ELECTION OF DIRECTORS (PROPOSAL 1)
The Company's Second Amended and Restated Certificate of Incorporation
provides for three classes of directors as nearly equal in number as possible.
The term of office of Class II directors expires at the 1998 Annual Meeting, the
term of office of Class III directors expires at the 1999 Annual Meeting (i.e.,
one year of the term remaining), and the term of office of Class I directors
expires at the 2000 Annual Meeting (i.e. two years of the term remaining). The
directors whose terms will expire at the 1998 Annual Meeting include Richard H.
Kristinik and Paul M. Verrochi, each of whom has been nominated to stand for
reelection at the 1998 Annual Meeting to hold office until the 2001 Annual
Meeting and until their successors are elected and qualified. Mr. Charles
Busskohl has decided not to stand for re-election as a Class II Director.
Kenneth Kuchin and Thomas Werbe resigned from the Board of Directors in February
1997 and 1998, respectively, in order to pursue other business opportunities.
NOMINEES FOR ELECTION
CLASS II -- TERMS EXPIRING AT 2001 ANNUAL MEETING
THE BOARD OF DIRECTORS RECOMMENDS A VOTE FOR MESSRS. KRISTINIK AND
VERROCHI AS DIRECTORS TO HOLD OFFICE UNTIL THE 2001 ANNUAL MEETING AND UNTIL
THEIR SUCCESSORS ARE ELECTED AND QUALIFIED. THE SHARES OF COMMON STOCK
REPRESENTED BY RETURNED PROXY CARDS WILL BE VOTED FOR THE ELECTION OF THESE
NOMINEES UNLESS OTHERWISE SPECIFIED.
RICHARD H. KRISTINIK, age 58, has been Chairman of the Board of Directors
and Chief Executive Officer of the Company since March 1996. Prior to that time,
Mr. Kristinik was a Partner with Arthur Andersen LLP from 1973 to March 1996,
serving in its Houston office for all those years, except for the period from
1979 to 1984, when he served as Managing Partner of the Tulsa office, and the
period from 1985 to 1989, when he served as Managing Partner of the Denver
office.
PAUL M. VERROCHI, age 49, became a director in May 1996. Mr. Verrochi is
Chairman of the Board of Directors and Chief Executive Officer of PROVANT,Inc.,
a publicly traded provider of corporate training and education and Chairman of
the Board of Directors of BridgeStreet Accomodations, a publicly traded provider
of temporary corporate housing. Mr. Verrochi served as Chairman of the Board of
American Medical Response, Inc., a publicly traded provider of ambulance
service, from its inception in February 1992 through March 1997, when it was
purchased by Laidlaw, Inc. Since February 1992, he has also been a Principal of
Exel Holdings, Ltd., and since March 1996, he has been a Principal of American
Business Partners, LLC, a privately-held investment firm he co-founded. From
April 1989 to December 1990, Mr. Verrochi was President of Allwaste Asbestos
Abatement, Inc., a subsidiary of Allwaste, Inc. Mr. Verrochi was a founder of
American Environmental Group, a regional asbestos abatement company, and served
as Chairman of its Board of Directors from July 1987 until April 1989, when it
was acquired by Allwaste, Inc.
The vote of a plurality of holders of the outstanding shares of Common
Stock present in person or represented by duly executed proxy at the Annual
Meeting for the election of a given nominee is necessary to elect such nominee
as a Class II director of the Company (i.e., the two director nominees receiving
the greatest number of votes cast will be elected, regardless of the number of
votes withheld from voting for the election of such director nominees).
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INCUMBENT DIRECTORS
CLASS III - TERMS EXPIRING AT 1999 ANNUAL MEETING
STEVEN S. HARTER, age 35, has been a director of the Company since
September 1995. Mr. Harter is President of Notre Capital Ventures II, L.L.C.
("Notre"), a venture capital firm which specializes in consolidating fragmented
businesses and which was the principal founder of the Company, and served as
Senior Vice President of Notre Capital Ventures, Ltd. from June 1993 through
July 1995. Mr. Harter was the Notre principal primarily responsible for the
initial public offerings of US Delivery Systems, Inc., Physicians Resource
Group, Inc., Comfort Systems USA, Inc., Home USA, Inc, and Metals USA, Inc. From
April 1989 to June 1993, Mr. Harter was Director of Mergers and Acquisitions for
Allwaste, Inc., a publicly traded environmental services company.
GERALD MERCADANTE, age 51, became a director in, and has served as Senior
Vice President-Northeast Region since May 1996. Mr. Mercadante was a co-founder
of Leisure Time Tours, Inc., a subsidiary of the Company ("Leisure"), and has
served as President and Chief Executive Officer of Leisure since 1980.
JOHN MERCADANTE, JR., age 53, has been a director of the Company since May
1996. Mr. Mercadante served as President and Chief Operating Officer of the
Company from May 1996 to December 5, 1997. Since December 5, 1997, Mr.
Mercadante has served as President of the Company. Mr. Mercadante co founded
Leisure with his brother, Gerald Mercadante, in 1970 and acquired Cape Transit
Corp., a subsidiary of the Company doing business as Adventure Trails
("Adventure Trails") in 1988. Mr. Mercadante has served as the President and
Chief Operating Officer of Adventure Trails since 1988. Mr. Mercadante is
currently the President of the Atlantic City Bus Operators Association and a
director of the New Jersey Motor Bus Association, both motorcoach trade
associations.
CLASS I - TERMS EXPIRING AT 2000 ANNUAL MEETING
FRANK P. GALLAGHER, age 54, became a director of the Company in May 1996.
Mr. Gallagher served as Senior Vice President-Corporate Development of the
Company from May 1996 to December 5, 1997. Since December 5, 1997, Mr. Gallagher
has served as Executive Vice President and Chief Operating Officer of the
Company. Mr. Gallagher is also President and Chief Executive Officer of
Community Coach, Inc. and related entities, all of which are subsidiaries of the
Company ("Community"). Mr. Gallagher has been President and Chief Executive
Officer of Community since 1969. Mr. Gallagher currently serves as the President
of the New Jersey Motor Bus Association and President of Bus Park of Atlantic
City, a bus parking cooperative.
LAWRENCE K. KING, age 41, became a director in, and has served as Senior
Vice President and Chief Financial Officer of the Company since, December 1995.
From 1992 until September 1995, Mr. King was Executive Vice President,
Secretary, Treasurer and Chief Financial Officer of SI Diamond Technology, Inc.,
a publicly traded technology development company. From 1988 to 1991, he served
as Assistant Secretary and Treasurer of The Permian Corporation, the general
partner of Permian Partners L.P., a publicly traded crude oil, trucking,
transportation and distribution master limited partnership. From 1979 to 1988,
Mr. King served in a number of positions as a certified public accountant with
Arthur Andersen LLP.
WILLIAM J. LYNCH, age 55, became a director in May 1996. Mr. Lynch is a
Managing Director of Capstone Partners, LLC, a special situation venture capital
firm. From October 1989 to March 1996,
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Mr. Lynch was a partner of the law firm of Morgan, Lewis & Bockius LLP. Mr.
Lynch is an investor in Notre.
GENERAL INFORMATION WITH RESPECT
TO THE BOARD OF DIRECTORS
MEETINGS
During the year ended December 31, 1997, the Board of Directors held four
meetings and acted one time by unanimous consent. During 1997, each member of
the Board of Directors attended at least 75% of all meetings of the Board of
Directors and committees of the Board of Directors of which such director was a
member. There are five standing committees of the Board of Directors.
COMMITTEES OF THE BOARD
AUDIT COMMITTEE. The Audit Committee consists of William J. Lynch
(Chairman), Steven S. Harter and Paul M. Verrochi. The Audit Committee: (i)
makes recommendations to the Board of Directors with respect to the independent
auditors who conduct the annual examination of the Company's accounts; (ii)
reviews the scope of the annual audit and meets periodically with the Company's
independent auditors to review their findings and recommendations; (iii) reviews
quarterly financial information and earnings releases prior to dissemination to
the public; (iv) approves major accounting policies or changes thereto; and (v)
periodically reviews principal internal controls to assure that the Company is
maintaining a sound and modern system of financial controls. During 1997, the
Audit Committee held eight meetings.
ACQUISITION COMMITTEE. The Acquisition Committee consists of Steven S.
Harter (Chairman), Richard H. Kristinik and Lawrence K. King. The Acquisition
Committee reviews and monitors the strategic direction of the Company's
acquisition program and, within guidelines established by the full Board of
Directors, has authority to approve offers and the form of consideration to be
offered for the acquisition of other businesses. In August 1997, the Board of
Directors gave the Acquisition Committee authority to approve, without further
full Board review, any acquisition the consideration for which is equal to or
less than $10 million. During 1997, the Acquisition Committee held two meetings.
COMPENSATION COMMITTEE. The Compensation Committee consists of Paul M.
Verrochi (Chairman), Steven S. Harter and William J. Lynch. The Compensation
Committee periodically determines the amount and form of compensation and
benefits payable to all principal officers and certain other management
personnel. See "Report of Compensation Committee on Executive Compensation."
During 1997, the Compensation Committee held five meetings.
EXECUTIVE COMMITTEE. The Executive Committee consists of Richard H.
Kristinik (Chairman), Frank P. Gallagher and John Mercadante, Jr. The Executive
Committee has such authority as is delegated to it from time to time by the full
Board of Directors. During 1997, the Executive Committee did not meet.
NOMINATING COMMITTEE. The Nominating Committee consists of Frank P.
Gallagher and Lawrence K. King (Thomas Werbe resigned as a Director and from the
Nominating Committee in February 1998). The Nominating Committee reviews the
size and composition of the Board of Directors, designates new directors
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by classes, interviews new director candidates and makes recommendations with
respect to nominations for the election of directors. The Nominating Committee
will consider suggestions from stockholders for nominees to serve as directors,
if such proposals are submitted in writing to the Corporate Secretary at the
Company's corporate offices. During 1997, the Nominating Committee did not meet.