UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A INFORMATION
Consent Statement Pursuant to Section
14(a) of the Securities
Exchange Act of 1934
Filed by the Registrant
Filed by a Party other than the Registrant
Check the appropriate box:
Preliminary Consent Statement
Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
Definitive Consent Statement
Definitive Additional Materials
Soliciting Material Pursuant to Rule 14a-11(c) or Rule 14a-12
CRITICARE SYSTEMS, INC.
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(Name of Registrant as Specified in Its Charter)
BLUELINE PARTNERS, L.L.C.
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(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
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appropriate box):
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Fee computed on table below per
Exchange Act Rules 14a-6(i)(1) and 0-11.
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Fee paid previously with
preliminary materials.
Check box if any part of the fee
is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which
the offsetting fee was paid previously. Identify the previous filing by registration
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BlueLine Comments on
Latest Management Self-Dealing at Criticare
DANVILLE, Calif., Sept 29
/PRNewswire-FirstCall/ BlueLine Partners today commented on recent changes to
management employment contracts at Criticare Systems, Inc. (AMEX: CMD). In an SEC filing
yesterday, Criticare disclosed that the employment contracts of six Criticare executives
have been amended to give each executive the right to quit the company and receive
substantial severance payments, the acceleration of all unvested options and other
significant benefits if BlueLines current stockholder consent solicitation is
successful. If triggered, the cash payments alone would exceed $1.8 million.
We are not surprised by this
blatant attempt to place managements interests ahead of those of the
stockholders said William Moore, a director at BlueLine. The board is
attempting to create a form of poison pill to deter stockholders from exercising their
rights under both Delaware law and the companys bylaws to make changes to the board.
If the current board doesnt like the decision made by a majority of Criticares
stockholders, they would punish all of the stockholders by using the companys money
to create a cash incentive for management to quit, Moore continued.
There is no legitimate business
purpose to these actions, said Scott Shuda, a director at BlueLine. While
properly crafted severance arrangements can serve to retain management, these changes do
exactly the opposite. I dont see how anyone can pretend that provisions designed to
simultaneously strip the company of both its management and its cash is in any way
beneficial to Criticares stockholders, Shuda continued.
Management recently used the companys
money to mail letters to stockholders full of false
statements on how BlueLine has plans to harm the company, said Moore. Now
theyve done something far worse than anything they attributed to BlueLine
Criticare cant operate properly if it has to pay two management teams
simultaneously. This is yet another example that the interests of management and the
current board are not properly aligned with those of Criticares stockholders and is
further evidence that changes need to be made at Criticare, Moore continued.
BlueLine is exploring the legal
remedies available to Criticare stockholders to rescind these agreements and to hold
members of Criticares board personally liable for breaching their fiduciary duties.
BlueLine is confident that a re-formed board of directors will resolve this issue in
manner consistent with stockholder interests.
Additional Information
and Where to Find It
BlueLine has filed a consent
solicitation statement and other relevant materials with the Securities and Exchange
Commission (SEC). Before making any voting decision with respect to the
proposed solicitation, Criticare stockholders are urged to read the consent solicitation
statement and other relevant materials because they will contain important information
about the proposed solicitation. The consent solicitation statement and other relevant
materials, and any other documents filed by BlueLine with the SEC, may be obtained free of
charge at the SECs website at www.sec.gov. In addition, copies of the consent
statement are available at BlueLines website at www.bluelinepartners.com or by mail
to BlueLine, 4115 Blackhawk Plaza Circle, Danville, CA 94506, attention: Scott A. Shuda,
telephone: 925-648-2085. You may also read and copy any reports,
statements and other information
filed with the SEC at the SEC public reference room at 100 F Street N.E., Washington, D.C.
20549. Please call the SEC at 1-800-SEC-0330 or visit the SECs website for further
information on its public reference room.
Interests of Certain
Persons in the Solicitation
BlueLine and its officers may be
deemed to be participants in the solicitation of consents from Criticare stockholders in
favor of the proposed consent solicitation. William M. Moore, an officer of BlueLine, has
interests in the transaction that may differ from the interests of Criticare stockholders
generally, inasmuch as he will be elected to the Criticare board of directors if the
consent solicitation is successful. These interests are described in the consent
solicitation statement.