CONTROL CHIEF HOLDINGS, INC.
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934
Filed by the Registrant [X]
Filed by a Party other than the Registrant [ ]
Check the appropriate box:
[ ] Preliminary Proxy Statement
[ ] Confidential, for use of the Commission Only (as permitted by
Rule 14a-6(e)(2))
[X] Definitive Proxy Statement
[X] Definitive Additional Materials
[ ] Soliciting Material pursuant to Section 240.14(c) or Section
240.14a-12
Control Chief Holdings, Inc.
- ----------------------------------------------------------------------
(Name of Registrant as Specified In Its Charter)
- ----------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if other than Registrant)
Payment of Filing Fees (Check the appropriate box):
[X] $125 per Exchange Act Rules 0-11(c)(1)(ii), 14a-6(i)(1),
or 14a-6(j)(2) or Item 22(a)(2) of Schedule 14A.
[ ] $500 per each party to the controversy pursuant to Exchange Act
Rule 14a-6(i)(3).
[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(4)
and 0-11.
1 Title of each class of securities to which transaction
applies:
- ----------------------------------------------------------------------
2 Aggregate number of securities to which transaction applies:
- ----------------------------------------------------------------------
3 Per unit price or other underlying value of transaction
computed pursuant to Exchange Act Rule 0-11 (Set forth the
amount on which the filing fee is calculated and state how it
was determined):
- ----------------------------------------------------------------------
4 Proposed maximum aggregate value of transaction:
- ----------------------------------------------------------------------
5 Total fee paid:
- ----------------------------------------------------------------------
[ ] Fee paid previously with preliminary materials.
[ ] Check box if any part of the fee is offset as provided by
Exchange Act Rule 0-11(a)(2) and identify the filing for which
the offsetting fee was paid previously. Identify the previous
filing by registration statement number, or the Form or Schedule
and the date of its filing,
1 Amount Previously Paid:
---------------------------------------------
2 Form, Schedule or Registration Statement No.:
---------------------------------------------
3 Filing Party:
---------------------------------------------
4 Date Filed:
---------------------------------------------
Proxy Card/Definitive Copy
- ----------------------------------------------------------------------
[X] PLEASE MARK VOTES CONTROL CHIEF HOLDINGS, INC.
AS IN THIS EXAMPLE The proxies are instructed to vote
follows: With- For All
For hold Except
[ ] [ ] [ ]
1. Election of directors listed below.
The undersigned hereby
appoints Christopher G. Douglas S. Bell, Robert E.
Hauser and Arvid R. Nelson Crofford, Christopher G. Hauser,
as Proxies, each with the Arvid R. Nelson, N. James Sekel,
power to appoint his sub- C. Lawrence Shields, Patrick G.
stitute, and hereby Patrick G. Shields
authorizes them to rep- INSTRUCTION: To withhold authority
resent and to vote, as to vote for any individual nominee,
designated below, all shares mark "For All Except" and write that
of common stock of Control nominee's name in the space provided
Chief Holdings, Inc. of the below.
undersigned on November 15,
1996 or any adjournment ------------------------------------
thereof.
For Against Abstain
2. Proposal to [ ] [ ] [ ]
approve the
appointment of Diefenbach, Delio,
Kearney & DeDionisio as
independent public accountants
of Control Chief Holdings, Inc.
3. The Proxies are authorized to vote
in their discretion upon such
other business as may legally come
before the meeting or any
adjournment thereof.
This Proxy, when properly executed
will be voted in the manner
directed herein by the undersigned
stockholder. IF NO DIRECTION IS
----------- MADE, THIS PROXY WILL BE VOTED FOR
Please be sure to Date PROPOSALS 1 AND 2. The Proxies
sign and date ----------- will use their discretion with
this Proxy in the respect to any matters referred
box below. to in item 3.
- -------------------------------
Please mark, sign exactly as name
appears above, date and return Proxy
Card promptly, using the enclosed
envelope. When shares are held by
- ----Stockholder sign above----- Joint Tenants, or Guardian, please
Co-holder (if any) sign above give full title as such.
Detach above card, sign, date and mail in postage paid envelope
provided.
CONTROL CHIEF HOLDINGS, INC.
- ----------------------------------------------------------------------
PLEASE ACT PROMPTLY
SIGN, DATE & MAIL YOUR PROXY CARD TODAY
- ----------------------------------------------------------------------
Definitive Copy
Control Chief Holdings, Inc.
NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
Bradford, Pennsylvania
October 15, 1996
TO THE SHAREHOLDERS OF CONTROL CHIEF HOLDINGS, INC.:
As a shareholder of Control Chief Holdings, Inc. (the "Company"), your
are hereby given notice of and invited to attend in person or by proxy
the Annual Meeting of Shareholders of the Company at the Howard
Johnson's Motor Lodge, 100 Davis Street, Bradford, Pennsylvania on
November 15, 1996, at 10:00 a.m. for the following purposes:
(1) To elect seven Directors to hold office for a term expiring
upon the 1997 Annual Meeting of Shareholders or until their
successors shall have been duly elected and qualified;
(2) To approve the appointment of Diefenbach, Delio, Kearney &
DeDionisio as independent auditors
of the Company for the fiscal year ending, June 30, 1997;
(3) To transact such other business, if any, as may legally come
before the meeting or any adjournments thereof.
Reference is made to the accompanying Proxy Statement for more
complete information concerning the foregoing matters.
The Board of Directors has fixed the close of business on October 4,
1996, as the record date (the "Record Date") for the determination of
shareholders entitled to notice of and to vote at the meeting and any
adjournment(s) thereof. Only shareholders of record at the close of
business on the Record Date are entitled to notice of and to vote at
the meeting.
By Order of the Board of Directors
/S/Christopher G. Hauser
Christopher G. Hauser
Secretary
YOUR VOTE IS IMPORTANT NO MATTER HOW MANY
SHARES YOU OWNED ON THE RECORD DATE
PLEASE INDICATE YOUR VOTING INSTRUCTIONS ON THE ENCLOSED PROXY CARD,
DATE AND SIGN IT, AND RETURN IT IN THE ENVELOPE PROVIDED, WHICH IS
ADDRESSED FOR YOUR CONVENIENCE AND NEEDS NO POSTAGE IF MAILED IN THE
UNITED STATES. IN ORDER TO AVOID THE ADDITIONAL EXPENSE OF FURTHER
SOLICITATION, WE ASK YOUR COOPERATION IN MAILING YOUR PROXY PROMPTLY.<PAGE>
CONTROL CHIEF HOLDINGS, INC.
200 Williams St. Bradford, Pennsylvania 16701 ... P.O. Box 141 .
Bradford, Pennsylvania 16701
PROXY STATEMENT
Solicitation of Proxy
This Proxy Statement is furnished in connection with the solicitation
by the Board of Directors of Control Chief Holdings, Inc. (the
"Company") of proxies for use at the Annual Meeting of Shareholders to
be held at the Howard Johnson's Motor Lodge, 100 Davis Street,
Bradford, Pennsylvania on November 15, 1996 at 10:00 a.m. and any
adjournments thereof. The matters to be considered and acted upon at
such meeting are referred to in the accompanying Notice of Annual
Meeting and are more fully discussed herein.
The record date for the determination of shareholders entitled to vote
at the meeting is the close of business on October 4, 1996. On that
date, 811,553 shares of Common Stock, par value $.50 per share (the
"Common Stock"), were issued and outstanding. Each share of Common
Stock entitles the holder thereof to one (1) vote.
The presence at the Annual Meeting, in person or by proxy, of the
holders of a majority of the outstanding Common Stock constitutes a
quorum for the Annual Meeting and for acting on the matters specified
in the Notice.
Shares represented by proxies will be voted in accordance with the
specifications made on the proxy card by the shareholder. Any proxy
not specifying to the contrary will be voted FOR all proposals.
This Proxy Statement and the form of proxy are being mailed to
shareholders on or about October 15, 1996.
Revocation of Proxy
A proxy may be revoked by a shareholder at any time prior to its use
by filing with the Company a duly executed proxy bearing a later date
or by giving written notice of such revocation to the Secretary of the
Company. A proxy is also subject to revocation if the person
executing the proxy is present at the meeting and chooses to vote in
person.
Annual Report
The combined annual report and Form 10-KSB of the Company for the
year ended June 30, 1996, is enclosed with this Proxy Statement.
Corporate Governance
At the Annual Meeting, a Board of seven directors is to be elected.
Each director shall serve until the next Annual Meeting of
Shareholders or until his successor shall have been duly elected and
qualified. It is intended that the persons named in the proxies will
vote for the election of the seven directors named below, unless a
shareholder giving a proxy withholds authority to vote for one or more
of them. If any nominee is unable to serve, or for good cause
declines to serve, the shares represented by all valid proxies will be
voted for the election of such substitute as the Board of Directors
may recommend.
During the past fiscal year, the Board of Directors of the Company
held five meetings. Each director (with the exception of Mr. Jon T.
Wray) attended at least 75% of the aggregate of (a) the total number
of meetings of the Board of Directors held during the period for which
he served as a director and (b) the total number of meetings held by
all committees of the Board on which he served.
Because of matters requiring Board consideration throughout the year,
the Board of Directors has established a number of committees to
devote attention to specific subjects, as further described herein.
Committees of the Board of Directors
During the intervals between meetings of the Board of Directors, the
Executive Committee may exercise all the powers of the Board (except
those powers specifically reserved by New York Law to the full Board of
Directors) in the management and direction of the business and conduct
of the affairs of the Company in all cases in which specific directions
have not been given by the Board. The Executive Committee consisted of
Mr. Douglas S. Bell, Mr. Arvid R. Nelson, Mr. C. Lawrence Shields, and
Mr. Robert E. Crofford. It met twice during the fiscal year ended June
30, 1996.
The Compensation Committee establishes executive compensation polices
and makes recommendations to the Board of Directors. The Compensation
Committee consisted of Mr. Arvid R. Nelson, Mr. C. Lawrence Shields, and
Mr. Christopher G. Hauser, all outside Directors. It did not meet
during the fiscal year ended June 30, 1996.
The Nominating Committee has the responsibility for nominating a slate
of directors for the ensuing fiscal year. The Committee will consider
nominees recommended by shareholders, and such recommendations,
together with appropriate biographical information, may be submitted to
the Company in writing to the attention of the Nominating Committee at
least ninety days before the next Annual Meeting. The Committee is
comprised of Mr. Patrick G. Shields, Mr. Christopher G. Hauser, and Mr.
Jon T. Wray. The Committee met one time during the fiscal year and
nominated the following slate of officers for a one year term: Mr.
Douglas S. Bell, Mr. Robert E. Crofford, Mr. Christopher G. Hauser, Mr.
Arvid R. Nelson, Mr. N. James Sekel, Mr. C. Lawrence Shields, Mr.
Patrick G. Shields.
The Audit Committee recommends to the Board of Directors the engagement
of the independent auditors of the Company and reviews with the
independent auditors the scope and results of the Company's audits, the
Company's internal accounting controls and the professional services
furnished by the independent auditors to the Company. The audit
Committee is comprised of Mr. Patrick G. Shields, Mr. Christopher G.
Hauser, and Mr. C. Lawrence Shields, all outside directors. The Audit
Committee held one meeting with the Board of Directors during the fiscal
year ended June 30, 1996.
The Long Range Planning Committee, consisting of Mr. Douglas S. Bell,
Mr. Jon T. Wray, Mr. Robert E. Crofford, and Mr. Stephen J. Pachla
prepares and presents strategic business plans of the Company for the
consideration of the Board of Directors. The Long Range Planning
Committee met several times during the fiscal year ended June 30, 1996.
Compensation of Directors
Non-employee directors of the Company receive compensation of $250 for
each regular or committee meeting attended. Employee directors are not
paid any fees or additional compensation for service as members of the
Board or any of its committees. All directors are reimbursed for
expenses incurred in attending Board and committee meetings.
Proposal No. 1
Election of Directors
Seven directors are nominated to be elected at the Annual Meeting. Each
director will serve until the next Annual Meeting of the Shareholders or
until his successor shall be elected and shall qualify. All nominees
are incumbent directors with the exception of Mr. N. James Sekel. The
names and certain information concerning the nominees are set forth
below. All nominees named below have indicated their willingness to
accept election, and management has no reason to believe that any of the
nominees named below will be unable or unwilling to serve. The proxies
will not be used for a greater number of persons than the number so
named. Under New York State law, the affirmative vote of the holders of
a plurality of the votes cast at the Annual Meeting is required to elect
a nominee as a Director.
Principal Occupation of Director of
Employment During the Past Company
Name Five Years Age Since
C. Lawrence Shields Chairman from 1986 to 1994. 69 1983
In 1971, Mr. Shields founded
Control Chief Corporation
where he served as President
and Director until May 1990.
President and CEO of C. L.
Shields Enterprises, Inc.
since October of 1990. Mr.
Shields is also a
member of the advisory
board of National City Bank.
Mr. Shields is the father of
Mr. Patrick G. Shields,
Director of the Company and
father-in-law of Mr. Douglas
Bell, Chairman and Director
of the Company.
Patrick G. Shields Served as President from 1984 48 1983
until 1991. Since 1991, Mr.
Shields has been the President
of SPC Technologies, Inc., a
corporation which acquired the
assets of the Company's former
weld monitoring operation in
Yorkville, New York. Mr.
Shields attended the University
of Pittsburgh where he majored
in Electrical Engineering. Mr.
Shields is the son of Mr. C.
Lawrence Shields, Director of
the Company and brother-in-law
of Mr. Douglas S. Bell, Chairman
and a Director of the Company.
Arvid R. Nelson Since 1952, Mr. Nelson has been 69 1983
an insurance broker. From 1982
to the present, Mr. Nelson has
been a Director and Vice
President of Burns & Burns
Associates, Inc., a general
insurance agency. He holds a
B.S. in Business Administration
from Upsala College.
Douglas S. Bell Elected Chairman of the Board of 47 1988
Directors and President and
Chief Executive Officer of the
Company in November of 1994. Mr.
Bell has held various executive
positions and served as a
Director of the Company's wholly
owned subsidiaries, Control Chief
Corporation and Bradford Classics
Woodworking, Inc. Mr. Bell is a
graduate of Clarion University of
Pennsylvania and is he son-in-law
of Mr. C. Lawrence Shields, and
the brother-in-law of Mr. Patrick
G. Shields , both Directors of
the Company.
Christopher G. Elected Secretary in May of 1994. 43 1994
Hauser Director and Secretary of the
Company's wholly owned
subsidiary, Bradford Classics
Woodworking, Inc. since 1988.
Partner in the law firm of
McDowell, Wick, Daly, Gallup,
Hauser & Hartle since 1985.
Mr. Hauser is a graduate of
Washington & Jefferson College
and The Dickinson School of Law.
Robert E. Crofford Elected Executive Vice President 53 1995
of the Company in January of
1991. Vice President of the
Company's wholly owned
subsidiary, Control Chief
Corporation since May 1988 and a
Director since May 1990.
Mr. Crofford is a graduate of
the University of Pittsburgh.
James Sekel Vice President of National City 39 --
Bank of Pennsylvania. Member of
the Board of Directors of W.R.
Case & Sons Cutlery Co. Mr. Sekel
graduated from Edinboro
University of Pennsylvania with a
BA degree in accounting. Mr.
Sekel also holds a MBA degree
from Robert Morris College.
The Board recommends a vote FOR the approval of the slate of nominees
as presented.
Securities Owned By Management
The following table provides information regarding beneficial
ownership of the Company's Common Stock by each director and nominee,
the Company's Chief Executive Officer and any executive officer whose
annual aggregate remuneration exceeded $100,000 and by all executive
officers and directors as a group as of August 31, 1996. All persons
listed below have sole voting and investment power with respect to
their common stock unless otherwise indicated.
<TABLE>
<CAPTION>
Shares of Percentage
Shares of Stock Total Shares of
Stock Subject to Beneficially Outstanding
Owned Options Owned Stock
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Douglas S. Bell(1)(2) 75,570 0 75,570 9.3%
Christopher G. Hauser(3)(4) 0 600 600 0.1%
Robert E. Crofford (3)(5) 250 5,300 5,550 0.7%
Arvid R. Nelson (3)(4) 4,125 600 4,725 0.6%
C. Lawrence
Shields (3)(4)(6) 277,525 600 278,125 34.3%
Patrick G. Shields (3)(4) 36,535 600 37,135 4.6%
Jon T. Wray (7) 1,310 0 1,310 0.2%
- ----------------------------------------------------------------------
All Directors, Officers
and Nominees as a group
(9 persons including
those named above) 395,315 8,000 403,315 49.8%
- ----------------------------------------------------------------------
(1) Held with wife as joint tenants with rights of survivorship.
(2) Includes 12,375 shares of common stock held by Mr. Bell as
trustee for custodial accounts for his minor children.
(3) Includes 300 shares of common stock subject to acquisition
by exercise of outstanding options granted in 1995.
(4) Includes 300 shares of common stock subject to acquisition
by exercise of outstanding options granted in 1994.
(5) Includes 5,000 shares of common stock subject to acquisition by
exercise of outstanding options granted in 1984.
(6) Includes 481 shares of common stock held with wife as joint
tenants with rights of survivorship and 137,022 shares of common
stock held by the wife of Mr. Shields, individually, as to which
he disclaims any beneficial ownership.
(7) Shares held by wife of Mr. Wray, individually, as to which
he disclaims beneficial ownership.
</TABLE>
Executive Officers
The executive officers of the Company are set forth in the table
below. All executive officers are elected at the annual meeting or
interim meetings of the Board of Directors. No arrangements or
understanding exists between any executive officer and any other
person pursuant to which he was elected as an executive officer.
Name Age Position and Period Served
- ---- --- ---------------------------
Douglas S. Bell 47 Director of the Company since 1988. Chairman
of the Board, President, and Chief Executive
Officer since August 1994. Director and an
executive officer with Control Chief
Corporation and Bradford Classics
Woodworking, Inc.
Robert E. Crofford 53 Elected Executive Vice President of the
Company in January 1991. Director of the
Company since 1995. Vice President of
Control Chief Corporation since May 1988 and
Director since May 1990.
Stephen J. Pachla 45 Elected Treasurer of the Company in November
1994. Treasurer and Director of Control
Chief Corporation since November 1994.
Christopher G. Hauser 43 Director and Secretary of the Company since
May 1994. Director and Secretary of Bradford
Classics Woodworking, Inc. since 1988.
Executive Compensation/Cash Compensation
The following table sets forth for the fiscal year ended June 30,1996
the remuneration of the Company's Chief Executive Officer and any
executive officer whose aggregate remuneration exceeded $100,000.
<TABLE>
<CAPTION>
Summary Compensation Table
Long Term Compensation
Annual Compensation Awards Payouts
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
(a) (b) (c) (d) (e) (f) (g) (h) (i)
Other Re- All
Name Annual stricted Op- LTIP Other
and Compen- Stock tions/ Pay- Compen-
Principal Salary Bonus sation Award(s) SARs outs sation
Position Year ($) ($) ($) ($) (#) ($) ($)
- --------- ---- ------ ----- ------ --------- ------ ----- ---------
Douglas S.1996 70,000 0 0 0 0 0 1,057(1)
Bell 1995 70,000 0 0 0 0 0 1,085(2)
CEO 1994 70,000 5,000 0 0 0 0 808(3)
- ----------------------------------------------------------------------
(1) Payment made under the nondiscriminatory 401(K) feature of the
Profit Sharing Plan for fiscal year ended June 30, 1996.
(2) Payment made under the nondiscriminatory 401(K) feature of the
Profit Sharing Plan for fiscal year ended June 30, 1995.
(3) Payment made under the nondiscriminatory 401(K) feature of the
Profit Sharing Plan for fiscal year ended June 30, 1994.
</TABLE>
Stock Options
The following tabulation shows as to the named Executive Officer the
amount of options granted, the amount of shares acquired since that
date through the exercise of options granted since that date or prior
thereto and the amount of shares subject to all unexercised options
held as of June 30, 1996. During the fiscal year ended June 30, 1996
no options were granted.
<TABLE>
<CAPTION>
Options/SAR Grants in Last Fiscal Year
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Individual Grants
(a) (b) (c) (d) (e)
% of Total
Options/SARs
Options/ Granted to
SARs Employees in Exercise or Expiration
Name Granted(#) Fiscal Year Base Price($/Sh) Date
- -----------------------------------------------------------------------
Douglas S. 0 N/A N/A N/A
Bell
CEO
- ------------------------------------------------------------------------
</TABLE>
<TABLE>
Aggregated Option/SAR Exercises in Last Fiscal Year
And Fiscal Year End Option/SAR Values
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
(a) (b) (c) (d) (e)
Value of
Number of Unexer- Unexercised
Shares cised Options/ In-the-Money
Acquired SARs at Fiscal Options/SARs at
on Value Year End (#) Fiscal Year End ($)
Exercise Realized Exer- Unexer- Exer- Unexer-
Name (#) ($) cisable cisable cisable cisable
- ---------- -------- -------- ------- -------- ------- --------
Douglas S. 0 0 0 0 0 0
Bell
CEO
- ----------------------------------------------------------------------
</TABLE>
Certain Relationships and Related Transactions
For the fiscal year ended June 30, 1996, the Company and its
subsidiaries have, in the aggregate, paid to Burns & Burns Associates,
Inc. approximately $252,000 and it is estimated that $210,000 in
insurance premiums will be paid to that agency during the new fiscal
year. Mr. Arvid Nelson, a director of the Company, is an employee,
director and officer of Burns & Burns Associates, Inc. The Company and
its subsidiaries plan to continue placing insurance through Mr. Nelson
and Burns & Burns Associates, Inc. in similar amounts.
Mr. Christopher G. Hauser, a Director and Secretary of the Company,
received approximately $2,700 during the fiscal year ended June 30,
1996 from the Company as fees relating to general legal services
provided to the Company. These fees are based on standard rates for
the type of services provided to the Company. The Company plans to
continue to use the legal services of Mr. Hauser.
The Company leases from Mr. C. Lawrence Shields and Mrs. Dorothy V.
Shields its 20,000 square foot office building and approximately 2.5
acres of land located at 200 Williams Street, Bradford, PA. For the
fiscal year ended June 30, 1996, the Company paid $95,094 in rental
fees and real estate taxes. Mr. C. Lawrence Shields and Mrs. Dorothy
V. Shields beneficially own approximately 34.3% of the outstanding
shares of common stock of the Company as of August 31, 1996. Mr. C.
Lawrence Shields is a Director and past Chairman of the Board of the
Company.
At June 30, 1996, SPC Technologies, Inc. ("SPC"), a related party
through a common Director, Mr. Patrick G. Shields, owed the Company
$98,060 under a 10% interest bearing note. The note arose from the
February 1991 sale to SPC of the net operating assets of the Company's
automated weld monitoring business (formerly Digimetrics, Inc.). The
note is secured by a first security interest in substantially all of
the assets of SPC and a second position on the stock of the Company
held by Mr. Patrick G. Shields. The note is being repaid in monthly
installments of $957 with a balloon payment of $86,996 due on August
1, 2001.
During the fiscal year, SPC made payments under the terms of the note
amounting in total to $11,485 Mr. Patrick G. Shields, the sole
officer, director and shareholder of SPC, is a Director of the
Company, and the son of Mr. C. Lawrence Shields, a Director and the
principal shareholder of the Company, and brother-in-law of Mr.
Douglas S. Bell, the Chairman, Chief Executive Officer and a Director
of the Company.
Principal Holders of Common Stock
Set forth below is information as of August 31, 1996 concerning
ownership of shares of the Company's Common Stock by all persons known
by the Company to own beneficially more than 5% of the Company's
Common Stock. All persons listed below have sole voting and investment
power with respect to their common stock unless otherwise indicated.
<TABLE>
----------------------------------------------------------------------
<S> <C> <C>
Name and Address Amount and Nature of Percentage
of Beneficial Owner Beneficial Ownership of Class
----------------------------------------------------------------------
Douglas S. and Janine 75,570(1) 9.3%
M. Bell
101 Russell Boulevard
Bradford, PA 16701
C. Lawrence and Dorthy 278,125(2) 34.3%
V. Shields
64 Jackson Avenue
Bradford, PA 16701
Daniel J. and Diane 61,820(1) 7.6%
L. Shields
17570 Montoya Circle
Morean Hill, CA 95037
- ----------------------------------------------------------------------
(1) Held as joint tenants with rights of survivorship. Includes
12,375 shares of common stock held as trustee for custodial
accounts for their minor children .
(2) Includes 481 shares of common stock held with wife as joint
tenants with rights of survivorship, 137,022 shares of common
stock held by the wife of Mr. Shields, individually, as to which
he disclaims any beneficial ownership, 300 shares of common stock
subject to acquisition by exercise of outstanding options granted
in 1994, and 300 shares of common stock subject to acquisition by
exercise of outstanding options granted in 1995.
</TABLE>
Proposal No. 2
Approval of the Selection of Independent Accountants
The Board of Directors has approved the reappointment of Diefenbach,
Delio, Kearney & DeDionisio as the Company's independent accountants
for the fiscal year ended June 30, 1997. The Board seeks shareholder
approval of the selection.
It is anticipated that no representative of Diefenbach, Delio, Kearney
& DeDionisio will be present at the Annual Meeting. Diefenbach,
Delio, Kearney & DeDionisio have served as the Company's auditors
since September 14, 1987.
Under New York State law, the affirmative vote of a majority of the
votes cast at the Annual Meeting is required to approve the
appointment of the Company s auditor.
The Board recommends a vote FOR the approval of the appointment of
Diefenbach, Delio, Kearney & DeDionisio.
Shareholder s Proposals
In order to be eligible for inclusion in the Company's proxy materials
for the 1997 Annual Meeting of Shareholders, any shareholder proposal
to take action at that meeting must be received at the Company's
principal executive offices by June 16, 1997.
Other Matters
The Board of Directors knows of no other matters to be presented at
the meeting other than those specifically referred to in this Proxy
Statement. However, if any other matters properly come before the
meeting, it is intended that the persons named in the enclosed proxy
will vote on such matters in accordance with their best judgment.
Cost of Solicitation
The cost of the solicitation of proxies is being paid by the Company.
In addition to the solicitation of proxies by use of the mail,
officers and other employees of the Company may, without extra
compensation, solicit proxies personally or by telephone or
telecopier. The Company will also request banks, brokers and others
who hold shares for the benefit of other persons to forward proxy
materials to such beneficial owners and will reimburse their expenses.
Shareholders are urged to sign, date and return the enclosed proxy in
the enclosed return envelope. Your prompt response will be
appreciated.
By Order of the Board of Directors
Christopher G. Hauser
/S/Christopher G. Hauser
Secretary
Dated: October 15, 1996
