairfax Education Foundation and a member of the Corporate
Advisory Board of The Thayers School of Engineering.
THOMAS R. SCHWARZ, 59, has been a Director of the Company since 1995.
Mr. Schwarz was Chairman of Grossman's Inc., a retailer of building materials,
from 1990 to 1994, when he retired. Mr. Schwarz was President, Chief Operating
Officer and a director of Dunkin' Donuts Incorporated, a food service company,
from 1980 to 1990. He is a director of Lebhar-Friedman Publishing Company. Mr.
Schwarz was a board member of The Timberland Company, an overseer of WGBH
Educational Foundation, Inc. (New England Public Broadcasting), the David
Littman Foundation, The Walnut Hill School and co-chairman of the Inner City
Scholarship Fund.
RICHARD L. COTE, 54, joined the Company in March, 1993, and was elected
Vice President on June 1, 1993. Mr. Cote was a self-employed management
consultant from October 1991 to March 1993; Vice President and Corporate
Controller of Wang Laboratories, Inc. from January 1991 to September 1991; and
Executive Vice President of Capital Resources Management, Inc. from November
1989 to December 1990. Previously, Mr. Cote had been employed by Emhart
Corporation, Xerox Corporation and Price Waterhouse LLP.
GEORGE T. CRANDALL, 49, has been Vice President of the Company since
September, 1992, Treasurer since 1990 and Corporate Controller since 1989. Prior
to joining Tridex in 1988, Mr. Crandall served as an independent consultant at
Northeast Manufacturing Companies, Inc. from 1987 until 1988. From 1979 through
1987, Mr. Crandall was Assistant Corporate Controller and Assistant Secretary of
Revere Copper and Brass Incorporated.
DENNIS J. LEWIS, 41, has been President of Ultimate Technology
Corporation ("Ultimate") since its acquisition by the Company on January 20,
1993. Prior to the acquisition, Mr. Lewis had served as Ultimate's President,
Chief Executive Officer and Director since 1988. Mr. Lewis founded Serv Tech and
served as its Chairman and Chief Executive Officer from 1981 to 1983. Mr. Lewis
has held senior management positions related to the sales, engineering and
service of computer peripherals with Add Electronics, RG Engineering, Naum
Brothers and Digital Equipment Corporation.
9
<PAGE> 11
BART C. SHULDMAN, 39, was appointed President of the Printer Group in
December 1995. He joined Magnetec Corporation ("Magnetec") on April 1, 1993 and
was appointed President of Magnetec in July 1993. Prior to joining Magnetec he
was employed by Mars Electronics International, a division of Mars, Incorporated
from 1989 to 1993 in several management positions, most recently as Business
Manager for the North American Amusement, Gaming and Lottery operations.
Previously, Mr. Shuldman held manufacturing and sales management positions with
General Electric Company from 1979 to 1989.
HUGH T. BURNETT, 56, was appointed Managing Director of Cash Bases GB
Limited ("Cash Bases") simultaneously with its acquisition by the Company on
June 20, 1994. Prior to the acquisition and since 1991, Mr. Burnett was senior
marketing executive with Cash Bases. Previously, he was managing director of
Omron Systems UK Ltd. from 1983 to 1991.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Prior to the Transition Year, the Company made a personal loan to Seth
M. Lukash, Chairman of the Board, President, Chief Executive Officer, Chief
Operating Officer and a Director of the Company. During the Transition Year, the
highest outstanding balance of the loan to Seth M. Lukash was $139,108. The loan
is evidenced by a demand note and bears interest at an annual rate equal to the
rate charged by the Company's senior lender on its line of credit. The Company's
Board of Directors has agreed to defer payment of the principal balance of the
loan until after December 31, 1996. Interest on the loan is paid quarterly. As
of April 19, 1996 the principal amount outstanding under the loan was $125,000.
Alvin Lukash and the Company entered into a Retirement Agreement as of
December 31, 1995. Pursuant to the agreement, the Company provides Mr. Lukash
with a retirement benefit of $100,000 per year until his death or March 31,
2000, whichever shall occur first, a $400 per month automobile allowance, an
annual life insurance premium ($15,075 in the Transition Year) and health
insurance coverage for Mr. Lukash and his wife under the Company's health
insurance plan. If a change of control of the Company occurs, the Company will
establish a trust and immediately deposit funds with the trustee equal to the
present value of the remaining retirement benefit.
On July 19, 1995, the Board of Directors of the Company appointed Mr.
Alvin Lukash to the position of Director Emeritus. In that capacity, Mr. Lukash
is entitled to attend and participate in all meetings of the Board of Directors,
but he is not entitled to vote as a member of the Board. Mr. Lukash is not
compensated for his services as a Director Emeritus, but is reimbursed for
expenses incurred to attend Board of Directors meetings.
The investment banking firm of McFarland Dewey & Company, in which
Graham Y. Tanaka, a Director of the Company, is a limited partner, provided
investment banking services to the Company during the Transition Year.
THE BOARD OF DIRECTORS AND ITS COMMITTEES
During the Transition Year, the Board of Directors held seven meetings.
Each incumbent Director attended more than 75% of (a) the total number of
meetings of the Board of Directors, except Mr. Sonnenfeldt, and (b) the total
number of meetings of all committees of the Board of Directors on which he
served, except as noted below.
10
<PAGE> 12
The Board of Directors has an Audit Committee, which held two meetings
during the Transition Year. The Audit Committee is comprised of Messrs. Paul J.
Dunphy, Richard T. Bueschel, and Richard W. Sonnenfeldt. The functions of the
Audit Committee are to participate in the selection and review the findings of
independent public accountants, review internal audit activities, consider
accounting policies selected by management and review internal accounting
controls and such other matters relating to the Company's financial and
accounting practices as such Committee deems appropriate.
The Board of Directors has a Compensation and Stock Option Committee
comprised of Messrs. Thomas R. Schwarz, Graham Y. Tanaka and C. Alan Peyser,
which has the responsibility for approving the compensation arrangements for
senior management of the Company. The Compensation and Stock Option Committee
approves the adoption of any compensation plans in which Executive Officers
and Directors of the Company are eligible to participate, as well as the
granting of stock options or other benefits under such plans and under the
Company's 1989 Plan. The Compensation and Stock Option Committee held four
meetings during the Transition Year.
The Board of Directors has a Nominating Committee comprised of Messrs.
Graham Y. Tanaka, Paul J. Dunphy and Thomas R. Schwarz. The Nominating Committee
has the responsibility for recommending to the Board of Directors nominees for
election to the Board. The Nominating Committee will not consider nominees
recommended by shareholders. The Nominating Committee held one meeting during
the Transition Year.
COMPENSATION OF DIRECTORS AND EXECUTIVE OFFICERS
REPORT OF THE COMPENSATION AND STOCK OPTION COMMITTEE
Pursuant to requirements under federal securities laws, the
Compensation and Stock Option Committee of the Company is required to provide a
report on the compensation and benefits provided to the Company's Executive
Officers. The following report describes the function and composition of the
Compensation and Stock Option Committee, sets forth the compensation policies
and goals of the Company, and provides a description of how compensation for
Executive Officers is determined.
THE COMPENSATION AND STOCK OPTION COMMITTEE
There are three members of the Compensation and Stock Option Committee,
all of whom are outside directors: Thomas R. Schwarz, Chairman, Graham Y. Tanaka
and C. Alan Peyser. The Compensation and Stock Option Committee (a) establishes
the general compensation policies of the Company; (b) approves the hiring and
firing of all Officers, subsidiary and division Presidents and all staff
reporting directly to the Chief Executive Officer of the Company; and (c)
approves the compensation plans and specific compensation levels for all
Executive Officers, including subsidiary and division Presidents and all staff
reporting directly to the Chief Executive Officer of the Company, except that
the compensation of any employee director is determined by the full Board based
on the recommendation of the Compensation and Stock Option Committee. The
Compensation and Stock Option Committee also approves the issuance of all
options to employees of the Company and its subsidiaries under the Company's
1989 Plan. The Compensation and Stock Option Committee met four times during the
Transition Year.
11
<PAGE> 13
COMPENSATION POLICIES AND GOALS
The primary goals of the Company's compensation policies are to help
retain, motivate and reward management of the Company and its subsidiaries,
while, at the same time, aligning their interests closely with those of the
Company and its shareholders. The Company seeks to attract and retain management
by offering a competitive total compensation package. While the Company also
believes it is important to the retention of its management that it provide
benefits which accrue to the benefit of, and provide security to, its management
over the long term, such as pension benefits, its financial results have to date
limited its ability to do so. To align the interest of management more closely
with that of the Company as a whole and reward individual initiative and effort,
the Company seeks to promote performance-based compensation where contribution
to the Company as a whole is rewarded. Through the use of performance-based
plans that reward attainment of subsidiary or Company goals, the Company seeks
to foster an attitude of teamwork. The Company also believes that the use of
equity ownership is an important tool to ensure that the efforts of management
are consistent with the objectives of its shareholders and through the use of
stock options seeks to promote increased ownership by management of the Company.
The Company and the Compensation and Stock Option Committee have tried
to achieve the above goals utilizing publicly available information regarding
competitive compensation. The Compensation and Stock Option Committee retains an
independent consultant to ensure that compensation for the Company's management
is competitive, meets the above stated objectives and is consistent for all
members of management of the Company and its subsidiaries.
COMPENSATION COMPONENTS
At present, the compensation of the Executive Officers of the Company
consists of a combination of salary, cash bonuses, stock options and
participation in the Company's 401(k) plan, as well as the provision of medical
and other personal benefits typically offered to corporate executives. Several
of the Executive Officers of the Company's subsidiaries are parties to
employment agreements entered into at the time of the Company's purchase of the
subsidiaries. Several other executive officers are parties to agreements with
the Company that provide for severance payments under certain circumstances.
These agreements are described under "Employment Contracts, Termination of
Employment and Change-In-Control Arrangements" for the officers listed in the
Summary Compensation Table.
Salaries: At April 1, 1995, base salaries were fixed for the subsequent twelve
months based on the Compensation and Stock Option Committee's assessment of
competitive base salaries. For the Transition Year, Seth M. Lukash, Chairman,
President, Chief Executive Officer and Chief Operating Officer of the Company
earned an annual base salary of $270,000. Mr. Lukash's base salary will remain
at $270,000 for 1996.
Cash Bonuses: The Company maintains an incentive compensation plan for all
salaried employees of the Company and its U.S. subsidiaries, including key
executives, which provides for the payment of cash bonuses. Under the plan, an
incentive target as well as individual goals and objectives, are fixed for each
employee at the beginning of the year and bonuses are paid shortly after the end
of the year. In order to earn any incentive compensation under the plan, certain
financial goals, principally earnings before interest and taxes, must be met.
The percentage of the incentive target to be paid varies based on the level of
attainment of the financial goals; the incentive target range is from 50% to
164%. Other components of the award calculation include
12
<PAGE> 14
the individual incentive target, which ranges from 20% to 50% of base salary for
key employees, and a rating of the participants performance versus individual
objectives during the plan period.
For the Transition Year, an incentive plan was instituted for the Company's
British subsidiary, Cash Bases GB Ltd. The plan covered key employees and
provided for payments of between 10% and 15% (in the case of the Managing
Director) of base salary depending on the achievement of certain specified
objectives. The Company has instituted a plan for key employees similar to that
for employees of the Company and its U.S. subsidiaries.
For the Transition Year, the goals for Mr. Lukash related principally to
attaining a specific level of earnings before interest and taxes. His target
bonus was 50% of base salary. Mr. Lukash did not achieve a bonus for 1995. For
1996, Mr. Lukash's target bonus is 50% of base salary.
For the Transition Year, bonuses in varying amounts were paid to plan
participants at Ithaca Peripherals Incorporated and Ultimate. No bonuses were
paid to employees at Cash Bases. Modest discretionary bonuses were paid to
selected employees at Magnetec and at the corporate headquarters.
Stock Options: Under the Company's 1989 Long Term Incentive Plan, options are
granted by the Compensation and Stock Option Committee. Under guidelines adopted
by the Committee in 1995, eligible employees (certain classifications of
salaried employees of the Company and its subsidiaries who have been determined
by the Committee to qualify for an incentive of equity ownership) are granted an
initial award on their date of hiring for a fixed number of shares depending on
their level, which vests over five years. In each year following the initial
award, eligible employees may be granted an annual award in varying amounts
depending on their level and individual performance.
During the Transition Year, a total of 83,000 options were granted to Executive
Officers of the Company, of which Seth M. Lukash received options for 25,000
shares. On January 5, 1996, a total of 68,000 options were granted to Executive
Officers of the Company, of which Mr. Lukash received options for 30,000
shares.
Other Benefit Plans: Executive Officers of the Company may participate in the
nondiscriminatory Tridex Corporation 401(k) Retirement Plan. No decisions with
respect to this plan are made by the Compensation and Stock Option Committee.
The Committee strives to assure that the executive compensation serves
the best interests of the shareholders and the Company.
Compensation and Stock Option Committee
Thomas R. Schwarz, Chairman
Graham Y. Tanaka
C. Alan Peyser
13
<PAGE> 15
SUMMARY COMPENSATION TABLE
The following table sets forth the compensation earned by the Company's
Chief Executive Officer and the four most highly compensated Executive Officers
whose compensation exceeded $100,000, for the Transition Year and for each of
the prior two fiscal years.
<TABLE>
<CAPTION>
LONG TERM
COMPENSATION
ANNUAL COMPENSATION (1) AWARDS
----------------------------------------------------------------------------------------
FISCAL STOCK ALL OTHER
NAME AND YEAR SALARY BONUS (2) OPTIONS (3) COMPENSATION (4)
PRINCIPAL POSITION ENDED ($) ($) (#) ($)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Seth M. Lukash 12/31/95 $202,500 25,000 $ 338
Chairman of the Board, 4/1/95 $240,000 $85,750 $ 1,755(5)
President, Chief Executive 4/2/94 $216,000 35,000 $ 4,065(5)
Officer and Chief Operating
Officer
Richard L. Cote 12/31/95 $112,500 $ 6,560 20,000 $ 2,301
Senior Vice President and 4/1/95 $137,500 $34,800 $ 2,184
Chief Financial Officer 4/2/94 $118,333 35,000 $ 951
S. Scott Kumpf 12/31/95 $108,062 10,000 $ 2,280
President, Ithaca 4/1/95 $136,000 $36,163 5,000 $ 2,253
Peripherals Incorporated 4/2/94 $131,000 $ 1,697
Dennis J. Lewis 12/31/95 $108,000 $43,200 10,000 $151,774(6)
President, Ultimate 4/1/95 $132,000 $38,135 6,500 $ 88,427(6)
Technology Corporation 4/2/94 $132,000 $19,800 $117,632(6)
Bart C. Shuldman 12/31/95 $102,892 $16,000 10,000 $ 1,658
President, Magnetec 4/1/95 $132,043 15,000 $ 1,977
Corporation 4/2/94 $118,422(7) 17,500 $ 919
</TABLE>
- ------------------------------------
(1) Neither the Chief Executive Officer nor any of the other Executive
Officers named in the table received perquisites or other personal
benefits in an amount which exceeded 10% of their salary plus bonus
during the Transition Year.
(2) The bonus amounts are payable pursuant to the Company's discretionary
incentive plan described more fully in the Report of the Compensation
and Stock Option Committee of the Board of Directors.
(3) All options were granted under the Company's 1989 Plan, except 25,000
of the shares listed for Mr. Lukash in 1994 were granted under an
option agreement dated on March 30, 1994.
(4) For all the Executive Officers named in the table, other than Mr.
Lukash and Mr. Lewis, these amounts consist entirely of Company
contributions under the Company's 401(k) Plan.
(5) Also includes $1,080 and $3,240 in fiscal years 1995 and 1994,
respectively, of cash bonus which was earned but not paid in fiscal
1993.
(6) For fiscal years presented, also includes $151,317, $87,932, and
$117,251 earned by Mr. Lewis under an Employee Performance Compensation
Agreement among Tridex, Ultimate, Mr. Lewis and others. See "Employment
Contracts, Termination of Employment and Change-In-Control
Arrangements."
(7) Mr. Shuldman became President of the Company's Magnetec subsidiary in
July 1993, fifteen weeks after fiscal year 1994 began.
14
<PAGE> 16
OPTION GRANTS IN TRANSITION YEAR
<TABLE>
<CAPTION>
Potential Realizable
Value at Assumed
Annual Rate of Stock
Price Appreciation
Individual Grants for Option Term (1)
- ----------------------------------------------------------------------------------------------------------------------
Percent of
Total
Options
Granted Exercise or
Options to Employees Base Price Expiration
Name Granted (2) in the Transition Year ($/share) Date 5% 10%
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Seth M. Lukash 25,000 13.0% $6.60 5/24/00 $ 26,442 $ 76,577
Richard L. Cote 15,000 7.8% $6.00 5/24/05 $ 56,601 $ 143,437
S. Scott Kumpf 10,000 5.2% $6.00 5/24/05 $ 37,734 $ 95,625
Dennis J. Lewis 10,000 5.2% $6.00 5/24/05 $ 37,734 $ 95,625
Bart C. Shuldman 10,000 5.2% $6.00 5/24/05 $ 37,734 $ 95,625
</TABLE>
- ------------------------------------
(1) The potential realizable value portion of the foregoing table
illustrates the value that might be realized upon exercise of the
options immediately prior to the expiration of their term, assuming the
specified compared rates of appreciation on the Company's common stock
shares over the term of the options. This hypothetical value is based
entirely on assumed annual growth rates of 5% and 10% in the value of
the Company's stock price over the term of the options granted in 1995.
The assumed rates of growth were selected by the Securities and
Exchange Commission for illustration purposes only, and are not
intended to predict future stock prices, which will depend upon market
conditions and the Company's future performance and prospects. These
numbers do not take into account provisions of certain options
providing for termination of the option following termination of
employment, non-transferability or vesting over various periods.
(2) All options were granted under the Company's 1989 Plan. In general,
options granted under the 1989 Plan are at an exercise price equal to
100% of the fair market value of the common stock on the date of grant,
expire ten years from the date of grant, and become exercisable at a
rate of 20% per year on the first through fifth anniversaries of the
date of grant. In the event of a change-in-control, stock options
awarded under the 1989 Plan not previously exercisable and vested shall
become fully exercisable and vested.
AGGREGATED OPTION EXERCISES IN TRANSITION YEAR AND VALUES AT DECEMBER 31, 1995
<TABLE>
<CAPTION>
Value of Unexercised
Number of Unexercised In-the-Money
Options At Options At
December 31, 1995 December 31, 1995 ($) (1)
--------------------------------------------------------------
Shares
Acquired Value
Name On Exercise (#) Realized($)(1) Exercisable Unexercisable Exercisable Unexercisable
---- --------------- -------------- ----------- ------------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
Seth M. Lukash 95,000 $763,563 40,250 64,750 $131,700 $42,925
Richard L. Cote 12,000 38,000 $15,000
S. Scott Kumpf 2,000 $ 14,250 31,000 26,000 $127,625 $37,375
Dennis J. Lewis 11,300 30,300 $10,000
Bart C. Shuldman 13,000 37,000 $10,000
</TABLE>
- ------------------------------------
(1) The closing price for the Company's common stock as reported by the
NASDAQ National Market System on December 29, 1995 (the last trading
day prior to December 31, 1995) was $7.00. The Value of Unexercised
In-The-Money Options is calculated on the basis of the difference
between the option price and $7.00 multiplied by the number of shares
of common stock underlying the option.
15
<PAGE> 17
EMPLOYMENT CONTRACTS, TERMINATION OF EMPLOYMENT AND CHANGE-IN-CONTROL
ARRANGEMENTS.
Under the terms of an Employment Agreement dated June 1, 1995 between
Seth M. Lukash and the Company, Mr. Lukash serves as Chairman and Chief
Executive Officer at the pleasure of the Board of Directors. If Mr. Lukash's
employment is terminated other than for cause or in connection with a change in
control of the Company, Mr. Lukash shall be entitled to continue to receive his
annual base salary and group insurance benefits, but not bonuses or other
benefits, for a period of eighteen months. Under the terms of a Severance
Agreement with the Company, if Mr. Lukash's employment is terminated, other than
for cause, within one year of a change in control of the Company, the Company
shall pay Mr. Lukash an amount in cash equal to three times Mr. Lukash's annual
base salary and bonus for the immediately preceding year. In addition, under the
terms of the Severance Agreement Mr. Lukash shall be entitled to receive an
amount in cash equal to the difference between the market price of the Company's
common stock and the exercise price of any exercisable options to purchase
shares of the Company's common stock then held by Mr. Lukash. The Severance
Agreement also requires the Company to continue Mr. Lukash's medical, life and
disability insurance at the Company's expense for a period of one year.
Under the terms of a Severance Agreement with the Company, if Richard
L. Cote's employment is terminated, other than for cause, within one year of a
change in control of the Company, the Company shall pay an amount in cash equal
to two times Mr. Cote's annual base salary and bonus for the immediately
preceding year.
Under the terms of an Employment and Noncompetition Agreement with
Ultimate, if Dennis J. Lewis' employment is terminated, other than for cause,
Mr. Lewis shall be entitled to receive, for three months following the date of
termination, the salary and benefits which would otherwise have been payable to
him. In connection with the Company's acquisition of Ultimate, the Company,
Ultimate, Mr. Lewis and other employees who were shareholders of Ultimate prior
to the acquisition entered into an Employee Performance Compensation Agreement.
Under that agreement, Mr. Lewis is entitled to receive, for each fiscal year
through fiscal year 1998, a percentage of Ultimate's adjusted operating profit
(as defined in the agreement) above stated threshold amounts. If Mr. Lewis'
employment with Ultimate is terminated other than by him or for cause, the
agreement provides for a final payment, after completion of the then current
fiscal year, prorated for the period of Mr. Lewis' employment during such year
prior to termination.
Under the terms of a letter agreement with Magnetec Corporation, if
Bart C. Shuldman's employment is terminated, other than for cause, Mr. Shuldman
shall be entitled to receive an amount in cash equal to one half of Mr.
Shuldman's annual salary.
COMPENSATION OF DIRECTORS
During the Transition Year, each outside Director of the Company
received as compensation for services rendered and expenses incurred (a) $2,000
for each fiscal quarter served as Director, (b) $750 for each Board of
Directors' meeting attended and (c) $300 for each Board of Directors' Committee
meeting attended. Directors receive $250 for each telephonic meeting, and
Chairmen of Committees receive $600 for each committee meeting.
16
<PAGE> 18
CORPORATE PERFORMANCE GRAPH
The following graph reflects a comparison of the cumulative total
return of the Company's common shares from March 30, 1991 through December 31,
1995 with the CRSP Total Return Index for the NASDAQ Stock Market (US) and the
NASDAQ Electronic Component Stocks. The graph assumes that $100 was invested on
April 1, 1990 in each of the Company's Common Shares, the CRSP Total Return
Index for the NASDAQ Stock Market (US) and the NASDAQ Electronic Component
Stocks and that all dividends were reinvested.
COMPARISON OF FIVE YEAR CUMULATIVE TOTAL RETURN AMONG TRIDEX CORPORATION
COMMOM STOCK THE CRSP TOTAL RETURN INDEX FOR THE NASDAQ STOCK MARKET (US)
AND THE NASDAQ ELECTRONIC COMPONENT STOCKS
[CHART]
<TABLE>
<CAPTION>
1991 1992 1993 1994 1995 12/31/95
<S> <C> <C> <C> <C> <C> <C>
TRIDEX CORPORATION COMMON STOCK $100.00 $522.22 $722.22 $622.22 $533.33 $622.22
CRSP TOTAL RETURN INDEX FOR THE 100.00 127.47 147.97 158.17 175.87 228.07
NASDAQ STOCK MARKET (US)
NASDAQ ELECTRONIC COMPONENT STOCK 100.00 123.19 202.96 246.12 322.24 426.71
</TABLE>
17
<PAGE> 19
APPROVAL OF INDEPENDENT PUBLIC ACCOUNTANTS
At the Annual Meeting, approval and ratification of the Board of
Directors' selection of Price Waterhouse LLP as independent public accountants
to perform the audit of the financial statements of the Company and its
subsidiaries for the year ending December 31, 1996 will be considered. The Board
of Directors recommends the approval of Price Waterhouse LLP. Proxies solicited
by the Company will be voted "FOR" this approval unless shareholders specify a
contrary choice in their proxies. Representatives of the firm of Price
Waterhouse LLP are expected to be present at the Annual Meeting to respond to
appropriate questions and will have the opportunity to make a statement if they
so desire.
SECURITY HOLDER PROPOSALS FOR 1997 ANNUAL MEETING
Shareholder proposals for inclusion in the 1997 Proxy Statement and
form of proxy for the Annual Meeting of Shareholders to be held in 1997 must be
received by the Secretary of the Company on or before December 30, 1996. If the
date of the next Annual Meeting is subsequently advanced by more than thirty
calendar days or delayed by more than ninety calendar days from the date such
meeting is scheduled to be held under the Company's By-laws, the Company will
inform shareholders of such change and the date by which proposals of
shareholders must be received. It is suggested that such proposals be sent by
Certified Mail-Return Receipt Requested.
18
<PAGE> 20
ANNUAL REPORT
A COPY OF THE COMPANY'S SECURITIES AND EXCHANGE COMMISSION ANNUAL
REPORT ON FORM 10-K, INCLUDING THE FINANCIAL STATEMENTS AND THE SCHEDULES
THERETO, WILL BE FURNISHED WITHOUT CHARGE TO ANY SHAREHOLDER UPON WRITTEN
REQUEST. REQUESTS SHOULD BE ADDRESSED TO: TRIDEX CORPORATION, SHAREHOLDER
RELATIONS DEPARTMENT, 61 WILTON ROAD, WESTPORT, CONNECTICUT 06880.
GENERAL
The accompanying proxy will be voted as specified thereon. Unless
otherwise specified, proxies will be voted for the slate of Directors nominated
by management as set forth in this Proxy Statement, and for each of the other
matters to be presented to the shareholders at the Annual Meeting as set forth
in this Proxy Statement. A majority of the votes cast is required for the
approval of the proposals to be considered by the shareholders at the Annual
Meeting. Abstentions are treated as present and entitled to vote and therefore
have the effect of a vote against a matter. A broker non-vote on a matter is
considered not entitled to vote on the matter and is not counted in determining
whether a matter requiring approval of a majority of the shares present and
entitled to vote has been approved.
The Board of Directors is not aware of any matter which is to be
presented for action at the Annual Meeting other than the matters set forth
herein. Should any other matter requiring a vote of the shareholders arise, the
proxies confer upon the Proxy Committee the authority to vote in respect of any
such other matter in accordance with the recommendation of management.
The cost of preparing, assembling and mailing this proxy material will
be borne by the Company. The Company may solicit proxies otherwise than by use
of the mail, in that certain officers and regular employees of the Company,
without additional compensation, may use their personal efforts, by telephone or
otherwise, to obtain proxies. The Company will also request persons, firms and
corporations holding shares in their names, or owned by others, to send this
proxy material to and obtain proxies from such beneficial owners and will
reimburse such holders for their reasonable expenses in doing so.
SHAREHOLDERS ARE URGED TO SPECIFY THEIR CHOICES, DATE, SIGN AND RETURN
THE ENCLOSED PROXY IN THE ENCLOSED ENVELOPE, WHICH REQUIRES NO POSTAGE. PROMPT
RESPONSE IS HELPFUL AND YOUR COOPERATION IS APPRECIATED.
April 26, 1996
19
<PAGE> 21
TRIDEX CORPORATION
PROXY FOR ANNUAL MEETING OF SHAREHOLDERS
TO BE HELD, THURSDAY, MAY 30, 1996
This proxy is solicited on behalf of the Board of Directors of
Tridex Corporation
The undersigned shareholder of Tridex Corporation, Westport,
Connecticut, does hereby nominate, constitute and appoint Seth M. Lukash and
Paul J. Dunphy, or either of them, with full power to act alone, my true and
lawful attorney with full power of substitution, for me and in my name, place
and stead to vote all of the Common Stock of Tridex Corporation standing in my
name on its books on April 19, 1996, at the Annual Meeting of its shareholders
to be held at the Westport Inn, 1595 Post Road East, Westport, Connecticut, on
Thursday, May 30, 1996 at 10:00 a.m., or at any adjournment thereof, with all
powers the undersigned would possess if personally present as follows:
(TO BE SIGNED ON REVERSE SIDE)
X Please mark your votes as in this example.
1. ELECTION OF DIRECTORS:
---- ----
FOR AGAINST
NOMINEES: Seth M. Lukash
Graham Y. Tanaka
Paul J. Dunphy
/ / C. Alan Peyser
Thomas R. Schwarz
For, except vote withheld from the following nominee(s):
------------------------------------------------------------
2. APPROVAL OF INDEPENDENT PUBLIC ACCOUNTANTS
A proposal to approve and ratify the selection ---- ---- ----
of Price Waterhouse LLP as independent public FOR AGAINST ABSTAIN
accounts of Tridex Corporation for the
fiscal year ending December 31, 1996.
3. In their discretion, Seth M. Lukash and Paul J. Dunphy, or either of them
are authorized to vote upon such other business as may properly come before
the meeting.
THIS PROXY, WHEN PROPERLY EXECUTED, WILL BE VOTED FOR THE UNDERSIGNED AS
DIRECTED HEREIN BY THE UNDERSIGNED SHAREHOLDER. IF NO DIRECTION IS MADE, THIS
PROXY WILL BE VOTED FOR PROPOSALS 1 AND 2.
PLEASE MARK, SIGN, DATE AND PROMPTLY RETURN THIS PROXY CARD USING THE ENCLOSED
ENVELOPE.
SIGNATURES:_______________ DATE:______ SIGNATURES:_______________ DATE: ______
NOTE: Please sign exactly as name appears on the mailing label. 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 signing
on behalf of a corporation, please sign the full corporate name by president or
other authorized officer. If signing on behalf of a partnership, please sign the
partnership name by authorized person.
