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Registration No. 33-62527
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
POST-EFFECTIVE AMENDMENT NO. 1
ON FORM S-8
TO
FORM S-4
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
THE DURIRON COMPANY, INC.
(Exact name of registrant as specified in its charter)
NEW YORK 31-0267900
(State of Incorporation) (I.R.S. Employer
Identification No.)
THE DURIRON COMPANY, INC.
3100 RESEARCH BOULEVARD
DAYTON, OHIO 45420
(513) 476-6100
(Address, including zip code,
of registrant's principal executive offices)
DURAMETALLIC CORPORATION 1991 STOCK OPTION PLAN
DURAMETALLIC CORPORATION EXECUTIVE INCENTIVE BONUS PLAN
(Full title of the Plan)
RONALD F. SHUFF, ESQ.
VICE PRESIDENT-SECRETARY AND GENERAL COUNSEL
THE DURIRON COMPANY, INC.
3100 RESEARCH BOULEVARD
DAYTON, OHIO 45420
(513) 476-6100
(Name, including zip code, and telephone number, including
area code of agent for service)
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The Duriron Company, Inc. ("Duriron") filed the Registration Statement
on Form S-4 (the "Registration Statement") with respect to which this
Post-Effective Amendment No. 1 is being filed for the purpose of registering
shares of Duriron's Common Stock, par value $1.25 per share ("Duriron Common
Stock"), being issued by Duriron in connection with the merger of a
wholly-owned subsidiary of Duriron into Durametallic Corporation
("Durametallic"). Under the terms of the Agreement and Plan of Merger (the
"Merger Agreement") dated as of September 11, 1995 among Duriron, Wolverine
Acquisition Corp. and Durametallic, at the effective time of the merger on
November 30, 1995, each option outstanding under the Durametallic Corporation
1991 Stock Option Plan (the "Durametallic Option Plan") became exercisable for
Duriron Common Stock, on the basis of 3.1132 shares of Duriron Common Stock for
each share of Durametallic's Common Stock, $5.00 par value per share
("Durametallic Shares"), for which the option was exercisable prior to the
effective time of the merger, at an exercise price per share equal to the
exercise price per share in effect prior to the effective time of the merger
divided by 3.1132. In addition, as required by the Merger Agreement, the
Durametallic Corporation Executive Incentive Bonus Plan (the "Durametallic
Bonus Plan") was amended to provide that, after the effective time of the
merger, persons entitled to receive Durametallic Shares under the Durametallic
Bonus Plan will receive, instead, on the same terms and conditions, Duriron
Common Stock, on the basis of 3.1132 shares of Duriron Common Stock for each
Durametallic Share otherwise issuable under the Durametallic Bonus Plan.
This Post-Effective Amendment No. 1 on Form S-8 is being filed for the
purpose of registering the offer and sale of the Duriron Common Stock (the
"Plan Shares") that may be issued in lieu of Durametallic Shares upon the
exercise of options granted under the Durametallic Option Plan and under the
Durametallic Bonus Plan in accordance with the Merger Agreement. The 6,458,558
shares of Duriron Common Stock registered pursuant to the Registration
Statement were sufficient to include the Plan Shares.
PART II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
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Item 3. Incorporation of Documents by Reference.
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The following documents filed by Duriron with the Securities and
Exchange Commission (the "Commission") are incorporated herein by reference as
of their respective dates of filing:
(a) Duriron's Annual Report on Form 10-K for the year ended
December 31, 1994.
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(b) Duriron's Quarterly Reports on Form 10-Q for the quarters
ended March 31, 1995, June 30, 1995 and September 30, 1995.
(c) Duriron's Current Reports on Form 8-K filed with the
Commission on September 11, 1995 and December 14, 1995.
(d) The description of Duriron's Common Stock contained in the
Registration Statement filed the Commission pursuant to Section 12 of
the Exchange Act for the purpose of registering such stock (and any
amendment or report filed for the purpose of updating such
description).
(e) The description of the rights to purchase Duriron's Series
A Junior Participating Preferred Stock contained in the Registration
Statement on Form 8-A dated August 13, 1986 filed with the SEC.
All documents subsequently filed by Duriron pursuant to Sections
13(a), 13(c), 14 and 15(d) of the Exchange Act prior to the filing of a
post-effective amendment which indicates that all Common Stock then remaining
unsold hereunder shall be deemed to be incorporated by reference herein and to
be a part hereof from the date of filing of such documents.
Item 4. Description of Securities.
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Not applicable.
Item 5. Interests of Named Experts and Counsel.
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Thompson Hine & Flory P.L.L. has provided a legal opinion to the
Company with respect to the Duriron Common Stock issuable upon exercise of stock
options granted under the Durametallic Option Plan and issuable under the
Durametallic Bonus Plan and registered hereunder.
Item 6. Indemnification of Directors and Officers.
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See Item 20 of the Registration Statement.
Item 7. Exemption from Registration Claimed.
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Not applicable.
Item 8. Exhibits.
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See Index to Exhibits following the signature pages to this
Post-Effective Amendment No. 1.
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Item 9. Undertakings.
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(a) The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales are
being made of the securities registered hereby, a post-effective amendment to
this registration statement:
(i) To include any prospectus required by Section
10(a)(3) of the Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events
arising after the effective date of the registration
statement (or the most recent post-effective amendment
thereof) which, individually or in the aggregate,
represent a fundamental change in the information set
forth in this registration statement;
(iii) To include any material information with respect
to the plan of distribution not previously disclosed in
the registration statement or any material change to
such information in the registration statement;
provided, however, that the undertakings set forth in paragraphs (i) and (ii)
above do not apply if the information required to be included in a
post-effective amendment by those paragraphs is contained in periodic reports
filed by the registrant pursuant to Section 13 or Section 15(d) of the
Securities Exchange Act of 1934 that are incorporated by reference in this
registration statement.
(2) That, for the purpose of determining any liability under the
Securities Act of 1933, each such post-effective amendment shall be deemed to
be a new registration statement relating to the securities offered therein, and
the offering of such securities at that time shall be deemed to be the initial
bona fide offering thereof.
(3) To remove from registration by means of a post-effective
amendment any of the securities being registered which remain unsold at the
termination of the offering.
See also the undertakings set forth in paragraphs (a) and (b) under
Item 22 of the Registration Statement.
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SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
registrant has duly caused this Post-Effective Amendment No. 1 to Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Dayton, State of Ohio, on the 12th day of January,
1996.
THE DURIRON COMPANY, INC.
By:/s/ William M. Jordan
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William M. Jordan, President and
Chief Executive Officer
Pursuant to the requirements of the Securities Act of 1933, this
Post-Effective Amendment No. 1 to Registration Statement has been signed by
the following persons in the capacities and on the dates indicated.
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Name Title Date
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/s/ William M. Jordan
- ------------------------------ President, Chief January 12, 1996
William M. Jordan Executive Officer
and Director
(principal executive
officer)
/s/ Bruce E. Hines
- ------------------------------ Senior Vice President January 12, 1996
Bruce E. Hines and Chief Administrative
Officer (principal
financial and accounting
officer)
* Hugh K. Coble Director January 12, 1996
- -----------------------------
Hugh K. Coble
*Robert E. Frazer Director January 12, 1996
- -----------------------------
Robert E. Frazer
*Ernest Green Director January 12, 1996
- -----------------------------
Ernest Green
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*John S. Haddick Director January 12, 1996
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John S. Haddick
Director January __, 1996
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Diane C. Harris
*Richard L. Molen Director January 12, 1996
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Richard L. Molen
Director January __, 1996
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James F. Schorr
*Kevin E. Sheehan Director January 12, 1996
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Kevin E. Sheehan
Director January __, 1996
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R. Elton White
*The undersigned, by signing his name hereto, executes this
Post-Effective Amendment No. 1 to Registration Statement on behalf of each of
the above-named directors of the registrant pursuant to powers of attorney
executed by the above-named persons and filed with the Securities and Exchange
Commission.
/s/ Ronald F. Shuff
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Ronald F. Shuff,
Attorney-in-Fact
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EXHIBIT INDEX
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Exhibit
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(3) Instruments Defining the Rights of Security
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Holders, Including Indentures
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4.1 Restated Certificate of Incorporation of The Duriron Company, Inc.
(as amended) [filed as Exhibit 4.2 to the original Registration
Statement on Form S-4 (Reg. No. 33-62527)] *
4.2 Certificate of Amendment to Certificate of Incorporation of
The Duriron Company, Inc.
4.3 By-Laws of The Duriron Company, Inc.
(as amended) [filed as Exhibit 4.2 to the original Registration
Statement on form S-4 (Reg. No. 33-62527)] *
4.4 Form of Rights Agreement dated as of
August 1, 1986 between The Duriron Company, Inc.
and Bank One, Indianapolis, National
Association, as Rights Agent [filed as
an exhibit to the Company's Form 8-A
dated August 13, 1986] *
4.5 Durametallic Corporation 1991 Stock Option
Plan, as amended
4.6 Durametallic Corporation Executive Incentive
Bonus Plan, as amended
4.7 Amendment No. 1 [sic] to Durametallic Corporation
Executive Incentive Bonus Plan, as amended
(5) Opinion re Legality
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5.1 Opinion of Thompson Hine & Flory P.L.L.
(23) Consents of Experts and Counsel
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23.1 Consent of Thompson Hine & Flory P.L.L.
is included in Exhibit 5.1
_______________________________
* Incorporated by reference to a document previously filed with the Securities
and Exchange Commission.
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EXHIBIT 4.2
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CERTIFICATE OF AMENDMENT
of
CERTIFICATE OF INCORPORATION
of
THE DURIRON COMPANY, INC.
under
SECTION 805 OF THE BUSINESS CORPORATION LAW
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Pursuant to the provisions of Section 805 of the Business
Corporation Law, the undersigned, William M. Jordan, President, and Ronald F.
Shuff, Secretary, of THE DURIRON COMPANY, INC., a New York corporation (the
"Corporation"), do hereby certify as follows:
FIRST: The name of the corporation is The Duriron Company,
Inc. The name under which the corporation was formed was Duriron Castings
Company.
SECOND: The Certificate of Incorporation of the Corporation
was filed by the Department of State on May 1, 1912.
THIRD: The amendments to the Certificate of Incorporation
affected by this Certificate are as follows:
Article THIRD of the Certificate of Incorporation is hereby
amended by deleting the first sentence of Article THIRD and by
replacing such deleted sentence with the following sentence:
"THIRD: The aggregate number of shares which the Corporation
shall have authority to issue is 61,000,000 of which 1,000,000 shares,
of the par value of $1.00 each, shall be Preferred Stock and
60,000,000 shares, of the par value of $1.25 each, shall be Common
Stock."
FOURTH: No change in the number of outstanding shares of
Common Stock or Preferred Stock of the Corporation resulted from the above
amendment. However, as the result of such amendment, the total number of
authorized shares of the Corporation is increased from 31,000,000 to 61,000,000
with the number of shares of Preferred Stock, of the par value of $1.00 each,
being unchanged from 1,000,000 shares and the number of shares of Common Stock,
of the par value of $1.25 each, being increased from 30,000,000 to 60,000,000
shares.
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FIFTH, the foregoing amendment to the Certificate of
Incorporation was authorized by the unanimous vote of the Directors present at
a meeting of the Board of Directors duly convened and held on September 9,
1995, and such amendment was thereafter approved by an affirmative vote of a
majority of all the outstanding shares of the Common Stock at a Special Meeting
of Shareholders of the Corporation held on November 30, 1995.
IN WITNESS WHEREOF, we hereunto sign our respective names and
affirm that the statements made herein are true under penalties of perjury,
this 3rd day of January, 1996.
/s/ William M. Jordan
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William M. Jordan,
President
/s/ Ronald F. Shuff
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Ronald F. Shuff,
Secretary
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EXHIBIT 4.5
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DURAMETALLIC CORPORATION
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1991 Stock Option Plan
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1. ESTABLISHMENT OF PLAN. Durametallic Corporation
("Durametallic") proposes to grant to directors, corporate officers and other
key employees of Durametallic and its subsidiaries options to purchase shares
of Durametallic's Common Stock, $5 par value ("Common Stock"), and authorize
the granting of tax benefit rights. The options and rights will be granted
pursuant to the plan set forth herein and known as the DURAMETALLIC CORPORATION
1991 STOCK OPTION PLAN (the "Plan").
2. PURPOSE OF PLAN. The purpose of the Plan is to provide
directors, officers and key employees of Durametallic and its subsidiaries with
an increased incentive to make significant and extraordinary contributions to
the long-term performance and growth of Durametallic and its subsidiaries, to
join the interests of such persons with the interests of Durametallic
shareholders through the opportunity for increased stock ownership, and to
attract and retain directors and employees of exceptional ability. It is
intended that certain options to be granted to employees under the Plan may not
qualify and that certain options may qualify as "incentive stock options" as
defined in Section 422A(b) of the Internal Revenue Code of 1986, as amended
(the "Code") and the terms of the Plan shall be interpreted in accordance with
the incention stated in the option agreement.
3. SHARES SUBJECT TO PLAN. A maximum of fifty thousand (50,000)
shares of Common Stock (subject to adjustment in accordance with Paragraph 15
below) may be subject to the exercise of options granted under the Plan. Such
shares shall be authorized shares and may be either unissued or treasury
shares. If an option is cancelled, surrendered, modified, exchanged for a
substitute option, or expires or terminates during the term of the Plan but
prior to the exercise of the option in full, the shares subject to but not
delivered under such option shall be available for options subsequently
granted.
4. ADMINISTRATION BY COMMITTEE. The Plan shall be administered by
the Stock Option Committee (the "Committee") consisting of at least two
members of the Board of Directors of Durametallic who are not also employees
of Durametallic. Except for options granted to non-employee directors under
this Paragraph 4, the Committee shall determine the persons to be granted
options and rights, the amount of stock and rights to be optioned to each such
person, and the terms of the options and rights to be granted. Options and
rights shall be granted by the Committee and may be amended by the Committee
consistent with the Plan, provided that no such amendment may become effective
without the consent of the optionee except to the extent that such amendment
operates solely to the benefit of the optionee.
Options shall be granted to non-employee directors on the date
of adoption of this plan according to the attached schedule, and no
discretionary options shall be granted to such directors under the Plan. The
price shall be 100% of the market value as of the date of the grant. The
options shall be for a term of 10 years with a three year installment vesting
schedule beginning one year from the grant date. No other options shall be
granted to non-employee directors without an amendment of the plan adopting a
new formula for such grants.
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The Committee shall have full power and authority to interpret the
provisions of the Plan and to supervise the administration of the Plan. All
determinations and selections made by the Committee regarding the Plan shall be
final and conclusive. The Committee shall hold its meetings at such times and
places as it shall deem advisable. Action may be taken by a written instrument
signed by all the members of the Committee, and any action so taken shall be
fully as effective as if it had been taken at a meeting duly called and held.
The Committee may designate one of its members to sign options on behalf of the
Committee and may appoint a secretary to keep minutes of its meetings. The
Committee shall make such rules and regulations for the conduct of its business
as it shall deem advisable. The members of the Committee shall be paid
reasonable fees for their services.
5. INDEMNIFICATION OF COMMITTEE MEMBERS. Each person who is or
shall have been a member of the Committee shall be indemnified and held
harmless by Durametallic from and against any cost, liability or expense
imposed or incurred in connection with such person's or the Committee's taking
or failing to take any action under the Plan. Each such person shall be
justified in relying on information furnished in connection with the Plan's
administration by any appropriate person or persons.
6. ELIGIBILITY. Only directors, corporate officers and other key
employees of Durametallic or a subsidiary corporation of Durametallic shall be
eligible to participate in the Plan. The Committee shall determine whether or
not a given individual is eligible to participate in the Plan. A person who
has been granted an option or right under the Plan or any other stock option
plan of Durametallic or any subsidiary corporation may be granted additional
options and rights. The term "subsidiary" shall, for purposes of this Plan, be
defined in the same manner as such term is defined in Section 425(f) of the
Code.
7. OPTION PRICE. The per share option price shall be equal to not
less than one hundred percent (100%) of the market value of the stock on the
date of grant. The date of grant of an option shall be the date as of which
the option is authorized by the Committee. The Committee shall determine the
market value of the Common Stock as of the date of grant by taking into
consideration Durametallic's then-current net worth, prospective earning power
and dividend-paying capacity, and other relevant factors, provided, however,
that if the stock is publicly traded, the Committee may rely on the trading
prices on the date of determination or the most recent preceding date for which
information is available.
8. INCENTIVE STOCK OPTIONS FOR TEN PERCENT STOCKHOLDERS. No
option granted to any person who at the time of such grant owns more than 10%
of the total combined voting power of all classes of stock of Durametallic or
any of its subsidiaries may be designated as an incentive stock option, unless
such option issued to such individual provides an exercise price equal to at
least 110% of the market value of the Common Stock (as market value is defined
in Paragraph 7), and the exercise of such option after the expiration of five
years from the date of grant of the option is prohibited by its terms.
9. LIMIT ON INCENTIVE STOCK OPTION GRANTS. The maximum number of
options first exercisable during any calendar year by a participant under this
and all stock option plans of Durametallic and any parent or subsidiary
corporations that can qualify as incentive stock options is specified in
Section 422A(d) of the Code. As of the date of adoption of the Plan, that
limit is
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an aggregate fair market value of $100,000 determined on the date of grant.
Options issued or which become exercisable in excess of the applicable limit
will not qualify as incentive stock options. In the event of the acceleration
of vesting of incentive stock options for any reason, which acceleration causes
any participant to exceed this limit, Durametallic may designate the shares to
be treated as having been acquired under incentive stock options.
10. TAX BENEFIT RIGHTS. The Committee may grant tax benefit rights
to encourage participants to exercise their options and provide certain tax
benefits to Durametallic. A tax benefit right shall entitle a participant to
receive from Durametallic or a subsidiary a cash payment not to exceed the
amount calculated by multiplying the ordinary income, if any, realized by the
participant for federal tax purposes as a result of the exercise of a
non-qualified stock option, or the disqualifying disposition of shares acquired
under an incentive stock option, by the maximum federal income tax rate
(including any surtax or similar charge or assessment) for corporations. A tax
benefit right may be granted only with respect to a stock option issued and
outstanding or to be issued under the Plan or any other plan of Durametallic or
its subsidiaries which has been approved by the shareholders as of the date of
this Plan and may be granted concurrently with or after the grant of the stock
option. Such rights with respect to outstanding options shall be issued only
with the consent of the participant if the effect would be to disqualify an
incentive stock option, change the date of grant or the exercise price, or
otherwise impair the participant's existing options. A stock option to which a
tax benefit right has been attached shall not be exercisable by an officer
subject to Section 16 of the Securities Exchange Act of 1934 for a period of
six months from the date of the grant of the tax benefit right. The Committee
shall determine the terms and conditions of any tax benefit right granted and
the participants to whom such rights will be granted with respect to options
under the Plan or any other plan of Durametallic. The Committee may amend,
cancel, limit the term of or limit the amount payable under a tax benefit right
at any time prior to exercise of the related option. The net amount of a tax
benefit right, subject to withholding, may be used to pay a portion of the
option price unless otherwise provided by the Committee.
11. TERMS OF OPTIONS AND RIGHTS; LIMITS ON EXERCISABILITY.
Options and rights shall be evidenced by written agreements containing such
terms and conditions, consistent with the provisions of this Plan, as the
Committee shall from time to time determine. Options shall be exercisable for
such periods as may be fixed by the Committee, not to exceed fifteen years from
the grant thereof, but no option designated as an incentive stock option shall
be exercisable after the expiration of ten years from the date of grant. At
the time of the exercise of an option the option holder, if requested by the
Committee, must represent to Durametallic that the shares are being acquired
for investment and not with a view to the sale or distribution thereof. No
option shall be exercisable within six months of the date or grant. The
Committee may in its descretion require a participant to continue the
participant's service with Durametallic and its subsidiaries for a certain
length of time prior to the options becoming exercisable and may eliminate such
delayed vesting provisions, subject to the restrictions of Paragraph 9. The
Committee may condition the grant of an option to an employee of Durametallic
or any of its subsidiary corporations on the execution of an employment
contract by the employee, on the execution of any other contract
or waiver, or upon the taking of any other action that the Committee in its
discretion deems appropriate. The Committee may also vary, among the
participants and among options and rights granted to the same participant, any
and all of the terms and conditions of options and rights granted under the
Plan.
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Unless the option agreement provides otherwise, unexpired
options with delayed vesting shall be immediately exercisable in their entirety
in the event of a change of control. "Change in control" means a change in
control after the date of grant of the option of a nature that would be
required to be reported in response to Item 6(e) of Schedule 14A of Regulation
14a promulgated under the Securities Exchange Act of 1934, as amended, provided
that, without limitation, such change in control shall be deemed to have
occurred if during any period of two (2) consecutive years, individuals who at
the beginning of such period constitute the Board of Directors cease for any
reason to constitute at least a majority thereof (unless the election or
nomination for election by Durametallic shareholders of each new director was
approved by a vote of at least two-thirds (2/3) of the directors then still in
office who were directors at the beginning of the period). Notwithstanding the
foregoing, a public offering of the stock shall not be deemed to be a change in
control. If the option is an incentive stock option, the One Hundred Thousand
Dollar ($100,000) limitation of Paragraph 9 shall not apply in the event of
such acceleration, and any options in excess of the One Hundred Thousand Dollar
($100,000) vesting limitation under Section 422A of the Internal Revenue Code
which had been incentive stock options shall be non-qualified stock options.
12. MEDIUM AND TIME OF PAYMENT. The exercise price for each share
purchased pursuant to an option granted under the Plan shall be payable in cash
or, if the Committee consents, in shares of Common Stock (including Common
Stock to be received upon a simultaneous exercise) or other consideration
equivalent to cash. When appropriate arrangements are made with a broker or
other institution, payment may be made by a properly executed exercise notice
directing delivery of shares to a broker together with irrevocable instructions
to the broker to promptly deliver to Durametallic the amount of sale or loan
proceeds to pay the exercise price. The time and terms of payment may be
amended with the consent of the participant before or after exercise of the
option, but such amendment shall not reduce the option price. The Committee
may from time to time authorize payment of all or a portion of the option price
in the form of a promissory note or installments, with or without interest or
security, according to such terms as the Committee may approve. The Board of
Directors may restrict or suspend the power of the Committee to permit such
loans and may require that adequate security be provided.
13. TRANSFERABILITY OF OPTIONS AND RIGHTS. Options and rights
granted under this Plan may not be transferred except by will or the laws of
descent and distribution. During the lifetime of the participant, options and
tax benefit rights may be exercised only by that participant, the
participant's guardian or the participant's legal representative.
14. TERMINATION OF EMPLOYMENT. If a participant is no longer
employed by or a director of Durametallic or its subsidiaries for any reason
other than the participant's death, disability, termination after a change in
control as defined in Paragraph 11, or termination for cause, the participant
may exercise options or stock appreciation rights for a period of three months
after such termination of employment or director status, but only to the extent
the participant was entitled to exercise the options or rights on the date of
termination, unless the terms of such option or right provide otherwise. For
purposes of the Plan the following shall not be deemed a termination of
employment (a) a transfer of an employee from Durametallic to any subsidiary of
Durametallic; (b) a leave of absence, duly authorized in writing by
Durametallic, for military service or for any other purpose approved by
Durametallic if the period of such leave does not exceed 90 days; and
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(c) a leave of absence in excess of 90 days, duly authorized in writing by
Durametallic, provided that the employee's right to reemployment is guaranteed
either by statute or contract, and (d) a termination of employment with
continued service as a director.
If a participant ceases to be employed by or a director of
Durametallic or one of its subsidiaries due to the participant's termination
after a change in control as defined in Paragraph 11, the participant may
exercise an option during the remaining term of the option, but only to the
extent that the participant was entitled to exercise the option on the date of
such event, unless the terms of such option or right provide otherwise.
If a participant dies or becomes disabled (within the meaning of
Section 22(e)(3) of the Code) causing termination, either while an employee or
director of Durametallic or after the termination of the participant's
employment or directorship (other than for cause) but during the time when the
participant could have excercised options under the Plan, options issued to the
participant shall be exercisable by the participant, by the personal
representative of such participant, or by any other successor to the interest
of the participant for one year after such participant's disablility or death,
to the extent that the participant was entitled to excercise the option on the
date of death or termination of employment or directorship, whichever first
occurred, unless the terms of such option provide otherwise.
If a participant is terminated for cause the participant shall
have no further right to exercise any option previously granted.
Nothing in the Plan or in any option or right shall interfere
with or limit in any way the right of Durametallic or its subsidiaries to
terminate a participant's employment at any time, nor confer upon any
participant any right to continue in the employ of Durametallic or any of its
subsidiaries.
15. ADJUSTMENTS. If the number of shares of Common Stock
outstanding changes by reason of a stock dividend, stock split,
recapitalization, merger, reorganization, consolidation, combination or exchange
of shares, the aggregate number and class of shares available under the Plan
and subject to each option, together with the option prices, shall be
appropriately adjusted. If any rights to purchase stock of Durametallic are
granted by the Board of Directors as a dividend, then unless and until such
rights expire or become invalid, such rights shall attach to shares or stock
subject to options under the Plan on the later of the record date for such
dividend or the date an option is granted under the Plan. No fractional shares
shall be issued pursuant to the Plan, and any fractional shares resulting from
adjustments shall be eliminated from the respective options. If Durametallic
is acquired by another corporation, or is otherwise merged into or consolidated
with another corporation, all outstanding options shall become immediately
exercisable just prior to the effective date of the merger, combination,
consolidation or other corporate event, subject to the restrictions of
Paragraphs 9 and 11.
16. TAX WITHHOLDING. Durametallic or a subsidiary shall make such
provisions as it shall deem appropriate for the withholding of any taxes
determined to be required to be withheld in connection with the grant or
exercise of options or tax benefit rights under the Plan or the disqualifying
disposition of stock issued pursuant to incentive stock options granted under
the Plan,
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including the withholding of Common Stock to be received upon exercise or
delivery to Durametallic of previously owned Common Stock to satisfy the
withholding requirement.
17. APPLICABILITY OF PLAN TO OUTSTANDING STOCK OPTIONS. This Plan
shall not affect the terms and conditions of any stock options or related rights
heretofore granted to any employee of Durametallic or any subsidiary
corporation of Durametallic under any other stock option plan, except that tax
benefit rights may be granted as provided in this Plan.
18. LISTING AND REGISTRATION OF SHARES. Each option shall be
subject to the requirement that if at any time the Committee shall determine,
in its discretion, that the listing, registration or qualification of the
shares covered thereby upon any securities exchange or under any state or
federal law, or the consent or approval of any governmental regulatory body, is
necessary or desirable as a condition of, or in connection with, the granting of
such option or the issue or purchase of shares thereunder, such option may not
be exercised in whole or in part unless and until such listing, registration,
qualification, consent or approval shall have been effected or obtained free of
any conditions not acceptable to the Committee.
19. EFFECTIVE DATE OF PLAN. The Plan shall take effect June 21,
1991. Options granted hereunder and designated as incentive stock options
shall not be exercisable prior to one year from the effective date of this
Plan, and if shareholder approval of the Plan is not received prior to that
date, the options shall continue in force but shall not be incentive stock
options. Unless earlier terminated by the Board of Directors, the Plan shall
terminate on the day immediately preceding the tenth anniversary of its
effective date. No option shall be granted under this Plan after such date.
20. TERMINATION AND AMENDMENT. The Board of Directors may
terminate the Plan at any time, or may from time to time amend the Plan as it
deems proper and in the best interests of Durametallic, provided that if
shareholders have approved on the Plan, no such amendment may (i) materially
increase either the benefits to participants under the Plan or the number of
shares that may be issued under the Plan, (ii) materially modify the
eligibility requirements set forth in Paragraph 6, (iii) reduce the option
price (except pursuant to adjustments under Paragraph 15), or (iv) modify the
formula grant provisions of Paragraph 4 with respect to non-employee directors
more than once in any six month period. No amendment shall impair any
outstanding option without the consent of the participant, except according to
the terms of the option.
Approved by the Board
June 21, 1991
-6-
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SCHEDULE OF OPTIONS TO NON-EMPLOYEE DIRECTORS
June 21, 1991
Name Option # Shares Price/share
Paul D. Jackson NQ-1 1000 $ 74.07
Robert W. McClain NQ-2 2000 $ 74.07
Carl D. Wisner NQ-3 750 $ 74.07
Merle H. Armstrong NQ-4 250 $ 74.07
-7-
8
DURAMETALLIC CORPORATION
AMEMDMENT NO. 1
1991 STOCK OPTION PLAN
The Durametallic Corporation 1991 Stock Option Plan (the
"Plan") is hereby amended to add the following to Paragraph 4 of the Plan:
Options shall be granted to nonemployee directors on the day of
adoption of this Amendment No. 1 according to the following schedule,
at the indicated option price per share. The options shall be for a
term of six years and shall vest as of the date which is three years
from the date of the adoption of this Amendment No. 1. No other
options shall be granted to nonemployee directors without an amendment
of the Plan adopting a new formula for such grants.
Name Shares Price/Share
---- ------ -----------
Robert W. McLean
500 $34.75
Carl D. Wisner
500 34.75
Merrill H. Armstrong
500 34.75
A. C. Schauer
500 34.75
Approved by the Board of Directors on December 23, 1994.
1
EXHIBIT 4.6
-----------
DURAMETALLIC CORPORATION
------------------------
EXECUTIVE INCENTIVE BONUS PLAN,
------------------------------
AS AMENDED
----------
SECTION I
---------
PURPOSE
-------
1.1 The purpose of this Plan is to provide additional
compensation as an incentive to Key Executives upon whose efforts the
continued successful and profitable operations of the Corporation and
its subsidiaries are largely dependent, and to insure the continued
availability of their services to the Corporation.
SECTION
-------
DEFINITIONS
-----------
For purposes of this Plan:
2.1 "Adjusted Consolidated Income" means the Corporation's
consolidated income before provisions for income taxes and minority
interests and before deduction of the Bonus, as shown on the
consolidated statement of income contained in the Corporation's annual
report to stockholders.
2.2 "Adjusted Income Portion Points" mean the points awarded
to Key Executives by the Committee with respect to the Adjusted Income
Portion of the Bonus as described in Section 5.1.
2.3 "Beginning of the Year Stockholders' Equity" means the
stockholders' equity at the end of the preceding Year, as shown on the
consolidated balance sheet contained in the Corporation's annual report
to stockholders.
2.4 "Board" means the board of directors of the Corporation.
2.5 "Bonus" means any bonus awarded to a Key Executive
pursuant to the Plan.
2.6 "Committee" means the Incentive Bonus Committee
appointed under Section 3.1 to administer the Plan.
2.7 "Common Shares" mean the common shares of the
Corporation.
2.8 "Corporation" means Durametallic Corporation.
2
2.9 "Disability" means a mental or physical illness or
condition rendering a Key Executive incapable of performing his normal
duties with the Corporation for a period of six months.
2.10 "Key Executive" means an employee of the Corporation who
is selected by the Committee to participate in the Plan.
2.11 "Long Term Portion Points" mean the points awarded to Key
Executives by the Committee with respect to the Long Term Portion of the
Bonus as described in Section 5.1.
2.12 "Partial Bonus" means an amount obtained by multiplying
the Bonus that the Key Executive would have received if he had been
employed for a full Year by a ratio equal to the calendar days prior to
the employment termination date over the total calendar days in the
Year.
2.13 "Plan" means this Executive Incentive Bonus Plan, as
amended.
2.14 "Retirement" means retirement as defined in the
Corporation's R. D. Hall Employee Stock Ownership Plan, as it may from
time to time be amended.
2.15 "Return on Equity" means an amount obtained by dividing
the Corporation's consolidated net income, as shown on the consolidated
statement of income, by consolidated stockholders' equity as of the end
of the preceding Year, as shown on the consolidated balance
sheet contained in the Corporation's annual report to stockholders.
2.16 "Return on Equity Bonus Amount" means an amount calculated
each Year according to the following schedule:
If Return on Return on
Equity Equity Bonus
Equals: Amount Shall be:
------------ ----------------
20% or above $50,000
19% 45,000
18% 40,000
17% 35,000
16% 30,000
15% 25,000
14% 20,000
13% 15,000
12% 14,000
11% 12,500
10% 10,000
Less than 10% -0-
-2-
3
For purposes of calculating Return on Equity Bonus Amounts under this
section, Return on Equity amounts shall be rounded to the nearest whole
percentage.
2.17 "Year" means the fiscal year of the Corporation ending
December 31.
SECTION 3
---------
ADMINISTRATTON
--------------
3.1 The Board shall, appoint an Incentive Bonus Committee
which shall serve at the pleasure of the Board. The President shall be
an EX OFFICIO member of the Committee but shall have no voting rights.
The Committee is authorized to construe, interpret and administer the
Plan and may from time to time adopt such rules and regulations for the
administration of the Plan as it may deem appropriate. No voting member
of the Committee shall be eligible to receive a Bonus under the Plan for
any period during which he served as a member of the Committee. All
decisions and selections made by the Committee shall be final and binding
upon all parties. No member of the Committee shall be liable for any
action or determination made in good faith with respect to the Plan.
3.2 The selection of employees to receive Bonuses and the
determination of the number of points to be awarded to each Key
Executive shall be entirely within the discretion of the Committee.
SECTION 4
---------
SELECTTON OF KEY EXECUTIVES
---------------------------
4.1 As soon as practicable after the beginning of each Year,
the Committee shall select employees eligible to participate in the Plan
and determine the number of Adjusted Income Portion Points and Long Term
Portion Points to be awarded to each Key Executive for that Year. In
making such selections, the Committee shall consider the recommendations
of management.
4.2 The Committee shall notify each Key Executive of his
selection as a participant in the Plan, the number of Adjusted Income
Portion Points and Long Term Portion Points awarded to him and the total
number of Adjusted Income Portion Points and Long Term Portion Points
awarded to Key Executives for that Year.
4.3 The selection of an employee to be a Key Executive for a
particular Year shall not constitute him a Key Executive for another Year
unless he is selected to be a Key Executive for such other Year.
-3-
4
SECTION 5
---------
COMPUTATTON OF BONUS
--------------------
5.1 The Bonus shall consist of an Adjusted Income Portion
and a Long Term Portion as computed below. Each Key Executive shall be
entitled to receive the same percentage of the total Adjusted Income
Portion as his Adjusted Income Portion Points are to the total Adjusted
Income Portion Points of all Key Executives and the same percentage of
the total Long Term Portion as his Long Term Portion Points are to the
total Long Term Portion Points of all Key Executives.
5.2 The Adjusted Income Portion of the Bonus for each Year
shall be an amount equal to five percent (5%) of the balance remaining
after deducting eight percent (8%) of the Beginning of the Year
Stockholders' Equity from the Adjusted Consolidated Income.
5.3 The Long Term Portion of the Bonus for each Year shall be
an amount equal to the sum of the Return on Equity Bonus Amounts for the
last five Years.
5.4 The Corporation's independent public accountants shall
determine and report to the Committee the amount available for the Plan
for each Year as promptly after the close of such Year as practicable
following completion of their review and audit of the accounts of the
Corporation for the purpose of certification of the financial statements
appearing in the annual report to shareholders for the Year. This Plan
refers to the date that the Corporation receives the accountant's report
as the "Determination Date."
SECTION 6
---------
METHOD AND TIME OF PAYMENT OF BONUS
-----------------------------------
6.1 The Corporation shall pay the Adjusted Income Portion of
the Bonus in cash. The Corporation shall distribute the Adjusted Income
Portion as soon as possible after the Determination Date.
6.2 The Corporation shall pay the Long Term Portion of the
Bonus fifty percent (50%) in cash and fifty percent (50%) in Common
Shares. The Corporation shall pay the cash portion of the Long Term
Portion in annual installments of twenty-five percent (25%), the first
installment payable the Year following the Year the Corporation selects
the employee as a Key Executive and the remaining installments payable
in each of the succeeding three Years. The Corporation shall pay the
first cash installment within ninety (90) days after the Determination
Date. The Corporation shall pay each subsequent cash installment
within one hundred fifty (150) days of the beginning of each succeeding
year.
-4-
5
6.3 The Corporation shall pay the Common Share portion of
the Long Term Portion of the Bonus as soon as possible after the
Corporation has determined the market value of the Common Shares as set
forth in Section 7.2. The Corporation shall issue in the name of the
Key Executive all of the Common Shares payable under the Long Term
Portion of the Bonus. All of the Common Shares (the "Restricted
Stock") shall be subject to the restrictions set forth in Section
8.6.
SECTION 7
---------
STOCK BONUS
-----------
7.1 Common Shares to be delivered in partial payment of
Bonuses shall be made available from authorized and unissued stock of
the Corporation.
7.2 The Common Share portion of the Long Term Portion of
the Bonus shall consist of the number of Common Shares having an
aggregate market value, determined within ninety (90) days of the
Determination Date, equal to fifty percent (50%) of the Key Executive's
share of the Long Term Portion as determined under Section 5.1. If
payment of Common Shares would require the delivery of a fractional
share, then in lieu of the fractional share the Corporation shall pay
to the Key Executive the cash value thereof. Market value shall be
determined by independent appraisers or such other valuation methods as
the Corporation may from time to time adopt.
7.3 The Key Executive shall represent and warrant that he
is acquiring the Common Shares for his own account and investment and
without any intention to resell, or distribute the Common Shares. The
Key Executive shall agree not to resell or distribute the Common Shares
except upon the conditions as the Corporation may reasonably specify to
insure compliance with federal and state securities laws. The Key
Executive shall execute an agreement in the form of EXHIBIT A, or such
other form as the Committee may from time to time adopt.
7.4 (a) Any certificate issued under this Plan and
representing Common Shares which are Restricted Stock shall
bear the following legend:
The Corporation has not registered these shares under
federal and state securities laws. The holder of these
shares may not sell or otherwise transfer the shares
unless the sale or other transfer is (A) registered or
exempt from registration under federal and applicable
state securities laws and (B) in accordance with an
agreement with the company dated [insert date of
employee's letter agreement] a copy of which is on file
with the Corporation. Under the agreement, the
shares represented by this certificate are subject to
forfeiture upon the occurrence of certain events.
-5-
6
(b) Any certificate issued under this Plan and
representing Common Shares which, by the terms of Section 8.6
and the written agreement described in Section 7.3 hereof, are
no longer subject to a termination of rights and interests as
Restricted Stock shall bear the following legend:
The Corporation has not registered these shares under
federal and state securities laws. The holder of these
shares may not sell or otherwise transfer the shares
unless the sale or other transfer is (a) registered or
exempt from registration under federal and applicable
state securities laws and (b) in accordance with an
agreement with the Corporation dated [insert date of
employee's letter agreement], a copy of which is on file
with the Corporation.
SECTION 8
---------
TERMINATION OF EMPLOYMENT
-------------------------
8.1 A Key Executive whose employment terminates by dismissal
for cause or who voluntarily terminates his employment shall forfeit all
rights to any Bonus for the Year in which he terminates employment, any
unpaid Bonus awarded for the Year prior to the Year in which he
terminates employment, and any unpaid cash installments of the Long Term
Portion of any Bonus awarded in any previous Year. As set forth in
Section 8.6, the termination of employment shall also terminate the
Key Executive's right to and interest in any Restricted Stock the Key
Executive has received. For purposes of this Plan, "cause" shall
include conviction of a crime involving moral turpitude, neglect of
duties, incompetence, disobedience of reasonable directives of the
Board, or activities in direct competition with the Corporation or in
aid of its competitors, or any other activities which operate to the
detriment of the Corporation.
8.2 A Key Executive whose employment terminates after the end
of any Year in which he was designated a Key Executive, but before the
Bonus for the Year is paid, because of death, Disability, Retirement, or
any other reason except for dismissal for cause or voluntary
termination, shall be entitled to the Bonus for the prior Year and shall
be entitled to continue to receive any unpaid cash installments of the
Long Term Portion of any Bonus awarded in any previous Year. The
Corporation shall pay the Bonus to the Key Executive in the same manner
as if he were still employed, or in the event of death, in the same
manner as if he were living, PROVIDED, that the Corporation shall pay
the Long Term Portion of the Bonus entirely in cash.
8.3 A Key Executive whose employment terminates during a Year
in which he was designated a Key Executive because of death, Disability,
Retirement, or any other reason except for dismissal for cause or
voluntary termination, shall be entitled to a Partial Bonus for the
Year. The Corporation shall pay the Bonus to the Key Executive in the
same manner as if he were still employed, or in the event of death in
the same manner as if he were living, provided, that the Corporation
shall pay the Long Term Portion of the Bonus entirely in cash.
-6-
7
8.4 The Corporation shall reallocate among the remaining Key
Executives on a pro rata basis any bonus forfeited or reduced pursuant to
Section 8.1 or Section 8.3, PROVIDED, that any unpaid installments of
the Long Term Portion of any Bonus awarded for any Year prior to the
Year of termination, which unpaid installments are forfeited pursuant to
Section 8.1, shall not be reallocated nor inure to the benefit of any
other Key Executives.
8.5 Each Key Executive may file a written notice with the
Committee designating a beneficiary or beneficiaries to receive any
Bonus payable pursuant to Section 8.2 or Section 8.3 at the death of the
Key Executive. The Key Executive may change the designation from time
to time; provided, however, that any change shall not be effective until
received in writing by the Committee. If no beneficiary has been
designated or survives the Key Executive, any such Bonus shall be paid
to the estate of the Key Executive.
8.6 Each award of Restricted Stock under this Plan shall be
subject to the following terms and conditions. The agreement referenced
in Section 7.3 shall contain these terms and conditions.
(a) EMPLOYMENT. The Corporation shall award
Restricted Stock on the condition that the Key Executive remain
in the employ of the Corporation, or one or more of its
subsidiaries, for a period of three (3) years following the
date of the award of the Restricted Stock (the "Restricted
Period"). This condition shall not affect the right of the
Corporation or any subsidiary to terminate the Key Executive's
employment at any time for any reason. An award of Restricted
Stock in any Year shall not affect the length of the Restricted
Period which applies to previously awarded Restricted Stock.
(b) TERMINATION OF RIGHTS AND INTERESTS. In
the event the Corporation terminates the Key Executive's
employment for cause (as defined in Section 8.1), the Key
Executive voluntarily terminates his or her employment or a
Transfer (as defined in Section 8.6(d)) occurs or is proposed
to occur during a Restricted Period (collectively referred to
as a "Terminating Event"), the Key Executive's rights to and
interests in the shares of Restricted Stock the subject of the
Restricted Period shall terminate as of the date of
Terminating Event and the Key Executive shall promptly
surrender to the Corporation those shares of Restricted Stock
as to which the Key Executive's rights and interests have
terminated.
(c) DEATH OR NORMAL RETIREMENT. In the event
employment terminates during a Restricted Period by reason of
death, Disability or Retirement, or the Corporation terminates
employment without cause, the Key Executive's right to all
of the Key Executive's Restricted Stock the subject of the
Restricted Period shall vest as of the date that the employment
terminates and the Key Executive may then transfer the
Restricted Stock free of the restrictions under this Plan,
except for those restrictions that Section 7.3 describes.
-7-
8
(d) TRANSFER RESTRICTIONS. The Key Executive may
not sell, assign, exchange, transfer, pledge or otherwise
dispose of the shares of Restricted Stock during the applicable
Restricted Period other than to the Corporation pursuant to
Section 8.6(b) or by will or by the laws of descent or
distribution.
If the Key Executive sells, assigns, exchanges,
pledges, transfers or otherwise voluntarily or involuntarily
disposes of or attempts to take any such action to dispose of
any shares of Restricted Stock during the Restricted Period
applicable to the shares, or if the shares of Restricted Stock
are subject to any attachment, garnishment, lien, execution of
judgment or other involuntary transfer during an applicable
Restricted Period (collectively referred to as a "Transfer"),
except as provided above in Section 8.6(b), the Key Executive's
rights to and interests in the Restricted Stock the subject of
the Restricted Period shall terminate as set forth in Section
8.6(b), the Key Executive shall promptly surrender to the
Corporation those Shares of Restricted Stock and any Transfer
of Shares the subiect of the Restricted Period shall be void
and not binding on the Corporation. The Key Executive shall
grant the Corporation a security interest in the Restricted
Stock and shall authorize the Corporation to retain during the
Restricted Period the certificates which evidence the
Restricted Stock.
(e) SHAREHOLDER RIGHTS. During the Restricted
Period applicable to any Restricted Stock, the Key Executive
shall have all rights of a shareholder with respect to the
Restricted Stock the subject of the Restricted Period including
(i) the right to vote any shares at shareholders' meetings,
(ii) the right to receive, without restriction, all cash
dividends paid on the Restricted Stock, and (iii) the right to
participate with respect to the Restricted Stock in any stock
dividend, stock split, recapitalization, or other adjustment in
the Common Shares of the Corporation or any merger,
consolidation or other reorganization involving an increase,
decrease or adjustment in the Common Shares of the Corporation.
Any new, additional or different shares or other security
received by the Key Executive pursuant to the stock dividend,
stock split, recapitalization or reorganization shall be
subject to the same terms, conditions and restrictions as those
relating to the Restricted Stock for which the shares were
received.
SECTION 9
---------
AMENDMENTS
----------
9.1 The Board may from time to time amend, suspend, or
terminate, in whole or in part, any or all of the provisions of this
Plan, effective as of the beginning of any Year commencing after the
date of adoption of such action by the Board; provided, that no such
action shall affect the rights of any Key Executive or the operation of
this Plan with respect to any Bonus to which the Key Executive may have
become entitled hereunder prior to the effective date of the action.
-8-
9
SECTION 10
----------
GENERAL
-------
10.1 Neither the action of the Corporation in establishing this
Plan nor any action taken by it or the Committee shall be construed as
giving any Key Executive the right to be retained in the employ of the
Corporation.
10.2 The expense of administering this Plan shall be borne by
the Corporation.
10.3 The effective date of this amended Plan shall be January
1, 1993. For purposes of calculating the Long Term Portion of the Bonus
under Section 5.3, the Corporation shall use the results of the
Corporation's operations for the five Years ending December 31, 1992.
-9-
10
________________Total Shares
End of
Restricted
________________Period
EXHIBIT A
---------
Durametallic Corporation
2104 Factory Street
Kalamazoo, Michigan 49001
Gentlemen:
I understand that Durametallic Corporation (the
"Corporation") has chosen me as a Key Executive under the Corporation's
Executive Incentive Bonus Plan, as amended (the "Plan"). A portion of
my Bonus is payable in shares of Common Stock of the Corporation (the
"Shares"). I agree that any Shares which I will receive under the
Plan or have received under the Plan prior to any amendment (the
"Restricted Stock") are subject to the terms and conditions of this
letter, and the Shares and my rights under this letter are subject to the
terms, conditions and definitions of the Plan which are incorporated
herein by reference. I agree that as of the date of this letter, the
Corporation has awarded to me Shares under the Plan.
(a) CONTINUED EMPLOYMENT. I agree that any
Restricted Stock awarded to me will be subject to the condition
that I remain in the employ of the Corporation or one or more of
its subsidiaries for three (3) years from the date that the
Restricted Stock is issued to me (the three year period
applicable to each Share is referenced herein as a "Restricted
Period"). Neither this condition nor the award or the Restricted
Stock shall impose upon the Corporation or any subsidiary any
obligation to retain me in their employ for any given period or
upon any specific terms of employment. I acknowledge that,
except as the Corporation or one of its subsidiaries may
otherwise agree in a signed written agreement, approved by its
board of directors, my employment is "at will" and terminable by
me or the Corporation at any time and for any reason.
(b) TERMINATION OF RIGHTS AND INTERESTS. In the
event the Corporation or any subsidiary terminates my employment
for cause (as defined in Section 8.1 of the Plan), I voluntarily
terminate my employment or a Transfer (as defined below) occurs
or is proposed to occur during a Restricted Period
(collectively referred to as a "Terminating Event"), all my
rights to and interests in the Shares of Restricted Stock the
subject of the Restricted Period shall immediately terminate
as of the date of the Terminating Event and I shall promptly
surrender to the Corporation those Shares of Restricted Stock in
which my rights and interests have terminated.
11
(c) DEATH OR NORMAL RETIREMENT. In the
event my employment terminates during a Restricted Period by
reason of death, Disability or Retirement, or the Corporation
terminates my employment without cause, my right to all of my
Restricted Stock the subject of the Restricted Period shall
vest as of the date that my employment terminates and I may
then transfer the Restricted Stock free of the restrictions
under the Plan, except for those restrictions that Section 7.3
of the Plan describes or as set forth in this Agreement.
(d) TRANSFER RESTRICTIONS. I may not sell, assign,
exchange, transfer, pledge or otherwise dispose of the Shares
of Restricted Stock during the applicable Restricted Period
other than to the Corporation pursuant to Paragraph (b) above
or by will or by the laws of descent or distribution.
If I sell, assign, exchange, pledge, transfer
or otherwise voluntarily or involuntarily dispose of or attempt
to take any such action to dispose of the Restricted Stock
during the Restricted Period applicable to the Shares, or if
the Shares of Restricted Stock are subject to any attachment,
garnishment, lien, execution of judgment or other involuntary
transfer during an applicable Restricted Period (collectively
referred to as a "Transfer"), except as provided above in
Paragraph (b), my rights to and interests in the Restricted
Stock the subject of the Restricted Period shall terminate as
set forth in Paragraph (b) above, I shall promptly surrender to
the Corporation those Shares of Restricted Stock and any
Transfer of Shares the subiect of the Restricted Period shall
be void and not binding on the Corporation. I hereby grant the
Corporation a security interest in the Restricted Stock and
authorize the Corporation to retain during the applicable
Restricted Period the certificates which evidence the
Restricted Stock.
(e) SHAREHOLDER RIGHTS. During the Restricted
Period, I shall have all rights of a shareholder with respect
to the Restricted Stock the subject of the Restricted Period
including (i) the right to vote any Shares at shareholders'
meetings, (ii) the right to receive, without restriction, all
cash dividends paid on the Restricted Stock, and (iii) the
right to participate with respect to the Restricted Stock in
any stock dividend, stock split, recapitalization, or other
adjustment in the Common Shares of the Corporation or any
merger, consolidation or other reorganization involving an
increase, decrease or adjustment in the Common Shares of the
Corporation. Any new, additional or different Shares or other
security received by me pursuant to the stock dividend, stock
split, recapitalization or reorganization shall be subject to
the same terms, conditions and restrictions as those
relating to the Restricted Stock for which the Shares were
received.
-2-
12
(f) Corporations's Options.
-----------------------
(1) For Shares which are not Restricted
Stock subject to a termination of rights and interests
upon a Transfer, I hereby grant the Corporation the
option to purchase the Shares in the event (i) I desire
to sell, assign, exchange, transfer or otherwise
disclose of all or any portion of the Shares pursuant to
a bona fide offer or (ii) the Shares are subject to an
involuntary transfer.
(A) I shall give written notice to the
Corporation of any proposed voluntary
transfer. The written notice shall specify the
number of Shares I desire to transfer, the
name, address, and telephone number of the
proposed transferee, the proposed price and
other terms of the transfer (the "Offer").
The Corporation shall have the right to
purchase the number of Shares which are the
subject of the Offer upon the terms and
conditions contained in the Offer. The
Corporation's option shall be exercisable for
thirty (30) days following receipt of the
written notice. The Corporation shall exercise
its option by written notice to me. If the
Corporation does not exercise its option, I
agree that I shall have a period of sixty (60)
days after the expiration of Corporation's
option to transfer the Shares to the proposed
transferee named in the notice, on terms no
more favorable and at a price not less than
those stated in the notice.
(B) The Corporation's option to
purchase any Shares which are the subject of an
involuntary transfer shall be exercisable for
thirty (30) days following the Corporation's
receipt of notice of the involuntary transfer.
The purchase price for the Shares shall be
their market value as of the date of the
involuntary transfer. The Corporation shall
exercise the option by written notice to any
successor(s) in interest. Market value shall
be determined by independent appraisers or such
other valuation methods as may from time to
time be adopted by the Corporation.
(2) For Shares which are not Restricted
Stock subject to a termination of rights and interests
upon my employment termination, I hereby grant the
Corporation the option to purchase the Shares upon
termination of my employment by the Corporation or any
of its subsidiaries for any reason whatsoever, including
the employer's termination, my voluntary termination,
death, Disability, or Retirement. The purchase price for
the Shares shall be their market value as of the date of
employment termination. The Corporation's
option shall be exercisable for thirty (30) days
following my employment termination date. The
Corporation shall exercise its option by written notice
to me or my successor(s) in interest. Market value shall
be determined by independent appraisers or such other
valuation methods as may from time to time be adopted by
the Corporation.
-3-
13
In consideration of being chosen as a Key Executive, I
hereby represent and warrant to the Corporation that I am acquiring the
Shares for my own account for investment, and without any view or
present intention of reselling or engaging in any other distribution
thereof. In particular, but without limiting the foregoing, I warrant
that I am not acquiring the Shares wholly or partly for the benefit of
or pursuant to any understanding or agreement with, any other person or
persons.
I further agree that I will not sell, assign, encumber
or otherwise transfer or offer for sale any of the Shares except (a)
pursuant to effective registration and qualification under all
applicable federal or state securities laws; or (b) in such
circumstances that, in the opinion of counsel for the Corporation, such
registration or qualification is not required, I may sell or otherwise
transfer without violating any federal or state securities laws, and the
sale or transfer is consistent with my investment representation.
I agree that the stock certificate or certificates to be
issued to me may bear an appropriate legend reflecting the foregoing
restrictions on transfer. In the event any provision of law or the
regulations of any stock exchange upon which the common stock of the
Corporation may be listed shall at any time in the future be changed so
as to require any different or additional legend with respect to such
investment undertaking, I further agree to deliver to the Corporation
the certificates evidencing the Shares so that the Corporation may amend
or supplement the legend thereon in accordance with the laws or
regulations. I further agree that the Corporation may give appropriate
stop transfer instructions to any transfer agent or registrar of the
Corporation's common stock (including the Corporation as its own
transfer agent), to give effect to the foregoing investment
representations and restrictions. I further agree that in the event I
attempt any sale or other disposition of the Shares in violation of the
foregoing representations or restrictions, the Corporation may refuse
to register the transfer.
--------------------------------------------
(Employee's Signature)
Dated:-------------- --------------------------------------------
(Print Name)
1
EXHIBIT 4.7
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AMENDMENT NO. 1 TO
DURAMETALLIC CORPORATION
EXECUTIVE INCENTIVE BONUS PLAN, AS AMENDED
------------------------------------------
In accordance with Section 9 of the DURAMETALLIC EXECUTIVE
INCENTIVE BONUS PLAN, AS AMENDED (the "Plan"), and as contemplated by Section
6.19(a) of the Agreement and Plan of Merger, dated as of September 11, 1995,
among The Duriron Company, Inc., Wolverine Acquisition Corp. and Durametallic
Corporation, the Plan is amended, effective November 17, 1995, as follows:
1. Section 2.7 of the Plan is amended in its entirety to read
as follows:
2.7 "Common Shares" means, for all periods preceding
the Effective Time, common shares of the Corporation. For all
periods from and after the Effective Time (and with respect to
any shares issued after the Effective Time), "Common Shares"
means shares of Duriron Common Stock.
2. Section 2 of the Plan is further amended by adding the
following additional sections:
2.18 "Duriron" means The Duriron Company, Inc., a
New York corporation.
2.19 "Agreement and Plan of Merger" means the
Agreement and Plan of Merger, dated as of September 11, 1995,
among Duriron, Wolverine Acquisition Corp. and the
Corporation.
2.20 "Merger" means the merger of Wolverine
Acquisition Corp. into the Corporation for which provision is
made in the Agreement and Plan of Merger.
2.21 "Conversion Ratio" means the Conversion Ratio
(reflecting the number of shares of Duriron Common Stock into
which a common share of the Corporation will be converted in
the Merger) for which provision is made in Section 3.3 of the
Agreement and Plan of Merger.
2.22 "Effective Time" means the time of
effectiveness of the Merger.
2.23 "Duriron Common Stock" means the Common Stock,
$1.25 par value per share, of Duriron.
2
3. Section 5 of the Plan is amended by amending Section 5.4
in its entirety to read as follows and by adding new Section 5.5 as set forth
below:
5.4 For any Year ending prior to the Effective Time,
the Corporation's independent public accountants shall
determine and report to the Committee the amount available for
the Plan for such Year as promptly as practicable following
completion of their audit of the accounts of the Corporation
for the purpose of certification of the financial statements
appearing in the annual report to shareholders of the
Corporation for the Year. In such case, the date the
Corporation receives such accountants' report shall be the
"Determination Date" for purposes of this Plan.
5.5 For any Year ending after the Effective Time,
the chief financial officer of Duriron shall make a good faith
determination of the amount available for the Plan for such
Year, such determination to be made in accordance with
generally accepted accounting principles applied consistently
with the Corporation's past practice. In such case, the date
on which Duriron publicly announces its results of operations
for the same period as such Year shall be the "Determination
Date" for purposes of this Plan.
4. Sections 7.1 and 7.2 of the Plan are amended in their
entirety to read as follows:
7.1 Common Shares to be delivered in partial payment
of Bonuses shall be made available from authorized and
unissued stock (i) of the Corporation, in the case of shares
issued prior to the Effective Time, and (ii) of Duriron, in
the case of shares issued at or after the Effective Time.
7.2 (a) The Common Share portion of the Long Term
Portion of the Bonus shall consist of the number of Common
Shares having an aggregate market value, determined as
provided in Section 7.2(c), equal to fifty percent (50%) of
the Key Executive's share of the Long Term Portion as
determined under Section 5.1. Such Common Shares shall be
issued within 30 days after the determination of market value
per share in accordance with Section 7.2(c). If payment of
Common Shares would require the delivery of a fractional
share, then in lieu of the fractional share the Corporation
shall pay to the Key Executive the cash value thereof.
-2-
3
(b) After the Effective Time, no common shares of
the Corporation will be issued under the Plan, but instead
persons otherwise entitled to receive common shares of the
Corporation shall receive, under the same terms and
restrictions as would be applicable to the common shares of
the Corporation without regard to the Agreement and Plan of
Merger or the Merger, that number of shares of Duriron Common
Stock (rounded down to the next full share) determined by
multiplying the number of common shares of the Corporation
otherwise issuable by the Conversion Ratio. For purposes of
the foregoing, the number of common shares of the Corporation
otherwise issuable shall be considered to be the quotient of
(i) fifty percent (50%) of the Key Executive's share of the
Long Term Portion of the Bonus, divided by (ii) the market
value per share of a share of Duriron Common Stock, determined
as provided in Section 7.2(c), divided by (iii) the Conversion
Ratio.
(c) In the case of common shares of the Corporation
delivered prior to the Effective Time, market value per share
shall be determined by independent appraisers or such other
valuation methods as the Corporation may from time to time
adopt. In the case of shares of Duriron Common Stock
delivered at or after the Effective Time, market value per
share shall be considered to be the average of the closing
sale prices of a share of Duriron Common Stock during the last
10 trading days ending on the Determination Date (or ending
immediately prior to the Determination Date if the
Determination Date is not a trading day), as reported on the
NASDAQ National Market.
5. Section 10 of the Plan is amended by adding new Section
10.4 as follows:
10.4 In the event the Merger becomes effective, the
Plan shall terminate as of the beginning of business on
January 1, 1996; provided, however, that such termination
shall not affect entitlement to or payment of any Bonus earned
with respect to any Year ending prior to January 1, 1996.
DAN2645.AMT
-3-
1
EXHIBIT 5.1
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THOMPSON
HINE & FLORY P.L.L.
-------------------------
Attorneys at Law
BRUSSELS, BELGIUM TEL (513) 443-6600
CINCINNATI, OHIO FAX (513) 443-6635
CLEVELAND, OHIO 2000 COURTHOUSE PLAZA NE [email protected]
COLUMBUS, OHIO P.O. BOX 8801
PALM BEACH, FLORIDA DAYTON, OHIO 45401-8801
WASHINGTON, D.C.
WRITER'S DIRECT
DIAL NUMBER:
(513) 443-6775
January 12, 1995
The Duriron Company, Inc.
3100 Research Boulevard
Dayton, Ohio 45420
Gentlemen:
We have acted as counsel to The Duriron Company, Inc., an
Ohio corporation (the "Company"), in connection with the issuance of shares of
the common stock, $1.25 par value per share ("Share"), of the Company under the
Durametallic Corporation 1991 Stock Option Plan, as amended (the "Option
Plan"), and the Durametallic Corporation Executive Incentive Bonus Plan, as
amended (the "Bonus Plan" and, with the Option Plan, the "Plans"), and the
preparation of Post-Effective Amendment No. 1 on Form S-8 to the Company's
Registration Statement on Form S-4 (Registration No. 33-62527) being filed
with the Securities and Exchange Commission in connection therewith.
Please be advised that we have examined such proceedings
and records of the Company, and have made investigation of such other matters,
as in our judgment permits us to render an informed opinion on the matters set
forth herein. Based upon the foregoing, it is our opinion that:
(i) The Company is a corporation duly organized, validly
existing and in good standing under the laws of the State of New York,
with full power to issue and sell the Shares pursuant to the Plans;
and
(ii) The Shares which may be issued under the Bonus Plan and
upon the exercise of options granted under the Option Plan have been
duly authorized and, when issued by the Company pursuant to the Bonus
Plan or issued or sold by the Company upon the exercise of options
granted under the Option Plan (and payment of the exercise price with
respect thereto), such Shares will be legally issued, fully paid and
non-assessable.
2
THOMPSON, HINE AND FLORY
Securities and Exchange Commission
January 12, 1996
Page 2
We consent to the use of this opinion as an exhibit to Post-Effective
Amendment No. 1 on Form S-8 to the Company's Registration Statement on Form S-4
with respect to the Plans and to the use of our firm name, and the statements
made with respect to us, appearing under Item 5 of Part II of such
Post-Effective Amendment No. 1.
Very truly yours,
/s/ Thompson Hine & Flory P.L.L.
DAN2549.AMT