UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No. )
Filed by the Registrant
o
Filed by a Party other than the Registrant
þ
Check the appropriate box:
o
Preliminary Proxy Statement
o
Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
o
Definitive Proxy Statement
o
Definitive Additional Materials
þ
Soliciting Material Under Rule 14a-12
(Name of Registrant as Specified in its Charter)
Sam P. Douglass
Douglass Trust IV - FBO S. Preston Douglass, Jr.
Douglass Trust IV - FBO Brooke Douglass
Tiel Trust FBO Sam P. Douglass
Paula T. Douglass
Tiel Trust FBO Paula T. Douglass
Lance T. Funston
Dr. Francis D. Tuggle
Charles M. Boyd
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
þ
|
|
No fee required.
|
|
o
|
|
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:
|
|
|
(2)
|
|
Aggregate number of securities to which transaction applies:
|
|
|
(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):
|
|
|
(4)
|
|
Proposed maximum aggregate value of transaction:
|
|
|
(5)
|
|
Total fee paid:
|
o
|
|
Fee paid previously with preliminary materials.
|
|
o
|
|
Check box if any part of the fee is offset as provided by Exchange
Act Rule 0-11(a)(2) and identify the filing for which the
offsetting fee was paid previously. Identify the previous filing
by registration statement number, or the Form or Schedule and the
date of its filing.
|
|
(1)
|
|
Amount previously paid:
|
|
|
(2)
|
|
Form, Schedule or Registration Statement No.:
|
|
|
(3)
|
|
Filing Party:
|
|
|
(4)
|
|
Date Filed:
|
Explanatory Note
On April 2, 2010, Sam P. Douglass, Douglass Trust IV FBO S. Preston Douglass, Jr., Douglass
Trust IV FBO Brooke Douglass, Tiel Trust FBO Sam P. Douglass, Paula T. Douglass, Tiel Trust FBO
Paula T. Douglass, Lance T. Funston, Dr. Francis D. Tuggle and Charles M. Boyd filed with the
Securities and Exchange Commission the following fifth amendment to their Schedule 13D with respect
to Equus Total Return, Inc.
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 5 )*
(Name of Issuer)
Common Stock, par value $0.001
(Title of Class of Securities)
(CUSIP Number)
Sam P. Douglass
3229 Groveland Lane
Houston, Texas 77019
and
Paula T. Douglass
3229 Groveland Lane
Houston, Texas 77019
(713) 526-9000
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of
Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box.
o
Note:
Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7 for other parties to whom copies are to be sent.
* The remainder of this cover page shall be filled out for a reporting persons initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed to be filed for the purpose of Section 18 of the Securities Exchange Act of 1934 (Act) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).
|
|
|
|
|
|
1
|
|
NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
|
|
|
Sam P. Douglass
|
|
|
|
2
|
|
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
|
|
(a)
þ
|
|
(b)
o
|
|
|
|
3
|
|
SEC USE ONLY
|
|
|
|
|
|
|
|
4
|
|
SOURCE OF FUNDS*
|
|
|
|
OO, PF
|
|
|
|
5
|
|
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
|
|
|
|
o
|
|
|
|
6
|
|
CITIZENSHIP OR PLACE OF ORGANIZATION
|
|
|
|
United States
|
|
|
|
|
|
7
|
|
SOLE VOTING POWER
|
|
|
|
NUMBER OF
|
|
671,191
|
|
|
|
|
SHARES
|
8
|
|
SHARED VOTING POWER
|
BENEFICIALLY
|
|
|
OWNED BY
|
|
0
|
|
|
|
|
EACH
|
9
|
|
SOLE DISPOSITIVE POWER
|
REPORTING
|
|
|
PERSON
|
|
671,191
|
|
|
|
|
WITH
|
10
|
|
SHARED DISPOSITIVE POWER
|
|
|
|
|
|
0
|
|
|
|
11
|
|
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
|
|
|
|
671,191 shares of common stock
|
|
|
|
12
|
|
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
|
|
|
|
o
|
|
|
|
13
|
|
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
|
|
|
|
7.6%
|
|
|
|
14
|
|
TYPE OF REPORTING PERSON*
|
|
|
|
IN
|
*SEE INSTRUCTIONS
1
|
|
|
|
|
|
1
|
|
NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
|
|
|
Douglass Trust IV FBO S. Preston Douglass, Jr.
|
|
|
|
2
|
|
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
|
|
(a)
þ
|
|
(b)
o
|
|
|
|
3
|
|
SEC USE ONLY
|
|
|
|
|
|
|
|
4
|
|
SOURCE OF FUNDS*
|
|
|
|
OO
|
|
|
|
5
|
|
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
|
|
|
|
o
|
|
|
|
6
|
|
CITIZENSHIP OR PLACE OF ORGANIZATION
|
|
|
|
Texas
|
|
|
|
|
|
7
|
|
SOLE VOTING POWER
|
|
|
|
NUMBER OF
|
|
282,791
|
|
|
|
|
SHARES
|
8
|
|
SHARED VOTING POWER
|
BENEFICIALLY
|
|
|
OWNED BY
|
|
0
|
|
|
|
|
EACH
|
9
|
|
SOLE DISPOSITIVE POWER
|
REPORTING
|
|
|
PERSON
|
|
282,791
|
|
|
|
|
WITH
|
10
|
|
SHARED DISPOSITIVE POWER
|
|
|
|
|
|
0
|
|
|
|
11
|
|
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
|
|
|
|
282,791 shares of common stock
|
|
|
|
12
|
|
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
|
|
|
|
o
|
|
|
|
13
|
|
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
|
|
|
|
3.2%
|
|
|
|
14
|
|
TYPE OF REPORTING PERSON*
|
|
|
|
OO
|
*SEE INSTRUCTIONS
2
|
|
|
|
|
|
1
|
|
NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
|
|
|
Douglass Trust IV FBO Brooke Douglass
|
|
|
|
2
|
|
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
|
|
(a)
þ
|
|
(b)
o
|
|
|
|
3
|
|
SEC USE ONLY
|
|
|
|
|
|
|
|
4
|
|
SOURCE OF FUNDS*
|
|
|
|
OO
|
|
|
|
5
|
|
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
|
|
|
|
o
|
|
|
|
6
|
|
CITIZENSHIP OR PLACE OF ORGANIZATION
|
|
|
|
Texas
|
|
|
|
|
|
7
|
|
SOLE VOTING POWER
|
|
|
|
NUMBER OF
|
|
282,792
|
|
|
|
|
SHARES
|
8
|
|
SHARED VOTING POWER
|
BENEFICIALLY
|
|
|
OWNED BY
|
|
0
|
|
|
|
|
EACH
|
9
|
|
SOLE DISPOSITIVE POWER
|
REPORTING
|
|
|
PERSON
|
|
282,792
|
|
|
|
|
WITH
|
10
|
|
SHARED DISPOSITIVE POWER
|
|
|
|
|
|
0
|
|
|
|
11
|
|
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
|
|
|
|
282,792 shares of common stock
|
|
|
|
12
|
|
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
|
|
|
|
o
|
|
|
|
13
|
|
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
|
|
|
|
3.2%
|
|
|
|
14
|
|
TYPE OF REPORTING PERSON*
|
|
|
|
OO
|
*SEE INSTRUCTIONS
3
|
|
|
|
|
|
1
|
|
NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
|
|
|
Tiel Trust FBO Sam P. Douglass
|
|
|
|
2
|
|
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
|
|
(a)
þ
|
|
(b)
o
|
|
|
|
3
|
|
SEC USE ONLY
|
|
|
|
|
|
|
|
4
|
|
SOURCE OF FUNDS*
|
|
|
|
OO
|
|
|
|
5
|
|
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
|
|
|
|
o
|
|
|
|
6
|
|
CITIZENSHIP OR PLACE OF ORGANIZATION
|
|
|
|
Texas
|
|
|
|
|
|
7
|
|
SOLE VOTING POWER
|
|
|
|
NUMBER OF
|
|
52,257
|
|
|
|
|
SHARES
|
8
|
|
SHARED VOTING POWER
|
BENEFICIALLY
|
|
|
OWNED BY
|
|
0
|
|
|
|
|
EACH
|
9
|
|
SOLE DISPOSITIVE POWER
|
REPORTING
|
|
|
PERSON
|
|
52,257
|
|
|
|
|
WITH
|
10
|
|
SHARED DISPOSITIVE POWER
|
|
|
|
|
|
0
|
|
|
|
11
|
|
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
|
|
|
|
52,257 shares of common stock
|
|
|
|
12
|
|
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
|
|
|
|
o
|
|
|
|
13
|
|
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
|
|
|
|
0.6%
|
|
|
|
14
|
|
TYPE OF REPORTING PERSON*
|
|
|
|
OO
|
*SEE INSTRUCTIONS
4
|
|
|
|
|
|
1
|
|
NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
|
|
|
Paula T. Douglass
|
|
|
|
2
|
|
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
|
|
(a)
þ
|
|
(b)
o
|
|
|
|
3
|
|
SEC USE ONLY
|
|
|
|
|
|
|
|
4
|
|
SOURCE OF FUNDS*
|
|
|
|
OO, PF
|
|
|
|
5
|
|
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
|
|
|
|
o
|
|
|
|
6
|
|
CITIZENSHIP OR PLACE OF ORGANIZATION
|
|
|
|
United States
|
|
|
|
|
|
7
|
|
SOLE VOTING POWER
|
|
|
|
NUMBER OF
|
|
115,751
|
|
|
|
|
SHARES
|
8
|
|
SHARED VOTING POWER
|
BENEFICIALLY
|
|
|
OWNED BY
|
|
0
|
|
|
|
|
EACH
|
9
|
|
SOLE DISPOSITIVE POWER
|
REPORTING
|
|
|
PERSON
|
|
115,751
|
|
|
|
|
WITH
|
10
|
|
SHARED DISPOSITIVE POWER
|
|
|
|
|
|
0
|
|
|
|
11
|
|
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
|
|
|
|
115,751 shares of common stock
|
|
|
|
12
|
|
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
|
|
|
|
o
|
|
|
|
13
|
|
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
|
|
|
|
1.3%
|
|
|
|
14
|
|
TYPE OF REPORTING PERSON*
|
|
|
|
IN
|
*SEE INSTRUCTIONS
5
|
|
|
|
|
|
1
|
|
NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
|
|
|
Tiel Trust FBO Paula T. Douglass
|
|
|
|
2
|
|
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
|
|
(a)
þ
|
|
(b)
o
|
|
|
|
3
|
|
SEC USE ONLY
|
|
|
|
|
|
|
|
4
|
|
SOURCE OF FUNDS*
|
|
|
|
OO
|
|
|
|
5
|
|
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
|
|
|
|
o
|
|
|
|
6
|
|
CITIZENSHIP OR PLACE OF ORGANIZATION
|
|
|
|
United States
|
|
|
|
|
|
7
|
|
SOLE VOTING POWER
|
|
|
|
NUMBER OF
|
|
53,986
|
|
|
|
|
SHARES
|
8
|
|
SHARED VOTING POWER
|
BENEFICIALLY
|
|
|
OWNED BY
|
|
0
|
|
|
|
|
EACH
|
9
|
|
SOLE DISPOSITIVE POWER
|
REPORTING
|
|
|
PERSON
|
|
53,986
|
|
|
|
|
WITH
|
10
|
|
SHARED DISPOSITIVE POWER
|
|
|
|
|
|
0
|
|
|
|
11
|
|
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
|
|
|
|
53,986 shares of common stock
|
|
|
|
12
|
|
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
|
|
|
|
o
|
|
|
|
13
|
|
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
|
|
|
|
0.6%
|
|
|
|
14
|
|
TYPE OF REPORTING PERSON*
|
|
|
|
OO
|
6
|
|
|
|
|
|
1
|
|
NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
|
|
|
Lance T. Funston
|
|
|
|
2
|
|
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
|
|
(a)
þ
|
|
(b)
o
|
|
|
|
3
|
|
SEC USE ONLY
|
|
|
|
|
|
|
|
4
|
|
SOURCE OF FUNDS*
|
|
|
|
PF
|
|
|
|
5
|
|
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
|
|
|
|
o
|
|
|
|
6
|
|
CITIZENSHIP OR PLACE OF ORGANIZATION
|
|
|
|
United States
|
|
|
|
|
|
7
|
|
SOLE VOTING POWER
|
|
|
|
NUMBER OF
|
|
217,033
|
|
|
|
|
SHARES
|
8
|
|
SHARED VOTING POWER
|
BENEFICIALLY
|
|
|
OWNED BY
|
|
0
|
|
|
|
|
EACH
|
9
|
|
SOLE DISPOSITIVE POWER
|
REPORTING
|
|
|
PERSON
|
|
217,033
|
|
|
|
|
WITH
|
10
|
|
SHARED DISPOSITIVE POWER
|
|
|
|
|
|
0
|
|
|
|
11
|
|
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
|
|
|
|
217,033 shares of common stock
|
|
|
|
12
|
|
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
|
|
|
|
o
|
|
|
|
13
|
|
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
|
|
|
|
2.4%
|
|
|
|
14
|
|
TYPE OF REPORTING PERSON*
|
|
|
|
IN
|
7
|
|
|
|
|
|
1
|
|
NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
|
|
|
Dr. Francis D. Tuggle
|
|
|
|
2
|
|
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
|
|
(a)
þ
|
|
(b)
o
|
|
|
|
3
|
|
SEC USE ONLY
|
|
|
|
|
|
|
|
4
|
|
SOURCE OF FUNDS*
|
|
|
|
PF
|
|
|
|
5
|
|
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
|
|
|
|
o
|
|
|
|
6
|
|
CITIZENSHIP OR PLACE OF ORGANIZATION
|
|
|
|
United States
|
|
|
|
|
|
7
|
|
SOLE VOTING POWER
|
|
|
|
NUMBER OF
|
|
6,536
|
|
|
|
|
SHARES
|
8
|
|
SHARED VOTING POWER
|
BENEFICIALLY
|
|
|
OWNED BY
|
|
0
|
|
|
|
|
EACH
|
9
|
|
SOLE DISPOSITIVE POWER
|
REPORTING
|
|
|
PERSON
|
|
6,536
|
|
|
|
|
WITH
|
10
|
|
SHARED DISPOSITIVE POWER
|
|
|
|
|
|
0
|
|
|
|
11
|
|
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
|
|
|
|
6,536 shares of common stock
|
|
|
|
12
|
|
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
|
|
|
|
o
|
|
|
|
13
|
|
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
|
|
|
|
0.0007%
|
|
|
|
14
|
|
TYPE OF REPORTING PERSON*
|
|
|
|
IN
|
8
|
|
|
|
|
|
1
|
|
NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
|
|
|
Charles M. Boyd
|
|
|
|
2
|
|
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
|
|
(a)
þ
|
|
(b)
o
|
|
|
|
3
|
|
SEC USE ONLY
|
|
|
|
|
|
|
|
4
|
|
SOURCE OF FUNDS*
|
|
|
|
PF
|
|
|
|
5
|
|
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
|
|
|
|
o
|
|
|
|
6
|
|
CITIZENSHIP OR PLACE OF ORGANIZATION
|
|
|
|
United States
|
|
|
|
|
|
7
|
|
SOLE VOTING POWER
|
|
|
|
NUMBER OF
|
|
1,098
|
|
|
|
|
SHARES
|
8
|
|
SHARED VOTING POWER
|
BENEFICIALLY
|
|
|
OWNED BY
|
|
0
|
|
|
|
|
EACH
|
9
|
|
SOLE DISPOSITIVE POWER
|
REPORTING
|
|
|
PERSON
|
|
1,098
|
|
|
|
|
WITH
|
10
|
|
SHARED DISPOSITIVE POWER
|
|
|
|
|
|
0
|
|
|
|
11
|
|
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
|
|
|
|
1,098 shares of common stock
|
|
|
|
12
|
|
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
|
|
|
|
o
|
|
|
|
13
|
|
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
|
|
|
|
0.0001%
|
|
|
|
14
|
|
TYPE OF REPORTING PERSON*
|
|
|
|
IN
|
9
EXPLANATORY NOTE
This Amendment No. 5 to Schedule 13D (this Amendment), among other things, amends and
supplements the Schedule 13D originally filed by Sam P. Douglass and Equus Corporation
International on May 27, 1997, as amended by Amendment No. 1 thereto filed on June 4, 2009,
Amendment No. 2 thereto filed on November 27, 2009, Amendment No. 3 thereto filed on March 1, 2010
and Amendment No. 4 thereto filed on March 29, 2010 (the Schedule 13D).
Unless set forth below, all previous Items of the Schedule 13D are unchanged. Capitalized
terms used herein which are not defined herein have the meanings set forth in the Schedule 13D.
Item 2. Identity and Background.
Item 2 of the Schedule 13D is hereby (1) amended by amending and restating the first, second,
sixth and eighth paragraphs of Amendment No. 1 to the Schedule 13D (paragraphs one, two, three and
seven below, respectively) and (2) amended and supplemented by adding paragraphs four, five and six
below, with effect from the date of this Amendment, as follows:
This Amendment is being filed by and on behalf of Douglass Trust IV FBO S. Preston
Douglass, Jr., a trust organized under the laws of the State of Texas (Douglas Trust IV FBO
Preston), Douglass Trust IV FBO Brooke Douglass, a trust organized under the laws of the State
of Texas (Douglass Trust IV FBO Brooke and together with Douglass Trust IV FBO Preston, the
Douglass Trusts), Tiel Trust FBO Sam P. Douglass, a trust organized under the laws of the State
of Texas (Tiel Trust FBO SPD and together with the Douglass Trusts, the Trusts), Sam P.
Douglass, an individual resident of the State of Texas and the trustee of the Trusts (Douglass),
Tiel Trust FBO Paula T. Douglass, a trust organized under the laws of the State of Texas (Tiel
Trust FBO PTD), Paula T. Douglass, an individual resident of the State of Texas and trustee of the
Tiel Trust FBO PTD (Paula Douglass), Lance T. Funston, an individual resident of the State of
Pennsylvania (Funston), Dr. Francis D. Tuggle, an individual resident of the State of California
(Tuggle) and Charles M. Boyd, an individual resident of the State of Michigan (Boyd). The
Trusts, Douglass, Tiel Trust FBO PTD, Paula Douglass, Funston, Tuggle and Boyd are collectively
referred to herein as the Reporting Persons and individually as a Reporting Person.
Douglass is a citizen of the
United States of America. Douglass serves as the Chairman and
President of Equus Corporation International and Director of the Issuer.
Paula Douglass is a citizen of the United States of America. Paula Douglass principal
occupation is the management of personal and family investments. Effective April 1, 2010, Paula
Douglass no longer serves as a Vice President of the Issuer.
Funston is a citizen of the United States of America. Funston serves as the Chairman of the
Board of Directors of Telamerica Media, Inc. The address of Funstons principal office is 1701 JFK
Boulevard, 25th Floor, Philadelphia, PA 19103.
Tuggle is a citizen of the United States of America. Tuggle serves as Dean and Professor of
Chapman University. The address of Tuggles principal office is 1 University Drive, Orange,
California 92866.
Boyd is a citizen of the United States of America. Boyd serves as Medical Director at the Boyd
Cosmetic Surgical Institute. The address of Boyds principal office is 135 E. Maple Road,
Birmingham, MI 48009.
The address of the principal office of Douglass and Paula Douglass is 3229 Groveland Lane,
Houston, Texas 77019. The address of the principal office of the Trusts and Tiel Trust FBO PTD is 5005
Riverway, Suite 250, Houston, Texas 77056.
1
Item 3. Source and Amount of Funds or Other Consideration.
Item 3 of the Schedule 13D is hereby amended and supplemented by adding the following thereto:
Each of Funston, Tuggle and Boyd purchased the shares of Common Stock he holds for his
individual account using personal funds.
Item 4. Purpose of Transaction.
Item 4 of the Schedule 13D is hereby amended and supplemented by adding the following thereto:
On April 1, 2010,
Tiel Trust FBO PTD delivered to the Issuer the notice (the
Initial Notice) required under the Companys Amended and Restated By-laws (the By-laws) of a
proposal nominating seven people to stand for election as directors of the Issuer at the Issuers
next annual or special meeting of stockholders at which directors are to be elected (the 2010
Meeting). Pursuant to the Initial Notice, Tiel Trust FBO PTD nominated Funston, Tuggle, J. Philip
Ferguson, John D. White, Paula Douglass, Charles R. Ofner and John P. Wade (the Initial Nominees)
to replace seven of the nine directors whose terms expire in 2010. On April 2, 2010, Tiel Trust
FBO PTD delivered to the Issuer pursuant to the By-laws a notice (the Updated
Notice) nominating two additional people to stand for election as directors of the Issuer at the
2010 Meeting. Pursuant to the Updated Notice, Tiel Trust FBO PTD nominated Boyd and Jonathan H.
Godshall, together with the Initial Nominees (collectively, the Nominees), to replace all nine
directors whose terms expire in 2010. A copy of the Updated Notice is attached as Exhibit 2 hereto
and is incorporated by reference herein. The foregoing description is qualified in its entirety
by reference to Exhibit 2.
The Reporting Persons intend to solicit proxies from the Issuers stockholders to elect the
Nominees at the 2010 Meeting.
In connection with their proxy solicitation, the Reporting Persons intend to file a proxy
statement with the SEC to solicit stockholders of the Issuer.
The Reporting Persons advise all
stockholders of the Issuer to read the proxy statement when it becomes available, because it will
contain important information. The proxy statement, when filed, and any other relevant documents
will be available without charge on the SECs website at www.sec.gov.
Each Reporting Person and
each Nominee may be deemed to be a participant in the solicitation of proxies, and their security
holdings of the Issuer are set forth in Item 5.
Item 5. Interest in Securities of the Issuer.
Item 5 of the Schedule 13D is hereby amended and restated in its entirety, with effect from the
date of this Amendment, as follows:
(a) and (b) As reflected in the following table:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares Beneficially Owned
|
|
Power to Vote
|
|
Dispositive Power
|
Name
|
|
Aggregate No.
|
|
% of Class
|
|
Sole
|
|
Shared
|
|
Sole
|
|
Shared
|
Sam P. Douglass*
|
|
|
671,191
|
|
|
|
7.6
|
%
|
|
|
671,191
|
|
|
|
0
|
|
|
|
671,191
|
|
|
|
0
|
|
Douglass Trust
IV-FBO Preston**
|
|
|
282,791
|
|
|
|
3.2
|
%
|
|
|
282,791
|
|
|
|
0
|
|
|
|
282,791
|
|
|
|
0
|
|
Douglass Trust
IV-FBO Brooke**
|
|
|
282,792
|
|
|
|
3.2
|
%
|
|
|
282,792
|
|
|
|
0
|
|
|
|
282,792
|
|
|
|
0
|
|
Tiel Trust FBO SPD**
|
|
|
52,257
|
|
|
|
0.6
|
%
|
|
|
52,257
|
|
|
|
0
|
|
|
|
52,257
|
|
|
|
0
|
|
Paula T. Douglass*
|
|
|
115,751
|
|
|
|
1.3
|
%
|
|
|
115,751
|
|
|
|
0
|
|
|
|
115,751
|
|
|
|
0
|
|
Tiel Trust FBO PTD***
|
|
|
53,986
|
|
|
|
0.6
|
%
|
|
|
53,986
|
|
|
|
0
|
|
|
|
53,986
|
|
|
|
0
|
|
Lance T. Funston
|
|
|
217,033
|
|
|
|
2.4
|
%
|
|
|
217,033
|
|
|
|
0
|
|
|
|
217,033
|
|
|
|
0
|
|
Dr. Francis D. Tuggle
|
|
|
6,536
|
|
|
|
0.0007
|
%
|
|
|
6,536
|
|
|
|
0
|
|
|
|
6,536
|
|
|
|
0
|
|
Charles M. Boyd
|
|
|
1,098
|
|
|
|
0.0001
|
%
|
|
|
1,098
|
|
|
|
0
|
|
|
|
1,098
|
|
|
|
0
|
|
2
|
|
|
*
|
|
As of the date of this Amendment, Douglass and Paula Douglass, in their individual capacities,
and as trustees of the respective trusts listed herein, have beneficial ownership of 786,942
shares of Common Stock, representing 8.9% of the shares of Common Stock outstanding.
|
|
**
|
|
Douglass, as trustee of the Trusts, has sole voting and dispositive power over the Common
Stock held by the Trusts.
|
|
**
|
|
Paula Douglass, as trustee of Tiel Trust FBO PTD, has sole voting and dispositive power over
the Common Stock held by Tiel Trust FBO PTD.
|
(c) Except as described below in this paragraph (c), none of the persons described in Item 2 have
effected any transaction involving the Common Stock within the past 60 days. In the past 60 days,
Funston purchased shares of Common Stock through a brokerage account:
|
|
|
|
|
|
|
|
|
Date of Purchase
|
|
Shares of Common Stock
|
|
Price Per Share
|
February 19, 2010
|
|
|
12,718
|
|
|
$
|
3.09
|
|
February 19, 2010
|
|
|
24,000
|
|
|
$
|
3.15
|
|
February 22, 2010
|
|
|
24,000
|
|
|
$
|
3.12
|
|
February 22, 2010
|
|
|
12,315
|
|
|
$
|
3.17
|
|
February 23, 2010
|
|
|
24,000
|
|
|
$
|
3.16
|
|
February 23, 2010
|
|
|
24,000
|
|
|
$
|
3.16
|
|
February 24, 2010
|
|
|
24,000
|
|
|
$
|
3.10
|
|
February 25, 2010
|
|
|
24,000
|
|
|
$
|
3.11
|
|
February 26, 2010
|
|
|
24,000
|
|
|
$
|
3.16
|
|
March 1, 2010
|
|
|
24,000
|
|
|
$
|
3.17
|
|
(d) With respect to each person listed in Item 2, no person other than the Reporting Persons is
known to have the right to receive or the power to direct receipt of dividends from, or the
proceeds from the sale of, the securities owned by such person (except to the extent of the marital
property interest therein of the spouse of any such person).
(e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the
Issuer.
Item 6 of the Schedule 13D is hereby amended and restated in its entirety, with effect from the
date of this Amendment, as follows:
See the discussion of the Reporting Persons intention to solicit proxies from the Issuers
stockholders to replace at least a majority of the Issuers current directors, all as referenced in
Item 4 above. The Reporting Persons intend to vote their shares of Common Stock for the election
of the Nominees at the 2010 Meeting.
See the discussion of MCCAs obligations under the ECMC Purchase referenced in Item 3 of
Amendment No. 1 to the Schedule 13D.
3
Pursuant to Rule 13d-1(k) promulgated under the Act, the Reporting Persons have entered into
an agreement with respect to the joint filing of the Schedule 13D and any amendments thereto.
Except for the relationship of Sam P. Douglass as a director of the Issuer, the relationship
of Paula T. Douglass, as the wife of Sam P. Douglass, and as otherwise described in prior
Amendments No. 1 or No. 4 or this Amendment, there are no contracts, arrangements, understandings
or relationships (legal or otherwise) among the Reporting Persons and any other person with respect
to any securities of the Issuer, including, but not limited to, transfer or voting of any of the
Common Stock, finders fees, joint ventures, loan or option arrangements, put or calls, guarantees
of profits, division of profits or loss, or the giving or withholding of proxies.
In accordance with Rule 13d-4 promulgated under the Securities Exchange Act of 1934, as
amended, each Reporting Person expressly declares that the filing of this statement shall not be
construed as an admission that he, she or it is, for purposes of Section 13(d) or
Section 13(g)
of
such Act, the beneficial owner of any securities of the Issuer other than as expressly described in
Item 5 (including the notes thereto).
Item 7. Material to be Filed as Exhibits.
Item 7 of the Schedule 13D is hereby amended and supplemented, with effect from the date of this
Amendment, as follows:
Exhibit 1
|
|
Joint Filing Agreement.
|
|
Exhibit 2
|
|
Letter, dated April 2, 2010, from Tiel Trust FBO Paula
T. Douglass to Brett M. Chiles, Secretary of Equus
Total Return, Inc., regarding Notice of
Nominations of Persons for Election to the Board of
Directors of Equus Total Return, Inc.
|
4
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I certify that the
information set forth in this statement is true, complete and correct.
Dated: April 2, 2010
|
|
|
|
|
|
|
|
|
/s/ Sam P. Douglass
|
|
|
Sam P. Douglass, Individually
|
|
|
|
|
|
|
|
|
/s/ Paula T. Douglass
|
|
|
Paula T. Douglass, Individually
|
|
|
|
|
|
|
|
|
/s/ Sam P. Douglass
|
|
|
Sam P. Douglass, as Trustee of Douglass Trust IV for
the Benefit of S. Preston Douglass, Jr.
|
|
|
|
|
|
|
/s/ Sam P. Douglass
|
|
|
Sam P. Douglass, as Trustee of Douglass Trust IV for
the Benefit of Brooke Douglass
|
|
|
|
|
|
|
/s/ Sam P. Douglass
|
|
|
Sam P. Douglass, as Trustee of Tiel Trust for the
|
|
|
Benefit of Sam P. Douglass
|
|
|
|
|
|
|
/s/ Paula T. Douglass
|
|
|
Paula T. Douglass, as Trustee of Tiel Trust for the
|
|
|
Benefit of Paula T. Douglass
|
|
|
|
|
|
|
/s/ Lance T. Funston
|
|
|
Lance T. Funston
|
|
|
|
|
|
|
/s/ Dr. Francis D. Tuggle
|
|
|
Dr. Francis D. Tuggle
|
|
|
|
|
|
|
/s/ Charles M. Boyd
|
|
|
Charles M. Boyd
|
|
|
|
|
|
Exhibit 1
Joint Filing Agreement
In accordance with Rule 13d-1(k) under the Securities Exchange Act of 1934, as amended, the
undersigned hereby agree to the joint filing with all other persons signatory below of a statement
on Schedule 13D or any amendments thereto, with respect to the common stock of Equus Total Return,
Inc., and that this Agreement be included as an attachment to such filing.
Each of the undersigned acknowledges that each shall be responsible for the timely filing of
any statement on Schedule 13D and any amendments thereto, and for the completeness and accuracy of
the information concerning him or it contained therein, but shall not be responsible for the
completeness and accuracy of the information concerning the other persons making such filings,
except to the extent that he or it knows or has reason to believe that such information is
inaccurate.
This Agreement may be executed in any number of counterparts each of which shall be deemed an
original and all of which together shall be deemed to constitute one and the same Agreement.
IN WITNESS WHEREOF, the undersigned hereby execute this Agreement on April 2, 2010.
|
|
|
|
|
|
|
|
|
/s/ Sam P. Douglass
|
|
|
Sam P. Douglass, Individually
|
|
|
|
|
|
|
|
|
/s/ Paula T. Douglass
|
|
|
Paula T. Douglass, Individually
|
|
|
|
|
|
|
|
|
/s/ Sam P. Douglass
|
|
|
Sam P. Douglass, as Trustee of Douglass Trust IV for
the Benefit of S. Preston Douglass, Jr.
|
|
|
|
|
|
|
/s/ Sam P. Douglass
|
|
|
Sam P. Douglass, as Trustee of Douglass Trust IV for
the Benefit of Brooke Douglass
|
|
|
|
|
|
|
/s/ Sam P. Douglass
|
|
|
Sam P. Douglass, as Trustee of Tiel Trust for the
|
|
|
Benefit of Sam P. Douglass
|
|
|
|
|
|
|
/s/ Paula T. Douglass
|
|
|
Paula T. Douglass, as Trustee of Tiel Trust for the
|
|
|
Benefit of Paula T. Douglass
|
|
|
|
|
|
|
/s/ Lance T. Funston
|
|
|
Lance T. Funston
|
|
|
|
|
|
|
/s/ Dr. Francis D. Tuggle
|
|
|
Dr. Francis D. Tuggle
|
|
|
|
|
|
|
/s/ Charles M. Boyd
|
|
|
Charles M. Boyd
|
|
|
|
|
|
Exhibit 2
TIEL TRUST FBO PAULA T. DOUGLASS
5005 RIVERWAY, SUITE 250
HOUSTON, TEXAS 77056
April 2, 2010
VIA PERSONAL DELIVERY
Equus Total Return, Inc.
Eight Greenway Plaza, Suite 930
Houston, Texas 77046
Attn:
|
|
Mr. Brett M. Chiles, Secretary of Equus Total Return, Inc.
|
|
Re:
|
|
Notice of Nominations of Persons for Election to the Board of Directors of
Equus Total Return, Inc.
|
Dear Mr. Chiles:
Pursuant to and in accordance with the requirements of Article II of the Amended and Restated
By-laws (the
By-laws
) of Equus Total Return, Inc., a Delaware corporation (the
Company
), Tiel Trust FBO Paula T. Douglass (the
Stockholder
) hereby gives
notice, with respect to the next Annual or Special Meeting of Stockholders of the Company at which
directors are to be elected and at any and all adjournments, postponements, recesses, reschedulings
or continuations thereof (collectively, the
Stockholder Meeting
), of its nomination of J.
Philip Ferguson, Lance T. Funston, John D. White, Paula T. Douglass, Charles R. Ofner, Dr. Francis
D. Tuggle, John P. Wade, Dr. Charles M. Boyd and Jonathan H. Godshall (collectively, the
Nominees
) to stand for election as directors of the Company for terms expiring in 2011
(the
Proposal
).
This notice amends and supplements the notice letter, dated as of March 31, 2010, from the
Stockholder to the Company.
This notice is being provided in connection with the solicitation in opposition being
conducted by the Stockholder and other stockholders of the Company as disclosed in their soliciting
materials filed with the Securities and Exchange Commission under Rule 14a-12 promulgated under the
Securities Exchange Act of 1934, as amended (the
Exchange Act
) on March 29, 2010. The
Company is cautioned that the proxy rules promulgated under the Exchange Act require that the
Companys proxy statement relating to the Stockholder Meeting be filed with the Securities and
Exchange Commission in preliminary, and not in definitive, form.
The Stockholder is timely
providing this notice in accordance with the By-laws.
All information required to
be included in this notice pursuant to the By-laws has been
provided by the Stockholder and the Nominees. Where information sought by Schedule 14A under the
Exchange Act would be answered in the negative and no response would be required to be included in
a proxy statement, a response may not be included below.
The Stockholder represents
that it is a holder of record of common stock, par value $0.001 per
share (the
Shares
), of the Company entitled to vote at the Stockholder Meeting and
intends to appear in person or by proxy at such meeting to nominate the Nominees. The Stockholder
is the beneficial and record owner of 53,986 Shares. Copies of the certificates (nos. 28267 and
28244) representing record ownership of a portion of such Shares are attached hereto as
Exhibit
A
. The Stockholder does not own any Shares of record that it does not also directly or
indirectly beneficially own. The Stockholder intends to remain the record owner of Shares as of
the date of the Stockholder Meeting. None of the Shares currently held of record by the
Stockholder are subject to margin credit or pledged.
The address of the Stockholder is 5005 Riverway, Suite 250, Houston, Texas 77056.
Information Regarding the Proposal
The Stockholder nominates the Nominees for election at the Stockholder Meeting.
2
Information Regarding the Nominees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
Position(s)
|
|
Term of Office
|
|
|
|
Directorships
1
|
|
|
Held with
|
|
and Length of
|
|
Principal Occupation(s)
|
|
Held by Director
|
Name, Address and Age
|
|
Company
|
|
Time Served
|
|
During Past 5 Years
|
|
or Nominee
|
J. Philip Ferguson
Business Address:
2301 Kingston
Houston, Texas 77019
Home Address:
2301 Kingston
Houston, Texas 77019
Age: 64
|
|
N/A
|
|
N/A
|
|
Non-Executive member of the
Board of Directors of ABM
Industries Incorporated, a
facility services provider,
since December 2009.
Business consultant since
2007. AIM Capital
Management from 2000 to
2007, including as the
Chairman, President and
Chief Investment Officer,
overseeing equity and
fixed-income portfolio
management, investment
strategies and the firms
staff, and Senior Investment
Officer, helping to shape
its product line, portfolio
strategies and investment
policies. Mr. Ferguson has
served as Vice Chair of The
University of Texas
Investment Management
Company. Mr. Ferguson holds
a finance degree from Texas
Christian University, a
certificate in international
law from the City of London
College and a juris
doctorate degree from The
University of Texas School
of Law.
The Stockholder determined
that Mr. Ferguson should
serve as a director because
of his over 40 years of
experience in fund
management oversight and
investment management. Mr.
Fergusons experiences with
well-known, established
investment management
companies, such as AIM
Capital Management, would
provide valuable insight to
the Board and the direction
of the Company.
|
|
Director of ABM
Industries Incorporated
since December 2009
|
|
|
|
1
|
|
Other directorships are limited to: (i) publicly traded companies in the United
States; (ii) companies that are otherwise subject to SEC reporting requirements and
(iii) investment companies registered under the Investment Company Act of 1940.
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
Position(s)
|
|
Term of Office
|
|
|
|
Directorships
1
|
|
|
Held with
|
|
and Length of
|
|
Principal Occupation(s)
|
|
Held by Director
|
Name, Address and Age
|
|
Company
|
|
Time Served
|
|
During Past 5 Years
|
|
or Nominee
|
Lance T. Funston
Business Address:
1701 JFK Boulevard
25th Floor
Philadelphia, PA 19103
Home Address:
298 Tower Land
Penn
Valley, PA 19072
Age: 67
|
|
N/A
|
|
N/A
|
|
Non-Executive Chairman of
the Board of Directors of
Telamerica Media, Inc., a
media aggregator, since
1993. Non-Executive
Chairman of the Board of
Directors of Ultimark
Products, LLC, a consumer
products company, since
2000. Mr. Funston attended
Harvard Business School,
receiving an MBA in 1970.
During his tenure at
Harvard, he founded
Portfolio Management Systems
Incorporated, which
developed investment
management systems for major
financial institutions
including John Hancock,
Fidelity Mutual, American
General, Sun Life, and Bank
of America. Appointed
assistant to the director of
the Federal Deposit
Insurance Corporation in
1967 by President Lyndon
Johnson; subsequently
appointed as special
assistant to a governor of
the Federal Reserve Board.
The Stockholder determined
that Mr. Funston should
serve as a director due to
his entrepreneurial skills,
which have a proven track
record of success. In addition, Mr. Funston has a
wide range of experience in
various business sectors
that benefit the Companys
portfolio, and his
relationships and experience
in management and operations
would provide the Board and
the Company with a valuable
benefit.
|
|
None
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
Position(s)
|
|
Term of Office
|
|
|
|
Directorships
1
|
|
|
Held with
|
|
and Length of
|
|
Principal Occupation(s)
|
|
Held by Director
|
Name, Address and Age
|
|
Company
|
|
Time Served
|
|
During Past 5 Years
|
|
or Nominee
|
John D. White
Business Address:
1100 Louisiana
Suite 5005
Houston, Texas 77002
Home Address:
4028 Overbrook Lane
Houston, Texas 77027
Age: 61
|
|
N/A
|
|
N/A
|
|
Co-Founder, Chief Executive
Officer and Chairman of the
Board of Directors of
Standard Renewable Energy
Group, LLC, a private equity
fund, since 2006. Partner
and member of the Board of
Directors at Murphree
Venture Partners, a private
equity fund, since 2008.
Managing Director of The
Wind Alliance since January
2009. Partner at the law
firm of Jones, Walker,
Waechter, Poitevent, Carrère
& Denègre, L.L.P. from 2003
to 2006. Mr. Whites
experience in the energy
sector reflected the
industrys development from
1978 through 2006. Regent,
Texas A&M University System
2003 to 2009, Chairman of
the Board of Regents, 2005
to 2007 and Vice Chairman
2007 to 2009. Director,
Greater Houston Partnership,
2002, 2005 and since 2007.
Director, Texas Institute
for Genomic Medicine, 2005
to 2008 and Chairman of the
Board 2005 to 2008. Member,
Greater Houston Partnership
Economic Development
Advisory Committee, 1996 to
1998 and 2008.
The Stockholder determined
that Mr. White should serve
as a director because he
brings a wide variety of
investment experience to the
Board and has earned a
strong reputation as a civic
leader. The Board would
also benefit from Mr.
Whites business,
entrepreneurial and legal
experience.
|
|
Director of Trulite,
Inc. since 2006.
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
Position(s)
|
|
Term of Office
|
|
|
|
Directorships
1
|
|
|
Held with
|
|
and Length of
|
|
Principal Occupation(s)
|
|
Held by Director
|
Name, Address and Age
|
|
Company
|
|
Time Served
|
|
During Past 5 Years
|
|
or Nominee
|
Charles R. Ofner
Business Address:
2187 Troon Road
Houston, Texas 77019
Home Address:
2187 Troon Road
Houston, Texas 77019
Age: 64
|
|
N/A
|
|
N/A
|
|
Owner of Ofner Associates,
Inc., a company primarily
engaged in international
exploration & production and
oil services, since 2001.
Non-Executive member of the
Board of Directors and
investor in South Texas
Algae, LLC, a company whose
business plan is to grow and
harvest algae for the
production of diesel fuel,
since 2008. Consultant to
Al-Ettehad Oil Services,
Ltd. since 2004. Director
of Stewart & Stevenson
Services, Inc., a company
which operated in a highly
regulated industry sector,
from 2000 to 2006. As a
member of the corporate
governance committee and
chairman of the compensation
committee, Mr. Ofner has in
depth experience with
statutory corporate
governance requirements and
with incentive based
compensation programs.
The Stockholder determined
that Mr. Ofner should serve
as a director due to the
global perspective he would
bring to the Board as a
result of his over 30 years
of international business
experience. Also, Mr.
Ofners financial,
operations and business
development experiences and
skills will provide the
Board with insight into
investment philosophies,
particularly with respect to
portfolio companies with
diverse products, services
and domiciles.
|
|
Director of Stewart &
Stevenson Services, Inc.
from 2000 to 2006.
|
|
|
|
|
|
|
|
|
|
Dr. Francis D. Tuggle
Business Address:
8 Greenway Plaza
Suite 930
Houston, Texas 77046
Home Address:
20465 Via Torralba
Yorba Linda, CA 92887
Age: 67
|
|
Director
|
|
Term expires 2010;
Director since
1991.
|
|
Professor at the George L.
Argyros School of Business
and Economics at Chapman
University since January
2006 and Dean from July 2002
to January 2006. Professor
at the Kogod College of
Business Administration at
American University from
July 1999 to June 2002 where
he was Dean from July 1990
to June 1996.
The Stockholder determined
that Mr. Tuggle should serve
as a director because of his
extensive experience in
academia, including his
service as a former dean of
the Rice University School
of Business and American
University. His experience
provides the Board with a
unique approach to
understanding and solving
complex organizational and
economic issues.
|
|
None
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
Position(s)
|
|
Term of Office
|
|
|
|
Directorships
1
|
|
|
Held with
|
|
and Length of
|
|
Principal Occupation(s)
|
|
Held by Director
|
Name, Address and Age
|
|
Company
|
|
Time Served
|
|
During Past 5 Years
|
|
or Nominee
|
John
P. Wade
Business Address:
5005 Riverway
Suite 250
Houston, Texas 77056
Home Address:
5555 Del Monte
No. 1203
Houston, Texas 77056
Age: 65
|
|
N/A
|
|
N/A
|
|
Senior and Managing Partner
of Wade & Company, LLP, a
public accounting firm,
since 1984.
The Stockholder determined
that Mr. Wade should serve
as a director because of his
tax expertise and his
twenty-year history with the
Company, which provides him
with a unique understanding
of investment funds and
business development
companies.
|
|
None
|
|
|
|
|
|
|
|
|
|
Charles M. Boyd, M.D. & MBA
Business Address:
135 E. Maple Road
Birmingham, MI 48009
Home Address:
1393 Esch Court
Ann Arbor, MI 48104
Age: 44
|
|
Director
|
|
Term expires 2010;
Director since
2005.
|
|
Medical Director at The Boyd
Cosmetic Surgical Institute
since April 2009. Dr. Boyd
served as Associate Chief of
Staff, Office of Clinical
Affairs, at the University
of Michigan from 2006 to
April 2008. He was also an
Assistant Professor, Dept.
of Dermatology, Div. of
Cutaneous Oncology and Dept.
of Otolaryngology Head and
Neck Surgery, Div. of Facial
Plastic Surgery, at the
University of Michigan from
1999 to January 2007. He
has been a Director of the
Company since 2005, serving
as the chairman of the
compensation committee and
member of the audit
committee.
The Stockholder determined
that Dr. Boyd should serve
as a director because of his
diverse perspective
attributable to his medical
education. Dr. Boyds
expertise provides the Board
with insight into the issues
and opportunities in the
growing healthcare industry.
|
|
None
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
Position(s)
|
|
Term of Office
|
|
|
|
Directorships
1
|
|
|
Held with
|
|
and Length of
|
|
Principal Occupation(s)
|
|
Held by Director
|
Name, Address and Age
|
|
Company
|
|
Time Served
|
|
During Past 5 Years
|
|
or Nominee
|
Jonathan H. Godshall
Business Address:
5360 Spring Park
Houston, Texas 77056
Home Address:
5360 Spring Park
Houston, Texas 77056
Age: 61
|
|
N/A
|
|
N/A
|
|
President and Chief
Executive Officer of
Verdient Technologies LLC, a
company focused on
technology based energy
efficiency products, since
July 2007. President and
Chief Executive Officer of
Trulite, Inc., a business
that is commercializing
clean power generator
products, primarily hydrogen
fuel cells, from June 2006
to October 2008. President
and Chief Executive Officer
of New Point Energy
Solutions, L.P., a solar
panel installation and
service business, from
October 2006 to May 2007.
Self-employed business
consultant from February
2004 to August 2006. From
1986 to 2001, Mr. Godshall
was the President and Chief
Executive Officer of Igloo
Products Corp., marketing
coolers and related products
on a worldwide basis. Prior
to joining Igloo, Mr.
Godshall was the Vice
President and General
Manager of Anderson Clayton
Foods, a food products
company, from 1979 to 1986.
Mr. Godshalls professional
career is replete with
firsthand knowledge in
operations and management.
His impressive resume
reflects a depth of
experience with both large
and small companies,
qualifying him uniquely for
service on a business
development company board
overseeing a diversified
portfolio.
|
|
Director of Trulite,
Inc. since 2006.
|
8
Interested Directors
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
Position(s)
|
|
Term of Office
|
|
|
|
Directorships
|
|
|
Held with
|
|
and Length of
|
|
Principal Occupation(s)
|
|
Held by Director
|
Name, Address and Age
|
|
Fund
|
|
Time Served
|
|
During Past 5 Years
|
|
or Nominee
|
Paula T. Douglass
3
Business Address:
P.O. Box 130197
Houston, Texas 77219
Home Address:
3229 Groveland Lane
Houston, Texas 77019
Age: 58
|
|
N/A
|
|
N/A
|
|
Mrs. Douglass served as Vice
President of the Company
from June 2006 until April
2010. From June 2005 to
June 2009, Mrs. Douglass
served as Vice Chairman of
the Board of Moore, Clayton
Capital Advisors, Inc. and
Equus Capital Administration
Company, Inc. She served
as an officer and director
of Equus Capital Management
Corporation from July 1992
to 2005. Mrs. Douglass is a
licensed attorney and was an
associate of the firm
Fulbright and Jaworski from
1988 to 1991. In 1993, she
was elected a director of
Iwerks Entertainment, a
publicly traded company on
the NASDAQ exchange, and was
a member of the audit
committee. Mrs. Douglass
served as Executive Chairman
of Iwerks Entertainment from
1995 to 1997. From February
1998 to 2005, she served as
Chairman and Chief Executive
Officer of Cinema Film
Systems, Inc. Mrs. Douglass
co-founded Equus Corporation
International and has served
as an officer and a director
since December 1978. Mrs.
Douglass originated and
structured the Companys
investment in Equus Media
Development Company, LLC and
serves as CEO and President.
In July of 2008, Mrs.
Douglass originated and
structured the Funds
investment in Trulite, Inc.
and serves as a director on
the board of this renewable
energy company. Mrs.
Douglass serves on the Board
of Visitors for Pepperdine
School of Law and is a
trustee for the University
of Houston Foundation. She
is a co-founder and an
Advisory Director for the
Kelly Day Endowment on the
Status of Women and Human
Rights in the Middle East at
the James A. Baker Institute
for Public Policy at Rice
University. Mrs. Douglass
holds a Bachelor of Arts
degree from the University
of Oklahoma and a Doctor of
Jurisprudence from the
University of Houston School
of Law. The Board would
benefit from Mrs. Douglass
disciplined investment
approach gained from her
legal and business
experience, her
entrepreneurial drive and
her many relationships in
various industries.
|
|
Director of
Trulite, Inc. since
2008.
|
|
|
|
2
|
|
Interested directors are interested persons (as defined in the Investment Company
Act of 1940). Mrs. Douglass is deemed to be an interested director by reason of: (i) her
relationship to Sam P. Douglass, who directly or indirectly owns, holds or controls, with the power
to vote, five percent or more of the outstanding voting securities of the Company; and (ii) her
current or former affiliation with the Company and/or the Companys former investment adviser.
|
|
3
|
|
Mrs. Douglass is the spouse of Sam P. Douglass, a member of the Board of Directors of
the Company.
|
9
Dollar Range of Equity Securities Beneficially Owned by the Nominees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate Dollar Range of Equity
|
|
|
|
|
|
|
Securities in All Funds Overseen
|
|
|
|
|
|
|
or to be Overseen by Director
|
|
|
Dollar Range of Equity
|
|
or Nominee in Family of
|
Name
|
|
Securities in the Company
4
|
|
Investment Companies
|
J. Philip Ferguson
|
|
None
|
|
None
|
Lance T. Funston
|
|
Over $100,000
|
|
Over $100,000
|
John D. White
|
|
None
|
|
None
|
Charles R. Ofner
|
|
None
|
|
None
|
Dr. Francis D. Tuggle
|
|
$10,001-$50,000
|
|
$10,001-$50,000
|
John P. Wade
|
|
None
|
|
None
|
Dr. Charles M. Boyd
|
|
$1-$10,000
|
|
$1-$10,000
|
Jonathan H. Godshall
|
|
None
|
|
None
|
|
|
|
|
|
|
|
|
|
Interested Director
|
|
|
|
|
|
|
|
|
Paula T. Douglass
|
|
Over $100,000
|
|
Over $100,000
|
Director Compensation
During 2009, Mr. Tuggle and Dr. Boyd each received: (i) $5,000 for each quarter served on the
Companys Board plus $2,000 for each meeting of the directors attended; (ii) $1,000 for
participation in each meeting conducted by telephonic conference; (iii) $1,000 for each committee
meeting attended; and (iv) reimbursement for all out-of-pocket expenses relating to attendance at
such meetings. During 2009, it is estimated that Mr. Tuggle was paid total compensation of
approximately $54,000 in the form of fees earned or paid in cash for service as a director of the
Company. During 2009, it is estimated that Dr. Boyd was paid total compensation of approximately
$66,000 in the form of fees earned or paid in cash for service as a director of the Company.
Absence of Involvement in Certain Legal Proceedings
During the past ten years:
|
(a)
|
|
No petition under the Federal bankruptcy laws or any state insolvency law has
been filed by or against, and no receiver, fiscal agent or similar officer has been
appointed by a court for the business or property of, any Nominee, or any partnership
in which any Nominee was a general partner at or within two years before the time of
such filing, or any corporation or business association of which the Nominee was an
executive officer at or within two years before the time of such filing;
|
|
|
(b)
|
|
No Nominee has been convicted in a criminal proceeding or is a named subject of
a pending criminal proceeding (excluding traffic violations and other minor offenses);
|
|
|
|
4
|
|
Based on beneficial ownership as of March 31, 2010.
|
10
|
(c)
|
|
No Nominee has been the subject of any order, judgment or decree, not
subsequently reversed, suspended or vacated, of any court of competent jurisdiction,
permanently or temporarily enjoining such person from, or otherwise limiting, the
following activities:
|
|
(i)
|
|
Acting as a futures commission merchant, introducing broker,
commodity trading advisor, commodity pool operator, floor broker, leverage
transaction merchant, any other person regulated by the Commodity Futures
Trading Commission, or an associated person of any of the foregoing, or as an
investment advisor, underwriter, broker or dealer in securities, or as an
affiliated person, director or employee of any investment company, bank,
savings and loan association or insurance company, or engaging in or continuing
any conduct or practice in connection with such activity;
|
|
|
(ii)
|
|
Engaging in any type of business practice; or
|
|
|
(iii)
|
|
Engaging in any activity in connection with the purchase or
sale of any security or commodity or in connection with any violation of
Federal or State securities laws or Federal commodities laws;
|
|
(d)
|
|
No Nominee has been the subject of any order, judgment or decree, not
subsequently reversed, suspended or vacated, of any Federal or State authority barring,
suspending or otherwise limiting for more than 60 days the right of such person to
engage in any activity described in paragraph (c)(i) above, or to be associated with
persons engaged in any such activity;
|
|
|
(e)
|
|
No Nominee has been found by a court of competent jurisdiction in a civil
action or by the Commission to have violated any Federal or State securities law, where
the judgment in such civil action or finding by the Commission has not been
subsequently reversed, suspended or vacated;
|
|
|
(f)
|
|
No Nominee has been found by a court of competent jurisdiction in a civil
action or by the Commodity Futures Trading Commission to have violated any Federal
commodities law, where the judgment in such civil action or finding by the Commodity
Futures Trading Commission has not been subsequently reversed, suspended or vacated;
|
|
|
(g)
|
|
No Nominee has been the subject of, or a party to, any Federal or State
judicial or administrative order, judgment, decree, or finding, not subsequently
reversed, suspended or vacated, relating to an alleged violation of:
|
|
(i)
|
|
Any Federal or State securities or commodities law or
regulation; or
|
|
|
(ii)
|
|
Any law or regulation respecting financial institutions or
insurance companies including, but not limited to, a temporary or permanent
injunction, order of disgorgement or restitution, civil money penalty or
|
11
|
|
|
temporary or permanent cease-and-desist order, or removal or prohibition
order; or
|
|
(iii)
|
|
Any law or regulation prohibiting mail or wire fraud or fraud
in connection with any business entity; and
|
|
(h)
|
|
No Nominee has been the subject of, or a party to, any sanction or order, not
subsequently reversed, suspended or vacated, of any self-regulatory organization (as
defined in Section 3(a)(26) of the Exchange Act), any registered entity (as defined in
Section 1(a)(29) of the Commodity Exchange Act), or any equivalent exchange,
association, entity or organization that has disciplinary authority over its members or
persons associated with a member.
|
Interest in and Relationships with the Company
For over 20 years, Mr. Wade, either in his individual capacity or as a representative of Wade
& Company LLP, an accounting firm of which he is the Senior and Managing Partner (or other
accounting firms with which he was associated previously), has provided tax consulting, tax return
preparation and other advisory services to the Company for fees. Since January 1, 2008, the
Company has paid a total of approximately $80,000 to Wade & Company LLP for such services. Mr.
Wade has also provided tax consulting, tax return preparation and other administrative and advisory
services for Mr. and Mrs. Douglass, their family members and entities in which they hold interests,
including the Stockholder and the other trust Participants (as defined below).
Mr. Godshall is a shareholder of Trulite, Inc., the non-executive
Vice Chairman of its Board of Directors
and also served as its chief executive officer from August 2006 until October 2008 and a consultant
from December 2008 until March 2010. Mr. Godshall owns less than 5% of Trulites equity in the
form of shares and options. Mrs. Douglass has served as a director of Trulite, Inc.
since 2008.
Mr. White is the non-executive Chairman of the Board of Directors of Trulite, Inc. and owns approximately 6% of the majority owner of Trulite,
Inc. Since June 2008, the Company has made investments in
Trulite in the form of loans and warrants. The loans currently bear interest at a rate of 18% and
the warrants entitle the Company to acquire approximately 10% of Trulites equity. The current
outstanding principal amount of the loans is approximately $2.3 million, and the current unpaid
interest is approximately $200,000. The current obligations under the loans are the largest
aggregate amount of such obligations since they were incurred.
Section 16(a) of the Exchange Act
None of the Nominees has failed to file on a timely basis reports related to the Company that
are required by Section 16(a) of the Exchange Act.
Arrangements or Understandings
None of the Nominees has any substantial interest, direct or indirect, by security holdings or
otherwise, in any matter to be acted upon at the Stockholder Meeting other than the interest of
each Nominee in being elected to serve as a director of the Company and as otherwise described
12
in this notice, including any exhibit hereto. Except as otherwise specified in this notice,
including any exhibit hereto, (1) none of the Nominees owns Shares of record that it does not own
beneficially, (2) none of the Nominees has purchased or sold any Shares within the past two years,
(3) none of the Nominees who are not or would not be an interested person and none of his or her
immediate family members, is the beneficial or record owner of any securities in (i) an investment
adviser, principal underwriter, or sponsoring insurance company of the Company or (ii) a person
(other than a registered investment company) directly or indirectly controlling, controlled by, or
under common control with an investment adviser, principal underwriter, or sponsoring insurance
company of the Company.
Nominees who own or owned Shares on the record date for the Stockholder Meeting have informed
the Stockholder that they expect to vote such Shares for Stockholders Nominees. Except for the
foregoing and as otherwise provided herein, the Nominees are not, and have not been within the past
year, a party to any contract, arrangement or understanding with any person with respect to any
securities of the Company, including, but not limited to, joint ventures, loan or option
arrangements, puts or calls, guarantees against loss or guarantees of profits, division of losses
or profits, or the giving or withholding of proxies. The Nominees do not beneficially own,
directly or indirectly, any securities of any parent or subsidiary of the Company.
None of the Nominees has any arrangement or understanding with respect to future employment by
the Company or any of its affiliates or with respect to any future transactions to which the
Company or any of its affiliates will be or may be a party.
Mrs. Douglass has arranged with Mr. Funston for Mr. Funston to advance up to $300,000 to her
to pay the costs and expenses of conducting the proxy solicitation. Under the arrangement, if any
such amounts are advanced, they are to be repaid on terms mutually agreeable to Mrs. Douglass and
Mr. Funston. There are no other arrangements or understandings between the Nominees or any other
person pursuant to which the nominations are to be made by the Stockholder.
Consent of Each Nominee
The consent of each Nominee to serve as a director of the Company, if so elected, is attached
hereto as Annex 1.
Material Proceedings Adverse to the Company
There are no pending material proceedings to which any Nominee, or any of their respective
affiliates, is a party adverse to the Company or any of its affiliated persons, or in which any of
the Nominees or any of their affiliates has a material interest adverse to the Company or any of
its affiliated persons.
Information Regarding the Participants
The Stockholder, the Nominees, Mr. Douglass, Douglass Trust IV FBO S. Preston Douglass,
Jr., Douglass Trust IV FBO Brooke Douglass and Tiel Trust FBO Sam P. Douglass are or may be
deemed participants in the solicitation of proxies under the federal proxy rules and are
hereinafter collectively referred to as the
Participants
. None of the Participants has
any
13
substantial interest, direct or indirect, by security holdings or otherwise, in any matter to
be acted upon at the Stockholder Meeting other than (i) with respect to the Nominees, the interest
of each such Nominees in being elected to serve as a director of the Company, (ii) as otherwise
described in this notice, including any exhibit hereto and (iii) as set forth in the Schedule 13D
and related amendments filed with the Securities and Exchange Commission by certain of the
Participants.
During the past ten years, no Participant has been convicted in a criminal proceeding
(excluding traffic violations or similar misdemeanors).
Exhibit B
includes (i) the name and business address of each of the Participants, (ii)
the class and number of Shares of the Company which are owned beneficially, directly or indirectly,
by each of the Participants, (iii) each Participants present principal occupation or employment
and the name, principal business and address of any corporation or other organization in which such
employment is carried on. None of the Participants owns Shares of record that it does not own
beneficially.
Set forth on
Exhibit C
is a schedule of the purchases and sales by the Participants in
the securities of the Company within the past two years, if any. Each Participant used its own
investment capital to purchase all such securities listed therein as purchased by such Participant.
Except (i) as disclosed in the Schedule 13D and related amendments on file with the Securities
and Exchange Commission for certain Participants, (ii) for Nominees as disclosed above and (iii) as
otherwise provided in this notice, including any exhibits hereto, the Participants are not, and
have not been within the past year, a party to any contract, arrangement or understanding with any
person with respect to any securities of the Company, including, but not limited to, joint
ventures, loan or option arrangements, puts or calls, guarantees against loss or guarantees of
profits, division of losses or profits, or the giving or withholding of proxies.
The Participants do not beneficially own, directly or indirectly, any securities of any parent
or subsidiary of the Company.
No Participant has any arrangement or understanding with any person with respect to future
employment by the Company or any of its affiliates or with respect to any future transactions to
which the Company or any of its affiliates will or may be a party.
Information Regarding the Solicitation
The Stockholder intends to appear at the Stockholder Meeting to nominate the Nominees.
Proxies may be solicited by mail, advertisement, telephone, facsimile, the Internet, telegraph and
personal solicitation by the Participants. No additional compensation will be paid to the
Participants for the solicitation of proxies. Banks, brokerage houses and other custodians,
nominees and fiduciaries will be requested to forward the Participants solicitation material to
their customers for whom they hold shares, and the Participants will reimburse them for their
reasonable out-of-pocket expenses.
Mrs. Douglass has retained MacKenzie Partners, Inc. (the
Soliciting Agent
)
to assist in the solicitation of proxies for the Nominees and for related services. The Soliciting
Agent has been paid a retainer of $10,000, and Mrs. Douglass
expects to pay the Soliciting Agent a fee to
14
be mutually agreed upon completion of the engagement. In addition, Mrs. Douglass has agreed
to reimburse the Soliciting Agent for its reasonable out-of-pocket expenses and to indemnify it in
respect of certain claims in connection with its retention. Approximately 15 persons will be used
by the Soliciting Agent in its solicitation efforts.
The expense of preparing, assembling, printing and mailing the proxy statement and related
materials and the cost of soliciting proxies for the Nominees will be borne by Mrs. Douglass,
subject to the arrangement with Mr. Funston described above. In the event the Nominees are elected
to the Board of Directors of the Company (the
Board
) at the Stockholder Meeting, Mrs.
Douglass intends to seek reimbursement of such expenses from the Company and not to submit such
reimbursement to a vote of stockholders.
The Stockholder estimates that the total expenditures relating to the proxy solicitation
incurred by the Participants is expected be approximately $500,000, approximately $35,000 of which
has been incurred to date.
General
The Stockholder reserves the right to nominate substitute and additional nominees for election
to the Board for any reason. Shares represented by proxies given to the Stockholder will be voted
for any substitute or additional nominees. The Stockholder reserves the right to nominate
substitute persons for any reason, including if any of the Nominees become disqualified following
the date hereof. Additionally, if any Nominee (or substitute thereof) is unable or unwilling to
stand for election for any reason at the Stockholder Meeting, the
Stockholder intends to nominate a person in the place of such Nominee (or substitute thereof). The Stockholders reservation of the
foregoing rights, and any of the foregoing actions that may be taken by the Stockholder, would be
without prejudice to the issue of whether any action by the Company was valid under the
circumstances and will not limit the Stockholders and the other Participants rights to challenge
such actions.
The Stockholder also reserves the right to make modifications to the foregoing proposals and
make additional proposals for any reason. The Company is cautioned not to take any action that
would adversely impact the Stockholders ability to effectuate a change in the majority of the
Board or the right of the Companys stockholders to support the Stockholders nominations and/or
proposals.
The Stockholder, in furnishing this notice, does not concede the validity or enforceability of
any of the provisions of the By-laws or any other matter, including any provisions in the By-laws
that purport to impose advance notice requirements or otherwise limit the right of any stockholder
to present business for consideration at any meeting of the stockholders, and expressly reserves
the right to challenge the validity, application and interpretation of any such provisions or any
other matter.
The Stockholders material interest in the Proposal and the nominations described in this
notice is to replace at least a majority of the Board because the Stockholder believes that the
Board has failed to pursue a cohesive strategy to address valuation and other strategic issues
facing the Company and has failed to seek and put into place a chief executive officer with fund
15
management experience. In addition, certain members of the Board have stated an intention to
take actions that would be inconsistent with the Stockholders preferred management structure and
strategy.
Attached hereto as Annex 2 is a letter from Mr. Douglass, in his capacity as a director,
affirming that he intends to oppose actions by the Company at the Stockholder Meeting.
16
As you are aware, this notice is being provided a number of days before the Companys deadline
for submission of director nominees and stockholder proposals provided for in the By-laws; although
the Stockholder has endeavored to fully satisfy all requirements for this notice set forth in the
By-laws, please contact Stephen A. Massad (713.229.1475) or Paul F. Perea (713.229.1674) of Baker
Botts L.L.P. immediately should the Company require any additional information.
|
|
|
|
|
|
Sincerely,
|
|
|
/s/ Paula T. Douglass
|
|
|
Paula T. Douglass, as Trustee of Tiel Trust
|
|
|
for the Benefit of Paula T. Douglass
|
|
|
17
Exhibit A
[See attached share certificates]
A-1
Exhibit B
Set forth below are the names and specified ownership and other information with respect to
each of the Participants.
|
|
|
|
|
|
|
|
|
|
|
Number of
|
|
|
|
|
|
|
Shares Owned
|
|
Principal Occupation or
|
|
|
|
|
Beneficially and
|
|
Employment
|
|
|
Number of Shares
|
|
Nature of
|
|
and the Name, Principal Business
|
Name and Address of
|
|
Owned
|
|
Beneficial
|
|
and Address of Any Corporation or
|
Beneficial
|
|
of Record
|
|
Ownership
|
|
Other Organization in which Such
|
Owner
|
|
(Percent of Class)
5
|
|
(Percent of Class)
|
|
Employment is Carried On
|
Sam P. Douglass
3229 Groveland Lane
Houston, Texas 77019
|
|
|
|
671,191
(7.6%)*
|
|
Chairman and President of Equus
Corporation International, an
investment company, and Director
of Equus Total Return, Inc.
P.O. Box 130197
Houston, Texas 77219
|
|
|
|
|
|
|
|
Paula T. Douglass
3229 Groveland Lane
Houston, Texas 77019
|
|
|
|
115,751
(1.3%)*
|
|
Management of personal and
family investments.
3229 Groveland Lane
Houston, Texas 77019
|
|
|
|
|
|
|
|
Douglass Trust IV-FBO
Preston
5005 Riverway
Suite 250
Houston, Texas 77056
|
|
275,793
(3.1%)**
|
|
282,791
(3.2%)**
|
|
N/A
|
|
|
|
|
|
|
|
Douglass Trust IV-FBO
Brooke
5005 Riverway
Suite 250
Houston, Texas 77056
|
|
275,793
(3.1%)**
|
|
282,792
(3.2%)**
|
|
N/A
|
|
|
|
|
|
|
|
Tiel Trust FBO SPD
5005 Riverway
Suite 250
Houston, Texas 77056
|
|
52,257**
(
+
)
|
|
52,257**
(
+
)
|
|
N/A
|
|
|
|
5
|
|
The percentages were calculated on the basis
that 8,861,646 shares of Common Stock were outstanding as of March 31, 2010, as
represented by the Company in its Annual Report on Form 10-K for the year ended
December 31, 2009 filed with the SEC on March 31, 2010.
|
|
*
|
|
Sam P. Douglass and Paula T. Douglass, in their individual capacities,
and as trustees of the respective trusts listed herein, have beneficial
ownership of 786,942 shares of Common Stock, representing 8.9% of the shares of
Common Stock outstanding.
|
|
**
|
|
Sam P. Douglass, as trustee of the Douglass Trust IV- FBO S. Preston
Douglass, Douglass Trust IV- FBO Brooke Douglass, and Tiel Trust FBO Sam P.
Douglass, has sole voting and dispositive power over the Common Stock held by
such trusts.
|
|
***
|
|
Paula T. Douglass, as trustee of Tiel Trust FBO Paula T. Douglass, has
sole voting and dispositive power over the Common Stock held by such trust.
|
|
+
|
|
Indicates less than one percent.
|
B-1
|
|
|
|
|
|
|
|
|
|
|
Number of
|
|
|
|
|
|
|
Shares Owned
|
|
Principal Occupation or
|
|
|
|
|
Beneficially and
|
|
Employment
|
|
|
Number of Shares
|
|
Nature of
|
|
and the Name, Principal Business
|
Name and Address of
|
|
Owned
|
|
Beneficial
|
|
and Address of Any Corporation or
|
Beneficial
|
|
of Record
|
|
Ownership
|
|
Other Organization in which Such
|
Owner
|
|
(Percent of Class)
5
|
|
(Percent of Class)
|
|
Employment is Carried On
|
Tiel Trust FBO PTD
5005 Riverway
Suite 250
Houston, Texas 77056
|
|
53,986***
(
+
)
|
|
53,986***
(
+
)
|
|
N/A
|
|
|
|
|
|
|
|
J. Philip Ferguson
2301 Kingston
Houston, Texas 77019
|
|
|
|
|
|
Business consultant.
2301 Kingston
Houston, Texas 77019
|
|
|
|
|
|
|
|
Lance T. Funston
1701 JFK Boulevard
25th Floor
Philadelphia, PA 19103
|
|
|
|
217,033 (2.4%)
|
|
Chairman of the Board of
Directors of Telamerica Media,
Inc., a media aggregator.
1701 JFK Boulevard
25th Floor
Philadelphia, PA 19103
|
|
|
|
|
|
|
|
John D. White
1100 Louisiana
Suite 5005
Houston, Texas 77002
|
|
|
|
|
|
Partner at Murphree Venture
Partners, a private equity fund.
1100 Louisiana
Suite 5005
Houston, Texas 77002
|
|
|
|
|
|
|
|
Charles R. Ofner
2187 Troon Road
Houston, Texas 77019
|
|
|
|
|
|
Owner of Ofner Associates, Inc.,
a company that engages in
exploration & production and oil
services.
2187 Troon Road
Houston, Texas 77019
|
|
|
|
|
|
|
|
Dr. Francis D. Tuggle
1 University Drive
Orange, California 92866
|
|
|
|
6,536
(
+
)
|
|
Dean and Professor of Chapman
University.
1 University Drive
Orange, California 92866
|
|
|
|
|
|
|
|
John P. Wade
5005 Riverway
Suite 250
Houston, Texas 77056
|
|
|
|
|
|
Senior & Managing Partner of
Wade & Company, LLP, an
accounting firm.
5005 Riverway
Suite 250
Houston, Texas 77056
|
B-2
|
|
|
|
|
|
|
|
|
|
|
Number of
|
|
|
|
|
|
|
Shares Owned
|
|
Principal Occupation or
|
|
|
|
|
Beneficially and
|
|
Employment
|
|
|
Number of Shares
|
|
Nature of
|
|
and the Name, Principal Business
|
Name and Address of
|
|
Owned
|
|
Beneficial
|
|
and Address of Any Corporation or
|
Beneficial
|
|
of Record
|
|
Ownership
|
|
Other Organization in which Such
|
Owner
|
|
(Percent of Class)
5
|
|
(Percent of Class)
|
|
Employment is Carried On
|
|
|
|
|
|
|
|
Dr. Charles M. Boyd
135 E. Maple Road
Birmingham, MI 48009
|
|
|
|
1,098 (
+
)
|
|
Medical Director at The Boyd
Cosmetic Surgical Institute.
135 E. Maple Road
Birmingham, MI 48009
|
|
|
|
|
|
|
|
Jonathan H. Godshall
5360 Spring Park
Houston, Texas 77056
|
|
|
|
|
|
President and Chief Executive
Officer of Verdient Technologies
LLC, a company focused on
technology based energy
efficiency products.
5360 Spring Park
Houston, Texas 77056
|
B-3
Exhibit C
TRANSACTIONS IN SECURITIES OF EQUUS TOTAL RETURN, INC.
The following tables set forth information with respect to all purchases and sales of
securities by the Participants during the past two years (numbers in parentheses indicate sales):
Transactions in Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
Date
|
|
Sam P. Douglass
|
|
Paula T. Douglass
|
|
Lance T. Funston
|
4/3/08
|
|
|
500
|
|
|
|
500
|
|
|
|
|
|
4/4/08
|
|
|
300
|
|
|
|
500
|
|
|
|
|
|
4/7/08
|
|
|
200
|
|
|
|
2,100
|
|
|
|
|
|
4/7/08
|
|
|
2,900
|
|
|
|
|
|
|
|
|
|
4/8/08
|
|
|
600
|
|
|
|
875
|
|
|
|
|
|
2/19/10
|
|
|
|
|
|
|
|
|
|
|
12,718
|
|
2/19/10
|
|
|
|
|
|
|
|
|
|
|
24,000
|
|
2/22/10
|
|
|
|
|
|
|
|
|
|
|
24,000
|
|
2/22/10
|
|
|
|
|
|
|
|
|
|
|
12,315
|
|
2/23/10
|
|
|
|
|
|
|
|
|
|
|
24,000
|
|
2/23/10
|
|
|
|
|
|
|
|
|
|
|
24,000
|
|
2/24/10
|
|
|
|
|
|
|
|
|
|
|
24,000
|
|
2/25/10
|
|
|
|
|
|
|
|
|
|
|
24,000
|
|
2/26/10
|
|
|
|
|
|
|
|
|
|
|
24,000
|
|
3/1/10
|
|
|
|
|
|
|
|
|
|
|
24,000
|
|
C-1
Annex 1
[See the Attached Consent of Each Nominee]
CONSENT OF
NOMINEE FOR ELECTION TO
THE BOARD OF DIRECTORS OF
EQUUS TOTAL RETURN, INC.
To the Secretary of Equus Total Return, Inc.:
As required by
Article II of the Amended and Restated By-laws of Equus Total Return, Inc., a
Delaware corporation (the Corporation), and the United States federal securities laws, and in
connection with the Notice of Nominations of Persons for Election to the Board of Directors of
Equus Total Return, Inc. (the Notice) to be delivered to the Corporation by or on behalf of Sam
P. Douglass, Paula T. Douglass and/or family trusts and/or associated persons, the undersigned
hereby consents to being named in the Notice and in any proxy statement, consent statement or other
solicitation materials as a nominee for election to the Board of Directors of the Corporation at
the Corporations next Annual or Special Meeting of stockholders and, if elected at such meeting,
to serving as a director of the Corporation.
Dated: March 29, 2010
|
|
|
|
|
|
|
|
|
/s/ J. Philip Ferguson
|
|
|
Name:
|
J. Philip Ferguson
|
|
|
|
|
CONSENT OF
NOMINEE FOR ELECTION TO
THE BOARD OF DIRECTORS OF
EQUUS TOTAL RETURN, INC.
To the Secretary of Equus Total Return, Inc.:
As required by Article II of the Amended and Restated By-laws of Equus Total Return, Inc., a
Delaware corporation (the Corporation), and the United States federal securities laws, and in
connection with the Notice of Nominations of Persons for Election to the Board of Directors of
Equus Total Return, Inc. (the Notice) to be delivered to the Corporation by or on behalf of Sam
P. Douglass, Paula T. Douglass and/or family trusts and/or associated persons, the undersigned
hereby consents to being named in the Notice and in any proxy statement, consent statement or other
solicitation materials as a nominee for election to the Board of Directors of the Corporation at
the Corporations next Annual or Special Meeting of stockholders and, if elected at such meeting,
to serving as a director of the Corporation.
Dated: March 31, 2010
|
|
|
|
|
|
|
|
|
/s/ Lance Funston
|
|
|
Name:
|
Lance Funston
|
|
|
|
|
CONSENT OF
NOMINEE FOR ELECTION TO
THE BOARD OF DIRECTORS OF
EQUUS TOTAL RETURN, INC.
To the Secretary of Equus Total Return, Inc.:
As required by Article II of the Amended and Restated By-laws of Equus Total Return, Inc., a
Delaware corporation (the Corporation), and the United States federal securities laws, and in
connection with the Notice of Nominations of Persons for Election to the Board of Directors of
Equus Total Return, Inc. (the Notice) to be delivered to the Corporation by or on behalf of Sam
P. Douglass, Paula T. Douglass and/or family trusts and/or associated persons, the undersigned
hereby consents to being named in the Notice and in any proxy statement, consent statement or other
solicitation materials as a nominee for election to the Board of Directors of the Corporation at
the Corporations next Annual or Special Meeting of stockholders and, if elected at such meeting,
to serving as a director of the Corporation.
Dated: March 30, 2010
|
|
|
|
|
|
|
|
|
/s/ John D. White
|
|
|
Name:
|
John D. White
|
|
|
|
|
CONSENT OF
NOMINEE FOR ELECTION TO
THE BOARD OF DIRECTORS OF
EQUUS TOTAL RETURN, INC.
To the Secretary of Equus Total Return, Inc.:
As required by Article II of the Amended and Restated By-laws of Equus Total Return, Inc., a
Delaware corporation (the Corporation), and the United States federal securities laws, and in
connection with the Notice of Nominations of Persons for Election to the Board of Directors of
Equus Total Return, Inc. (the Notice) to be delivered to the Corporation by or on behalf of Sam
P. Douglass, Paula T. Douglass and/or family trusts and/or associated persons, the undersigned
hereby consents to being named in the Notice and in any proxy statement, consent statement or other
solicitation materials as a nominee for election to the Board of Directors of the Corporation at
the Corporations next Annual or Special Meeting of stockholders and, if elected at such meeting,
to serving as a director of the Corporation.
Dated: March 31, 2010
|
|
|
|
|
|
|
|
|
/s/ Paula T. Douglass
|
|
|
Name:
|
Paula T. Douglass
|
|
|
|
|
CONSENT OF
NOMINEE FOR ELECTION TO
THE BOARD OF DIRECTORS OF
EQUUS TOTAL RETURN, INC.
To the Secretary of Equus Total Return, Inc.:
As required by Article II of the Amended and Restated By-laws of Equus Total Return, Inc., a
Delaware corporation (the Corporation), and the United States federal securities laws, and in
connection with the Notice of Nominations of Persons for Election to the Board of Directors of
Equus Total Return, Inc. (the Notice) to be delivered to the Corporation by or on behalf of Sam
P. Douglass, Paula T. Douglass and/or family trusts and/or associated persons, the undersigned
hereby consents to being named in the Notice and in any proxy statement, consent statement or other
solicitation materials as a nominee for election to the Board of Directors of the Corporation at
the Corporations next Annual or Special Meeting of stockholders and, if elected at such meeting,
to serving as a director of the Corporation.
Dated: March 30, 2010
|
|
|
|
|
|
|
|
|
/s/ Charles R. Ofner
|
|
|
Name:
|
Charles R. Ofner
|
|
|
|
|
CONSENT OF
NOMINEE FOR ELECTION TO
THE BOARD OF DIRECTORS OF
EQUUS TOTAL RETURN, INC.
To the Secretary of Equus Total Return, Inc.:
As required by Article II of the Amended and Restated By-laws of Equus Total Return, Inc., a
Delaware corporation (the Corporation), and the United States federal securities laws, and in
connection with the Notice of Nominations of Persons for Election to the Board of Directors of
Equus Total Return, Inc. (the Notice) to be delivered to the Corporation by or on behalf of Sam
P. Douglass, Paula T. Douglass and/or family trusts and/or associated persons, the undersigned
hereby consents to being named in the Notice and in any proxy statement, consent statement or other
solicitation materials as a nominee for election to the Board of Directors of the Corporation at
the Corporations next Annual or Special Meeting of stockholders and, if elected at such meeting,
to serving as a director of the Corporation.
Dated: March 30, 2010
|
|
|
|
|
|
|
|
|
/s/ Francis D. Tuggle
|
|
|
Name:
|
Francis D. Tuggle
|
|
|
|
|
CONSENT OF
NOMINEE FOR ELECTION TO
THE BOARD OF DIRECTORS OF
EQUUS TOTAL RETURN, INC.
To the Secretary of Equus Total Return, Inc.:
As required by Article II of the Amended and Restated By-laws of Equus Total Return, Inc., a
Delaware corporation (the Corporation), and the United States federal securities laws, and in
connection with the Notice of Nominations of Persons for Election to the Board of Directors of
Equus Total Return, Inc. (the Notice) to be delivered to the Corporation by or on behalf of Sam
P. Douglass, Paula T. Douglass and/or family trusts and/or associated persons, the undersigned
hereby consents to being named in the Notice and in any proxy statement, consent statement or other
solicitation materials as a nominee for election to the Board of Directors of the Corporation at
the Corporations next Annual or Special Meeting of stockholders and, if elected at such meeting,
to serving as a director of the Corporation.
Dated: March 30, 2010
|
|
|
|
|
|
|
|
|
/s/ John P. Wade
|
|
|
Name:
|
John P. Wade
|
|
|
|
|
CONSENT OF
NOMINEE FOR ELECTION TO
THE BOARD OF DIRECTORS OF
EQUUS TOTAL RETURN, INC.
To the Secretary of Equus Total Return, Inc.:
As required by Article II of the Amended and Restated By-laws of Equus Total Return, Inc., a
Delaware corporation (the Corporation), and the United States federal securities laws, and in
connection with the Notice of Nominations of Persons for Election to the Board of Directors of
Equus Total Return, Inc. (the Notice) to be delivered to the Corporation by or on behalf of Sam
P. Douglass, Paula T. Douglass and/or family trusts and/or associated persons, the undersigned
hereby consents to being named in the Notice and in any proxy statement, consent statement or other
solicitation materials as a nominee for election to the Board of Directors of the Corporation at
the Corporations next Annual or Special Meeting of stockholders and, if elected at such meeting,
to serving as a director of the Corporation.
Dated: April 1, 2010
|
|
|
|
|
|
|
|
|
/s/ Charles M. Boyd
|
|
|
Name:
|
Charles M. Boyd
|
|
|
|
|
CONSENT OF
NOMINEE FOR ELECTION TO
THE BOARD OF DIRECTORS OF
EQUUS TOTAL RETURN, INC.
To the Secretary of Equus Total Return, Inc.:
As required by Article II of the Amended and Restated By-laws of Equus Total Return, Inc., a
Delaware corporation (the Corporation), and the United States federal securities laws, and in
connection with the Notice of Nominations of Persons for Election to the Board of Directors of
Equus Total Return, Inc. (the Notice) to be delivered to the Corporation by or on behalf of Sam
P. Douglass, Paula T. Douglass and/or family trusts and/or associated persons, the undersigned
hereby consents to being named in the Notice and in any proxy statement, consent statement or other
solicitation materials as a nominee for election to the Board of Directors of the Corporation at
the Corporations next Annual or Special Meeting of stockholders and, if elected at such meeting,
to serving as a director of the Corporation.
Dated: April 1, 2010
|
|
|
|
|
|
|
|
|
/s/ Jonathan H. Godshall
|
|
|
Name:
|
Jonathan H. Godshall
|
|
|
|
|
Annex 2
[See the Attached Letter from Mr. Sam P. Douglass]
SAM P. DOUGLASS
3229 GROVELAND LANE
HOUSTON, TEXAS 77019
March 31, 2010
Equus Total Return, Inc.
Eight Greenway Plaza, Suite 930
Houston, Texas 77046
Ladies and Gentlemen:
This letter confirms that I intend to oppose actions by Equus Total Return, Inc. at the next
annual or special meeting of stockholders to elect a slate of directors other than the nominees of
Tiel Trust FBO Paula T. Douglass.
|
|
|
|
|
|
Sincerely,
|
|
|
/s/ Sam P. Douglass
|
|
|
Sam P. Douglass
|
|
|
|
|
|
Equus Total Return (NYSE:EQS)
Historical Stock Chart
From Jun 2024 to Jul 2024
Equus Total Return (NYSE:EQS)
Historical Stock Chart
From Jul 2023 to Jul 2024