SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934
(Amendment No. 1)
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
[ ] Definitive Additional Materials
[ ] Soliciting Material Pursuant to Rule 14a-11(c) or Rule 14a-12
Sooner Holdings, Inc.
- --------------------------------------------------------------------------------
(Name of Registrant as Specified In Its Charter)
Lanny R. Lang
- --------------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement)
Payment of Filing Fee (Check the appropriate box):
[X] No fee required.
[ ] 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 No.
----------------------------------------------------------------------------
3) Filing party:
----------------------------------------------------------------------------
4) Date filed:
----------------------------------------------------------------------------
<PAGE>
SOONER HOLDINGS, INC.
2680 W. Interstate 40
Oklahoma City, Oklahoma 73108
(405) 236-8332
NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
TO BE HELD ON JULY 16, 1997
TO THE HOLDERS OF COMMON STOCK OF SOONER HOLDINGS, INC.:
NOTICE IS HEREBY GIVEN that the 1996 Annual Meeting of Shareholders of
Sooner Holdings, Inc. (the "Company"), an Oklahoma corporation, will be held at
the Company's corporate offices, 2680 W. Interstate 40, Oklahoma City, Oklahoma
73108 at 3:00 P.M., local time, on Wednesday, July 16, 1997 for the following
purposes, all of which are more fully described in the accompanying Proxy
Statement dated June 25, 1997:
1. To elect three directors of the Company to serve for the ensuing year or
until their successors are elected and qualified.
2. To consider and act upon a proposal to ratify the selection of Arthur
Andersen LLP as the Company's independent auditors for the fiscal year
ended December 31, 1997.
3. To transact such other business that may properly be brought before the
meeting or any adjournments thereof.
Only shareholders of record as shown on the books of the Company at the
close of business on May 30, 1997 will be entitled to receive notice of and to
vote at the meeting or any adjournments thereof.
You are cordially invited to attend the Annual Meeting. WHETHER OR NOT
YOU PLAN TO ATTEND THE MEETING, YOU ARE REQUESTED TO SPECIFY YOUR CHOICES ON THE
ENCLOSED PROXY AND DATE, SIGN AND RETURN THE PROXY IN THE RETURN ENVELOPE
ENCLOSED FOR YOUR CONVENIENCE. Your cooperation in promptly signing and
returning your proxy will help avoid further solicitation expense to the
Company.
By order of the Board of Directors,
David B. Talbot, Jr.
Secretary
Approximate date of mailing to shareholders:
June 25, 1997
- --------------------------------------------------------------------------------
YOUR VOTE IS IMPORTANT
To ensure your representation at the meeting, please mark, sign, date and return
the enclosed proxy card as soon as possible in the enclosed envelope. If you
attend the meeting, you may vote in person even if you returned a proxy.
- --------------------------------------------------------------------------------
<PAGE>
SOONER HOLDINGS, INC.
2680 W. Interstate 40
Oklahoma City, Oklahoma 73108
(405) 236-8332
PROXY STATEMENT
for Annual Meeting of Shareholders
to be held on July 16, 1997
This Proxy Statement and the enclosed Proxy are being mailed to
shareholders on or about June 25, 1997, in connection with the solicitation by
the Board of Directors (the "Board") of Sooner Holdings, Inc. (the "Company") of
proxies, in the accompanying form, from holders of the Company's common stock,
to be voted at the Annual Meeting of Shareholders to be held on Wednesday, July
16, 1997 and at any adjournment or adjournments thereof, for the purposes set
forth in the accompanying Notice of Annual Meeting of Shareholders.
Proxies are being solicited by the mailing of this Proxy Statement and
the accompanying Proxy to common shareholders of record who are entitled to vote
at the 1996 Annual Meeting. In addition, directors, officers, and regular
employees of the Company may, without compensation other than their regular
compensation, solicit proxies personally, by mail or by telephone. All expenses
of the solicitation will be borne by the Company, including the cost of
preparing, assembling and mailing the proxies and solicitation material. The
Company may reimburse brokerage firms and others for expenses incurred in
forwarding solicitation material to the beneficial owners of the Company's
common stock.
The inspector of election appointed for the meeting will treat
abstentions as shares that are present and entitled to vote for purposes of
determining the presence of a quorum but as unvoted for purposes of determining
the approval of any matter submitted to the stockholders for a vote. If the
broker indicates on a proxy that the broker does not have discretionary
authority as to certain shares to vote on a particular matter, such shares will
not be considered as present and entitled to vote with respect to that matter.
The Board has fixed the close of business on May 30, 1997 as the record
date for determining the shareholders entitled to receive notice of and to vote
at the 1996 Annual Meeting. Persons who were not shareholders at such time will
not be allowed to vote at the 1996 Annual Meeting. At the close of business on
May 30, 1997, the Company had 7,471,350 shares of common stock, $.001 par value
per share, issued and outstanding. Each share of common stock is entitled to one
vote on each matter to be voted on at the 1996 Annual Meeting. Holders of common
stock are not entitled to cumulative voting rights in the election of directors.
All duly executed proxies that are returned to the Company prior to or
at the 1996 Annual Meeting will be voted in accordance with the choices
indicated on each such proxy. If a proxy is duly executed but does not specify
any or all choices on it, the proxy will be voted: to elect the director
nominees proposed by the Board and listed in this Proxy Statement and on the
Proxy; to ratify the appointment of Arthur Andersen LLP as the Company's
independent auditors for the fiscal year ending on December 31, 1997 and to act
upon such other business matters that may properly be brought before the meeting
or any adjournments thereof. Any shareholders giving a proxy may revoke it at
any time prior to its use at the 1996 Annual Meeting by filing with the
Secretary of the Company a revocation of the proxy, or by delivering to the
Company, a duly executed proxy bearing a later date or by attending the 1996
Annual Meeting and voting in person.
PROPOSAL ONE
ELECTION OF DIRECTORS
Nomination
The By-Laws of the Company provide that directors shall hold office
until the Annual Meeting of Shareholders next held after their election and
until their successors are elected and qualified. Accordingly, the entire Board,
consisting of three members, will be re-elected at the 1996 Annual Meeting. If
re-elected, such
1
<PAGE>
individuals will serve until the next Annual Meeting of Shareholders and until
their successors are duly elected and qualified. All three of the nominees (R.
C. Cunningham II, David B. Talbot, Jr., and Michael S. Williams) are incumbent
members of the Board. Messrs. Cunningham and Talbot were elected at the 1989
Annual Meeting of Shareholders. Mr. Williams was elected at the 1994 Annual
Meeting of Shareholders.
If, prior to the 1996 Annual Meeting, the Board should learn that any
nominee will be unable to serve by reason of death, incapacity or other
unexpected occurrence, the proxies that would have otherwise been voted for such
nominee will be voted for a substitute nominee if one is selected by the Board.
Board Recommendation
The selection of each nominee requires the affirmative vote of a
majority of the votes cast, considering all common votes together, represented
in person or by proxy at the 1996 Annual Meeting. In the absence of other
instructions, the proxies solicited hereby will be voted FOR each of the
individuals listed below, each of whom the Board has nominated for election as a
director of the Company.
THE BOARD RECOMMENDS THAT THE SHAREHOLDERS VOTE "FOR" THE SELECTION OF
EACH OF THE NOMINEES LISTED BELOW.
Information about Nominees
The current directors of the Company and their principal occupation are
listed below. Each director will serve until the next Annual Meeting of
Shareholders or until their respective successors have been elected and duly
qualified. Directors serve one-year terms. There are no family relationships
between any director. The following has been furnished to the Company by the
respective nominees for director. The ownership amount and percent represents
shares of the Company's common stock beneficially owned by each of them as of
May 30, 1997:
<TABLE>
<CAPTION>
Ownership (1)
Director -------------
Name Age since Principal occupation Amount Percent
---- --- ----- -------------------- ------ -------
<S> <C> <C> <C> <C> <C>
R. C. Cunningham II 70 6/1/89 Chairman and President, Sooner
Holdings, Inc. 4,475,413 59.90%
Michael S. Williams (2) 50 12/15/93 Managing Director, Bulldog Investment
Company, L.L.C. 1,252,122 16.76%
David B. Talbot, Jr. 59 11/13/89 Principal Agent, Talbot Investment
Co. 2,500 *
</TABLE>
* less than 1%
(1) The amount and percent of ownership is based on the total shares of common
stock outstanding of 7,471,350 shares as of May 30, 1997.
(2) Includes 660,389 shares of common stock owned by Bulldog Investment
Company, L.L.C. ("Bulldog") of which Mr. Williams is a Managing Director.
Includes 111,278 shares of common stock owned by Matrix Resources, Inc. of
which Mr. Williams is the President and sole owner. Includes 298,822 shares
owned by ShareData Inc. ("ShareData") of which Mr. Williams is President
and CEO (see further discussion under "Relationship with Bulldog Investment
Company, L.L.C." and "Relationship with ShareData Inc." under the section
entitled Certain Relationships and Related Transactions later in this Proxy
Statement).
Resumes of Nominees
R. C. Cunningham II. Mr. Cunningham has been the Chairman of the Board
and President of the Company since June 1988 and of two of its subsidiaries:
Charlie O Beverages, Inc. and Charlie O Business Park
2
<PAGE>
Incorporated since their respective inceptions. Mr. Cunningham has also been the
Vice President of the Company's subsidiary, SD Properties, Inc. ("SDPI"), since
February 1996. From 1965 to 1986, Mr. Cunningham was in the construction
business as CEO and owner of Rayco Construction Company. Mr. Cunningham
continues to serve as President of Midwest Property Management and Service Co.,
Inc., a company involved in real estate property management.
David B. Talbot, Jr. Mr. Talbot has been the Secretary and a director
of the Company since November 1988 and of two of its subsidiaries: Charlie O
Beverages, Inc. and Charlie O Business Park Incorporated since their respective
inceptions. From 1985 to present, Mr. Talbot has been the Principal Agent for
Talbot Investment Co., a commercial real estate brokerage firm. From 1967 to
1985, Mr. Talbot was the CEO and owner of Talbot & Company, also a commercial
real estate brokerage firm. Mr. Talbot is also an Advisory Director for
Transitional Living Centers of America since May 1995. Mr. Talbot has a BA
degree from the University of Oklahoma.
Michael S. Williams. Mr. Williams has been a director of the Company
since December 1993. Mr. Williams is also the President and a director of one of
the Company's subsidiaries, SDPI. Since December 1993, Mr. Williams has been the
Chief Executive Officer and, along with Mr. Lang (see "Executive Officers" later
in this Proxy Statement), is a Managing Director of Bulldog. Bulldog is a
Phoenix, Arizona-based investment company and merchant banking firm. From
November 1990 to 1994, Mr. Williams was the principal of Bucher & Williams, a
Phoenix, Arizona-based privately owned merchant and investment banking firm.
From October 1987 to November 1990, Mr. Williams was the Chief Executive
Officer, President, and director of ShareData Inc., a publicly traded software
company based in Chandler, Arizona. On December 30, 1993, ShareData voluntarily
filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the
District of Arizona (Case no. 93-13311). On December 5, 1995, ShareData's Plan
of Reorganization was confirmed by the Bankruptcy Court and Mr. Williams became
the President of the reorganized company on this date (see further discussion
under "Relationship with ShareData Inc." under the section entitled Certain
Relationships and Related Transactions later in this Proxy Statement).
Prior to 1987, Mr. Williams had been continuously employed in the
securities business as an investment banker with various registered
broker-dealers in Detroit, Michigan. Mr. Williams has a BA Degree from
Pennsylvania State University and an MBA from The Wharton Graduate School of the
University of Pennsylvania.
Committee and Board Meetings
The Company had no standing audit or nominating committee of its Board
or committees performing similar functions during fiscal 1996. The directors
have regularly communicated to discuss the Company's affairs and also have held
periodic board meetings to transact and approve appropriate business. Directors
have received no compensation or expenses for attending board meetings. Mr.
Cunningham has the authority to supervise the administration of the 1995 Stock
Option Plan (the "Plan"), determine which officers, employees and/or
non-employee directors will be granted options, the number of shares covered by
each option, the timing of option grants, the option period and manner of
exercise, whether the option will be an incentive option or a non-qualified
option and other terms and provisions of each individual option agreement. No
options have been granted under this Plan as of June 25, 1997.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The table below sets forth certain information regarding the beneficial
ownership of the common stock of the Company as of May 30, 1997 by each
shareholder who is known by the Company to be the beneficial owner of more than
5% of the Company's voting securities, by each director and by each executive
officer and by all directors and officers as a group. Except as otherwise
indicated, and subject to applicable community property and similar laws, each
of the entities named has sole voting and investment power with respect to such
securities. The Company anticipates that each of the proposed directors will
vote shares they own or control "FOR" each of the matters to be voted upon at
the 1996 Annual Meeting.
3
<PAGE>
Number of
Name and Address of common Percent of
Beneficial Owners shares (1) Class
----------------- ---------- -----
R. C. Cunningham II (6)
2680 W. Interstate 40
Oklahoma City, OK 73108 4,475,413 59.90%
Bulldog Investment Company, L.L.C. (2)
2117 S. 48th Street, Suite 105
Tempe, AZ 85282 660,389 8.84%
Sheldon L. Miller (3)
3000 Town Center, Ste. 1700
Southfield, MI 48075 762,387 10.20%
Michael S. Williams (4) (7)
3710 E. Kent Drive
Phoenix, AZ 85044 1,252,122 16.76%
Lanny R. Lang (5) (8)
3536 E. Saltsage Drive
Phoenix, AZ 85044 790,782 10.58%
David B. Talbot, Jr. (6)
5929 N. May Ave., Ste. 207
Oklahoma City, OK 73112 2,500 *
All officers and directors as
a group (4 persons) 5,857,928 78.41%
- ------------
* less than 1%
Unless otherwise indicated, to the Company's knowledge, each person or
group possesses sole voting and sole investment power with respect to the shares
shown opposite the name of such person or group. Shares not outstanding, but
deemed beneficially owned by virtue of the right of a person or member of a
group to acquire them within 60 days, are treated as outstanding only when
determining the amount and percent owned by such person or group.
(1) The number of shares and percent are based on the current number of shares
of common stock outstanding of 7,471,350 shares.
(2) Does not include shares held by Messrs. Williams and Lang, officers and/or
directors of the Company, by virtue of their control and positions as
Managing Directors and shareholders of Bulldog. Does not include the shares
owned by ShareData for which Bulldog disclaims any voting and dispositive
control over ShareData (see further discussion under "Relationship with
Bulldog Investment Company, L.L.C." and "Relationship with ShareData Inc."
under the section entitled Certain Relationships and Related Transactions
later in this Proxy Statement).
(3) Includes 298,822 shares owned by ShareData of which Mr. Miller is the
Chairman of the Board (see further discussion under "Relationship with
ShareData Inc." under the section entitled Certain Relationships and
Related Transactions later in this Proxy Statement).
(4) Includes 660,389 shares of common stock owned by Bulldog of which Mr.
Williams is a Managing Director. Includes 111,278 shares of common stock
owned by Matrix Resources, Inc. of which Mr. Williams is the President and
sole owner. Includes 298,822 shares owned by ShareData of which Mr.
Williams is President
4
<PAGE>
and CEO (see further discussion under "Relationship with Bulldog Investment
Company, L.L.C." and "Relationship with ShareData Inc." under the section
entitled Certain Relationships and Related Transactions later in this Proxy
Statement).
(5) Includes 660,389 shares of common stock owned by Bulldog of which Mr. Lang
is a Managing Director. Includes 298,822 shares owned by ShareData of which
Mr. Lang is Secretary and Treasurer (see further discussion under
"Relationship with Bulldog Investment Company, L.L.C." and "Relationship
with ShareData Inc." under the section entitled Certain Relationships and
Related Transactions later in this Proxy Statement).
(6) An officer and director of the Company.
(7) A director of the Company.
(8) An officer of the Company.
EXECUTIVE OFFICERS
The executive officers of the Company as of June 25, 1997, and/or its
subsidiaries and their positions held in the Company and/or its subsidiaries are
listed in the table below. Officers are appointed by the Board.
There are no family relationships between any officers of the Company.
<TABLE>
<CAPTION>
Name Age Title Officer since
---- --- ----- -------------
<S> <C> <C> <C>
R. C. Cunningham II 70 CEO and President, Sooner Holdings, Inc. 6/1/88 *
CEO and President, Charlie O Beverages, Inc. 6/16/89 *
CEO and President, Charlie O Business Park
Incorporated 3/15/91 *
Vice President, SD Properties, Inc. 2/1/96
David B. Talbot, Jr. 59 Secretary, Sooner Holdings, Inc. 11/13/88 *
Secretary, Charlie O Beverages, Inc. 6/16/89
Secretary and Treasurer, Charlie O Business
Park Incorporated 3/15/91 *
Michael S. Williams 50 President, SD Properties, Inc. 2/15/90 *
Lanny R. Lang 38 Treasurer, Sooner Holdings, Inc. 12/15/93
Treasurer, Charlie O Beverages, Inc. 12/15/93
Secretary and Treasurer, SD Properties, Inc. 2/15/90 *
</TABLE>
- --------------
* Date of inception of the respective companies.
The antecedents of Messrs. Cunningham, Talbot and Williams are
incorporated herein by reference to the section entitled "Resumes of Nominees,"
found on page 2 of this Proxy Statement.
Lanny R. Lang. Mr. Lang has been the Treasurer of the Company and its
subsidiary, Charlie O Beverages, Inc. since December 1993. Mr. Lang has also
been the Secretary, Treasurer and a director of SDPI since February 1990. Since
December 1993, Mr. Lang has been the Chief Financial Officer and, along with Mr.
Williams, is a Managing Director of Bulldog. From March 1991 to 1994, Mr. Lang
was the principal of Lang Financial Services, Inc. ("LFSI"). LFSI is a Phoenix,
Arizona-based privately owned management and accounting consulting firm. From
November 1991 to October 1992, Mr. Lang was also the Chief Financial Officer of
Pantheon Industries, Inc. ("Pantheon"), a public holding company based in
Scottsdale, Arizona.
From October 1990 to March 1991, Mr. Lang was the Secretary, Chief
Financial Officer and a director of VDG Capital Corporation, a publicly traded
software company based in Chandler, Arizona. On August 21, 1991,
5
<PAGE>
an involuntary bankruptcy under Chapter 11 was filed against VDG in the United
States Bankruptcy Court for the District of Arizona. On July 22, 1994, VDG's
Plan of Reorganization was confirmed by the bankruptcy court and Mr. Lang became
the Secretary, Treasurer and a director of the reorganized company (now called
Vinculum Incorporated) on this date.
From January 1986 to October 1990, Mr. Lang was the Controller and
Treasurer of ShareData Inc., a publicly traded software company based in
Chandler, Arizona. On December 30, 1993, ShareData voluntarily filed for Chapter
11 bankruptcy in the United States Bankruptcy Court for the District of Arizona
(Case no. 93-13311). On December 5, 1995, ShareData's Plan of Reorganization was
confirmed by the Bankruptcy Court and Mr. Lang became the Secretary and
Treasurer of the reorganized company on this date (see further discussion under
"Relationship with ShareData Inc." under the section entitled Certain
Relationships and Related Transactions later in this Proxy Statement). Prior to
joining ShareData, Mr. Lang was employed by Price Waterhouse in Minneapolis,
Minnesota for six years. Mr. Lang has a BA Degree in Accounting from the
University of Northern Iowa.
In 1993, the Securities and Exchange Commission (the "SEC") instituted
public administrative proceedings against Pantheon, its officers, directors and
certain unrelated parties, including Mr. Lang, regarding Pantheon's reporting of
certain transactions in its 1991 Form 10-K. In October 1994, Mr. Lang settled
the SEC's claims against him, without admitting or denying the SEC's charges, by
consenting to the entry of a cease and desist order prohibiting violation of
certain specified reporting, recordkeeping and internal control provisions of
the Securities Exchange Act of 1934 and rules thereunder.
EXECUTIVE COMPENSATION
The following table sets forth all cash compensation paid by the
Company to each of the executive officers of the Company whose aggregate cash
compensation exceeds $60,000 and to all executive officers as a group for
services rendered during the fiscal year ended December 31, 1996:
<TABLE>
<CAPTION>
Name Primary capacity in which served* Compensation (1)
---- --------------------------------- ----------------
<S> <C> <C>
R. C. Cunningham II (2) Chairman of the Board and President; Sooner
Holdings, Inc. $ -0-
David B. Talbot, Jr. Secretary; Sooner Holdings, Inc. $ -0-
Michael S. Williams (3) President; SD Properties, Inc. $ -0-
Lanny R. Lang (3) Treasurer; Sooner Holdings, Inc. $ -0-
All Executive Officers as a Group
(4 persons) $ -0-
</TABLE>
* The executive officers may serve in other capacities with the Company
and/or its subsidiaries (see the section entitled Executive Officers
earlier in this Proxy Statement.)
(1) None of the executive officers of the Company receive cash compensation.
All cash is currently being used to permit the Company to operate as a
going concern. The Board is authorized to reimburse officers and directors
for actual expenses incurred and set compensation for officers as funds for
such purpose become available.
(2) In December 1993, Mr. Cunningham entered into a new Incentive Compensation
Agreement, which provides remuneration to Mr. Cunningham based only on the
Company's revenue performance. Mr. Cunningham receives no base compensation
and will receive a cash incentive fee of 5% of the Company's gross
revenues, payable on a quarterly basis (see further discussion under
"Relationship with R. C. Cunningham" under the section entitled Certain
Relationships and Related Transactions later in this Proxy Statement).
6
<PAGE>
(3) Messrs. Williams and Lang are compensated through Bulldog (see further
discussion under "Relationship with Bulldog Investment Company, L.L.C."
under the section entitled Certain Relationships and Related Transactions
later in this Proxy Statement).
Stock Option Plan
Executive officers, employees and non-employee directors of the Company
and its subsidiaries may be awarded additional compensation pursuant to the 1995
Stock Option Plan (the "Plan"). Pursuant to the Plan, 2,000,000 shares of the
Company's common stock are reserved for issuance. Options granted under the Plan
are to be at amounts that are equal to or greater than the fair market value of
the Company's common stock at date of grant. Each outstanding option has a
maximum term of ten years and, unless otherwise provided, is exercisable
immediately upon issuance. As of June 25, 1997, no options were granted or
outstanding.
Bonuses and Deferred Compensation
No cash bonuses were paid by the Company to any executive officer
during the year ended December 31, 1996. The Company did not have any deferred
compensation plan or arrangement pursuant to which benefits, remuneration,
value, or compensation was or is to be granted, awarded, entered, set aside, or
accrued for the benefit of any executive officer of the Company as of December
31, 1996.
Compensation Pursuant to Plans Including Pension, Stock Option, and Stock
Appreciation Rights Plans
As of June 25, 1997, other than the Company's 1995 Stock Option Plan,
the Company does not have any stock appreciation rights plans, phantom stock
plans, or any other incentive or compensation plan or arrangement pursuant to
which benefits, remuneration, value, or compensation was or is to be granted,
awarded, entered, set aside, or accrued for the benefit of any executive officer
of the Company.
Termination of Employment and Change of Control Arrangement
During the year ended December 31, 1996, no officer, director, or
principal shareholder of the Company either received or is to receive any
remuneration as a result of either the termination of such person's employment
whether by resignation, retirement, or otherwise; or a change of control of the
Company or a change in such individual's responsibilities following a change in
control of the Company.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
The Company has adopted a policy that any transactions with directors,
officers or entities of which they are also officers or directors or in which
they have a financial interest, will only be on terms consistent with industry
standards and approved by a majority of the disinterested directors of the Board
and based upon a determination that these transactions are on terms no less
favorable to the Company than those which could be obtained by unaffiliated
third parties. This policy could be terminated in the future. In addition,
interested directors may be counted in determining the presence of a quorum at a
meeting of the Board or a committee thereof which approves such a transaction.
The following are transactions considered by the Company to be
significant of disclosure pursuant to Regulation 228.404 of Regulation S-B. Any
references to Notes refer to the Notes to the Consolidated Financial Statements
included in the Company's Form 10-KSB for the fiscal year ended December 31,
1996 (the "1996 10-KSB"), incorporated herein by reference.
Relationship with Bulldog Investment Company, L.L.C.
Bulldog is a Phoenix, Arizona-based investment company and
merchant banking firm. The principals of Bulldog, Messrs. Williams and Lang, are
also officers and/or directors of the Company and/or its subsidiaries. The
Company has an Advisory Agreement with Bulldog, wherein Bulldog acts as the
Company's financial advisor. Bulldog receives an annual fee equal to 5% of the
Company's gross revenues, as defined in the Advisory Agreement.
7
<PAGE>
Relationship with ShareData Inc.
In December 1993, the Company acquired SDPI in exchange for shares of
common stock. ShareData was the majority shareholder of SDPI and received
887,753 shares or approximately 17% of the Company after the transaction.
ShareData emerged from Chapter 11 Bankruptcy on December 5, 1995 and was
required to distribute the common stock it owns of the Company to its creditors.
All shares were distributed accordingly except for 298,822 shares which cannot
be delivered to ShareData's creditors and of which, pursuant to the bankruptcy
plan, become the property of ShareData. ShareData is filing merger documents to
change its name to Aztore Holdings, Inc. as part of the bankruptcy consummation
process. Messrs. Williams and Lang are officers and directors of the reorganized
company.
Relationship with Phoenix Financial Reporting Group, Inc.
Phoenix Financial Reporting Group, Inc. ("PFRG"), is a Phoenix,
Arizona-based company specializing in financial annual report design and
publishing for public companies. PFRG is a subsidiary of ShareData. During 1996,
PFRG agreed to accept 358,822 shares of the Company's common stock as
consideration for payment in full of a $14,000 note payable plus accrued
interest. The number of shares was based on the estimated fair value of the
stock of $.04 per share on December 31, 1996.
Relationship with R.C. Cunningham II
In December 1993, the Company entered into an Incentive Compensation
Agreement with Mr. Cunningham. This agreement provides remuneration to Mr.
Cunningham based only on the Company's revenue performance. Mr. Cunningham
receives no base compensation, but will receive a cash incentive fee of 5% of
the Company's gross revenues payable on a quarterly basis. Also, Mr. Cunningham
has personally guaranteed $1,741,511 of the Company's notes payable.
Relationship with Talbot Investment Co.
Talbot Investment Co. ("Talbot"), is an Oklahoma City, Oklahoma-based
commercial real estate brokerage firm. Mr. David Talbot, the Secretary and a
director of the Company and Charlie O Business Park Incorporated (the "Business
Park"), a subsidiary, is also the principal agent for Talbot. Talbot handles all
the property management services for the Business Park and receives normal and
customary commissions and fees for providing these services.
PROPOSAL TWO
APPOINTMENT OF INDEPENDENT AUDITORS
The Board has selected Arthur Andersen LLP as its independent auditors
for the 1997 fiscal year ending on December 31, 1997. Arthur Andersen LLP
audited the Company's financial statements for the fiscal year ended December
31, 1996. During the period since their appointment, Arthur Andersen LLP has
provided audit services in connection with the annual financial statements,
filings with SEC and other various audit-related accounting matters.
In the two most recent fiscal years there were no disagreements with
Arthur Andersen LLP on any aspect of financial statement disclosure, accounting
principles, or practices or auditing scope or procedure nor were there were any
"reportable events" as that term is defined in Item 304(a)(i)(v) of Regulation
S-K. In each of the past three years, the Company has received an opinion
calling attention to a "going concern" issue due to the Company incurring
recurring losses from operations that raised substantial doubt about its ability
to continue as a going concern.
In addition, in the two most recent fiscal years, the Company did not
consult with Arthur Andersen LLP on the type of audit opinion that might be
rendered on the Company's financial statements.
8
<PAGE>
Board Recommendation
For approval of the appointment of Arthur Andersen LLP as independent
auditor for the 1997 fiscal year ending on December 31, 1997, the affirmative
vote of a majority of the outstanding voting shares of the common stock of the
Company entitled to vote thereon is required. Unless otherwise specified,
proxies solicited by the Board will be voted FOR ratification of the appointment
of Arthur Andersen LLP.
THE BOARD RECOMMENDS THAT THE SHAREHOLDERS VOTE "FOR" THIS PROPOSAL.
SECTION 16(A) REPORTS
Section 16(a) of the Exchange Act requires the Company's officers and
directors, and persons who own more than 10% of a registered class of the
Company's equity securities, to file certain reports regarding ownership of, and
transactions in, the Company's securities with the Securities and Exchange
Commission (the "SEC"). Such officers, directors and 10% stockholders are also
required by SEC rules to furnish the Company with copies of all Section 16(a)
forms that they file.
Based solely on a review of the copies of such forms received by it, or
written representations from certain reporting persons, the Company believes
that during fiscal 1996 all the reporting persons complied with Section 16(a)
filing requirements except for Mr. Cunningham who filed a Form 4 in May 1997 to
report the acquisition of 700,000 shares in December 1996.
FORM 10-KSB
UPON RECEIPT FROM ANY SUCH PERSON OF A WRITTEN REQUEST, THE COMPANY
WILL FURNISH WITHOUT CHARGE A COPY OF THE SOONER HOLDINGS, INC. ANNUAL REPORT ON
FORM 10-KSB (EXCLUSIVE OF EXHIBITS) FOR THE FISCAL YEAR ENDED DECEMBER 31, 1996,
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON MAY 15, 1997, TO EACH
PERSON WHO WAS A BENEFICIAL SHAREHOLDER OF THE COMPANY AS OF MAY 30, 1997. SUCH
REQUESTS SHOULD BE SENT TO SOONER HOLDINGS, INC., ATTN.: CORPORATE SECRETARY, AT
THE COMPANY'S PRINCIPAL OFFICES AT 2680 W. I-40, OKLAHOMA CITY, OKLAHOMA 73108.
SHAREHOLDER PROPOSALS FOR THE NEXT ANNUAL MEETING
Any shareholder who, in accordance with and subject to the provisions
of the proxy rules of the SEC, wishes to submit a proposal for inclusion in
Sooner Holdings, Inc. proxy statement for its 1997 Annual Meeting of
Shareholders must deliver such proposal in writing to Sooner Holdings, Inc.,
Attn.: Corporate Secretary, at the Company's principal offices at 2680 W.
Interstate 40, Oklahoma City, Oklahoma 73108, no later than February 15, 1998.
OTHER BUSINESS
As of the date of this Proxy Statement, the Board knows of no other
business that will be presented for consideration at the 1996 Annual Meeting
other than that which has been referred to in this Proxy Statement. If any other
business properly comes before the meeting, the appointee named in the proxies
will vote the proxies in accordance with their best judgment.
By order of the Board,
David B. Talbot, Jr.
Secretary
Dated: June 25, 1997
9
<PAGE>
SOONER HOLDINGS, INC.
2680 W. Interstate 40, Oklahoma City, Oklahoma 73108
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS
The undersigned hereby appoints David B. Talbot, Jr. as Proxy, with
authority to act and with the power to appoint his substitute, and hereby
authorizes him to represent and to vote, as designated below, all the voting
shares of common stock of Sooner Holdings, Inc. held of record by the
undersigned on May 30, 1997, at the 1996 Annual Meeting of Shareholders to be
held on July 16, 1997 or any adjournment thereof. The "Abstain" category listed
below is utilized to determine the existence of a valid quorum.
1. ELECTION OF DIRECTORS For all nominees listed below (except as marked
to the contrary below).
(INSTRUCTIONS: To withhold authority to vote for any individual nominee,
strike a line through the nominee's name in the list below.)
R. C. Cunningham II, David B. Talbot, Jr. and Michael S. Williams
2. RATIFICATION OF ARTHUR ANDERSEN LLP AS THE COMPANY'S AUDITORS.
[ ] FOR [ ] AGAINST [ ] ABSTAIN
3. IN THEIR DISCRETION, THE PROXY IS AUTHORIZED TO VOTE UPON SUCH OTHER
BUSINESS AS MAY PROPERLY COME BEFORE THE MEETING.
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 all nominees listed and FOR Proposal 2.
Instructions: Please sign exactly as name appears below or complete
name, address and number of shares held if not provided. When signing as
attorney, as executor, administrator, corporation, please sign in full corporate
name by President or other authorized officer. If a partnership, please sign in
partnership name by authorized person. If held jointly, both parties should
sign.
- -------------------------------------------------------
| |
| |
| |
| |
| |
| |
| |
- -------------------------------------------------------
Dated: ____________________________ , 1997
______________________________________ _______________________________________
Signature Title (if applicable, see instructions)
______________________________________
Signature (if jointly, both should sign)
______________________________________
Make corrections below, if necessary:
PLEASE MARK, SIGN, DATE AND RETURN
THE PROXY CARD PROMPTLY IN THE
ENCLOSED ENVELOPE.
