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BALLISTIC RECOVERY SYSTEMS, INC.
1845 Henry Avenue
South St. Paul, Minnesota 55075
NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
TO OUR SHAREHOLDERS:
Please take notice that the Annual Meeting of the Shareholders of Ballistic
Recovery Systems, Inc., a Minnesota corporation (the "Company"), will be held
at Fleming Field, 1845 Henry Avenue South St. Paul, Minnesota 55075, on Monday,
March 18, 1996 at 4:00 p.m. Central Time, to consider and vote upon the
following matters:
1. Election of directors of the Company.
2. Such other business as may properly come before the meeting
or any adjournment thereof.
The Board of Directors of the Company has fixed the close of business on
January 29, 1996, as the record date for the determination of shareholders
entitled to notice of and to vote at the Annual Meeting.
SHAREHOLDERS WHO DO NOT EXPECT TO BE PRESENT PERSONALLY AT THE ANNUAL MEETING
ARE URGED TO COMPLETE, DATE, SIGN AND RETURN THE ACCOMPANYING PROXY, WHICH IS
SOLICITED BY THE BOARD OF DIRECTORS, IN THE ENCLOSED, SELF-ADDRESSED ENVELOPE.
The Board of Directors of the Company sincerely hopes, however, that all
shareholders who can attend the Annual Meeting will do so.
It is important that your shares be represented and voted at the Annual
Meeting. You should, therefore, return your Proxy at your earliest convenience.
BY ORDER OF THE BOARD OF DIRECTORS
Mark B. Thomas
Secretary
Dated: January 29, 1996
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BALLISTIC RECOVERY SYSTEMS, INC.
1845 Henry Avenue
South St. Paul, Minnesota 55075
(612) 457-7491
PROXY STATEMENT
SOLICITATION AND REVOCATION OF PROXIES
The accompanying Proxy is solicited by the Board of Directors of Ballistic
Recovery Systems, Inc. (the "Company") in connection with the Annual Meeting of
the Shareholders of the Company, which will be held on March 18, 1996, and any
adjournments thereof. Proxies may be revoked at any time prior to their being
voted by giving written notice of revocation to an officer of the Company or by
delivery to an officer of the Company of a later dated Proxy. Unless so
revoked, all properly executed Proxies will be voted.
Proxies may be solicited by officers or other employees of the Company, who
will receive no special compensation for their services. The Company may
reimburse brokers, banks and other nominees holding shares for others for the
costs of forwarding proxy materials to, and obtaining proxies from, their
principals. This Proxy Statement, together with the Company's Summary Annual
Report for the year ended September 30, 1995 is first being mailed to
shareholders on or about February 10, 1996.
VOTING RIGHTS
Only shareholders of record at the close of business on January 29, 1996 are
entitled to notice of and to vote at the meeting or any adjournment thereof.
As of that date, there were issued and outstanding 4,454,474 shares of Common
Stock of the Company, the only class of securities of the Company entitled to
vote at the meeting. Each shareholder of record is entitled to one vote for
each share registered in his or her name as of the record date. Holders of
Common Stock are not entitled to cumulate their votes for the election of
directors. The presence in person or by proxy of holders of a majority of
shares of the Common Stock entitled to vote at the Annual Meeting will
constitute a quorum for the transaction of business. Abstentions will be
treated as shares that are present and entitled to vote for purposes of
determining a quorum, but unvoted for purposes of determining the approval of
any matter submitted to a vote at the Annual Meeting. If a broker indicates on
the proxy card that it does not have discretionary authority to vote certain
shares on a particular matter, those shares will not be considered as voted for
determining the approval of such matter. If no instructions are indicated,
such proxies will be voted for all of the nominees to the Board of Directors.
The affirmative vote of the holders of the greater of (a) a majority of the
outstanding shares of Common Stock of the Company present and entitled to vote
on the election of directors or (b) a majority of the voting power of the
minimum number of shares entitled to vote that would constitute a quorum for
transaction of business at the meeting, is required for election of the Board
of each of the nominees named below. A shareholder who abstains with respect
to the election of directors is considered to be present and entitled to vote
on the election of directors at the meeting, and is in effect casting a
negative vote, but a shareholder (including a broker) who does not give
authority to a Proxy to vote, or withholds authority to vote, on the election
of directors, shall not be considered present and entitled to vote on the
election of directors.
COMMON STOCK OWNERSHIP OF PRINCIPAL SHAREHOLDERS AND MANAGEMENT
The following table sets forth certain information as of January 29, 1996
(based on the Company's stock records and information provided by the
individuals named), with respect to the stock ownership of all persons known by
the Company to be beneficial owners of more than five percent of its
outstanding Common Stock, all directors and nominees to become directors, and
all executive officers and directors of the Company as a group.
Name and Address Number of Percent
of Beneficial Owner Title Shares Owned (1) of Class
---------------------- ----- ---------------- --------
Darrel D. Brandt Chief Executive 2,271,000 (2) 35.6%
8603 West First St. Officer and Director
Cedar Falls, IA 50613
Boris Popov Director and 647,000 (3) 10.2%
4099 Penfield Court S. Chairman
Afton, MN 55001
Thomas H. Adams, Jr. Director 113,000 (4) 1.8%
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Robert L. Nelson Director 39,200 (5) 0.6%
Mark B. Thomas Chief Financial Officer, 61,656 (6) 1.0%
Chief Operations Officer
and Secretary
All executive officers 3,131,856 (7) 49.2%
and directors as a
group (5 persons)
- ---------------------------------------------------------------------
(1) Unless otherwise indicated, all persons have sole voting power and sole
investment power with respect to the shares indicated. Includes shares
that may be acquired by exercise of options currently exercisable
(including options becoming exercisable within 60 days of January 29,
1996.)
(2) Includes 1,030,000 shares issuable upon exercise of currently exercisable
options.
(3) Includes 50,000 shares issuable upon exercise of currently exercisable
options.
(4) Includes 85,000 shares issuable upon exercise of currently exercisable
options.
(5) Includes 30,000 shares issuable upon exercise of currently exercisable
options.
(6) Includes 61,656 shares issuable upon exercise of currently exercisable
options.
(7) Includes 1,256,656 shares issuable upon exercise of currently exercisable
options.
ELECTION OF DIRECTORS
(Proposal No. 1)
Four directors will be elected at the 1996 Annual Meeting, each to serve until
the next Annual Meeting of Shareholders and until a successor is elected and
qualified or until his earlier resignation or removal. The Board of Directors
has nominated the four persons named below.
The enclosed Proxy will be voted for the four nominees named below. Such
nominees have indicated a willingness to serve as directors for the one year
term. In the event that any nominee becomes unavailable for any reason (which
is not currently anticipated), the persons named in the enclosed Proxy have
advised that they will vote for the election of such substitute nominees as the
Board of Directors may propose.
The names and ages of the nominees, their principal occupations, and other
information is set forth below, based upon information furnished to the Company
by the nominees.
Name Age Director Since
----- --- --------------
Boris Popov 49 1980
Thomas H. Adams, Jr. 59 1986
Darrel D. Brandt 54 1991
Robert L. Nelson 52 1993
Boris Popov has served the Company in various capacities, including consulting
on international sales and development of GARD. Mr. Popov is currently
employed by the Company as a salesperson responsible for international sales.
Mr. Popov is also president of Northern Sun, Inc., a privately owned St. Paul,
Minnesota based company that is engaged in aircraft equipment sales. In
addition, Mr. Popov is a part owner and officer in Northern Sun Outdoor Group,
Inc., a privately owned St. Paul, Minnesota based company that sells and
licenses outdoor products.
Thomas H. Adams, Jr. has been a Northwest Airlines 747 captain for more than
five years. Prior to 1993, Mr. Adams was also a 25% owner and an officer of
Professional Pilots Service, Inc. of Florida.
Darrel D. Brandt was appointed a director in May 1991 in accordance with the
provisions of a loan he made to the Company. When the Company's chief
executive and chief financial officers resigned in December 1991, Mr. Brandt,
began serving as the acting principal executive and financial officer. Mr.
Brandt continued to serve as the Company's principal executive officer until
November 22, 1995 when he resigned that position. Mr. Brandt is a part owner
and officer in Northern Sun Outdoor Group, Inc., a privately owned St. Paul,
Minnesota based company that sells and licenses outdoor products.
Robert L. Nelson was appointed a director in March 1993. He is the president
and chief operations officer of Wipaire, Inc. of South St. Paul for the past
four years. Previously he founded Robert L. Nelson & Associates, a financial
and business management services firm with an emphasis on general aviation.
The Board of Directors met three times during fiscal 1995. All directors
attended all of the meetings of the Board of Directors.
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Director Compensation
During fiscal 1995 the members of the Board received director's fees of $250
for each meeting attended. An aggregate of $3,000 in such fees was paid or
accrued for directors' services in fiscal 1995.
Directors' Stock Option Plan. Pursuant to a plan adopted in 1990, each non
employee director is granted an option on the next business day following the
annual shareholders' meeting to purchase 10,000 shares of Common Stock. The
exercise price is equal to the fair market value of the Common Stock on the
date of grant. The options vest in quarterly increments of 25%, beginning
three months following the date of grant, provided the director is still
serving on such date. The final increment becomes exercisable on the earlier
of twelve months following the grant or the date of the annual meeting next
following the date of grant. Effective March 28, 1995, the two non employee
directors then serving were granted options to purchase in the aggregate,
20,000 shares of Common Stock, at an exercise price of $0.25 per share. No
options were exercised during fiscal 1995.
Effective March 28, 1995, the two employee directors then serving were granted
a discretionary option to purchase the aggregate of 20,000 shares of Common
Stock, at an exercise price of $0.25 per share. The vesting of the options
followed the option guidelines for the Director's Stock Option Plan above. No
options were exercised during fiscal 1995.
EXECUTIVE COMPENSATION
SUMMARY COMPENSATION TABLE
The following table sets forth the cash and non cash compensation earned or
awarded to the chief executive officer of the Company for each of the last
three fiscal years.
Name and Fiscal Annual Compensation
-------------------------------------
Principal Position Year Salary Stock Options
----------------------- ------ ------- -------------------
Darrel D. Brandt (1) 1995 $9,750 No shares
Chief Executive Officer 1994 9,985 30,000 shares
1993 3,800 120,000 shares
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(1) Mr. Brandt became Chief Executive Officer in December 1991. Mr. Brandt
resigned his position as Chief Executive Officer on November 22, 1995.
He was succeeded by Mark B. Thomas who was the Company's Chief Operations
Officer and Chief Financial Officer.
In addition to the above compensation, Mr. Brandt was granted an option for
10,000 shares of Common Stock for service on the Board of Directors.
FISCAL YEAR-END OPTION VALUES
As of September 30, 1995, the chief executive officer, Darrel D. Brandt, has
been granted options in the aggregate of 1,030,000 shares which were fully
exercisable. None of these options have been exercised. Since there is no
active market for the Company's common stock, it is not believed that any of
the options are currently in-the-money and, therefore, no value is computed for
the unexercised options.
Effective March 1995, the Board of Directors extended the expiration dates of
480,000 options to the year 2001 that were scheduled to expire in 1997 and
1998. The action was taken due to Mr. Brandt's involvement in the Company
and the desire to maintain his involvement in the Company.
INDEPENDENT ACCOUNTANTS
Carver, Callahan, Moquist & Johnston, P.A. have been the independent public
accountants for the Company since 1992, and is expected to be retained for
fiscal 1996. A representative of Carver, Callahan, Moquist & Johnston, P.A. is
expected to attend this year's Annual Meeting of Shareholders and have an
opportunity to make a statement and/or respond to appropriate questions from
shareholders.
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SHAREHOLDER PROPOSALS
The rules of the Securities and Exchange Commission permit shareholders of the
Company, after timely notice to the Company, to present proposals for
shareholder action in the company's proxy statement where such proposals are
consistent with applicable law, pertain to matters appropriate for shareholder
action, and are not properly omitted by company action in accordance with
federal proxy rules. The 1997 Annual Meeting of Shareholders for the Company
is expected to be held on or about March 17, 1997 and the proxy materials in
connection with that meeting are expected to be mailed on or about January 31,
1997. Shareholder proposals prepared in accordance with the proxy rules must
be received by the Company on or before October 4, 1996.
OTHER MATTERS
The Board of Directors knows of no matters other than the foregoing to be
brought before the meeting. However, the enclosed Proxy gives discretionary
authority in the event that any additional matters should be presented.
AVAILABILITY OF FORM 10-KSB
The Company is including with this Proxy Statement its Summary Annual Report
for the year ended September 30, 1995, which includes financial information
relating to the Company. You can receive a copy of the Company's annual report
to the SEC on Form 10-KSB at no charge by writing to Ballistic Recovery
Systems, Inc., Shareholder Relations, 1845 Henry Avenue, South St. Paul,
Minnesota 55075.
BY ORDER OF THE BOARD OF DIRECTORS
Mark B. Thomas
Secretary
Dated: January 29, 1996
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BALLISTIC RECOVERY SYSTEMS, INC.
PROXY
ANNUAL MEETING OF SHAREHOLDERS - MARCH 18, 1996
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS
The undersigned hereby appoints Darrel D. Brandt and Thomas H. Adams, Jr., or
either of them, proxies or proxy, with full power of substitution to vote all
shares of Common Stock of Ballistic Recovery Systems, Inc. (the "Company")
which the undersigned is entitled to vote at the Annual Meeting of Shareholders
to be held on March 18, 1996, at 4:00 p.m. Central Time, at Fleming Field, 1845
Henry Avenue, South St. Paul, Minnesota 55075, and at any adjournment thereof,
as directed below with respect to the proposals set forth below, all as more
fully described in the Proxy Statement, and upon any other matter that may
properly come before the meeting or any adjournment thereof.
1. ELECTION OF DIRECTORS:
______FOR all nominees, _______WITHHOLD AUTHORITY
listed below: to vote for all nominees
Thomas H. Adams, Jr.
Darrel D. Brandt
Boris Popov
Robert L. Nelson
(except as marked to the contrary below)
INSTRUCTION: To withhold authority for any individual nominee, write
that nominee's name in the space provided:_____________________________
2. Upon such other matters as may properly come before the meeting.
The undersigned hereby revokes all previous proxies relating to the shares
covered hereby and acknowledges receipt of the Notice and Proxy Statement
relating to the Annual Meeting of Shareholders.
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS. When properly
executed, this proxy will be voted on the proposals set forth herein as
directed by the shareholder, but if no direction is made in the space provided,
this proxy will be voted FOR the election of all nominees for director.
It is important that each shareholder complete, date, sign, and mail this Proxy
as soon as possible. Your vote is important!
Dated and Signed ________________, 1996.
___________________________ ___________________________
Signature of Shareholder(s) Signature of Shareholder(s)
IMPORTANT: Please date and sign exactly as your name or names appear hereon.
When signing as attorney, executor, trustee, guardian, or authorized officer of
a corporation or partner of a partnership, please give your title as such.
PLEASE DO NOT FORGET TO DATE THIS PROXY.