SCHEDULE 14A
(RULE 14A-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934 (Amendment No. )
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 Section 240.14a-11(c)Rule 14a-11(c) or Section
240.14a-12Rule 14a-12
MEDJET INC.
------------------------------------------------
(Name of Registrant as Specified In Its Charter)
N/A
------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if Other Than the Registrant)
Payment of Filing Fee (Check the appropriate box):
|X| No fee required.
|_| Fee computed on table below per Exchange Act Rules 14a-6(i)(1)
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:
NAN/A
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
|_| 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: N/A
2) Form, Schedule or Registration Statement No.: N/A
3) Filing Party: N/A
4) Date Filed: N/A
MEDJET INC.
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
TO BE HELD ON JUNE 27, 199722, 1998 AND
PROXY STATEMENT
May 9, 1997June 2, 1998
MEDJET INC.
1090 KING GEORGES POST ROAD
SUITE 301
EDISON, NEW JERSEY 08837
---------------------------------------------------
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
TO BE HELD ON JUNE 27, 1997
------------------------22, 1998
---------------------------
To the Stockholders of Medjet Inc.:
NOTICE IS HEREBY GIVEN that the 19971998 Annual Meeting of Stockholdersthe stockholders
of Medjet Inc., a Delaware corporation (the "Company"), will be held on Monday,
June 27,
199722, 1998 at 1090 King Georges Post Road, Suite 505, Edison,Temple Beth-El, 338 Walnut Avenue, Cranford, New Jersey 07016
(telephone 908-276-9231) at 10:009:30 a.m., local time, for the following purposes:
1. To elect five directors to hold office until the
19981999 Annual Meeting of Stockholders; 2. To amend the Company's 1994 Stock Option Plan to increase the
number of shares of Common Stock available for issuance thereunder; and
3.2. To transact such other business as may properly be
presented at the 19971998 Annual Meeting of Stockholders and at any
adjournments or post-
ponementspostponements thereof.
The Board of Directors has fixed the close of business on April 30, 199723,
1998 as the record date for the purpose of determining stockholders who are
entitled to notice of and to vote at the 19971998 Annual Meeting and any
adjournments or postponements thereof. A list of such stockholders will be
available during regular business hours at the Company's headquarters for the
ten days before the meeting, for inspection by any stockholder for any purpose
germane to the meeting. To ensure that your shares will be represented at the
1998 Annual Meeting, please mark and sign the enclosed proxy card and return it
in the enclosed envelope whether or not you plan to attend.
By Order of the Board of Directors,
/s/Thomas M. Handschiegel
Thomas M. Handschiegel
SECRETARY
Edison, New Jersey
May 9, 1997June 2, 1998
- --------------------------------------------------------------------------------
PLEASE COMPLETE, DATE, AND SIGN THE ENCLOSED PROXY AND RETURN IT PROMPTLY IN THE
ENVELOPE PROVIDED, WHETHER OR NOT YOU PLAN TO ATTEND THE 19971998 ANNUAL MEETING. IF
YOU ATTEND THE MEETING, YOU MAY VOTE YOUR SHARES IN PERSON IF YOU WISH, EVEN IF
YOU PREVIOUSLY RETURNED YOUR PROXY.
- --------------------------------------------------------------------------------
MEDJET INC.
1090 KING GEORGES POST ROAD
SUITE 301
EDISON, NEW JERSEY 08837
----------------------
PROXY STATEMENT
----------------------
This Proxy Statement is being furnished to stockholders of Medjet Inc.,
a Delaware corporation (the "Company"), in connection with the solicitation of
proxies by the Company's Board of Directors (the "Board""Board of Directors") from
holders of the outstanding shares of the Company's common stock,Series A Convertible
Preferred Stock, par value $0.001$.01 per share (the "Preferred Stock") and the
Company's Common Stock, par value $.001 per share (the "Common Stock")
(collectively, the Preferred Stock and the Common Stock are hereinafter referred
to as the "Capital Stock"), for use at the 19971998 Annual Meeting of Stockholders
of the Company to be held on June 27, 199722, 1998 at 1090 King Georges Post Road, Suite 505,
Edison,Temple Beth-El, 338 Walnut Avenue,
Cranford, New Jersey 07016 (telephone 908-276-9231) at 10:009:30 a.m., local time,
and at any adjournments or postponements thereof (the "Annual Meeting"), for the
purpose of considering and acting upon the matters set forth in the accompanying
Notice of Annual Meeting of Stockholders.
Only holders of record of Commonthe Capital Stock as of the close of business
on April 30, 199723, 1998 (the "Record Date") are entitled to notice of, and to vote at,
the Annual Meeting. At the close of business on such date, the Company had
3,648,666110,000 shares of Preferred Stock issued and outstanding held by five holders of
record and 3,686,280 shares of Common Stock issued and outstanding held by
approximately 34
stockholders38 holders of record. Holders of Preferred Stock are entitled to
1.66 votes on each matter considered and voted upon at the Annual Meeting for
each share of Preferred Stock held of record as of the Record Date. Holders of
Common Stock are entitled to one vote on each matter considered and voted upon
at the Annual Meeting for each share of Common Stock held of record as of the
Record Date. Holders of CommonCapital Stock may not cumulate their votes for the
election of directors. Shares of CommonCapital Stock represented by a properly
executed proxy, if such proxy is received in time and not revoked, will be voted
at the Annual Meeting in accordance with the instructions indicated in such
proxy. IF NO INSTRUCTIONS ARE INDICATED, SHARES REPRESENTED BY PROXY WILL BE
VOTED BY THE PROXY HOLDERS "FOR" THE ELECTION, AS DIRECTORS OF THE COMPANY, OF
THE FIVE NOMINEES NAMED BELOW TO SERVE UNTIL THE 19981999 ANNUAL MEETING OF
STOCKHOLDERS "FOR" THE AMENDMENT TO THE COMPANY'S 1994 STOCK OPTION PLAN TO
INCREASE THE NUMBER OF SHARES OF COMMON STOCK AVAILABLE FOR ISSUANCE THEREUNDER AND IN THE DISCRETION OF THE PROXY HOLDERS AS TO ANY OTHER MATTER
WHICH MAY PROPERLY BE PRESENTED AT THE ANNUAL MEETING. The Proxy Statement and
the accompanying proxy card are being mailed to Company stockholders beginning
on or about May 9, 1997.June 2, 1998.
Any holder of CommonCapital Stock giving a proxy in the form accompanying the
Proxy Statement has the power to revoke the proxy prior to its use. A proxy can
be revoked (i) by an instrument of revocation delivered prior to the Annual
Meeting to the Secretary of the Company, (ii) by a duly executed proxy bearing a
later date or time than the date or time of the proxy being revoked, or (iii) at
the Annual Meeting if the stockholder is present and elects to vote in person.
Mere attendance at the Annual Meeting will not serve to revoke the proxy. All
written notices of revocation of proxies should be addressed as follows: Medjet
Inc., 1090 King Georges Post Road, Suite 301, Edison, New Jersey 08837,
Attention: Corporate Secretary.
Any holder of Capital Stock wishing to name as his or her proxy someone
other than those designated on the enclosed proxy card may do so by crossing out
the names of the two designated proxyholders and inserting the name(s) of the
person(s) he or she wishes to have act as his or her proxy. No more than two
persons should be so designated. In such a case, it will be necessary that the
proxy be delivered by the holder of Capital Stock to the person(s) named and
that such person(s) named be present and vote at the meeting. Proxy cards on
which other proxyholders have been named should not be mailed to the Company.
A majority of shares of Capital Stock entitled to vote on a matter,
represented in person or by proxy, shall constitute a quorum for action on a
matter at the Annual Meeting. InAbstentions and broker non-votes are counted as
present for purposes of determining the presence ofwhether there is a quorum at the Annual
Meeting,
abstentions are counted but broker non-votes are not counted.Meeting. The Company's Amended and Restated By-Laws provide that the affirmative
vote of a majority of the shares represented, in person or by proxy, and
entitled to vote on a matter at a meeting in which a quorum is present shall be
the act of the stockholders, except as otherwise provided by law. The Delaware
General Corporation Law provides that directors are elected by a plurality of
the votes cast. Abstentions and broker non-votes have no legal effect on whether
a nominee for director is elected but will have the same effect as votes against
other matters being voted upon.
The Company's principal executive offices are located at 1090 King
Georges Post Road, Suite 301, Edison, New Jersey 08837. The telephone number of
the Company at such office is (908) 738- 3990.(732) 738-3990.
PROPOSAL 1 - ELECTION OF DIRECTORS
Unless a stockholder specifies otherwise, each returnreturned proxy card will
be voted for the election to the Board of the five nominees who are named below.
Each directornominee has consented to being named as a nominee for director and agreed
to serve if elected. Each director,nominee, if elected, would serve until his successor
is elected at the annual meetingAnnual Meeting of stockholdersStockholders for 19981999 and qualified or uponuntil
his removal or resignation. If any of the nomineesnominee is unavailable for election at the
time of the annual meeting,Annual Meeting, discretionary authority will be exercised to vote
for substitutes unless the Board of Directors chooses to reduce the number of
directors. The Company is not aware of any circumstances that would render any
nominee unavailable. AllEugene I. Gordon and Sanford J. Hillsberg are the only
nominees are currently serving on the Board. The ages of the nominees are given as
of April 30, 1997.1998.
THE BOARD RECOMMENDS A VOTE FOR EACH OF THE NOMINEES LISTED BELOW.
o DR. EUGENE I. GORDON, PH.D., age 66,67, is the founder and President
- Technology Development of the Company and has been a Directordirector
and Chairman of the Board of Directors since the Company's
inception in December 1993. He is an inventor of the Company's
hydro-epithelial keratoplasty ("HEK"), hydro-therapeutic
keratoplasty ("HTK") and hydro-refractive keratoplasty ("HRK")
keratome technology. From 1987 to 1988, Dr. Gordon served as
Senior Vice President and Director of the Research Laboratories
for Hughes Aircraft Co. of Malibu, California.He joined ATT Bell Laboratories in 1957
and retired in 1983 as Laboratory Director. Dr. Gordon has served
as an adjunct professor in the department of Ophthalmology at the
University of Medicine and Dentistry of New Jersey since 1994,
and was a professor in the Department of Electrical and Computer
Engineering at the New Jersey Institute of Technology from 1990
to 1995. Dr. Gordon
was Laboratory Director for AT&T Bell Laboratories and the founder of
Lytel Incorporated, a manufacturer of lasers and optical transmission
subsystems which is a wholly-owned subsidiary of AMP Incorporated. Dr.
Gordon has done extensive research on laser and opto-electronic
systems, is a named inventor under approximately 70 U.S. patents and
has published widely on those subjects. He is an elected member of the
National Academy of Engineering and has been awarded the
-2-
Edison Medal of the Institute of Electrical and Electronic Engineers,
among a number of other prestigious awards.
o DR. STEVEN G. COOPERMAN, age 55, has been a Director of the Company
since September 1994. Dr. Cooperman was engaged in the private
practice of ophthalmology and ophthalmic surgery in Beverly Hills,
California from 1972 to his retirement in 1989. Since his retirement,
Dr. Cooperman has been active as a private investor. He is a founder
of the American Intraocular Implant Society (now known as the American
Society for Cataract and Refractive Surgery), has served on the
teaching staff of the Jules Stein Eye Institute and has lectured
widely on phacoemulsification and intraocular lens implant surgery.
o SANFORD J. HILLSBERG, age 48,49, has been a Directordirector of the
Company since August 1996. Mr. Hillsberg has been engaged in the
private practice of corporate law since 1973 and is currently the
managing partner of Troy & Gould Professional Corporation in Los
Angeles, California. From 1983 to 1993, he served as a director
and Vice President of Medco Research Inc., a publicly-traded
pharmaceutical research and development company.
o ROBERT G. DONOVAN,EDWARD E. DAVID, JR, SC.D., age 58,73, has been a Director of the Company since
April 1997. Mr. Donovan is a business
consultant specializing in healthcareresearch, technology and consumer products. Heinnovation
management and development since 1986. From 1977 to 1986, Dr.
David served in various capacities at
Sandoz Pharmaceuticalas President of Exxon Research and Engineering,
where he directed research, development, engineering and
technical services activities. From 1970 to 1973, Dr. David
served as the Science Advisor to the President of the United
States and Director of the White House Office of Science and
Technology. Dr. David currently serves as a director of
Intermagnetics General Corporation, from 1985InterVU, Inc., Protein
Polymer Technologies Inc. and Spacehab, Inc., each a
publicly-traded company.
o MALCOLM R. KAHN, age 51, is presently a management consultant
focused on high-tech company fundraising. From 1989 to 1995, most recently as
Senior Vice1998, Mr.
Kahn was President and headChief Executive Officer of consumer pharmaceuticals.Membrex, Inc.,
a biotechnology and environmental membrane separations company.
Prior to 1989, Mr. Kahn was Managing Director and Chief Executive
Officer of Kratos Group PLC, an analytical instrument company
focused on liquid chromatography, mass spectrometry and surface
analysis systems.
o JAMES J. BIALEK,STEVE M. PELTZMAN, age 48,51, is President, Chief Executive Officer,
and a director of NuGene Technologies, Inc., a privately-held
gene/drug delivery company. From 1994 to 1997, Mr. Peltzman was
President and Chief Operating Officer of OSI Pharmaceutical
("OSIP," also known as Oncogene Science), and has been a Directormember
of its board since 1992. From 1984 until 1992, Mr. Peltzman was
President, Chief Executive Officer and a director of Applied
bioTechnology, whose cancer business was acquired by OSIP. Mr.
Peltzman also serves on the Company since May
2, 1997. Mr. Bialekboard of Life Science Economics, a
management consulting firm, and is Directora member of Development and Planning at Becton
Dickinson and Company, where he has served in various capacities since
1973.The Executive
Committee.
GENERAL INFORMATION RELATING TO THE BOARD OF DIRECTORS
THE BOARD OF DIRECTORS
The business and affairs of the Company are managed by the Board of
Directors. The Board of Directors held twoeight meetings in 1996.1997. Each member of
the Board of Directors attended at least 75% of the aggregate meetings of the
Board of Directors and any committee of the Board of which he was a memberheld during 1996.1997.
COMMITTEES OF THE BOARD OF DIRECTORS
TheTo assist it in carrying out its duties, the Board of Directors has two
standing committees, a Stock Optionan Audit Committee and an Audita Compensation Committee. Their functions are described below. The Board
of Directors does not have a compensation committee, nominating committee or any committee performing
similar functions, and all matters which would be considered by such committeesa committee
are acted upon by the full Board of Directors. Neither the Audit Committee nor
the Compensation Committee held any formal meetings during 1997.
The Stock OptionAudit Committee has two members and currently consists of Dr.
CoopermanJames J.
Bialek and Mr. Hillsberg,Robert G. Donovan, neither of whom is an employee of the Company. The
Stock Option Committee's primary
-3-
function is to administer the Stock Option Plan (as defined herein). During
1996, the Stock Option Committee held no meetings.
The Audit Committee has two members and currently consists of Messrs.
Donovan and Bialek. The Audit Committee's primary function is to administer and oversee any audit. During 1996,audits of the
AuditCompany's books and accounts. The Compensation Committee held no meetings.has two members and
currently consists of James R. Adwers, M.D. and James J. Bialek, neither of whom
is an employee of the Company. The Compensation Committee's primary functions
are to review the compensation for the Company's officers and directors and to
advise the Board in administering the Company's 1994 Stock Option Plan, as
amended and restated (the "Stock Option Plan").
COMPENSATION OF DIRECTORS
Directors who are officers or employees of the Company receive no
additional compensation for service as members of the Board of Directors or committeesany
committee thereof. On April 11, 1997,With respect to future compensation of outside directors,
each of Dr. Cooperman and Messrs. Hillsberg and
Donovan, and on May 2, 1997, Mr. Bialek, receivedoutside director will receive, pursuant to the Stock Option Plan, options
to purchase 5,00010,000 shares of Common Stock with an exercise price equal to $5.00
per share. The options will vest ratably to the fair market value per
shareextent of 50% of the Common Stock on such date and which will vest on the earlier of the
day immediately preceding the 1998 annual meeting of stockholders or June 30,
1998 if such person continues to serve as a director on such date. With respect
to future compensation of directors, each outside director will receive options
under the Stock Option Plan to purchase 5,000 shares of
Common Stock with an
exercise price equal to the fair market value per share of the Common Stock on
the date of grant and which vestcovered thereby upon the earlier of one year fromeach of the first and second
anniversary of the date of grant or the day immediately preceding the subsequenteach
successive annual meeting of stockholders in either case ifsubsequent to the date of grant,
provided, that such director has served as a director of the Company through
such date. Outside directors are reimbursed for out-of-pocket expenses incurred
in connection with attendance of meetings of the Board. In 1997, Dr. Adwers and
Messrs. Bialek, Donovan and Hillsberg received options to purchase 3,000, 5,500,
6,000 and 5,000 shares of Common Stock, respectively. The exercise price of such
options ranged from $7.63 to $8.47 per share.
EXECUTIVE COMPENSATION
SUMMARY COMPENSATION TABLE
The following table sets forth information concerning compensation for
services in all capacities awarded to, earned by or paid to, the Company's
Chief
Executive Officer (the "Named Executive"),President - Technology Development, with respect to the years ended December 31,
1997 and 1996, and 1995. Nothe only other executive officer of the Company receivedwhose cash
and cash equivalent compensation exceedingexceeded $100,000 during such years.the last fiscal year
(collectively, the "Named Executive Officers").
SUMMARY COMPENSATION TABLE
ANNUAL COMPENSATION LONG-TERM COMPENSATION
ALL OTHER------------------------------------------------------------- ----------------------
OTHER ANNUAL COMPENSATIONALL OTHER
NAME AND PRINCIPAL POSITION YEAR SALARY($SALARY ($) BONUS($BONUS ($) COMPENSATION($COMPENSATION ($) COMPENSATION ($)
- --------------------------- ---- ---------- --------- -------- --------------- -------------------- ----------------
Eugene I. Gordon................Gordon .......... 1997 $169,900 $25,000 $ (1) $2,394(2)
President - Technology 1996 $122,617122,617 -- (1) 1,200(2)
Development and
Chairman of the Board
Thomas M. Handschiegel .... 1997 $101,100 $ -- $ (1) $1,200(2)$412(2)
Vice President - Finance 1996 76,408 -- (1) 97(2)
and Chairman 1995 96,400 -- 66,700(3) --
of the BoardHuman Resources
and Secretary
- ---------------------
(1) Consists of perquisites in an amount less than the applicable reporting
threshold.
(2) Consists of payment of annual life insurance premiums.
(3) Consists entirely of deferred 1994 salary.
STOCK OPTION GRANTS
No options to purchase CommonCapital Stock were granted by the Company to the
Named Executive Officers during 1996.
-4-
1997.
OPTION EXERCISES AND YEAR-END VALUE
No stock options have been granted to the Named Executive.
No stock options or stock appreciation rights were exercised by the
Named Executive Officers during 1996.1997.
The following table sets forth information regarding the number and
year-end value of unexercised options to purchase Common Stock held at December
31, 1997 by each of the Named Executive Officers.
1997 OPTION VALUES
NUMBER OF SECURITIES VALUE OF UNEXERCISED
UNDERLYING UNEXERCISED "IN-THE-MONEY"(1)
OPTIONS AT FISCAL OPTIONS AT FISCAL
YEAR-END (#) YEAR-END ($)
NAME EXERCISABLE/UNEXERCISABLE EXERCISABLE/UNEXERCISABLE
- ---- ------------------------- -------------------------
Eugene I. Gordon........................... 0/0 $ - /$ -
Thomas M. Handschiegel..................... 3,333/6,667 5,083/10,167
- ---------------------
(1) Options are "in-the-money" if the fair market value of the underlying
securities exceeds the exercise price of the options. The amounts set
forth represent the difference between $7.125 per share, the fair
market value of the Common Stock issuable upon exercise of the options
at December 31, 1997, and the exercise price of the options, multiplied
by the applicable number of options.
EMPLOYMENT AGREEMENTS
Effective as of March 15, 1996, the Company entered into an employment
agreement with Eugene I. Gordon as President, for an initial term of three
years. The agreement, which was amended effective as of January 1, 1997,
provides for a base compensation of $160,000$169,600 per year, including certain
automobile allowances, bonuses aggregating a maximum of $75,000 for 1997 based
upon the attainment of certain goals and other additional compensation as may be
determined by the Board of Directors (without the participation of Dr. Gordon)
in its sole discretion. The Board of Directors (without the participation of Dr.
Gordon) may also increase such base compensation in its sole discretion. The
agreement may be terminated for cause and contains proprietary information,
invention and non-competition provisions which prohibit disclosure of any of the
Company's proprietary information and preclude Dr. Gordon's competition with the
Company for a period of two years after the termination of employment.his employment with
the Company. The Company has procured life insurance in the amount of $1 million
to compensate it for the loss, through death or disability, of Dr.
Gordon.
Effective as of March 18, 1996, the Company entered into an employment
agreement with Thomas M. Handschiegel as Vice President for FinancePresident-Finance and Human
Resources and Secretary, for an indefinite term. The agreement, which was
amended effective January 1, 1997, provides for a base compensation of $101,100
per year. The agreement may be terminated by either party at any time upon two
weeks' prior notice and contains proprietary information, invention and
non-competition provisions which prohibit disclosure of any of the Company's
proprietary information and preclude Mr. Handschiegel's competition with the
Company for a period of two years after termination of employment.
-5-his employment with the
Company.
SECURITY OWNERSHIP OF BENEFICIAL OWNERS AND MANAGEMENT
The following table sets forth certain information regarding the
beneficial ownership of the Company's CommonCapital Stock, as of April 30, 1997,1998, by (i) each
person known to the Company to own beneficially more than 5% of either class of
the Company's outstanding shares of CommonCapital Stock, (ii) each director of the Company and
each nominee for director of the Company (iii) the Named Executive Officers and
(iv) all executive officers and directors of the Company, as a group. All
information with respect to beneficial ownership has been furnished to the
Company by the respective stockholders of the Company.
AMOUNT AND NATURE PERCENTAGE
OF BENEFICIAL OF
NAME AND ADDRESS OF BENEFICIAL OWNER OWNERSHIP (1) CLASS
- ------------------------------------ -------------- ------
Eugene I. Gordon (2)................. 1,591,687 43.6
Thomas M. Handschiegel (2)........... -- --
Steven G. Cooperman (3).............. 115,649 3.1
Sanford J. Hillsberg (4)............. 44,540 1.2
Robert G. Donovan (5)................ 2,000 *
All executive officers and directors
as a group (5 persons) (6)........ 1,753,876 47.4
- ---------------------------
* Represents beneficial ownership of less than 1% of the outstanding
shares of Common Stock.
(1) Beneficial ownership is determined in accordance with the rules of the
Securities and Exchange Commission (the "Commission"). In computing the
number of shares beneficially owned by a person and the percentage
ownership of that person, shares of Common Stock subject to options and
warrants held by that person that are currently exercisable or
exercisable within 60 days of April 30, 1997 are deemed outstanding.
Such shares, however, are not deemed outstanding for the purposes of
computing the percentage ownership of any other person. Except as
indicated in the footnotes to this table, the stockholder named in the
table has sole voting and investment power with respect to the shares
set forth opposite such stockholder's name.
(2) Each such person's business address is 1090 King Georges Post Road,
Suite 301, Edison, New Jersey 08837.
(3) Such person's mailing address is 21 Bridge Square, Westport,
Connecticut 06880. Includes 21,738 shares subject to exercisable
options and 22,360
Preferred Stock Common Stock
------------------------ ------------------------- Percentage of
Name and Address of Number of Percent Number of Percent Total Voting
Beneficial Owner Shares of Class Shares(1) of Class Power
- -------------------- --------- -------- ---------- -------- -------------
Cam & Co. (2) 25,000 22.7% 41,528 (3) 1.1 1.1
Donald Chaifetz (4) 25,000 22.7 41,528 (3) 1.1 1.1
Mosdos Chinuch (5) 10,000 9.1 16,611 (3) * *
Fernando Schecter (6) 37,000 33.6 61,462 (3) 1.6 1.6
Mark Schmerlina (6) 13,000 11.8 21,595 (3) * *
Eugene I. Gordon (7) __ __ 1,591,687 43.2 41.1
Thomas M. Handschiegel (7) __ __ 6,375 (8) * *
James R. Adwers (9) __ __ 3,000 (9) * *
James J. Bialek (10) __ __ 7,500 (10) * *
Robert G. Donovan (11) __ __ 12,000 (11) * *
Sanford J. Hillsberg (12) __ __ 55,527 (12) 1.5 1.4
Edward E. David, Jr. (7) __ __ __ __ __
Malcolm R. Kahn (7) __ __ __ __ __
Steve M. Peltzman (7) __ __ __ __ __
All executive officers and __ __ 1,676,089 (13) 45.0 42.9
directors as a group (6 persons)
- --------------------------
* Represents beneficial ownership of less than 1% of the outstanding
shares of Capital Stock.
(1) Beneficial ownership is determined in accordance with the rules of the
Securities and Exchange Commission (the "Commission"). In computing the
number of shares beneficially owned by a person and the percentage
ownership of that person, shares of Common Stock subject to options and
warrants held by that person that are currently exercisable or
exercisable within 60 days of April 30, 1998 are deemed outstanding.
Such shares, however, are not deemed outstanding for the purposes of
computing the percentage ownership of any other person. Except as
indicated in the footnotes to this table, the beneficial owner named in
the table has sole voting and investment power with respect to the
shares set forth opposite such beneficial owner's name.
(2) Such person's business address is 486 Arbuckle Avenue, Cedarhurst,
New York 11516.
(3) Consists of shares of Common Stock issuable upon conversion of the
Preferred Stock held by such person.
(4) Such person's business address is 1312 Allerbach Avenue, Hewlett,
New York 11557.
(5) Such person's business address is 35 Balfour Place, Brooklyn,
New York 11225.
(6) Such person's business address is c/o Yeshivat Tomechi Tmimim, Shikoon
Chabad, Lod, Israel POB 46.
(7) Each such person's business address is 1090 King Georges Post Road,
Suite 301, Edison, New Jersey 08837.
(8) Includes 4,375 shares subject to exercisable options.
(9) Such person's business address is 730 Central Avenue, Murray Hill, New
Jersey 07974. Consists of shares subject to exercisable options.
(10) Such person's business address is One Becton Drive, Franklin Lakes, New
Jersey 07417-1880. Includes 5,500 shares subject to exercisable
options.
(11) Such person's business address is Suite 300, 4 Landmark Square,
Stamford, Connecticut 06901. Includes 2,000 shares subject to
exercisable warrants and 6,000 shares subject to exercisable options.
(12) Such person's business address is 1801 Century Park East, Suite 1600,
Los Angeles, California 90067. Includes 9,000 shares subject to
exercisable options and 3,975 shares subject to exercisable warrants.
Also includes 7,000 shares of Common Stock and exercisable warrants to
purchase 7,000 shares of Common Stock owned by such person's spouse, as
to which such person disclaims beneficial ownership.
(13) Includes 27,875 shares subject to exercisable options and 12,975
shares subject to exercisable warrants.
(4) Such person's business address is 1801 Century Park East, Suite 1600,
Los Angeles, California 90067. Includes 1,988 shares subject to
exercisable warrants. Also includes 7,000 shares of Common Stock and
warrants to purchase 7,000 shares of Common Stock owned by such
person's spouse, as to which such person disclaims beneficial
ownership.
(5) Such person's business address is Suite 300, 4 Landmark Square,
Stamford, Connecticut 06901.
(6) Excludes Mr. Bialek, who became a director on May 2, 1997.
-6-
CERTAIN TRANSACTIONS
In each of May and June 1996, Eugene I. Gordon, President - Technology
Development and Chairman of the Board of Directors, made unsecured loans to the
Company in the principal amounts of $100,000 and $65,000, respectively,respectively. The
loans, on which bear interest accrued at the per annum rates of 7% and 9%,
respectively, per annum, and are due and payable on demand.
PROPOSAL 2 - AMENDMENT OF 1994 STOCK OPTION PLAN
At the Annual Meeting, there will be presented a proposal to approve the
amendment to and restatement of the Medjet Inc. 1994 Stock Option Plan (the
"Stock Option Plan"), which was adopted by the Board and approved by the
Company's stockholders in 1994. Such amendment will provide for an increase in
the aggregate number of shares of Common Stock which may be issued upon the
exercise of options granted under the Stock Option Plan from 249,688 (after
giving effect to the 1.987538926-for-1 stock split effected on August 6, 1996)
to 449,688. The full text of the Stock Option Plan, as amended and restated, is
set forth in Appendix A attached hereto.
The increase in the number of shares of Common Stock available under the
Stock Option Plan from 249,688 to 449,688 was approved by the Board on February
5, 1997, subject to stockholder approval. Although approximately 100,668 shares
of Common Stock remain available for issuance upon the exercise of options
granted under the Stock Option Plan, the Company believes that the availability
of additional shares of Common Stock for issuance under the Stock Option Plan is
necessary to enhance the Company's continuing efforts to hire and retain
talented employees and directors. As a development stage company, the Company is
still in the process of identifying and hiring key senior personnel. The Board
believes that the proposed increase in the number of shares of Common Stock
under the Stock Option Plan is therefore essential.
1994 STOCK OPTION PLAN
ADMINISTRATION. The Stock Option Plan is administered by the Stock Option
Committee of the Board of Directors. The Stock Option Committee interprets the
terms, and establishes administrative regulations to further the purposes, of
the Stock Option Plan, authorizes awards to eligible participants, determines
vesting schedules and takes any other action necessary for the proper
implementation of the Stock Option Plan.
PARTICIPATION. Under the Stock Option Plan, options to purchase shares of
Common Stock of the Company may be granted only to employees (including
officers) and directors of the Company or individuals who are rendering services
to the Company as consultants, advisors or other independent contractors.
SHARES AVAILABLE FOR AWARDS. 249,688 shares of Common Stock of the Company
(prior to the proposed increase) have been reserved for issuance under the Stock
Option Plan, subject to adjustment for stock splits, stock dividends,
recapitalizations and similar events. Such shares may consist in whole or in
part of authorized and unissued shares or treasury shares. In the event that any
outstanding option for any reason expires or is terminated or canceled and/or
shares of Common Stock subject to repurchase are repurchasedwere repaid by the Company the
shares allocable to the unexercised portion of such option or repurchased
shares, may again be subject to an option grant. Notwithstanding the foregoing,
any such shares shall be made subject to a new option only if the grant of such
new optionin full in May and the issuance of such shares pursuant to such new option would not
cause the Stock Option Plan or any option granted under the Stock Option Plan to
-7-
contravene Rule 16b-3 under the Securities Exchange Act of 1934, as amended (the
"Exchange Act").
AWARDS. The Stock Option Plan authorizes grants of either incentive stock
options ("ISOs"), as defined in Section 422 of the Internal Revenue Code of
1986, as amended (the "Code"), or non-statutory (nonqualified) stock options.
Under the Stock Option Plan, all options must be granted, if at all, within 10
years from the date the Stock Option Plan was adopted by the Board of Directors
of the Company. The Stock Option Committee shall set, including by amendment of
an option, the time or times within which each option shall be exercisable or
the event or events upon the occurrence of which all or a portion of each option
shall be exercisable and the term of each option; provided, however, that (i) no
option shall be exercisable after the expiration of 10 years after the date such
option is granted and (ii) no ISO granted to an optionee who at the time the
option is granted owns stock possessing more than 10% of the total combined
voting power of all classes of stock of the Company within the meaning of
Section 422(b)(6) of the Code (a "Ten Percent Owner Optionee") shall be
exercisable after the expiration of five years after the date such option is
granted. As of the date of this Proxy Statement, non-statutory stock options to
purchase a total of 66,850 shares of Common Stock have been granted and ISOs to
purchase an additional 76,670 shares of Common Stock have been granted. In
connection with its initial public offering, the Company agreed with its
underwriter that it would not issue options to purchase more than 200,000 shares
of Common Stock (which amount has been increased to 225,000 and is subject to
further increase upon the consent of the underwriter) between August 6, 1996 and
August 6, 1998 without such underwriter's prior written consent, and that, of
such number, it would not issue options to purchase more than 50,000 shares of
Common Stock (which amount is subject to increase upon the consent of the
underwriter) at less than fair market value on the date of grant. The Company
also agreed with its underwriter that the options with respect to the 100,668
shares of Common Stock (or 300,668 shares of Common Stock, including the
proposed increase) under the Stock Option Plan which have not yet been granted
as of the date of this Proxy Statement shall vest no earlier than one year from
the date of grant.
STOCK OPTIONS. The Stock Option Plan provides that (i) the exercise price
per share for an ISO shall not be less than the fair market value, as determined
by the Stock Option Committee, of a share of Common Stock on the date of the
granting of the option; and (ii) no ISO granted to a Ten Percent Owner Optionee
shall have an exercise price per share less than 110% of the fair market value,
as determined by the Stock Option Committee, of a share of Common Stock on the
date of the granting of the option. Notwithstanding the foregoing, an option may
be granted with an exercise price lower than the minimum exercise price set
forth above if such option is granted pursuant to an assumption or substitution
for another option in a manner qualifying within the provisions of Section
424(a) of the Code.
FEDERAL INCOME TAX CONSEQUENCES. The federal income tax consequences of
awards granted pursuant to the Stock Option Plan under the Code, and the
regulations thereunder are summarized below.
The grant of a stock option will create no immediate tax consequences for
the participant or the Company. The participant will have no taxable income upon
exercising an ISO (except that an alternative minimum tax may apply), and the
Company will not receive a deduction when an ISO is exercised. If the
participant does not dispose of the shares acquired on exercise of an ISO within
the two-year period beginning on the day after the grant of the ISO or within
one year after the transfer of the shares to the participant, the gain or loss
on a subsequent sale will be a capital gain or loss. If the participant disposes
of the shares within the two-year or one-year period described above, the
participant generally will realize ordinary income, and the Company will be
entitled to a corresponding deduction. Upon exercising a non-statutory stock
option, the participant must recognize ordinary income in an amount equal to the
difference between the exercise price and the fair market value of the Common
Stock on the exercise date, unless the shares are subject to certain
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restrictions. The Company will receive a deduction for the same amount on the
exercise date (or the date the restrictions lapse).
With respect to other awards granted under the Stock Option Plan that are
settled in cash or shares of Common Stock that are either transferable or not
subject to a substantial risk of forfeiture, the participant must recognize
ordinary income in an amount equal to the cash or the fair market value of the
shares received. With respect to other awards granted under the Stock Option
Plan that are settled in shares of Common Stock that are subject to restrictions
as to transferability and subject to a substantial risk of forfeiture, the
participant must recognize ordinary income in an amount equal to the fair market
value of the shares received at the first time the shares become transferable or
not subject to a substantial risk of forfeiture, whichever occurs earlier. The
Company will receive a deduction for the amount recognized as income by the
participant, subject to the provisions of Section 162(m) of the Code, which
provides for a possible denial of a tax deduction to the Company for
compensation for any of the five most highly compensated executive officers in
excess of $1 million in any year.
The tax treatment upon disposition of shares acquired under the Stock
Option Plan will depend on how long the shares have been held. In the case of
shares acquired through exercise of an option, the tax treatment will also
depend on whether or not the shares were acquired by exercising an ISO. There
will be no tax consequences to the Company upon the disposition of shares
acquired under the Stock Option Plan, except that the Company may receive a
deduction in the case of disposition of shares acquired under an ISO before the
applicable holding period has been satisfied.
THE BOARD RECOMMENDS A VOTE FOR THE AMENDMENTS TO THE STOCK OPTION PLAN
DESCRIBED ABOVE.June, 1997,
respectively.
OTHER MATTERS
As of the date of this Proxy Statement, the Board of Directors knows of
no other matters which will be brought before the Annual Meeting. In the event
that any other business is properly presented at the Annual Meeting, it is
intended that the persons named in the enclosed proxy will have authority to
vote such proxy in accordance with their judgment on such business.
SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
Section 16(a) of the Exchange Act requires the Company's directors,
certain officers and persons holding more than 10% of a registered class of the
Company's equity securities to file reports of ownership and reports of changes
in ownership with the Commission. Such persons are also required by Commission
regulations to furnish the Company with copies of all such reports that they
file. The Company believes that, during 1996,1997, all such persons complied with all
reporting requirements under Section 16(a) except for Drs. Gordon and Cooperman,
each of whom failed to file one Form 3 reporting one transaction, on a timely basis.
INDEPENDENT AUDITORS
The firm of Rosenberg Rich Baker Berman and Company served as the
Company's independent auditors for the fiscal year ended December 31, 1996.1997 and
has been selected by the Board of Directors to audit the books and accounts of
the Company for the fiscal year ending December 31, 1998. Representatives of
Rosenberg Rich Baker Berman and Company are expected to be present at the Annual
Meeting and available to respond to appropriate questions. -9-
Rosenberg Rich Baker
Berman and Company has advised the Company that neither it nor any of its
principals has any direct financial interest in the Company as a promoter,
underwriter, voting trustee, director, officer or employee. All professional
services rendered by Rosenberg Rich Baker Berman and Company during 1997 were
furnished at customary rates.
SUBMISSION OF STOCKHOLDER PROPOSALS
Stockholder proposals submitted for inclusion in the proxy statement to
be issued in connection with the Company's 19981999 annual meeting of stockholders
must be mailed to the Corporate Secretary, Medjet Inc., 1090 King Georges Post
Road, Suite 301, Edison, New Jersey 08837, and must be received by the Corporate
Secretary on or before January 9, 1998.February 2, 1999.
COSTS OF SOLICITATION
The cost of preparing, printing and mailing this Proxy Statement and
the accompanying proxy card, and the cost of solicitation of proxies on behalf
of the Company's Board of Directors will be borne by the Company. In addition to the use
of the mail, proxies may be solicited personally or by telephone or by regular
employees of the Company without additional compensation. Banks, brokerage
houses and other institutions, nominees or fiduciaries will be requested to
forward the proxy materials to the beneficial owners of the CommonCapital Stock held
of record by such persons and entities and will be reimbursed for their
reasonable expenses incurred in connection with forwarding such material.
ANNUAL REPORT
A copy of the Company's 19961997 Annual Report to Stockholders is being
mailed with this Proxy Statement to each stockholder entitled to vote at the
Annual Meeting. Stockholders not receiving a copy of such Annual Report may
obtain one, without charge, by writing or calling Corporate Secretary, Medjet
Inc., Attention: Corporate
Secretary, 1090 King Georges Post Road, Suite 301, Edison, New Jersey 08837,
telephone (908)(732) 738-3990.
By Order of the Board of Directors
Thomas M. Handschiegel
SECRETARY
Edison, New Jersey
May 9, 1997
-10-June 2, 1998
APPENDIX A
AMENDED AND RESTATED
MEDJET INC.
1994 STOCK OPTION PLAN
1. PURPOSE. The purpose of the PlanANNUAL MEETING OF STOCKHOLDERS
MONDAY, JUNE 22, 1998
9:30 A.M.
DIRECTIONS TO
TEMPLE BETH-EL
338 WALNUT AVENUE
CRANFORD, NEW JERSEY 07016
PHONE: (908) 276-9231
FROM GEORGE WASHINGTON BRIDGE
Rt. 80 West to Garden State Parkway South to Exit 137. Turn right onto North
Ave. to Walnut Ave. (5th traffic light). Turn left under trestle, 3 1/2 blocks
to Temple on right.
FROM HOLLAND TUNNEL OR LINCOLN TUNNEL
N.J. Turnpike to Exit 14 Newark Airport, follow signs, Route 78 West, to Garden
State Parkway South. Then follow directions above.
FROM VERRAZZANO BRIDGE
Staten Island Expressway to Goethals Bridge. Exit from Goethals Bridge via
1-278, to US 1-9 South. Go to 5th light (including light where I-278 merges with
US 1-9). Landmarks: Benedict Motel, Exxon Station on left; park on right.
Turn right onto Stiles St., go to 5th light. Turn left onto Valley Road, go to
1st light. Turn right onto Walnut Ave., continue on Walnut Ave. past 1 light,
under railroad trestle. Temple is on left, 0.4 miles beyond railroad.
FROM SOUTHERN N.J. AND PENNSYLVANIA
Garden State Parkway to attract, retainExit 135, bear left and reward
persons providing servicesfollow circle beneath Parkway,
past Shop Rite to Medjet Inc., a Delaware corporation,first light. This is Raritan Road. Turn right and any
successor corporation thereto (collectively referredat next
light turn left. This is Walnut Ave. Continue 3/4 mile to as the "COMPANY"), and
any present or future parent and/or subsidiary corporations of such corporation
(all of which along with the Company being individually referredTemple on left (next
to as a
"PARTICIPATING COMPANY" and collectively referred to as the "PARTICIPATING
COMPANY GROUP"), and to motivate such persons to contribute to the growth and
profits of the Participating Company Group in the future. For purposes of the
Plan, a parent corporation and a subsidiary corporation shall be as defined in
Sections 424(e) and 424(f) of the Internal Revenue Code of 1986, as amended (the
"CODE")Walnut Ave. school).
2. ADMINISTRATION.
(a) ADMINISTRATION BY BOARD AND/OR COMMITTEE. The Plan shall be
administered by the Board of Directors of the Company (the "BOARD") and/or by
a duly appointed committee of the Board having such powers as shall be specified
by the Board. Any subsequent references herein to the Board shall also mean the
committee if such committee has been appointed and, unless the powers of the
committee have been specifically limited, the committee shall have all of the
powers of the Board granted herein, including, without limitation, the power to
terminate or amend the Plan at any time, subject to the terms of the Plan and
any applicable limitations imposed by law. All questions of interpretation of
the Plan or of any options granted under the Plan (an "OPTION") shall be
determined by the Board, and such determinations shall be final and binding upon
all persons having an interest in the Plan and/or any Option.
(b) OPTIONS AUTHORIZED. Options may be either incentive stock options
as defined in Section 422 of the Code ("INCENTIVE STOCK OPTIONS") or non-
statutory(nonqualified) stock options.
(c) AUTHORITY OF OFFICERS. Any officer of a Participating Company shall
have the authority to act on behalf of the Company with respect to any matter,
right, obligation, or election which is the responsibility of or which is
allocated to the Company herein, provided the officer has apparent authority
with respect to such matter, right, obligation, or election.
(d) DISINTERESTED ADMINISTRATION. With respect to the participation in
the Plan of officers or directors of the Company subject to Section 16 of
the Securities Exchange Act of 1934, as amended (the "EXCHANGE ACT"), the Plan
ahall be administered by the Board in compliance with the "disinterested
administration" requirement of Rule 16b-3, as promulgated under the Exchange Act
and amended from time to time or any successor rule or regulation ("RULE
16B-3").
3. ELIGIBILITY.
(a) ELIGIBLE PERSONS. Options may be granted only to employees
(including officers) and directors of the Participating Company Group or to
individuals who are rendering services as consultants, advisors, or other
independent contractors to the Participating Company Group. The Board shall, in
A-1
its sole discretion, determine which persons shall be granted Options (an
"OPTIONEE"). Eligible persons may be granted more than one (1) Option.
(b) DIRECTORS SERVING ON COMMITTEE. If a committee of the Board has
been established to administer the Plan in compliance with the
"disinterested administration" requirement of Rule 16b-3, no member of such
committee, while a member, shall be eligible to be granted an Option.
(c) RESTRICTIONS ON OPTION GRANTS. A director of a Participating
Company may only be granted a non-statutory stock option unless the director is
also an employee of the Participating Company Group. An individual who is
rendering services as a consultant, advisor, or other independent contractor
may only be granted a non-statutory stock option.
4. SHARES SUBJECT TO OPTION. Options shall be for the purchase of shares of
the authorized but unissued common stock or treasury shares of common stock of
the Company (the "STOCK"), subject to adjustment as provided in paragraph 10
below. The maximum number of shares of Stock which may be issued under the Plan
shall be four hundred forty-nine thousand six hundred eighty-eight (449,688)
shares. In the event that any outstanding Option for any reason expires or is
terminated or canceled and/or shares of Stock subject to repurchase are
repurchased by the Company, the shares allocable to the unexercised portion of
such Option, or such repurchased shares, may again be subject to an Option
grant. Notwithstanding the foregoing any such shares shall be made subject to a
new Option only if the grant of such new Option and the issuance of such shares
pursuant to such new Option would not cause the Plan or any Option granted under
the Plan to contravene Rule 16b-3.
5. TIME FOR GRANTING OPTIONS. All Options shall be granted, if at all,
within ten (10) years from the earlier of the date the Plan is adopted by the
Board or the date the Plan is approved by the stockholders of the Company.
6. TERMS, CONDITIONS AND FORM OF OPTIONS. Subject to the provisions of the
Plan, the Board shall determine for each Option (which need not be identical)
the number of shares of Stock for which the Option shall be granted, the
exercise price of the Option, the timing and terms of exercisability and vesting
of the Option, the time of expiration of the Option, the effect of the
Optionee's termination of employment or service, whether the Option is to be
treated as an Incentive Stock Option or as a non-statutory stock option, the
method for satisfaction of any tax withholding obligation arising in connection
with the Option, including by the withholding or delivery of shares of stock,
and all other terms and conditions of the Option not inconsistent with the Plan.
Options granted pursuant to the Plan shall be evidenced by written agreements
specifying the number of shares of Stock covered thereby, in such form as the
Board shall from time to time establish, which agreements may incorporate all or
any of the terms of the Plan by reference and shall comply with and be subject
to the following terms and conditions:
(a) EXERCISE PRICE. The exercise price for each Option shall be
established in the sole discretion of the Board; provided, however, that (i)
the exercise price per share for an Incentive Stock Option shall be not less
than the fair market value, as determined by the Board, of a share of Stock on
the date of the granting of the Option; and (ii) no Incentive Stock Option
granted to an Optionee who at the time the Option is granted owns stock
possessing more than ten percent (10%) of the total combined voting power of
all classes of stock of a Participating Company within the meaning of Section
422(b)(6) of the Code (a "TEN PERCENT OWNER OPTIONEE") shall have an exercise
price per share less than one hundred ten percent (110%) of the fair market
value, as determined by the Board, of a share of Stock on the date of
the granting of the Option. Notwithstanding the foregoing, an Option
(whether an Incentive Stock Option or a non-statutory stock option) may be
granted with an exercise price lower than the minimum exercise price set forth
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above if such Option is granted pursuant to an assumption or substitution for
another option in a manner qualifying with the provisions of Section 424(a) of
the Code.
(b) EXERCISE PERIOD OF OPTIONS. The Board shall have the power to set,
including by amendment of an Option, the time or times within which each Option
shall be exercisable or the event or events upon the occurrence of which all or
a portion of each Option shall be exercisable and the term of each Option;
provided, however, that (i) no Option shall be exercisable after the expiration
of ten (10) years after the date such Option is granted, and (ii) no Incentive
Stock Option granted to a Ten Percent Owner Optionee shall be exercisable after
the expiration of five (5) years after the date such Option is granted.
(c) PAYMENT OF EXERCISE PRICE.
(i) FORMS OF PAYMENT AUTHORIZED. Payment of the exercise price for the
number of shares of Stock being purchased pursuant to any Option shall be made
(1) in cash, by check, or cash equivalent, (2) by tender to the Company of
shares of the Company's stock owned by the Optionee having a fair market value,
as determined by the Board (but without regard to any restrictions on
transferability applicable to such stock by reason of federal or state
securities laws or agreements with an underwriter for the Company), not less
than the exercise price, (3) by the Optionee's recourse promissory note in a
form approved by the Company, (4) by the assignment of the proceeds of a sale of
some or all of the shares being acquired upon the exercise of the Option
(including, without limitation, through an exercise complying with the
provisions of Regulation T as promulgated from time to time by the Board of
Governors of the Federal Reserve System), or (5) by any combination thereof. The
Board may at any time or from time to time grant Options which do not permit all
of the foregoing forms of consideration to be used in payment of the exercise
price and/or which otherwise restrict one or more forms of consideration.
(ii) TENDER OF COMPANY STOCK. Notwithstanding the foregoing, an Option
may not be exercised by tender to the Company of shares of the Company's stock
to the extent such tender of stock would constitute a violation of the
provisions of any law, regulation and/or agreement restricting the redemption of
the Company's stock or, if in the opinion of Company counsel, might impair the
ability of purchasers of stock from the Company from taking full advantage of
the provisions of Section 1202 of the Code relating to capital gains treatment
of stock issued by the Company. Unless otherwise provided by the Board, an
Option may not be exercised by tender to the Company of shares of the Company's
stock unless such shares of the Company's stock either have been owned by the
Optionee for more than six (6) months or were not acquired, directly or
indirectly, from the Company.
(iii) PROMISSORY NOTES. No promissory note shall be permitted if an
exercise using a promissory note would be a violation of any law. Any permitted
promissory note shall be due and payable not more than four (4) years after the
Option is exercised, but in any event upon the termination of Optionee's
employment or consulting relationship, as the case may be, with the Company, if
earlier. The Optionee shall be required to make, from time to time, mandatory
prepayments on such promissory note in an amount equal to fifty percent (50%) of
the difference between the aggregate Option exercise price and the aggregate
proceeds from the sale of the shares of Stock. Such mandatory prepayments shall
be made within ten (10) days after the sale of shares of Stock. Interest shall
be payable at least annually and be at least equal to the minimum interest rate
necessary to avoid imputed interest pursuant to all applicable sections of the
Code. The Board shall have the authority to permit or require the Optionee to
secure any promissory note used to exercise an Option with the shares of Stock
acquired on exercise of the Option and/or with other collateral acceptable to
the Company. Unless otherwise provided by the Board, in the event the Company at
any time is subject to the regulations promulgated by the Board of Governors of
A-3
the Federal Reserve System or any other governmental entity affecting the
extension of credit in connection with the Company's securities, any promissory
note shall comply with such applicable regulations, and the Optionee shall pay
the unpaid principal and accrued interest, if any, to the extent necessary to
comply with such applicable regulations.
(iv) ASSIGNMENT OF PROCEEDS OF SALE. The Company reserves, at any and
all times, the right, in the Company's sole and absolute discretion, to
establish, decline to approve and/or terminate any program and/or procedures
for the exercise of Options by means of an assignment of the proceeds of a sale
of some or all of the shares of Stock to be acquired upon such exercise.
7. STANDARD FORMS OF STOCK OPTION AGREEMENT.
(a) INCENTIVE STOCK OPTIONS. Unless otherwise provided for by the Board
at the time an Option is granted, an Option designated as an "Incentive Stock
Option" shall comply with and be subject to the terms and conditions set forth
in the form of incentive stock option agreement attached hereto as EXHIBIT A and
incorporated herein by reference.
(b) NON-STATUTORY STOCK OPTIONS. Unless otherwise provided for by the
Board at the time an Option is granted, an Option designated as a "Non-statutory
Stock Option" shall comply with and be subject to the terms and conditions set
forth in the forms of non-statutory stock option agreement attached hereto as
EXHIBIT B and incorporated herein by reference.
(c) STANDARD TERM FOR OPTIONS. Unless otherwise provided for by the
Board in the grant of an Option, any Option granted hereunder shall be
exercisable for a term of ten (10) years.
8. AUTHORITY TO VARY TERMS. The Board shall have the authority from time to
time to vary the terms of either of the standard forms of Stock Option Agreement
described in paragraph 7 above either in connection with the grant or amendment
of an individual Option or in connection with the authorization of a new
standard form or forms; provided, however, that the terms and conditions of such
revised or amended standard form or forms of stock option agreement shall be in
accordance with the terms of the Plan. Such authority shall include, but not by
way of limitation, the authority to grant Options which are not immediately
exercisable.
9. FAIR MARKET VALUE LIMITATION. To the extent that the aggregate fair
market value (determined at the time the Option is granted) of stock with
respect to which Incentive Stock Options are exercisable by an Optionee for the
first time during any calendar year (under all stock option plans of the
Company, including the Plan) exceeds One Hundred Thousand Dollars ($100,000),
such Options shall be treated as non-statutory stock options. This paragraph
shall be applied by taking Incentive Stock Options into account in the order in
which they were granted.
10. EFFECT OF CHANGE IN STOCK SUBJECT TO PLAN. Appropriate adjustments
shall be made in the number and class of shares of Stock subject to the Plan and
to any outstanding Options and in the exercise price of any outstanding Options
in the event of a stock dividend, stock split, reverse stock split,
recapitalization, combination, reclassification, or like change in the capital
structure of the Company.
In the event a majority of the shares which are of the same class as the
shares that are subject to outstanding Options are exchanged for, converted
into, or otherwise become (whether or not pursuant to a Transfer of Control (as
defined below)) shares of another corporation (the "NEW SHARES"), the Company
may unilaterally amend the outstanding Options to provide that such Options are
exercisable for New Shares. In the event of any such amendment, the number of
A-4
shares and the exercise price of the outstanding Options shall be adjusted in a
fair and equitable manner.
11. DISSOLUTION, SALE, ETC. In the event of the proposed dissolution or
liquidation of the Company, or in the event of a proposed sale of all or
substantially all of the assets of the Company, or the merger of the Company
with or into another corporation, the Options will terminate immediately prior
to the consummation of such proposed action, unless otherwise provided by the
Board. The Board may, in the exercise of its sole discretion, in such instances
declare that any Option shall terminate as of a date fixed by the Board and give
each Optionee the right to exercise his Option as to all or any part of the
Stock, including shares to which the Option would not otherwise be exercisable.
12. PROVISION OF INFORMATION. Each Optionee shall be given access to
information concerning the Company equivalent to that information generally made
available to the Company's common stockholders generally.
13. OPTIONS NON-TRANSFERABLE. During the lifetime of the Optionee, the
Option shall be exercisable only by the Optionee. No Option shall be assignable
or transferable by the Optionee, except by will or by the laws of descent and
distribution.
14. TERMINATION OR AMENDMENT OF PLAN OR OPTIONS. The Board, including any
duly appointed committee of the Board, may terminate or amend the Plan or any
Option at any time; provided, however, that without the approval of the
Company's stockholders, there shall be (a) no increase in the total number of
shares of Stock covered by the Plan (except by operation of the provisions of
paragraph 10 above), (b) no change in the class eligible to receive Incentive
Stock Options and (c) no expansion in the class eligible to receive
non-statutory stock options. In addition to the foregoing, the approval of the
Company's stockholders shall be sought for any amendment to the Plan for which
the Board deems stockholder approval necessary in order to comply with Rule
16b-3. In any event, no amendment may adversely affect any then outstanding
Option or any unexercised portion thereof, without the consent of the Optionee,
unless such amendment is required to enable an Option designated as an Incentive
Stock Option to qualify as an Incentive Stock Option.
IN WITNESS WHEREOF, the undersigned President of the Company certifies that
the foregoing Amended and Restated Medjet Inc. 1994 Stock Option Plan was duly
adopted by the Board of Directors of the Company on the 5th day of February,
1997.
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A-5
PLAN HISTORY
------------
September 30, 1994 Board of Directors adopts the Medjet Inc.
1994 Employee Stock Option Plan (the "INITIAL
PLAN") with a share reserve of twenty-five
thousand shares.
May 27, 1995 Stockholders approve the Initial Plan with a
share reserve of twenty-five thousand shares.
March 29, 1996 200,000 additional shares of Common Stock are
reserved for issuance under the Stock Option
Plan, after giving effect to the 1.987538926
for 1 stock split of the Company's Common
Stock approved on March 29, 1996 and
effected on August 6, 1996 for a total of
249,688.
May 2, 1996 Stockholders approve the 200,000 increased
share reserve to a total of 249,688 shares.
February 5, 1997 200,000 additional shares of Common Stock
are reserved for issuance under the Stock
Option Plan for a total of 449,688 shares.
June 27, 1997 Stockholders approve the 200,000 increased
share reserve to a total of 449,688 shares.
A-6
[FRONT] MEDJET INC.
PROXY
THIS PROXY IS BEING SOLICITED BY THE BOARD OF DIRECTORS FOR THE
ANNUAL MEETING OF STOCKHOLDERS TO BE HELD ON JUNE 27, 199722, 1998
The undersigned hereby appoints Dr. Eugene I. Gordon, Ph.D. and Thomas
M. Handschiegel or either of them, as proxies, with full individual power of
substitution to represent the undersigned and to vote all shares of Common Stockcapital
stock of the Company which the undersigned is entitled to vote at the Annual
Meeting of Stockholders of the Company to be held at 1090 King Georges Post Road, Suite
505, Edison,Temple Beth-El, 338 Walnut
Avenue, Cranford, New Jersey on June 27, 199722, 1998 at 10:00 A.M., local time,9:30 a.m. and any and all
adjournments thereof, in the manner specified below:below. If this Proxy is returned
without direction being given, the Proxy will be voted FOR proposal no. 1. The
Board of Directors recommends a vote FOR proposal no. 1.
1. Election of directors
NOMINEES:
--------
Dr. Eugene I. Gordon, Robert G. Donovan
Dr. Steven G. Cooperman James J. Bialek
Sanford J. HillsbergPh.D |_| FOR all nominees listed above
Sanford J. Hillsberg |_| WITHHOLD AUTHORITY to vote for the following:
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2. ProposalEdward E. David, Jr., Sc.d.
Malcolm R. Kahn
Steve M. Peltzman
If you plan to amendattend the Company's 1994 Stock Option Plan to increaseAnnual Meeting of Stockholders in person, please so
indicate by marking the number of shares of Common Stock available for issuance thereunder.box. |_| FOR |_| AGAINST |_| ABSTAIN
[BACK]
THIS PROXY, WHEN PROPERLY EXECUTED, SHALL BE VOTED AS DIRECTED. IF NO
DIRECTION IS INDICATED, THIS PROXY WILL BE VOTED FOR EACH PROPOSAL.PROPOSAL NO. 1. Should any
other matter requiring a vote of the stockholders arise, the persons named in
this Proxy or their substitutes shall vote in accordance with their best
judgment in the interest of the Company. The Board of Directors is not aware of
any matter which is to be presented for action at the meeting other than the
matters set forth herein.
Dated:-------------------------, 1997
----------------------------------------1998
-------------------------------------
Signature
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Signature
Please sign the Proxy exactly as name
appears. When shares are held by joint
tenants, both should sign. Executors,
administrators, trustees or otherwiseothers
signing in a representative capacity
should indicate the capacity in which
signed.
PLEASE VOTE, SIGN, DATE AND RETURN THE PROXY CARD
PROMPTLY USING THE ENCLOSED ENVELOPE.