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The following is an excerpt from a DEF 14A SEC Filing, filed by ARTERIAL VASCULAR ENGINEE ... on 10/25/1996.

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PROPOSAL 1

ELECTION OF DIRECTORS

There are five nominees for the five Board of Directors positions presently authorized by the Board pursuant to the Company's Amended and Restated Certificate of Incorporation and Bylaws. Each director to be elected will hold office until the next annual meeting of stockholders and until his successor is elected and has qualified, or until such director's earlier death, resignation or removal. Each nominee listed below is currently a director of the Company, four directors having been elected by the stockholders, and one director, Dr. Simon Stertzer, having been elected by the Board.

Shares represented by executed proxies will be voted, if authority to do so is not withheld, for the election of the five nominees named below. In the event that any nominee should be unavailable for election as a result of an unexpected occurrence, such shares will be voted for the election of such substitute nominee as management may propose. Each person nominated for election has agreed to serve if elected and management has no reason to believe that any nominee will be unable to serve.

Directors are elected by a plurality of the votes present in person or represented by proxy and entitled to vote.

                        THE BOARD OF DIRECTORS RECOMMENDS
                     A VOTE IN FAVOR OF EACH NAMED NOMINEE.

NOMINEES

         The names of the  nominees and certain  information  about them are set
forth below:

                                           PRINCIPAL OCCUPATION/
         NAME                    AGE       POSITION HELD WITH THE COMPANY
         ----                    ---       ------------------------------

Bradly A. Jendersee ...........  35        Chairman of the Board of Directors, Chief Executive
                                             Officer and President
Robert D. Lashinski ...........  35        Vice President of Research and Development and
                                             Director
John D. Miller ................  39        Vice President of Finance, Chief Financial Officer,
                                             Secretary, Treasurer and Director
Dr. J. Irawan Sugeng (1)(2) ...  60        Director
Dr. Simon Stertzer (1)(2) .....  60        Director

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

(1) Member of Audit Committee.
(2) Member of Compensation Committee.

Bradly A. Jendersee is a founder of the Company and has served as Chairman of the Board of Directors, Chief Executive Officer and President since August 1993, as Director of Research and Development from October 1991 to June 1992 and as Vice President of Operations from June 1992 to August 1993. Prior to joining the Company, Mr. Jendersee served as a Principal Research and Development Engineer at Schneider (USA) Inc., a medical device manufacturer and subsidiary of Pfizer Inc. ("Schneider") from February 1991 to October 1991, and as the Research and Development Engineering Manager of Angioplasty Products with Mallinckrodt Medical, Inc., Cardiology Division, a medical device manufacturer from September 1989 to February 1991. Mr. Jendersee also served with Advanced Cardiovascular Systems, Inc., a subsidiary of Eli Lilly and Company ("ACS"), for over three years. Mr. Jendersee holds a B.S. degree from the University of Minnesota.

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Robert D. Lashinski has served as Vice President of Research and Development since January 1995 after joining the Company in July 1992 as Director of Research and Development. Mr. Lashinski has served as a director of the Company since August 1993. Mr. Lashinski was employed with Schneider from October 1990 to June 1992 in both manufacturing and research and development capacities. In 1989, Mr. Lashinski was a founder of Danforth Biomedical Inc., which focuses on the research and development of vascular therapeutic devices. Prior to 1989 Mr. Lashinski served with ACS in the capacities of Advanced Development Engineer and Manager of Equipment Design and Development for its pilot and manufacturing facilities. Mr. Lashinski holds a B.S. degree from the University of Minnesota.

John D. Miller, C.P.A. is a founder of the Company and has served as Vice President of Finance since January 1996, Secretary since May 1995 and Chief Financial Officer, Treasurer and a director since the Company's inception in July 1991. Prior to his position as Vice President of Finance, Mr. Miller served as Director of Finance from July 1991 to January 1996. Mr. Miller performed his duties to the Company as a consultant from July 1991 to January 1995 when he began devoting his full working time to the Company. A graduate of Hofstra University, Mr. Miller was a partner in a New York accounting firm until 1990, when he went into private practice. Mr. Miller is a member of the American Institute of Certified Public Accountants and the New York State Society of Certified Public Accountants.

Dr. J. Irawan Sugeng has served as a director of the Company since 1991. Dr. Sugeng has been a teaching staff cardiologist at University of Indonesia Hospital, Jakarta, Indonesia for the last five years. Dr. Sugeng holds a medical degree from Airlangga University.

Dr. Simon Stertzer has served as a director of the Company since January 1996. Since 1994, Dr. Stertzer has been a cardiologist at Stanford University Medical Center and a Clinical Professor of Medicine at Stanford University School of Medicine. Dr. Stertzer is also an executive officer of Quanam Medical Corporation, a medical device manufacturer. From 1983 to 1994, Dr. Stertzer was an Associate Clinical Professor of Medicine at the University of California, San Francisco. From 1983 to 1994, he was also Director, Cardiac Catheterization Laboratory, from 1983 to 1992, Director, Medical Research, and from 1992 to 1994, Director, Interventional Cardiology, all at the San Francisco Heart Institute, Seton Medical Center.

BOARD COMMITTEES AND MEETINGS

During the fiscal year ended June 30, 1996, the Board of Directors held five meetings. The Board has an Audit Committee and a Compensation Committee. The Board does not have a Nominating Committee.

The Audit Committee reviews with the Company's independent auditors the results of the annual audit and discusses the financial statements; recommends to the Board the independent auditors to be retained; and receives and considers the accountants' comments as to controls, adequacy of staff and management performance and procedures in connection with audit and financial controls. The Audit Committee is composed of two non-employee directors: Drs. Sugeng and Stertzer. The Audit Committee met one time during the fiscal year ended June 30, 1996.

The Compensation Committee makes recommendations concerning compensation levels for officers and members of the Board, administers the 1996 Equity Incentive Plan and performs such other functions regarding compensation as the Board may delegate. The Compensation Committee is composed of two non-employee directors: Drs. Sugeng and Stertzer. The Compensation Committee met two times during the fiscal year ended June 30, 1996.

During the fiscal year ended June 30, 1996, all directors except Dr. Sugeng attended at least 75% of the aggregate of the meetings of the Board and of the committees on which he served, held during the period for which he was a director or committee member.

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