COASTAL PHYSICIAN GROUP INC
DFAN14A, 1996-09-09
HELP SUPPLY SERVICES
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                        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

                            Filed by the Registrant [ ]
                   Filed by a Party other than the Registrant [X]

                            Check the appropriate box:
                         [ ] Preliminary Proxy Statement
                          [ ] Definitive Proxy Statement
                       [ ] Definitive Additional Materials
           [X] Soliciting Material Pursuant to Section 240.14a-11(c) or
                                Section 240.14a-12

                           Coastal Physician Group, Inc.
                 (Name of Registrant as Specified in its Charter)

                               Steven M. Scott, M.D.
                      (Name of Person Filing Proxy Statement)

                          ------------------------------

Payment of Filing Fee (Check the appropriate box):

[ ] $125 per Exchange Act Rules 0-11(c)(1)(ii), 14a-6(i)(1)
    or 14a-6(j)(2).

[ ] $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: N/A

    (2) Aggregate number of securities to which transaction 
    applies: N/A

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    (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): N/A

    (4) Proposed maximum aggregate value of transaction: N/A


    (5) Total fee paid: N/A

[X] Fee previously paid 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 Number:

    (3) Filing Party:

    (4) Date Filed:


<PAGE>
                             STEVEN M. SCOTT, M.D.
             3711 STONEYBROOK DRIVE O DURHAM, NORTH CAROLINA 27705
 
                                                               September 6, 1996
 
Dear Employee Stock Purchase Plan Participant:
 
     The Coastal Physician Group, Inc. shareholders' meeting is now only three
weeks away and, as you know, I am asking shareholders to support the election of
two candidates to Coastal's Board of Directors. I also am asking shareholders to
approve a resolution I have proposed which is described in the proxy statement I
previously sent you.
 
     The vote at this year's shareholders' meeting is especially important for
participants in Coastal's Employee Stock Purchase Plan. As a participant, you
have a strong interest in the future of Coastal, both as an employee and through
your ownership of stock.
 
     I have arranged for an informal gathering of Plan participants on Monday,
September 16, 1996, from 5:30 to 7:30 p.m., and I would like to invite you to
attend. This meeting will be held in the Trinity Ballroom at The Durham Hilton,
3800 Hillsborough Road, Durham, North Carolina, and will provide us all with an
opportunity to discuss the future of Coastal and the issues in this proxy
contest. It also will give you an opportunity to ask me any questions you may
have.
 
     A duplicate BLUE proxy card is enclosed for your convenience, and I ask
that you sign, date and return the BLUE proxy card at your earliest convenience.
 
     I look forward to seeing you on September 16.
 
                                           Sincerely,

                                           /s/ Steven M. Scott, M.D.
                                           -----------------------------------
                                           Steven M. Scott, M.D.



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