<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
STERLING CHEMICALS HOLDINGS, INC.
----------------------------------------------
(Name of Issuer)
Common Stock, par value $.01 per share
-------------------------------------------
(Title of Class of Securities)
85916 E 10 3
----------------------------------------
(CUSIP Number)
David J. Graham
Frank J. Hevrdejs Andrews & Kurth L.L.P.
Eight Greenway Plaza, Suite 702 4200 Texas Commerce Tower
Houston, Texas 77046 Houston, Texas 77002
(713) 877-8257 (713) 220-4200
_____________________________________
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
August 21, 1996
--------------------------------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to
report the acquisition which is the subject of this Schedule 13G, and is
filing this schedule because of Rule 13d-1(b)(3) or (4), check the
following box: ___
Check the following box if a fee is being paid with the statement: X
---
<PAGE>
SCHEDULE 13D
<TABLE>
<CAPTION>
CUSIP No. 85916E103 PAGE 2 OF 31 PAGES
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Frank P. Diassi ###-##-####
- -------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [X]
- -------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
PF
- -------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
- -------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- -------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0
-----------------------------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 453,630
-----------------------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
0
PERSON -----------------------------------------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
453,630
- -------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
453,630
- -------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- -------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.17%
- -------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
<TABLE>
<CAPTION>
CUSIP No. 85916E103 PAGE 3 OF 31 PAGES
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Hunter Nelson ###-##-####
- -------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [X]
- -------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
PF
- -------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
- -------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- -------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 52,410
-----------------------------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 0
-----------------------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
52,410
PERSON -----------------------------------------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
0
- -------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
52,410
- -------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- -------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.48%
- -------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
<TABLE>
<CAPTION>
CUSIP No. 85916E103 PAGE 4 OF 31 PAGES
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
William C. Oehmig ###-##-####
- -------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [X]
- -------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
PF
- -------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
- -------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- -------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0
-----------------------------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 345,963
-----------------------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
0
PERSON -----------------------------------------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
345,963
- -------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
345,963
- -------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- -------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.18%
- -------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
<TABLE>
<CAPTION>
CUSIP No. 85916E103 PAGE 5 OF 31 PAGES
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Frank J. Hevrdejs ###-##-####
- -------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [X]
- -------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
PF
- -------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
- -------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- -------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 661,961
-----------------------------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 0
-----------------------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
661,961
PERSON -----------------------------------------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
0
- -------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
661,961
- -------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- -------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.08%
- -------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
<TABLE>
<CAPTION>
CUSIP No. 85916E103 PAGE 6 OF 31 PAGES
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
The Rheney Living Trust (Susan O. Rheney and Clarke Rheney,
Trustees)
- -------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [X]
- -------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
PF
- -------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
- -------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- -------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 41,670
-----------------------------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 0
-----------------------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
41,670
PERSON -----------------------------------------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
0
- -------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
41,670
- -------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- -------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.38%
- -------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
<TABLE>
<CAPTION>
CUSIP No. 85916E103 PAGE 7 OF 31 PAGES
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Clipper Capital Associates, Inc. 13-3706407
- -------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [X]
- -------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
Not Applicable
- -------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
- -------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- -------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0
-----------------------------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 1,518,870
-----------------------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
0
PERSON -----------------------------------------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
1,518,870
- -------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,518,870
- -------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- -------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13.95%
- -------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
CO
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
<TABLE>
<CAPTION>
CUSIP No. 85916E103 PAGE 8 OF 31 PAGES
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Clipper Capital Associates, L.P. 13-3706321
- -------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [X]
- -------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
- -------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
- -------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- -------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0
-----------------------------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 1,518,870
-----------------------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
0
PERSON -----------------------------------------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
1,518,870
- -------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,518,870
- -------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- -------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13.95%
- -------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
<TABLE>
<CAPTION>
CUSIP No. 85916E103 PAGE 9 OF 31 PAGES
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Clipper/Merchant Partners, L.P. 13-3737437
- -------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [X]
- -------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
- -------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
- -------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- -------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0
-----------------------------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 367,870
-----------------------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
0
PERSON -----------------------------------------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
367,870
- -------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
367,870
- -------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- -------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.38%
- -------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
<TABLE>
<CAPTION>
CUSIP No. 85916E103 PAGE 10 OF 31 PAGES
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Clipper Equity Partners I, L.P. 13-3834258
- -------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [X]
- -------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
- -------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
- -------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- -------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0
-----------------------------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 324,730
-----------------------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
0
PERSON -----------------------------------------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
324,730
- -------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
324,730
- -------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- -------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.98%
- -------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
<TABLE>
<CAPTION>
CUSIP No. 85916E103 PAGE 11 OF 31 PAGES
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Clipper/European Re, L.P. 98-0154020
- -------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [X]
- -------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- -------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
- -------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- -------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0
-----------------------------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 216,490
-----------------------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
0
PERSON -----------------------------------------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
216,490
- -------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
216,490
- -------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- -------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.99%
- -------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
<TABLE>
<CAPTION>
CUSIP No. 85916E103 PAGE 12 OF 31 PAGES
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Clipper/Merban, L.P. 98-013328
- -------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [X]
- -------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
- -------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
- -------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- -------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0
-----------------------------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 432,980
-----------------------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
0
PERSON -----------------------------------------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
432,980
- -------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
432,980
- -------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- -------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.98%
- -------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
<TABLE>
<CAPTION>
CUSIP No. 85916E103 PAGE 13 OF 31 PAGES
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Clipper Capital Corporation 13-3706408
- -------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [X]
- -------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
Not Applicable
- -------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
- -------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- -------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0
-----------------------------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 64,460
-----------------------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
0
PERSON -----------------------------------------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
64,460
- -------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
64,460
- -------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- -------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.59%
- -------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
CO
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
<TABLE>
<CAPTION>
CUSIP No. 85916E103 PAGE 14 OF 31 PAGES
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Clipper Capital Partners, L.P. 13-3706324
- -------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [X]
- -------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
Not Applicable
- -------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
- -------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- -------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0
-----------------------------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 64,460
-----------------------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
0
PERSON -----------------------------------------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
64,460
- -------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
64,460
- -------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- -------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.59%
- -------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
<TABLE>
<CAPTION>
CUSIP No. 85916E103 PAGE 15 OF 31 PAGES
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
CS First Boston Merchant Investments 1995/96, L.P. 13-3860592
- -------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [X]
- -------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
- -------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
- -------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- -------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0
-----------------------------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 64,460
-----------------------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
0
PERSON -----------------------------------------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
64,460
- -------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
64,460
- -------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- -------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.59%
- -------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
<TABLE>
<CAPTION>
CUSIP No. 85916E103 PAGE 16 OF 31 PAGES
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Robert B. Calhoun, Jr.
- -------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [X]
- -------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
Not applicable
- -------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
- -------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- -------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0
-----------------------------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 1,583,330
-----------------------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
0
PERSON -----------------------------------------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
1,583,330
- -------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,583,330
- -------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- -------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
14.54%
- -------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
<TABLE>
<CAPTION>
CUSIP No. 85916E103 PAGE 17 OF 31 PAGES
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Koch Equities, Inc.
- -------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [X]
- -------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
- -------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
- -------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- -------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 1,000,000
-----------------------------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 0
-----------------------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
1,000,000
PERSON -----------------------------------------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
0
- -------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,000,000
- -------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- -------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.18%
- -------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
CO
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
<TABLE>
<CAPTION>
CUSIP No. 85916E103 PAGE 18 OF 31 PAGES
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Koch Industries, Inc.
- -------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [X]
- -------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- -------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
- -------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Kansas
- -------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0
-----------------------------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 1,000,000
-----------------------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
0
PERSON -----------------------------------------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
1,000,000
- -------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,000,000
- -------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- -------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.18%
- -------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
CO
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
<TABLE>
<CAPTION>
CUSIP No. 85916E103 PAGE 19 OF 31 PAGES
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Olympus Growth Fund II, L.P.
- -------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [X]
- -------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
- -------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
- -------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- -------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0
-----------------------------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 539,160
-----------------------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
0
PERSON -----------------------------------------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
539,160
- -------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
539,160
- -------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- -------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.95%
- -------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
<TABLE>
<CAPTION>
CUSIP No. 85916E103 PAGE 20 OF 31 PAGES
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
OGP II, L.P.
- -------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [X]
- -------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
Not Applicable
- -------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
- -------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- -------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0
-----------------------------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 539,160
-----------------------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
0
PERSON -----------------------------------------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
539,160
- -------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
539,160
- -------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- -------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.95%
- -------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
<TABLE>
<CAPTION>
CUSIP No. 85916E103 PAGE 21 OF 31 PAGES
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Olympus Executive Fund, L.P.
- -------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [X]
- -------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
Not Applicable
- -------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
- -------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- -------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0
-----------------------------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 6,670
-----------------------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
0
PERSON -----------------------------------------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
6,670
- -------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,670
- -------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- -------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.06%
- -------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
<TABLE>
<CAPTION>
CUSIP No. 85916E103 PAGE 22 OF 31 PAGES
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
OEF, L.P.
- -------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [X]
- -------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
Not Applicable
- -------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
- -------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- -------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0
-----------------------------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 6,670
-----------------------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
0
PERSON -----------------------------------------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
6,670
- -------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,670
- -------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- -------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.95%
- -------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
<TABLE>
<CAPTION>
CUSIP No. 85916E103 PAGE 23 OF 31 PAGES
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
LJM, L.L.C.
- -------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [X]
- -------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
Not Applicable
- -------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
- -------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- -------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0
-----------------------------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 545,830
-----------------------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
0
PERSON -----------------------------------------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
545,830
- -------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
545,830
- -------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- -------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.01%
- -------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
OO
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
<TABLE>
<CAPTION>
CUSIP No. 85916E103 PAGE 24 OF 31 PAGES
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
RSM, L.L.C.
- -------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [X]
- -------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
Not Applicable
- -------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
- -------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- -------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0
-----------------------------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 545,830
-----------------------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
0
PERSON -----------------------------------------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
545,830
- -------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
545,830
- -------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- -------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.01%
- -------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
OO
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
<TABLE>
<CAPTION>
CUSIP No. 85916E103 PAGE 25 OF 31 PAGES
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Conroy, L.L.C.
- -------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [X]
- -------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
Not Applicable
- -------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
- -------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- -------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0
-----------------------------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 545,830
-----------------------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
0
PERSON -----------------------------------------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
545,830
- -------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
545,830
- -------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- -------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.01%
- -------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
OO
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
<TABLE>
<CAPTION>
CUSIP No. 85916E103 PAGE 26 OF 31 PAGES
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Louis J. Mischianti
- -------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [X]
- -------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
Not Applicable
- -------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
- -------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- -------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0
-----------------------------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 545,830
-----------------------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
0
PERSON -----------------------------------------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
545,830
- -------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
545,830
- -------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- -------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.01%
- -------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
<TABLE>
<CAPTION>
CUSIP No. 85916E103 PAGE 27 OF 31 PAGES
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Robert S. Morris
- -------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [X]
- -------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
Not Applicable
- -------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
- -------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- -------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0
-----------------------------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 545,830
-----------------------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
0
PERSON -----------------------------------------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
545,830
- -------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
545,830
- -------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- -------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.01%
- -------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
<TABLE>
<CAPTION>
CUSIP No. 85916E103 PAGE 28 OF 31 PAGES
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
James A. Conroy
- -------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [X]
- -------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
Not Applicable
- -------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
- -------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- -------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0
-----------------------------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 545,830
-----------------------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
0
PERSON -----------------------------------------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
545,830
- -------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
545,830
- -------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- -------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.01%
- -------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
<TABLE>
<CAPTION>
CUSIP No. 85916E103 PAGE 29 OF 31 PAGES
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
FSI No. 2 Corporation 51-0373138
- -------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [X]
- -------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- -------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
- -------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- -------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0
-----------------------------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 545,830
-----------------------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
0
PERSON -----------------------------------------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
545,830
- -------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
545,830
- -------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- -------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.01%
- -------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
CO
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
<TABLE>
<CAPTION>
CUSIP No. 85916E103 PAGE 30 OF 31 PAGES
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Fayez Sarofim & Co.
- -------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [X]
- -------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
Not Applicable
- -------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
- -------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Texas
- -------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0
-----------------------------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 545,830
-----------------------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
0
PERSON -----------------------------------------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
545,830
- -------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
545,830
- -------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- -------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.01%
- -------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
CO, IA
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
<TABLE>
<CAPTION>
CUSIP No. 85916E103 PAGE 31 OF 31 PAGES
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Fayez Sarofim ###-##-####
- -------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [X]
- -------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
Not Applicable
- -------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
- -------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
- -------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0
-----------------------------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 545,830
-----------------------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
0
PERSON -----------------------------------------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
545,830
- -------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
545,830
- -------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- -------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.01%
- -------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
ITEM 1. SECURITY AND ISSUER
This Statement on Schedule 13D relates to the beneficial ownership of
shares of common stock, par value $.01 per share ("Common Stock"), of Sterling
Chemicals Holdings, Inc., a Delaware corporation (the "Issuer" or "Holdings").
The Issuer's principal executive offices are located at 1200 Smith Street, Suite
1900, Houston, Texas 77002.
ITEM 2. IDENTITY AND BACKGROUND
This Statement on Schedule 13D is being jointly filed by Frank P.
Diassi, Hunter Nelson, William C. Oehmig, Frank J. Hevrdejs (collectively, the
"Individual Investors"), The Rheney Living Trust, Clarke Rheney, Trustee or
Susan O. Rheney, Trustee (the "Trust Investor"), Clipper Capital Associates,
L.P., Clipper Equity Partners I, L.P., Clipper/Merchant Partners, L.P.,
Clipper/Merban, L.P., Clipper/European Re, L.P., CS First Boston Merchant
Investments 1995/96, L.P., (collectively, the "Clipper Investors"), FSI No. 2
Corporation, Koch Equities, Inc., Olympus Growth Fund II, L.P. and Olympus
Executive Fund, L.P. (collectively, the "Entity Investors" and together with the
Individual Investors, the Trustee Investor and the Clipper Investors, the
"Investors") and certain additional individuals and entities affiliated with
certain of the Clipper Investors and the Entity Investors (the "Additional
Reporting Persons").
Each of the Investors, as party to a voting agreement dated August 21,
1996 by and among each of such Investors (the "Voting Agreement"), has agreed
to, among other things, certain voting provisions with respect to the election
of directors of the Issuer. As a result of the Voting Agreement, the parties
thereto may be deemed to be members of a "group" within the meaning of Rule 13d-
5(b)(1) under the Securities Exchange Act of 1934, and accordingly may be deemed
to have beneficial ownership of all of the shares of common stock of Holdings
subject to the Voting Agreement. However, each of the Investors expressly
disclaims (i) membership in such group and (ii) beneficial ownership of such
shares of common stock of Holdings, other than shares expressly identified
herein as beneficially owned by such Investors.
A. The Individual Investors
Frank P. Diassi's business address is 6 Commerce Dr., Crawford, NJ 07016,
and his present principal occupation or employment is Chairman of the Board of
the Issuer. In addition, Mr. Diassi serves as managing general partner of the
The Unicorn Group, L.L.C., a private financial organization. The business
address of each of Hunter Nelson, Frank J. Hevrdejs and William C. Oehmig is
Eight Greenway Plaza, Suite 702, Houston, TX 77046. The present principal
occupation or employment of each of Messrs. Nelson, Hevrdejs, Oehmig is as a
principal of The Sterling Group, Inc. ("TSG"), a private investment organization
engaged in the acquisition and ownership of operating businesses. Each of the
Individual Investors is a citizen of the United States.
B. The Trust Investor
The business address of The Rheney Living Trust, Clarke Rheney or Susan
O. Rheney, Trustee, is 2305-C Nantucket, Houston, Texas 77057. The Rheney Living
Trust is a revocable trust created under the laws of Texas with Mr. and Mrs.
Rheney as beneficiaries. Mr. Rheney's principal occupation or employment is as a
consultant with Rheney and Associates. Mrs. Rheney's principal occupation or
employment is as principal of TSG. Both Mr. and Mrs. Rheney are citizens of the
United States.
C. The Clipper Investors
Each of Clipper Equity Partners I, L.P. ("Clipper I") and
Clipper/Merchant Partners, L.P. ("Clipper II") is a Delaware limited
partnership, principally engaged in making investments. Clipper Capital
Associates, L.P. ("Clipper Associates"), a Delaware limited partnership
principally engaged in making investments, directly or indirectly through other
entities, is the sole general partner of Clipper I and Clipper II, with sole
voting and dispositive power with respect
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to the securities held by such partnerships. The business address of each
of such partnerships is Tower 49, 12 East 49th Street, New York, NY 10017.
Each of Clipper/Merban, L.P. ("Clipper III") and Clipper/European Re,
L.P. ("Clipper IV") is a Delaware limited partnership, principally engaged in
making investments. Clipper Associates is the sole investment general partner of
Clipper III and Clipper IV, having sole voting and dispositive power with
respect to securities held by such partnerships. Clipper Curacao, Inc.
("Curacao"), a corporation organized under the laws of the British Virgin
Islands, is the sole administrative general partner of Clipper III and Clipper
IV, responsible for the administrative functions of such partnerships. The sole
director of Curacao is Intercarribean Services Ltd.; Curacao has no officers.
The business address of each of Clipper III, Clipper IV and Curacao is De
Ruyterkade 62, P.O. Box 812, Curacao, Netherland Antilles.
Clipper Capital Associates, Inc. ("Clipper") is the sole general
partner of Clipper Associates. Clipper is a Delaware corporation principally
engaged in holding partnership interests, and serves as general partner of
Clipper Associates. The directors and executive officers of Clipper are Robert
B. Calhoun, Jr., who serves as President and Director and Daniel V. Cahillane,
who serves as Treasurer, Secretary and Director. Robert B. Calhoun, Jr. and
Daniel V. Cahillane are United States citizens. The business address of Clipper,
Robert B. Calhoun, Jr. and Daniel V. Cahillane is Tower 49, 12 East 49th Street,
New York, NY 10017.
CB First Boston Merchant Investments 1995/96, L.P. ("CSFB Investments")
is a Delaware limited partnership principally engaged in making investments.
Merchant Capital, Inc. ("Merchant Capital"), a Delaware corporation principally
engaged in making investments, is the sole general partner of CSFB Investments.
The name, business address, principal occupation and citizenship of each
director and executive officer of Merchant Capital are listed on Appendix A
hereto. The sole stockholder of Merchant Capital is Merchant Holding, Inc., a
Delaware corporation. The business address of CSFB Investments and Merchant
Capital is Merchant Capital, Inc., Park Avenue Plaza, 55 East 52nd Street, New
York, NY 10055.
Pursuant to a certain management agreement (the "Management
Agreement"), Clipper Capital Partners, L.P. ("Clipper Management"), a Delaware
limited partnership principally engaged in managing investments, has sole voting
and dispositive power with respect to securities held by CSFB Investments. The
Management Agreement has been filed as an exhibit to this Statement on Schedule
13D and is incorporated herein by reference. Clipper Capital Corporation
("Clipper Capital"), a Delaware corporation principally engaged in holding
partnership interests is the sole general partner of Clipper Management. The
directors and executive officers of Clipper Capital are Robert B. Calhoun, Jr.,
who serves as President and Director, and Daniel V. Cahillane, who serves as
Treasurer, Secretary and Director. the business address of Clipper Management
and Clipper Capital is Tower 49, 12 East 49th Street, New York, NY 10017.
Robert B. Calhoun, Jr. is the sole stockholder of Clipper, Clipper
Capital and Curacao. It is anticipated that Mr. Calhoun will serve as a member
of the Board of Directors of Holdings, as the designee of the Clipper Investors
pursuant to the Voting Agreement.
D. The Entity Investors
(a) Koch
Koch Equities, Inc. ("Koch Equities"), is a corporation organized under
the laws of Delaware principally engaged in making investments. The
directors and executive officers of Koch Equities are listed on Appendix
B attached hereto. Koch Equities is a wholly-owned subsidiary of Koch
Industries, Inc. ("Koch Industries"), a corporation organized under the
laws of Kansas, which is a diversified energy company. The executive
officers and directors of Koch Industries are listed on Appendix C
hereto. The business address for both Koch Equities and Koch Industries
is 4111 East 37th Street North, Wichita, KS 67220.
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(b) FSI No. 2 Corporation
FSI No. 2 Corporation ("FSI No. 2") is a corporation organized under
the laws of Delaware principally engaged in making investments. The
officers and directors of FSI No. 2 are Fayez Sarofim, who serves as
president and director, and Raye G. White, who serves as executive vice
president, secretary, treasurer and director. FSI No. 2 is a wholly-
owned subsidiary of Fayez Sarofim & Co., a corporation organized under
the laws of Texas and an investment adviser registered under the
Investment Advisers Act of 1940. The executive officers and directors of
Fayez Sarofim & Co. are listed on Appendix D hereto. Mr. Sarofim is
Chairman of the Board of Directors, President and the beneficial owner of
a majority of the capital stock of Fayez Sarofim & Co. The business
address of FSI No. 2, Fayez Sarofim & Co., Mr. Sarofim and Ms. White is
Two Houston Center, Suite 2907, Houston, TX 77010. Both Mr. Sarofim and
Ms. White are citizens of the United States.
(c) Olympus
Olympus Growth Fund II, L.P. ("Olympus Growth") and Olympus
Executive Fund, L.P. ("Olympus Executive") are Delaware limited
partnerships principally engaged in making investments. OGP II, L.P., a
limited partnership organized under the laws of Delaware ("OGP") is the
sole general partner of Olympus Growth. OEF, L.P., a limited partnership
organized under the laws of Delaware ("OEF") is the sole general partner
of Olympus Executive. The three general partners of both OGP and OEF are
LJM, L.L.C. ("LJM"), RSM, L.L.C. ("RSM"), and Conroy, L.L.C. ("Conroy");
each of LJM, RSM and Conroy is a limited liability company organized
under the laws of the state of Delaware. The majority owner of LJM is
Louis J. Mischianti. The majority owner of RSM is Robert S. Morris. The
majority owner of Conroy is James A. Conroy. The business address of
Olympus Growth, Olympus Executive, OGP, OEF, LJM, RSM, Conroy and
Messrs. Mischianti, Morris and Conroy is Metro Center, One Station
Place, Stanford, Connecticut 06902. Messrs. Mischianti, Morris and Conroy
are presently employed with Olympus Advisory Partners, Inc. where each is
an investment manager; each of Messrs. Mischianti, Morris and Conroy is a
citizen of the United States.
During the last five years, none of the Investors nor any of the
Additional Reporting Persons, has been convicted in any criminal proceedings
(excluding traffic violations or similar misdemeanors).
During the last five years, none of the Investors nor any of the
Additional Reporting Persons, has been a party to a civil proceeding of a
judicial or administrative body of competent jurisdiction and as a result of
such proceeding was or is subject to a judgment, decree or final order enjoining
future violations of, or prohibiting or mandating activities subject to, federal
or state securities laws or finding any violation with respect to such laws.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
On August 21, 1996, STX Acquisition Corp. ("STX") merged with and into
Sterling Chemicals, Inc. with the latter, renamed Sterling Chemicals Holdings,
Inc., as the surviving corporation (the "Merger"). An aggregate of 4,999,807
shares of Common Stock (the "Rollover Shares") were retained by existing
stockholders with the remaining shares converted into the right to receive
$12.00 in cash. Concurrently with the consummation of such merger, an equity
private placement (the "Equity Private Placement") was effected whereby the
Investors purchased shares of STX common stock at a price of $120.00 per share
which were then converted into shares of Common Stock at a ratio of 1 for 10. An
aggregate of 5,230,624 shares of Common Stock were held by the Investors after
the Merger and the Equity Private Placement. Messrs. Oehmig and Hevrdejs both
hold Rollover Shares in addition to having purchased shares of Common Stock
pursuant to the Equity Private Placement. On August 22, 1996, the Common Stock
was suspended from trading on the New York Stock Exchange pending the completion
of the de-listing process.
Each of the Individual Investors expended personal funds to effect such
purchases. Each of the Clipper I, Clipper II, Clipper III, Clipper IV, CSFB
Investments, Clipper Associates (with respect to 1,810 shares) and Olympus
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Growth expended capital contributions from the partners of each respective
limited partnership to effect such purchases. Clipper Associates expended funds
from affiliates with respect to the purchase of certain shares that it holds as
nominee for such affiliates. Koch Equities expended funds provided by its parent
company, Koch Industries, from working capital to effect such purchases. FSI No.
2 expended working capital to effect such purchases.
ITEM 4. PURPOSE OF TRANSACTIONS
Although each of the Investors acquired the shares of Common Stock
primarily for investment purposes, by entering into the Voting Agreement, each
of such Investors has agreed to vote their respective shares in favor of a
nominee to the Board of Directors of Holdings selected by each of Koch Equities
and the Clipper Investors. In addition, the Clipper Investors, Olympus, FSI No.
2 and Messrs. Diassi and Hevrdejs intend to acquire 463,654 additional shares
(the "Additional Shares") of Common Stock from another stockholder. All such
Additional Shares will be subject to the terms and provisions of the Voting
Agreement. Other than the planned acquisition of the Additional Shares by the
Investors named above, none of the Investors has any other plans, nor has any of
them made any other proposals, which relate to or would result in any of the
subjects covered in paragraphs (a) through (j) of Item 4 to Schedule 13D.
However, each of the Investors reserves the right to acquire additional shares,
to dispose of shares or to formulate other purposes, plans or proposal to the
extent deemed advisable in light of their respective investment policies, market
conditions and other factors.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
Each of the Investors, pursuant to the Voting Agreement, has agreed to,
among other things, certain voting provisions with respect to the election of
directors. As a result of the Voting Agreement, the parties thereto may be
deemed to be members of a "group" within the meaning of Rule 13d-5(b)(1) under
the Securities Exchange Act of 1934, and accordingly may be deemed to have
beneficial ownership of all of the shares of Common Stock subject to
the Voting Agreement. In total, 5,230,624 shares, representing 48.03% of the
shares of Common Stock reported to be outstanding by the Company in
its Current Report of Form 8-K, dated as of August 21, 1996, are subject to the
Voting Agreement. However, each of the Investors expressly disclaims (i)
membership in such group and (ii) beneficial ownership of such shares of Common
Stock, other than shares expressly identified herein as beneficially
owned by such Investors. The Voting Agreement is filed as an exhibit to this
Statement on Schedule 13D and is incorporated herein by reference. In addition,
the information contained in Item 6 is incorporated herein by reference.
A. The Individual Investors
(a) Frank P. Diassi and Marianne R. Diassi, as joint tenants with right
of survivorship, may each be deemed to directly beneficially own 453,630 shares
of Common Stock; such shares constitute approximately 4.17% of the 10,890,837
shares of Common Stock reported to be outstanding by the Issuer in its Current
Report on Form 8-K, dated as of August 21, 1996.
(b) Frank J. Hevrdejs may be deemed to directly beneficially own 661,961
shares of Common Stock. Of such shares, 597,001 were Rollover Shares and 64,960
were purchased pursuant to the Equity Private Placement. Such shares in the
aggregate constitute approximately 6.08% of the 10,890,837 shares of Common
Stock reported to be outstanding by the Issuer in its Current Report on
Form 8-K, dated as of August 21, 1996.
(c) Hunter Nelson may be deemed to directly beneficially own 52,410
shares of Common Stock; such shares constitute approximately 0.48% of the
10,890,837 shares of Common Stock reported to be outstanding by the Issuer in
its Current Report on Form 8-K, dated as of August 21, 1996.
(d) William C. Oehmig and Margaret W. Oehmig, as tenants in common, may
each be deemed to directly beneficially own 345,963 shares of Common Stock. Of
such shares, 312,623 were Rollover Shares and 33,340 were purchased pursuant to
the Equity Private Placement. Such shares constitute approximately 3.18% of the
10,890,837 shares of Common Stock reported to be outstanding by the Issuer in
its Current Report on Form 8-K, dated as of August 21, 1996.
B. The Trustee Investor
The Rheney Living Trust, and Susan O Rheney and Clarke Rheney as trustees of
such trust, may each be deemed to directly beneficially own 41,670 shares of
Common Stock; such shares constitute approximately
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0.38% of the 10,890,837 shares of Common Stock reported to be outstanding by the
Issuer in its Current Report on Form 8-K, dated as of August 21, 1996.
C. The Clipper Investors
(a) (i) Clipper I may be deemed to directly beneficially own 324,730
shares of Common Stock; Clipper II may be deemed to directly beneficially own
367,870 shares of Common Stock; Clipper III may be deemed to directly
beneficially own 432,980 shares of Common Stock; Clipper IV may be deemed to
directly beneficially own 216,490 shares of Common Stock; CSFB Investments may
be deemed to directly beneficially own 64,460 shares of Common Stock; and
Clipper Associates may be deemed to directly beneficially own 1,810 shares of
Common Stock and indirectly beneficially own 174,990 shares of Common Stock by
virtue of its status as nominee under certain nominee agreements, pursuant to
which it exercises sole voting and dispositive power with respect to such shares
of common stock of Holdings; in the aggregate, such 1,583,330 shares of Common
Stock deemed to be beneficially owned by such entities constitute approximately
14.54% of the 10,890,837 shares of Common Stock reported to be outstanding by
the Issuer in its Current Report on Form 8-K, dated as of August 21, 1996.
(ii) By virtue of its status as the sole general partner of Clipper
I and Clipper II, and its status as sole investment general partner of Clipper
III and Clipper IV, having sole voting and dispositive power with respect to the
shares of Common Stock held by each of such partnerships, Clipper Associates may
be deemed to be, for purposes of this Schedule 13D, the indirect beneficial
owner of all of the 1,342,070 shares of Common Stock deemed to be directly
beneficially owned, in the aggregate, by Clipper I, Clipper II, Clipper III and
Clipper IV.
(iii) By virtue of its status as the sole general partner of Clipper
Associates, Clipper may be deemed to be, for purposes of this Schedule 13D, the
beneficial owner of all of the 1,518,870 shares of Common Stock deemed to be
directly and indirectly beneficially owned by Clipper Associates.
(iv) By virtue of its exercising sole voting and dispositive power
with respect to the Shares directly beneficially owned by CSFB Investments,
Clipper Management may be deemed to be, for purposes of this Schedule 13D, the
beneficial owner of all of the 64,460 shares of Common Stock deemed to be
directly beneficially owned by CSFB Investments.
(v) By virtue of its status as the sole general partner of Clipper
Management, Clipper Capital may be deemed to be, for purposes of this Schedule
13D, the beneficial owner of all of the 64,460 shares of Common Stock deemed to
be indirectly beneficially owned by Clipper Management.
(vi) By virtue of his ownership of all of the outstanding capital
stock of Clipper and his status as President and Director, Robert B. Calhoun,
Jr. may be deemed to be, for purposes of this Schedule 13D, the beneficial owner
of all of the 1,518,870 shares of Common Stock deemed to be indirectly
beneficially owned by Clipper. In addition, by virtue of his ownership of all of
the outstanding capital stock of Clipper Capital and his status as President and
Director, Robert B. Calhoun, Jr. may be deemed to be, for purposes of this
Schedule 13D, the beneficial owner of all of the 64,460 shares of Common Stock
indirectly beneficially owned by Clipper Capital.
(b) Clipper Associates holds 174,990 shares of Common Stock as nominee
for individuals who have the right to receive, or the power to direct the
receipt of, dividends from, or the proceeds from the sale of, such securities.
The form of nominee agreement (the "Nominee Agreement") has been filed as an
exhibit to this Statement on Schedule 13D and is incorporated herein by
reference.
D. Koch
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(a) (i) Koch Equities may be deemed to directly beneficially own
1,000,000 shares of Common Stock; such shares constitute approximately 9.18% of
the 10,890,837 shares of Common Stock reported to be outstanding by the Issuer
in its Current Report on Form 8-K, dated as of August 21, 1996.
(ii) Koch Industries, by virtue of its status as the owner of 100%
of the outstanding capital stock of Koch Equities, may be deemed to be, for the
purposes of this Schedule 13D, the beneficial owner of all of the 1,000,000
shares of common stock of Holdings deemed to directly beneficially owned by
Koch Equities.
D. FSI No. 2 Corporation
(a) (i) FSI No. 2 may be deemed to directly beneficially own 545,830
shares of Common Stock; such shares constitute approximately 5.01% of the
10,890,837 shares of Common Stock reported to be outstanding by the Issuer in
its Current Report on Form 8-K, dated as of August 21, 1996.
(ii) Fayez Sarofim & Co., by virtue of its status as the owner of
100% of the outstanding capital stock of FSI No. 2, may be deemed to be, for the
purposes of this Schedule 13D, the beneficial owner of all of the 545,830 shares
of Common Stock deemed to be directly beneficially owned by FSI No. 2.
(iii) Fayez Sarofim, by virtue of his status as the owner of a
majority of the outstanding capital stock of Fayez Sarofim & Co. may be deemed
to be, for the purposes of this Schedule 13D, the beneficial owner of all of the
545,830 shares of Common Stock deemed to be indirectly beneficially owned by
Fayez Sarofim & Co.
E. Olympus
(a) (i) Olympus Growth may be deemed to directly beneficially own 539,160
shares of Common Stock; such shares constitute approximately 4.95% of the
10,890,837 shares of Common Stock reported to be outstanding by the Issuer in
its Current Report on Form 8-K, dated as of August 21, 1996.
(ii) Olympus Executive may be deemed to directly beneficially own
6,670 shares of Common Stock; such shares constitute approximately 0.06% of the
10,890,837 shares of Common Stock reported to be outstanding by the Issuer in
its Current Report on Form 8-K, dated as of August 21, 1996.
(iii) OGP, by virtue of its status as the sole general partner of
Olympus Growth, may be deemed to be, for purposes of this Schedule 13D, the
beneficial owner of all of the 539,160 shares of Common Stock deemed
to be directly beneficially owned by Olympus Growth.
(iv) OEF, by virtue of its status as the sole general partner of
Olympus Executive, may be deemed to be, for purposes of this Schedule 13D, the
beneficial owner of all of the 6,670 shares of Common Stock deemed to be
directly beneficially owned by Olympus Executive.
(v) Each of LJM, RSM and Conroy, by virtue of their status as
general partners of OGP and OEF, may be deemed to be, for purposes of this
Schedule 13D, the beneficial owner of all of the aggregate 545,583 shares of
Common Stock deemed to be indirectly beneficially owned by OGP and OEF.
(vi) Each of Louis J. Mischianti, Robert S. Morris and James A.
Conroy, by virtue of their status as the majority owner of LJM, RSM and Conroy,
respectively, may be deemed to be, for purposes of this Schedule 13D, the
beneficial owner of all of the aggregate 545,583 shares of Common Stock deemed
to be indirectly beneficially owned by LJM, RSM and Conroy, respectively.
Paragraphs (c) and (e) are inapplicable with respect to all of the Investors and
the Additional Reporting Persons.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH
RESPECT TO SECURITIES OF THE ISSUER
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Each of the Investors is a party to the Voting Agreement, pursuant to
which, such investors have agreed to, among other things, vote their respective
shares of Common Stock in favor of a nominee to the Board of Directors of
Holdings selected by each of Koch Equities and the Clipper Investors. The rights
of Koch Equities and the Clipper Investors to select such nominees are
terminated under the terms and provisions of the Voting Agreement in the event
that their ownership of Common Stock represents less than 5% of the total number
of outstanding shares of Common Stock.
Each of the Investors and certain additional stockholders of the Issuer
have entered into a Stockholders Agreement, dated as of August 21, 1996 (the
"Stockholders Agreement"), which, among other things, restricts the transfer of
shares of Common Stock held by such stockholders (with certain exceptions)
unless such shares are first offered to the Issuer's employee stock ownership
plan, Holdings and finally to the other parties to the Stockholders Agreement.
Each of the Investors and certain additional stockholders of the Issuer
have entered into a Tag-Along Agreement, dated August 21, 1996 (the "Tag-Along
Agreement"), which, among other things, provides that if any of the parties
thereto proposes to transfer, sell or otherwise dispose of an aggregate of 51%
or more of the Common Stock issued and outstanding at the time of such proposed
transfer, all of the parties to the Tag-Along Agreement will have the right to
participate in such transfer on a pro rata basis and on the same terms and
conditions.
Each of the Clipper Investors and the Entity Investors have entered
into a Registration Rights Agreement, dated August 21, 1996 (the "Registration
Rights Agreement"), pursuant to which, among other things, for a period of ten
(10) years each of the parties thereto is entitled, subject to certain
limitations, to include their shares of Common Stock in certain registrations
initiated by the Issuer under the Securities Act of 1933, as amended. The
Registration Rights Agreement also provides that the parties thereto may
require the Issuer to effect additional "demand" registrations of all or any
part of such parties' stockholdings, and in addition, contains other customary
provisions.
Clipper Associates and certain individuals are party to Nominee
Agreements which grant Clipper Associates sole voting and dispositive power with
respect to the shares of Common Stock held by Clipper Associates, as nominee for
such individuals, pursuant to such agreements.
Clipper Management, Merchant Capital, Inc. and CSFB Investments are
party to the Management Agreement which grants Clipper Management sole voting
and dispositive power with respect to the shares of Common Stock directly
beneficially owned by CSFB Investments.
The responses to Item 2, Item 3 and Item 4, the Merger Agreement, the
Voting Agreement, the Stockholders Agreement, the Tag-Along Agreement, the
Registration Rights Agreement, the Nominee Agreement and the Management
Agreement are incorporated herein by reference.
ITEM 7. MATERIAL FILED AS EXHIBITS
The following are filed herewith as Exhibits to this Schedule 13D:
A. Voting Agreement, dated as of August 21, 1996, by and among the
parties listed therein, filed with the Commission as Exhibit 4.12 to the
Issuer's Registration Statement on Form S-1 (File No.333-04343), is incorporated
herein by reference.
B. Stockholders Agreement, dated as of August 21, 1996, by and among
the parties listed therein, filed with the Commission as Exhibit 4.10 to the
Issuer's Registration Statement on Form S-1 (File No. 333-04343), is
incorporated herein by reference.
C. Registration Rights Agreement, dated as of August 21, 1996, by and
among the parties listed therein, filed with the Commission as Exhibit 4.11 to
the Issuer's Registration Statement on Form S-1 (File No. 333-04343), is
incorporated herein by reference.
D. Tag-Along Agreement, dated as of August 21, 1996, by and among the
parties listed therein, filed with the Commission as Exhibit 4.13 to the
Issuer's Registration Statement on Form S-1 (File No. 333-04343), is
incorporated herein by reference.
E. Form of Nominee Agreement, by and among Clipper Associates and
certain individuals.
F. Management Agreement, dated as of December 29, 1995, by and among
Clipper Capital Partners, L.P., Merchant Capital, Inc. and CS First Boston
Merchant Investments 1995/96, L.P.
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SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
September 3, 1996
FRANK P. DIASSI AND MARIANNE R.
DIASSI, JOINT TENANTS WITH RIGHT
OF SURVIVORSHIP
/s/ FRANK P. DIASSI
_______________________________
Frank P. Diassi
/s/ MARIANNE R. DIASSI
_______________________________
Marianne R. Diassi
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SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
September 3, 1996
/s/ HUNTER NELSON
________________________________
Hunter Nelson
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SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
September 3, 1996
WILLIAM C. OEHMIG AND MARGARET W.
OEHMIG, TENANTS-IN-COMMON
/s/ WILLIAM C. OEHMIG
_________________________________
William C.Oehmig
/s/ MARGARET W. OEHMIG
_________________________________
Margaret W. Oehmig
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SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
September 3, 1996
/s/ FRANK J. HEVRDEJS
_________________________________
Frank J. Hevrdejs
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SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
September 3, 1996
THE RHENEY LIVING TRUST
By: Susan O. Rheney, as Trustee
/s/ SUSAN O. RHENEY
_________________________________
Susan O. Rheney
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SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
September 3, 1996
CLIPPER CAPITAL ASSOCIATES, INC. CLIPPER CAPITAL CORPORATION
CLIPPER CAPITAL ASSOCIATES, L.P. CLIPPER CAPITAL PARTNERS, L.P.
By: Clipper Capital Associates, Inc. By: Clipper Capital Corporation
its General Partner its General Partner
CLIPPER EQUITY PARTNERS I, L.P. CS FIRST BOSTON MERCHANT
BY: Clipper Capital Associates, L.P. INVESTMENTS 1995/96, L.P.
its General Partner By: Clipper Capital Partners, L.P.
Attorney-in-Fact
Clipper Capital Associates, Inc.: BY: Clipper Capital Corporation
Partner its General Partner its General Partner
CLIPPER/MERCHANT PARTNERS, L.P By: /s/ DANIEL V. CAHILLANE
By: Clipper Capital Corporation ________________________________
its General Name: Daniel V. Cahillane
Title: Secretary and Treasurer
By: Clipper Capital Associates, L.P.
its General Partner
CLIPPER/MERBAN, L.P.
By: Clipper Associates, L.P.
its General Partner
By: Clipper Capital Associates, Inc.
its General Partner
CLIPPER/EUROPEAN RE, L.P.
By: Clipper Associates, Inc.
its General Partner
By: Clipper Capital Associates, Inc.
its General Partner
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SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
September 3, 1996
/s/ ROBERT B. CALHOUN, JR.
_________________________________
Robert B. Calhoun, Jr.
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SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
September 3, 1996
FSI No. 2 Corporation
By: /s/ RAYE G. WHITE
-----------------------
Name: Raye G. White
Title: Executive Vice President
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SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
September 3, 1996
FAYEZ SAROFIM & CO.
/s/ RAYE G. WHITE
By:_______________________________
Name: Raye G. White
Title: Executive Vice President
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<PAGE>
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
September 3, 1996
/s/ FAYEZ SAROFIM
_________________________________
Fayez Sarofim
48
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
September 3, 1996
KOCH EQUITIES, INC.
/s/ JOHN PITTENGER
By: _________________________________
Name: John Pittenger
Title: President
49
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
September 3, 1996
KOCH INDUSTRIES, INC.
By: /s/ JOHN PITTENGER
_____________________________
Name: John Pittenger
Title: Vice President
50
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
September 3, 1996
OLYMPUS GROWTH FUND II, L.P.
By: OGP II, L.P., its General Partner
By: LJM, L.L.C.
its General Partner
By: /s/ LOUIS J. MISCHIANTI
___________________
Name: Louis J. Mischianti
Title: Member
51
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
September 3, 1996
OLYMPUS EXECUTIVE FUND, L.P.
By: OEF, L.P., its General Partner
By: LIM, L.L.C.
its General Partner
/s/ LOUIS J. MICHIANTI
By: ___________________________________
Name: Louis J. Mischianti
Title: Member
52
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
September 3, 1996
OGP II, L.P.
By: Conroy, L.L.C.
its General Partner
/s/ JAMES A. CONROY
By:______________________________
Name: James A. Conroy
Title: Member
53
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
September 3, 1996
OEF, L.P.
By: Conroy, L.L.C.
its General Partner
/s/ JAMES A. CONROY
By:______________________________
Name: James A. Conroy
Title: Member
54
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
September 3, 1996
LJM, L.L.C.
/s/ LOUIS J. MISCHIANTI
By:_______________________________
Name: Louis J. Mischianti
Title: Member
55
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
September 3, 1996
RSM, L.L.C.
/s/ ROBERT S. MORRIS
By: _____________________________
Name: Robert S. Morris
Title: Member
56
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
September 3, 1996
CONROY, L.L.C.
/s/ JAMES A. CONROY
By: _____________________________
Name: James A. Conroy
Title: Member
57
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
September 3, 1996
/s/ LOUIS J. MISCHIANTI
_________________________________
Louis J. Mischianti
58
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
September 3, 1996
/s/ ROBERT S. MORRIS
__________________________________
Robert S. Morris
59
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
September 3, 1996
/s/ JAMES A. CONROY
_________________________________
James A. Conroy
60
<PAGE>
APPENDIX A
<TABLE>
<CAPTION>
<S> <C>
Directors and Executive Officers of Merchant Capital, Inc.
John M. Hennessy President and Chairman of the Board
Allen D. Wheat Director
Richard B. Thornburghj Vice President and Director
David A. DeNunzio Vice President and Director
John S. Harrison Vice President and Director
Mark Patterson Vice President and Director
Charles Ward, III Vice President and Director
Agnes F. Reicke Vice President and Secretary
Linda H. Hanauer Vice President and Treasurer
Carlos Onis Vice President and Controller
Nancy G. Farese Vice President
Kenneth J. Lohson Vice President and Director of Taxes
</TABLE>
Each of the foregoing persons is a United States citizen, except Agnes F.
Reicke, who is a citizen of Switzerland. The principal business address of each
of such persons is CS First Boston Corporation, Park Avenue Plaza, New York,
New York 10055, and the present principal occupation or employment of each such
person is serving as an employee of CS First Boston Corporation.
A-1
<PAGE>
APPENDIX B
Directors and Executive Officers of Koch Equities, Inc. and their respective
positions with Koch Industries, Inc.
<TABLE>
<CAPTION>
<S> <C> <C>
John C. Pittenger President and Director Vice President, Koch Domestic
Capital Services
R. Allan Allford Vice President Managing Director, Koch
Domestic Capital Services
George B. Gregory Vice President Managing Director, Koch
Domestic Capital Services
Diana M. Knigge Vice President Managing Director, Koch
Domestic Capital Services
David A. Tolson Vice President Managing Director, Koch
Domestic Capital Services
H. Allan Caldwell Secretary Associate General Counsel
F. Lynn Markel Treasurer Executive VP -- Finance and
Administration
John H. Bomgardner II Director Associate General Counsel
Paul W. Brooks Director Senior VP -- Capital Services
Group
</TABLE>
Each of the foregoing persons is a citizen of the United States. The
principal business address of each of such persons is 4111 E. 37th Street North,
Wichita, Kansas 67220. The present principal occupation or employment of each
such person is the position each holds with Koch Industries, Inc. listed in the
far right-hand column above.
B-1
<PAGE>
APPENDIX C
<TABLE>
<CAPTION>
<S> <C>
Directors and Executive Officers of Koch Industries, Inc.
Charles G. Koch Chairman of the Board of Directors and CEO
William W. Hanna President, COO and Director
F. Lynn Markel Executive VP--Finance and Administration,
Treasurer and Director
Donald L. Cordes Executive VP, Special Counsel and Director
David H. Koch Executive VP-Chemical Technology Group and Director
C.C. McCambell Executive VP - Hydrocarbon Group and Director
Joseph W. Moeller Executive VP - International and Director
S.V. Varner Consultant and Director
Lawrence R. Purtell Senior VP, General Counsel and Secretary
Diana Kidd Controller
E. Pierce Marshall Director
</TABLE>
Each of the foregoing persons is a citizen of the United States. The
principal business address of each of such persons, except for Mr. Marshall, is
4111 East 37th Street North, Wichita, Kansas 67220, and the present principal
occupation or employment of each such person, except for Mr. Marshall, is as
listed above. Mr. Marshall's principal occupation or employment is as the
president emeritus of Marshall Petroleum, Inc.; his principal business address
is 7600 West Tidwell, Suite 800, Houston, Texas 77040.
C-1
<PAGE>
APPENDIX D
<TABLE>
<CAPTION>
<S> <C>
Directors and Officers of Fayez Sarofim & Co.
Fayez Sarofim President and Director
Raye G. White Executive VP, Secretary, Treasurer and Director
William Kline McGee, Jr. Senior Vice President
Ralph Bowman Thomas Senior Vice President
Russell Morris Frankel Senior Vice President
Charles Edmund Sheedy Senior Vice President
Russell Brian Hawkins Senior Vice President
Alice M. Youngblood Vice President
Nancy Vickers Daniel Vice President
James Aloysius Reynolds Vice President
</TABLE>
Each of the foregoing persons is a citizen of the United States. The
principal business address of each of such persons is Two Houston Center, Suite
2907, Houston, Texas, 77010, and the present principal occupation or employment
of each such person is as listed above.
D-1
<PAGE>
NOMINEE AND STOCKHOLDERS' AGREEMENT
Nominee and Stockholders' Agreement (the "Agreement"), dated as of ____
_________, 1996, by and between Clipper Capital Associates, L.P., a Delaware
limited partnership (the "Nominee") and ________________ (the "Individual").
WHEREAS, pursuant to that certain Subscription Agreement, dated as of the
date hereof, between STX Acquisition Corp. (the "Company") and the Individual
(the "Subscription Agreement"), the Individual will acquire that number of
shares of the Company's common stock, par value $.01 per share (the "Common
Stock") set forth on Schedule A attached hereto (the "Shares"); and
WHEREAS, the Individual will direct that the Shares be issued in the name
of the Nominee, as record owner, on behalf of the Individual;and
WHEREAS, the Nominee and the Individual desire to enter into this
Agreement in order to set forth their understanding with respect to certain
voting arrangements, transfer rights and other matters.
NOW, THEREFORE, in consideration of the mutual promises contained in this
Agreement and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties to this Agreement agree
as follows:
ARTICLE I.
Corporate Governance
--------------------
SECTION 1.01. Appointment of Nominee. The Individual shall direct, in the
Subscription Agreement, that the Shares be issued in the name of the Nominee, as
record owner. The Shares shall be held by the Nominee as the Individual's
nominee. The Nominee shall be the record owner of the Shares. Any cash received
by the Nominee on behalf of the Shares, in the form of a dividend or otherwise,
shall be sent to the Individual as promptly as practicable.
<PAGE>
SECTION 1.02. Irrevocable Proxy. The Individual hereby grants to, and is
deemed to have executed in favor of, the Nominee an irrevocable proxy to vote
all of the Shares at all meetings of the security holders of the Company or to
give written consents in lieu of voting the Shares, on all matters submitted to
security holders for vote, including but not limited to the election of
directors of the Company. The proxy granted hereby to the Nominee shall be
irrevocable and shall be deemed to be coupled with an interest.
ARTICLE II.
Transferability
---------------
SECTION 2.01. General. Any purported Transfer (as defined below) of any
Shares in violation of the provisions of this Agreement shall be void and the
purported transferee shall not be entitled to vote or receive any distributions
with respect to Shares so transferred. Any Transfer of Shares by the Individual
which is otherwise in accordance with this Agreement must also be in accordance
with the Sterling Chemicals Holdings, Inc. Stockholders Agreement, including the
Tag-Along Agreement attached as Exhibit B thereto, and federal and applicable
state securities laws. As used in this Agreement, the word "Transfer" means any
event constituting a sale, bequest, exchange, distribution, assignment, gift,
pledge, hypothecation, mortgage, the creation of any security interest in, lien
upon, or other encumbrance, and any other transfer or disposition of any kind,
whether voluntary or involuntary, affecting record or beneficial ownership in or
possession of any of the Shares.
SECTION 2.02 Restriction on Disposition; Tag-along; Bring-along.
(a) Except as set forth below, the Individual shall not Transfer any
Shares, directly or indirectly, including, without limitation, any Transfer to a
spouse, family-owned partnership or trust, without the prior written consent of
the Nominee. The provisions of this Section 2.02(a) shall not apply to any
Transfer by the Individual, upon the death of the Individual, of Shares to the
Individual's heirs, executors, administrators or distributees provided that such
persons agree to be bound by this Agreement to the same extent as the
Individual.
(b) In the event that the Nominee shall propose to sell all or any
portion of the Common Stock of the Company owned or otherwise held by the
Nominee, the Nominee shall have the option, exercisable upon ten (10) days'prior
written notice of such proposed sale (which notice shall include all of the
material terms and conditions of such proposed sale and shall identify the
proposed purchaser(s)) to require the Individual to sell all or the same
portion, as the case may be, of the Shares to such proposed purchaser(s) at the
same time and upon the same terms and conditions as the Nominee sells the Common
Stock.
2
<PAGE>
(c) In the event that the Nominee shall propose to sell all the Common
Stock of the Company held by the Nominee and the Nominee has determined not to
exercise its rights under Section 2.02(b) hereof, the Nominee shall provide the
Individual with not less than ten (10) days' prior written notice of such
proposed sale (which notice shall include all of the material terms and
conditions of such proposed sale, and shall identify the proposed purchaser(s)).
The Individual shall thereupon have the option, exercisable by written notice
delivered to the Nominee within five (5) days following the receipt by the
Individual of the notice, to require the proposed purchaser(s) to also purchase
from the Individual all of the Shares owned by the Individual and held by the
Nominee at the same time and upon the same terms and conditions as the Nominee
sells the Common Stock. If the Individual shall so elect, the Nominee shall
either (i) arrange for the proposed purchaser or purchasers to purchase all of
the Individual's Shares at the same time and upon the same terms and conditions
at which the Nominee sells its Common Stock or (ii) not effect the proposed sale
to such purchaser or purchasers.
(d) If the Individual sells the Shares pursuant to Section 2.02(b) or
(c) above, the Nominee shall deliver at the closing of such sale, documents in
form satisfactory to transfer the Shares to the purchaser thereof, against
payment by such purchaser of the purchase price therefor, which purchase price
shall be paid to the Individual by the Nominee within five business days after
receipt thereof.
ARTICLE III.
Miscellaneous
-------------
SECTION 3.01. After-Acquired Shares. All of the provisions of this
Agreement shall apply to all of the securities of the Company now owned or which
may be issued or Transferred hereafter to the Individual in consequence of any
additional issuance, purchase, exchange, conversion, or reclassification of
securities, corporate reorganization, or any other form of recapitalization,
consolidation, merger, share split or share dividend, or which are acquired by
the Individual in any other manner (all of which shall be deemed to be "Shares"
hereunder). The Nominee shall hold all such after-acquired property as the
Individual's nominee. Upon any Transfer or acquisition of Shares, Schedule A
shall be amended to reflect such Transfer or acquisition of Shares.
SECTION 3.02. Specific Performance. The parties hereto acknowledge that
irreparable damage would result if this agreement is not specifically enforced
and that, therefore, the rights and obligations of the parties under this
agreement may be enforced by a decree of specific performance issued by a court
of competent jurisdiction, and appropriate injunctive relief may be applied for
and granted in connection therewith. Such remedies
3
<PAGE>
shall, however, be cumulative and not exclusive and shall be in addition to any
other remedies which any party may have under this Agreement or otherwise.
SECTION 3.03 Term of Agreement. This Agreement shall become effective
on the date hereof. This Agreement, except for section 3.05 hereof, shall
terminate on the date which is the earlier of: (i) the date on which the Nominee
and the Individual shall by mutual consent in writing agree to such termination;
(ii) the date on which the Nominee transfers the Shares to the Individual, (iii)
the date of disposition of all Shares subject to this Agreement and (iv) the
date on which the Nominee or an affiliate of Nominee no longer acts as Manager
for Clipper/Merchant Partners, L.P.
SECTION 3.04. Investment Representations. The Individual represents and
warrants that he acquired the Shares for his own account, for investment only
and not with a view to the sale or distribution thereof. The Individual
recognizes that the Shares have not been registered under the Securities
Exchange Act of 1993, as amended (the "Act"), in reliance upon an exemption from
such registration, and agrees that he will not Transfer the Shares in the
absence of an effective registration statement covering such Shares under the
Act, unless such Transfer is exempt from registration and is not prohibited by
the terms of this Agreement.
SECTION 3.05 Exculpation and Indemnification.
(a) General. Neither the Nominee nor its officers, directors, partners,
shareholders or employees ("Indemnified Parties"), shall be liable, in damages
or otherwise, to the Individual for any act or omission performed or omitted by
any of them arising out of or in connection with this Agreement, unless such act
or omission results from the Indemnified Party's gross negligence or willful or
criminal misconduct. Each Indemnified Party shall be a third party beneficiary
of this Agreement solely for purposes of this Section 3.05(a) The Individual
shall reimburse the Nominee on demand for, and shall indemnify and hold the
Nominee harmless against and with respect to, any and all loss, liability,
damage or expense (including, without limitation, reasonable attorneys' fees and
costs) that the Nominee may suffer or incur in connection with the entering into
this Agreement and performing its obligations hereunder or otherwise in
connection therewith, except to the extent such loss, liability, damage or
expense arises from the willful misconduct or gross negligence of the Nominee.
(b) Tax. If the Nominee or any custodian, broker, agent or other party
engaged with respect to any transaction involving the Shares is required by law
to make any payment on behalf of the Individual with respect to taxes
(including, without limitation, federal witholding taxes), then the Individual
shall indemnify and hold harmless the Nominee, its officers and employees, and
any such custodian, broker, agent or other party (each of which shall be a
third-party beneficiary of this Agreement solely for purposes of this
4
<PAGE>
section) for the entire amount of such payment (including interest and penalties
thereon and expenses related thereto). The proceeds of any disposition of Shares
may be offset against the Individual's obligation to indemnify the Nominee or
any other party under this section.
SECTION 3.06. Expenses. The Nominee shall be entitled to receive from the
Individual all reasonable expenses which are incurred by the Nominee in
connection with the Shares. The proceeds of any disposition of Shares may be
offset against the Individual's obligation to reimburse the Nominee under this
section.
SECTION 3.07. No Investment Advice. The individual hereby acknowledges
and agrees that the Nominee has not, and will not provide in connection with
this Agreement or otherwise, investment advice with respect to the Individual's
investment in the Company or the Shares.
SECTION 3.08. Financial and Other Information. The Nominee shall cause a
copy of all periodic financial reports and other disclosure provided to it by
the Company to be forwarded to the Individual at his or her address set forth
in Schedule A hereto.
SECTION 3.09. Successors and Assigns. All of the terms and provisions of
this Agreement shall inure to the benefit of and be binding upon the parties
hereto and their respective successors and assigns; provided, however, no party
hereto may assign this Agreement or its rights or obligations hereunder without
the prior written consent of the other party hereto.
SECTION 3.10. Entire Agreement. This Agreement constitutes the complete
understanding and agreement among the parties hereto with respect to the subject
matter hereof and can be amended, supplemented or changed, and any provision
hereof can be waived, only by written instrument making specific reference to
this Agreement signed by the party against whom enforcement of any such
amendment, supplement, modification or waiver is sought.
SECTION 3.11. Approvals and Consents. The Individual hereby agrees,
for himself, his heirs and legal representative(s), to prepare, execute and
deliver or cause to be prepared, executed and delivered such further instruments
and documents, and to take such other actions as may be reasonably required to
more effectively carry out the intent and purposes of this Agreement and the
transactions contemplated hereby.
SECTION 3.12. Notices. All notices, requests, demands and other
communications which are required or may be given hereunder shall be in writing
and shall be deemed to have been duly given to a party if delivered personally
or mailed by certified or registered mail, return receipt requested, postage
prepaid, or if given by telex or other
5
<PAGE>
telegraphic means, to such party at his or its address set forth in Schedule A
hereto. Any such notice shall for all purposes of this Agreement be deemed to
have been given, and received by the addressee, on the date of such personal
delivery or telex or telegraphic notice or five (5) days after any such mailing
thereof.
SECTION 3.13 Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware.
SECTION 3.14 Severability. If any provision of this Agreement or the
application of any such provision to any person or circumstances shall be held
invalid by a court of competent jurisdiction, the remainder of this Agreement,
including the remainder of the provision held invalid, or the application of
such provision to persons or circumstances other than those as to which it is
held invalid, shall not be affected thereby.
SECTION 3.15 Counterparts. This Agreement may be executed in one or
more counterparts, each of which shall be deemed to be an original, but all of
which together shall constitute one and the same instrument.
SECTION 3.16 Headings. All section headings herein are for
convenience of reference only and are not part of this Agreement, and no
construction or inference shall be derived therefrom.
IN WITNESS WHEREOF, the parties hereto have hereunto set their hands as
of the date first set forth above.
[INDIVIDUAL]
_____________________________________
CLIPPER CAPITAL ASSOCIATES, L.P
By: CLIPPER CAPITAL ASSOCIATES, INC.,
its General Partner
By: ________________________________
Name:
Title:
6
<PAGE>
MANAGEMENT AGREEMENT
(Clipper Program)
MANAGEMENT AGREEMENT (the "Agreement"), dated as of the 29th day of
December, 1995, by and among CLIPPER CAPITAL PARTNERS, L.P., a Delaware limited
partnership ("Capital Partners"), MERCHANT CAPITAL, INC., a Delaware corporation
("Merchant") and CS FIRST BOSTON MERCHANT INVESTMENTS 1995/96, L.P., a Delaware
limited partnership (the "MD Partnership").
WHEREAS, Merchant is the limited partner, CS First Boston Finders I,
L.P., a Delaware limited partnership, is the special limited partner and Clipper
Capital Associates, L.P., a Delaware limited partnership, is the general partner
(in such capacity, the "Program General Partner") of Clipper/Merchant Partners,
L.P., a Delaware limited partnership (the "Program Partnership"), organized
pursuant to the Second Amended and Restated Agreement of Limited Partnership,
entered into as of August 1, 1994, as amended by the Amendment to Second Amended
and Restated Agreement of Limited Partnership of Clipper/Merchant Partners,
L.P., dated as of June 30, 1995, and as further amended by the Second Amendment
to the Second Amended and Restated Agreement of Limited Partnership of
Clipper/Merchant Partners, L.P., dated as of December 29, 1995, as hereinafter
described (the "Program Partnership Agreement");
WHEREAS, the Program Partnership, Merchant and Capital Partners have
entered into the Amended and Restated Clipper/Merchant Partners Management
Agreement, dated as of August 1, 1994, as amended by the Amendment to Amended
and Restated Clipper/Merchant Partners Management Agreement, dated as of June
30, 1995, and as further amended by the Second Amendment to the Amended and
Restated Clipper/Merchant Partners Management Agreement, dated as of December
29, 1995 (the "Program Management Agreement"), whereby Capital Partners provides
certain management and support services to the Program Partnership and Merchant;
WHEREAS, the Program Partnership Agreement has been amended by an
amendment dated as of December 29, 1995, whereby certain investment
opportunities presented to the Program Partnership shall be presented to the MD
Partnership, of which Merchant is the general partner, for the making of
investments therein on a side-by-side basis with the Program Partnership (each
such investment, an "MD Investment"); and
WHEREAS, Capital Partners wishes to provide to Merchant, as general
partner of the MD Partnership, the discretionary investment management services
with regard to the MD Investments that it provides to the Program Partnership
pursuant to the Program Management Agreement and Merchant, as general partner of
the MD Partnership, wishes to receive such management services with respect to
the MD Investments;
<PAGE>
NOW THEREFORE, the parties hereto agree as follows (all capitalized
terms not defined herein shall have the meanings specified in the Program
Partnership Agreement):
1. Voting of MD Investments. Capital Partners shall have sole
discretionary authority to exercise any and all voting rights attaching to the
MD Partnership's interests in the MD Investments on behalf of the MD
Partnership. Capital Partners shall exercise such voting rights at the same
time and in the same manner as for the Program Partnership under the Program
Management Agreement.
2. Disposition of MD Investments. Capital Partners shall have sole
discretionary authority to dispose of or liquidate the MD Partnership's
interests in the MD Investments on behalf of the MD Partnership, and such MD
Partnership's interests shall not be disposed of or liquidated by the MD
Partnership unless Capital Partners consents to such disposition or liquidation.
Capital Partners shall dispose of or liquidate such interests at the same time
and in the same manner, on a pro rata basis, as for the Program Partnership
under the Program Management Agreement.
3. No Fees. Capital Partners shall not receive a fee or other
compensation from the MD Partnership for its services hereunder and acknowledges
that part of the fee it receives from Merchant pursuant to the Program
Management Agreement is attributable to the MD Partnership.
4. Indemnification and Ecculpation.
(a) The MD Partnership shall, to the fullest extent permitted by
applicable law, indemnify and hold harmless Capital Partners, the Program
General Partner, their affiliates and their respective officers, directors,
partners, shareholders, consultants (as determined by Capital Partners) or
employees (collectively the "Indemnitees") against all claims, liabilities
and expenses of whatever nature ("Claims") relating to activities undertaken
in connection with this Agreement or the MD Partnership, including, without
limitation, serving as a director of any Portfolio Company (including Claims
for indemnification of other Persons arising out of services rendered by such
other Persons to any such Indemnitee but solely to the extent that such
Persons have been indemnified by Capital Partners, the Program General
Partner or their Affiliates in connection with their provision of such
services and the provision of indemnification is customary in connection
therewith or otherwise in the best interest of the MD Partnership),
including, but not limited to, amounts paid in satisfaction of judgments, in
compromise or as fines and penalties, and counsel fees and expenses
(including out-of-pocket expenses of internal counsel) incurred in connection
with the defense or disposition of any action, suit or other proceeding,
whether civil or criminal, before any court or administrative body in which
such Indemnitee may be or may have been involved, as a party or otherwise, or
with which such Indemnitee may be or may have been threatened, while acting
in his capacity as an officer, director, consultant, partner, shareholder or
employee of
2
<PAGE>
the Program General Partner or Capital Partners or any of their respective
Affiliates except with respect to any matter as to which such Indemnitee
shall have been adjudicated to have been grossly negligent or engaged in
willful or criminal misconduct. An Indemnitee shall be entitled to rely on
the advice of counsel, public accountants or other independent experts
experienced in the matter at issue, and any accountants or other independent
experts experienced in the matter at issue, and any act or omission of such
Indemnitee pursuant to such advice shall in no event subject such Indemnitee
to liability to the MD Partnership or any partner thereof and, accordingly,
such reliance by an Indemnitee shall not constitute gross negligence or
willful or criminal misconduct. Notwithstanding the foregoing, any
indemnification obligation hereunder shall not, together with (i) any
indemnification obligation of Merchant pursuant to the Program Partnership
Agreement in favor of an Indemnified Party (as defined in the Program
Partnership Agreement) and (ii) any indemnification obligation of Merchant,
in its capacity as the general partner of the Special Limited Partner (as
defined in the Program Partnership Agreement) pursuant to the Finders
Carried Interest Sharing Agreement (as defined in the Program Partnership
Agreement) in favor of Capital Partners or its affiliates (solely to the
extent such indemnification obligation is not borne by any limited partner
of the Special Limited Partner), exceed the Limited Partner Indemnification
Cap (as defined in the Program Partnership Agreement). This indemnity shall
survive termination of this Agreement, the Program Partnership Agreement and
the Program Management Agreement.
(b) None of the Indemnitees shall be liable, in damages or otherwise,
to the MD Partnership or to any of its partners for any act or omission
performed or omitted by any of them arising out of or in connection with
this Agreement, the Program Agreement, the Program or the MD Partnership's
or Program Partnership's operations or affairs, including, without
limitation, serving as a director of any Portfolio Company, unless such act
or omission results from the Indemnitee's gross negligence or willful or
criminal misconduct; provided, however, that nothing contained in this
Section 4(b) shall relieve the Program General Partner or Capital Partners
from the obligation to correct, promptly after the discovery thereof of any
Person, any errors in the calculation of fees and other payments provided
for in the Program Partnership Agreement.
(c) Each Indemnitee shall be a third party beneficiary of this
Agreement solely for purposes of this Section 4.
5. Termination. This Agreement shall terminate upon the earlier of
(i) the termination of the MD Partnership and (ii) the termination of the
Program Management Agreement or the removal of Capital Partners as the
Management Company; provided, however, that the provisions of Section 4 of this
Agreement shall survive such termination.
6. Power of Attorney. The MD Partnership, by the execution of this
Agreement, does hereby constitute and appoint Capital Partners and its general
partner, with full power of substitution, as its true and lawful attorney, in
its name, place and stead, to
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<PAGE>
exercise all rights with respect to MD Investments, including, without
limitation, the execution of documentation in connection with the acquisition of
such MD Investments, as provided herein and to execute, acknowledge, swear to,
deliver, record and file, as appropriate, all instruments or papers which may be
required thereby, such appointment to terminate upon the termination of this
Agreement pursuant to Section 5 hereof.
7. Notices. All notices, consents, requests, instructions, approvals
and other communications provided for herein shall be validly given, made or
served if in writing and delivered personally, by telegram or by telecopy or
sent by overnight courier, postage prepaid, to:
Capital Partners at: Clipper Capital Partners, L.P.
Tower 49
12 East 49th Street
30th Floor
New York, New York 10017
Attention: Mr. Bela R. Schwartz
Telecopy No.: 212-318-1365
With a copy to: Weil, Gotshal & Manges
767 Fifth Avenue
New York, New York 10153
Attention: Michael Nissan, Esq.
Telecopy No.: 212-310-8007
the MD Partnership at: CS First Boston Merchant Investments 1995/96,L.P.
c/o Merchant Capital, Inc.
Park Avenue Plaza
55 East 52nd Street
New York, New York 10055-0186
Attention: Ms. Agnes F. Reicke
Mr. Andrew M. Hutcher, Esq.
Mr. Joseph F. Huber
Ms. Nancy G. Farese
Telecopy No.: 212-318-1213
or to such other address as any party may, from time to time, designate in a
written notice given in a like manner. Notice given by telegram or telecopy
shall be deemed delivered when received by the recipient. Notice given by
overnight courier as set out above shall be deemed delivered the second business
day after the date the same is mailed.
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8. Governing Law. This Agreement shall be construed and enforceable in
accordance with, and governed by, the laws of the State of New York, without
giving effect to the provisions, policies or principles thereof relating to
choice or conflict of laws.
9. Entire Agreement. This Agreement embodies the entire agreement and
understanding among the parties hereto with respect to the subject matter hereof
an supersedes all other prior arrangements and understandings relating to the
subject matter hereof.
10. Amendments. This Agreement may not be amended, changed, waived or
modified except by a writing executed by each of the parties hereto.
11. Counterparts. This agreement may be executed either directly or by
an attorney-in-fact, in any number of counterparts of the signature pages, each
of which shall be considered an original.
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<PAGE>
IN WITNESS WHEREOF, the parties hereto have executed this agreement as
of the day and year first above written.
CLIPPER CAPITAL PARTNER, L.P.
By: CLIPPER CAPITAL CORPORATION,
---------------------------------
its general partner
By: /s/ BELA R. SCHWARTZ
---------------------------------
Name: Bela R. Schwartz
Title: Secretary & Treasurer
MERCHANT CAPITAL, INC.
By: /s/ AGNES REICKE
--------------------------------
Name: Agnes Reicke
Title: Vice President
CS FIRST BOSTON MERCHANT
INVESTMENTS 1995/96, L.P.
By: MERCHANT CAPITAL, INC.,
--------------------------------
its general partner
By: /s/ AGNES REICKE
--------------------------------
Name: Agnes Reicke
Title: Vice President
Dated: January 10, 1996
Signature Page for Management Agreement (Clipper Program)
