Schedule of Parties to Termination of Restated Stock Transfer Restriction Agreement

EX-10.5 4 a2204605zex-10_5.htm EX-10.5

Exhibit 10.5

 

Schedule of Parties to Termination of Restated Stock Transfer Restriction Agreement as of June 27, 2011

 

Stockholder

 

Signed
Amendment

 

Class A
Common Stock
(pre-split)

 

Robert P. Acheson

 

X

 

675

 

Peter C. Adams

 

X

 

145

 

Amy Pratt Alexander, Trustee of the Amy Alexander Trust dtd 6/20/07

 

X

 

7,500

 

Amy Pratt Alexander as Trustee of the Logan Neil Alexander Trust dtd 12/23/10

 

X

 

103

 

Amy Pratt Alexander as Trustee of the Aidan Pratt Alexander Trust dtd 12/23/10

 

X

 

103

 

Amy Pratt Alexander as Trustee of the Quinn Emmett Alexander Trust dtd 12/23/10

 

X

 

103

 

Frank Alvarez

 

X

 

1,069

 

Debra M. Amens

 

X

 

171

 

Paul R. Amens

 

 

 

171

 

Babson EC, LLC, Stephen E. Babson, Manager

 

X

 

3,000

 

Stephen E. Babson

 

X

 

855

 

Kurt M. Ball

 

X

 

6

 

David K. Bancroft

 

X

 

297

 

Francois R. Baril

 

X

 

1,709

 

Peter F. Bechen

 

X

 

4,282

 

Ian R. Bingham

 

X

 

404

 

Eric A. Blackburn

 

X

 

171

 

Nickolas L. Blauwiekel

 

X

 

750

 

Terry L. Briscoe

 

X

 

744

 

Christopher M. Carpenter

 

X

 

363

 

Daniel D. Clark

 

 

 

85

 

Calvin W. Collins

 

X

 

3,568

 

James V. Corso

 

X

 

1,711

 

Angela Shawn Cunningham, Trust of the Angela Cunningham Trust dtd 6/20/07

 

X

 

7,500

 

Angela Shawn Cunningham Trusttee of the Cade Steven Cunningham Trust dtd 12/12/10

 

X

 

103

 

Angela Shawn Cunningham Trustee of the Avery Lynn Cunningham Trust dtd 12/12/10

 

X

 

103

 

Angela Shawn Cunningham Trustee of the Paige Ryan Cunningham Trust dtd 12/12/10

 

X

 

103

 

Richard E. Dale

 

X

 

17

 

Daniel P. Devlin

 

 

 

985

 

John R. Dillon

 

X

 

1,242

 

 



 

Paula M. Disney

 

X

 

342

 

William K. Douglas

 

X

 

148

 

Nadia R. Drakos

 

X

 

43

 

Daniel J. Efraimson

 

 

 

53

 

Timothy J. Elbel

 

X

 

1,628

 

David K. Ellas

 

X

 

514

 

Robert K. Emrich

 

 

 

214

 

James M. Ewing

 

X

 

109

 

William A. Fewless

 

 

 

105

 

F. Patrick Fonner & B. Lynne Fonner, Trustees

 

X

 

3,674

 

Dale N. Gehring

 

X

 

669

 

Steven F. Ghormley

 

 

 

9

 

Gerald J. Gillis

 

X

 

17

 

Frederick C. Goeth, III

 

X

 

542

 

Bal M. Gupta

 

X

 

124

 

Charles B. Hagen

 

X

 

6

 

Donald D. Harikian

 

X

 

827

 

John H. Heeren

 

X

 

6

 

Stephen E. Herbert

 

X

 

268

 

David M. Hollar

 

X

 

76

 

Gene K. Huey

 

X

 

20,039

 

Larry R. Huget

 

X

 

12,323

 

Matthew A. Huget

 

X

 

1,000

 

Matthew Adam Huget, Trustee of the Matthew Huget Trust dtd 7/21/07

 

X

 

2,750

 

Peter J. Huget

 

X

 

1,000

 

Peter Jason Huget, Trustee of the Peter Huget Trust dtd 7/21/07

 

X

 

2,750

 

Raymond G. W. Inkster

 

X

 

62

 

Leonard K. Jones

 

 

 

1,196

 

Michael R. Jubinville

 

X

 

128

 

Francis Jungers, Trustee of the Francis Jungers Trust U/A dtd 11/13/03

 

X

 

2,101

 

Frank Jungers

 

X

 

427

 

Elmer W. Kenagy

 

 

 

180

 

Jeffrey W. Kershaw

 

X

 

1,362

 

Elizabeth M. King

 

X

 

536

 

Grant L. Kleckner

 

X

 

598

 

Aaron L. Koehler

 

X

 

—

 

Scott D. Konnagan

 

 

 

38

 

 



 

John S. Kreitzberg

 

X

 

913

 

Daniel A. Kucera

 

X

 

599

 

Aaron B. Lian

 

X

 

20

 

Amy T. Lian

 

X

 

53

 

James H. Liberator

 

X

 

372

 

Robert J. Long

 

 

 

120

 

John F. Lymp

 

X

 

57

 

Douglas H. MacGowan

 

X

 

958

 

Dale S. MacHaffie

 

 

 

244

 

Douglas E. Malkasian

 

X

 

1,220

 

Mark Mallory

 

X

 

1,897

 

Steven McCall

 

X

 

256

 

Larry E. McCoy

 

X

 

1,825

 

Robert K. McLaughlin

 

 

 

28

 

Marcie Ann Menon

 

 

 

115

 

Kenneth W. Meyer

 

X

 

285

 

William R. Miner

 

X

 

15

 

Debra K. Mode

 

 

 

121

 

Timothy B. Myers

 

X

 

1,887

 

Brian L. Neilson

 

X

 

13

 

David J. Nightlinger

 

 

 

15

 

Christopher S. Ohland

 

X

 

407

 

David A. Oliva

 

 

 

96

 

John B. O’Neill

 

X

 

1,138

 

Jon V. Owens

 

X

 

2,040

 

Juan C. Parra

 

X

 

256

 

Janet Hahn Peterson

 

X

 

470

 

Alan Phillips

 

X

 

628

 

Steven A. Pickering

 

X

 

3,332

 

Douglas K. Pierce

 

X

 

137

 

Daniel W. Pizzuto

 

X

 

251

 

Herbert S. Plep

 

X

 

64

 

David L. Poer

 

X

 

214

 

Paul W. Pope

 

X

 

1,132

 

William H. Prather

 

X

 

643

 

Steven D. Pratt

 

X

 

22,961

 

Phoa Ang Pueh

 

X

 

85

 

Jeffry J. Ratkowski

 

X

 

62

 

John L. Reed, Jr.

 

 

 

43

 

 



 

Richard G. Reiten

 

X

 

641

 

James P. Richards

 

X

 

237

 

Allen D. Robinson

 

X

 

43

 

James A. Rowzee

 

X

 

423

 

Stephen S. Salinero

 

X

 

6

 

Reza H. I. Sara

 

X

 

229

 

Steven P. Schad

 

X

 

538

 

Scott H. Seiffert

 

X

 

424

 

Ermanno Simonutti

 

X

 

154

 

Joe D. Smith

 

X

 

385

 

James E. Snook

 

X

 

855

 

James Edward Songer

 

X

 

3,909

 

Sarah A. Stanton

 

X

 

6,739

 

Robert M. Stayton

 

X

 

30

 

Ronald G. Stewart

 

X

 

385

 

Raymond P. Sykes

 

X

 

1,583

 

John B. Thomas

 

X

 

—

 

James P. Unruh

 

 

 

172

 

Ray Verlinich

 

X

 

425

 

Jodi Walder-Biesanz

 

X

 

463

 

Charlie E. Walker

 

X

 

71

 

William E. Walton

 

X

 

503

 

J. Carter Webb

 

X

 

57

 

Joseph T. Weber

 

X

 

1,741

 

William A. Weber, Jr.

 

X

 

1,643

 

James P. Whalen

 

X

 

584

 

David W. White

 

X

 

42

 

Craig D. Wihtol

 

X

 

342

 

John W. Wood, Jr. or his successors as Trustee of the John W. Wood, Jr. Revocable Tr of 2008

 

X

 

2,119

 

 



 

ESCO Corporation

Termination of Restated Stock Transfer Restriction Agreement

 

This Agreement is between ESCO Corporation (the “Company”) and the undersigned shareholder of the Company (the “Shareholder”).

 

Recitals

 

1.  The Shareholder and the Company are parties to the Restated Stock Transfer Restriction Agreement relating to shares of common stock of the Company held by the Shareholder.

 

2.  The Company filed a Registration Statement on Form S-1 with the Securities and Exchange Commission relating to the public offering of common stock of the Company (the “IPO”).

 

3.  The Company and the Shareholder desire to terminate the Restated Stock Transfer Restriction Agreement upon the closing of the IPO, including terminating provisions that (i) restrict the transfer of shares by the Shareholder and (ii) require or permit the Company to repurchase shares from the Shareholder in specified circumstances.

 

Agreement

 

The Shareholder and the Company agree that, effective on the closing of the IPO, the Restated Stock Transfer Restriction Agreement between the Company and the Shareholder is terminated in its entirety.

 

Shareholder

 

 

 

 

Date:

 

(Signature)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Print name)

 

 

 

 

 

 

 

 

 

ESCO Corporation

 

 

 

 

 

 

 

By:

 

 

Date:

 

 

 

 

 

Title:

 

 

 

 

 

CONSENT OF SPOUSE

 

The undersigned spouse of Shareholder has read and approves the foregoing agreement. The undersigned agrees to be irrevocably bound by the agreement and further agrees that any community interest will be similarly bound by the agreement.

 

 

 

 

Spouse of Shareholder

 



 

ESCO CORPORATION

RESTATED STOCK TRANSFER RESTRICTION AGREEMENT
(Class A Common Stock)

 

This Restated Stock Transfer Restriction Agreement (“Agreement”), effective as of                              is by and between ESCO Corporation, an Oregon corporation (the “Company”), and the shareholder whose name appears on the signature page below (“Shareholder”).

 

RECITALS

 

A.                                   Prior to the effective date of the Agreement, Shareholder owns or has options to purchase shares of the Company’s Class A Common Stock or expects to acquire Class A Common Stock in connection with the stock reclassifications contemplated by the Second Restated Articles of Incorporation of the Company.

 

B.                                     Prior to the effective date of the Agreement, the Company and Shareholder are parties to one or both of the Stock Transfer Restriction Agreement and the Stock Purchase Agreement (Restated) (collectively, the “Prior Agreements”) relating to shares of stock of the Company owned by Shareholder.  Shareholder desires to amend and restate in its entirety one or more Prior Agreements.

 

C.                                     The Company and Shareholder intend for the Agreement to be effective upon, and subject to, the sale of Class C Preferred Stock to the ESCO Corporation Employee Stock Ownership Plan contemplated by the Second Restated Articles of Incorporation of the Company.

 

AGREEMENT

 

1.                                       Limitations on Transfer.

 

1.1 Shares Subject to Restrictions Under This Agreement. For purposes of this Agreement, the term “Shares” means all of the shares of the Company’s Class A Common Stock owned or held by Shareholder, including any additional shares that may be acquired subsequent to the date of this Agreement and all securities received in replacement of Class A Common Stock or as stock dividends or splits and all securities received in replacement of Class A Common Stock in a recapitalization, merger, or other reorganization, except as otherwise provided in Schedule A.

 

1.2 Restrictions. In addition to any other limitation on transfer created by applicable securities laws, by the Company’s Articles of Incorporation or Bylaws, or by a separate agreement between the Company and Shareholder, Shareholder may not sell or otherwise transfer, including transfers by gift and by operation of law, any interest in any of the Shares except as provided in this Agreement. Any transfer of the Shares in violation of this Agreement will be void. All certificates representing any of the Shares will contain a legend referring to the restrictions in this Agreement.

 



 

1.3 Permitted Family Transfer. Nothing contained herein will be deemed to prevent Shareholder from effecting a transfer to, or for the benefit of, a Shareholder’s spouse, lineal descendant, or ancestor, or a trust established solely for the benefit of one or more of the foregoing. Shareholder will give the Company notice in writing at least 30 days before effecting such transfer, setting forth the name of the proposed transferee, the relationship of such transferee to the Shareholder, and the number of Shares to be transferred to such transferee. Any transfer of Shares under this provision will be subject to the transferee agreeing in writing to be bound by all of the terms and conditions of this Agreement, including the provisions of Sections 2, 3 and 4.

 

2.                                       Company Right of First Refusal. If Shareholder desires (or is required) to sell or transfer any of the Shares in any manner other than pursuant to Sections 1.3, 3 or 4, Shareholder must first obtain a firm, unconditional written offer signed by a bona fide prospective purchaser (the “Bona Fide Offer”), stating the number of Shares to be purchased, the total purchase price, and the terms of payment of the purchase price. Shareholder will mail a copy of the Bona Fide Offer to the Company. For a period of 60 days following the Company’s receipt of a copy of the Bona Fide Offer (the “Refusal Period”), the Company will have a right of first refusal to purchase any portion of the Shares covered by the Bona Fide Offer at the same price, and upon the same terms (or terms as similar as reasonably possible) set forth in the Bona Fide Offer. If the Shares are not purchased by the Company by the end of the Refusal Period, the selling Shareholder will have 60 days (the “Transfer Period”) following lapse of the Refusal Period to dispose of the Shares to the transferee identified in the Bona Fide Offer on terms no more favorable to the transferee than those offered to the Company. After the Transfer Period lapses, the Shares will once again be subject to the rights of first refusal contained in this Section 2.  Any transfer of Shares under the provisions of this Section 2 shall be subject to the transferee agreeing in writing that following the transfer (a) the provisions of this Section 2 shall continue to apply to the Shares, (b) the Put Options set forth in Section 3 shall not apply to the Shares and (c) the Call Option set forth in Section 4 shall apply when the Shareholder transferor leaves the service of the Company for any reason (including death, retirement, disability, termination by the Company or voluntary termination by the Shareholder transferor) even though the Shareholder transferor no longer owns the Shares.

 

3.                                       Put Option.

 

3.1 Availability.  Upon Shareholder’s retirement, death or disability (each a “Triggering Event”), Shareholder or Shareholder’s personal representative or other successor in interest (“Successor”), as the case may be, may require the Company to repurchase all or any portion of the Shares held by Shareholder or Shareholder’s Successor (the “Put Option”) in accordance with the terms of this Section 3; provided, however, that if a Triggering Event occurs prior to December 26, 2008, such Triggering Event shall, for purposes of this Agreement, be deemed to occur as of December 26, 2008.  The term “disability” means a mental or physical impairment which occurs while Shareholder is an employee of the Company or any subsidiary of the Company and which is expected to result in death or which has lasted or is expected to last for a continuous period of 12

 

2



 

months or more and which causes the Shareholder to be unable, in the opinion of the Company, to perform his or her duties as an employee, director, officer or consultant of the Company.  Disability shall be deemed to have occurred on the first day after the Company has made a determination of disability.  The term “retirement” means, for employees, retirement from ESCO at normal retirement age (65) or earlier in the Company’s sole discretion, and for directors, discontinuation of service as a member of the Board of Directors.

 

3.2 Price and Procedure.  The purchase price for any Shares purchased pursuant to this Section 3 shall be the fair market value of the Shares as of the last day of the fiscal quarter immediately preceding the quarter in which the Triggering Event occurs (or is deemed to occur) or in which the applicable anniversary of the Triggering Event occurs as specified in Section 3.3, 3.4 or 3.6.2 (the “Valuation Date”), which value shall be fixed by the Board of Directors (or a committee of the Board of Directors) at a value consistent with the valuation undertaken for purposes of the ESCO Corporation Employees’ Stock Ownership Plan as of the Valuation Date.  Each Put Option shall be exercised by written notice to the Company (the “Put Notice”), which must be given by the Shareholder to the Company within 90 days of the date the Triggering Event (or applicable anniversary of the Triggering Event) occurs (the “Put Option Election Period”). The Put Notice shall specify the number of Shares to be purchased and a date for closing (the “Closing Date”), which shall not be less than 45 days and not more than 60 days after expiration of the Put Option Election Period.  The Company shall regularly provide quarterly valuations of the Class A Common Stock to Shareholder.

 

3.3 Retirement or Disability.  Upon retirement or disability, each Shareholder shall have a right to sell to the Company a portion or all Shares held by that Shareholder over a three-year period.  Beginning in 2009, upon retirement or disability Shareholder shall have the opportunity to exercise Shareholder’s Put Option for up to 1/3 of the Shares held by Shareholder as of the date of retirement or disability.  On the first anniversary of the retirement or disability, Shareholder shall have the opportunity to exercise Shareholder’s Put Option for between 1/3 and 2/3 of the Shares held by Shareholder as of the date of retirement or disability.  On the second anniversary of the date of the retirement or disability, Shareholder shall have the opportunity to exercise Shareholder’s Put Option as to any remaining Shares.  For Put Option exercises by Shareholder in any year with a purchase price not exceeding $1 million, the Company shall pay the total purchase price on the applicable Closing Date for the exercise of the Put Option.  For Put Option exercises by Shareholder in any year with a purchase price exceeding $1 million, the Company may, at its option, pay $1 million on the applicable Closing Date for the exercise of the Put Option, and 1/2 of the remaining amount on each of the first and second anniversaries of the Triggering Event.

 

3.4 Death.  Beginning in 2009, upon the death of Shareholder, Shareholder’s Successor shall have the opportunity to exercise the Put Option for up to 1/2 of the Shares held by Shareholder on the date of death.  On the first anniversary of the date of death, Shareholder’s Successor shall have the opportunity to exercise the Put Option as

 

3



 

to any remaining Shares.  For a Put Option exercise in one year for more than 1/2 of the Shares held by Shareholder as of the date of death, the Company may, at its option, pay the repurchase price in two equal annual installments, with the first installment payable on the Closing Date the exercise of the Put Option and the remaining amount payable on the first anniversary of that Closing Date.  For a Put Option exercise with respect to up to 1/2 of the Shares held by Shareholder as of the date of death, the Company shall pay the purchase price total at the applicable Closing Date.

 

3.5 Interest Rate.  For purposes of Sections 3.3 and 3.4 hereof, the deferred portion of the purchase price shall bear interest at the Wall Street Journal Prime Rate on the first day of the calendar year in which the closing occurs.

 

3.6 Repurchase Limitations.  Notwithstanding any provision in this Agreement, the Company shall not be obligated to repurchase any shares pursuant to Section 3 in the event that any limitation set forth in this Section 3.6 (the “Repurchase Limitations”) is applicable.

 

3.6.1  Corporate Law Restrictions and Covenant Limitations.  The Company shall not be required to repurchase any Shares pursuant to Section 3 if the repurchase would cause the Company to be in violation of (i) the statutory solvency and balance sheet tests of ORS 60.181 governing distribution limits or any other provisions of the corporate law of Oregon, or (ii) the terms, conditions or covenants of any of the Company’s outstanding credit agreements.

 

3.6.2 Deferral of Put Options.  In the event any Repurchase Limitation is applicable and the Company does not repurchase Shares pursuant to the exercise of Put Options by Shareholder or Shareholder’s Successor, Shareholder or Shareholder’s Successor shall have the right to exercise the Put Options with respect to such Shares that could not be respurchased due to a Purchase Limitation in the first fiscal quarter in which the repurchase can be made without violation of the Repurchase Limitations.  In the event of any deferral of Put Options, the Company shall notify Shareholder or Shareholder’s Successor of the applicable Put Option Election Period.  With respect to any deferral of Put Options by reason of the Repurchase Limitations, the purchase price shall be determined as of the last day of the fiscal quarter preceding the quarter in which the repurchase occurs.

 

3.6.3  Allocation.  Shareholder understands that other shareholders have contractual Put Options with respect to their shares (“Other Shareholders”).  The Company will consider the Put Options of other shareholders (and any other stock repurchases that the Company makes pursuant to contracts or otherwise) in determining whether the Repurchase Limitations will limit the ability of the Company to repurchase Shares from Shareholder.  In the event that in any year the Repurchase Limitations permit some shares to be purchased from Shareholder and Other Shareholders but do not permit the repurchase of all shares as to which

 

4



 

Shareholder and the Other Shareholders desire to exercise Put Options or other repurchase rights, the Company shall repurchase shares according to the following priorities:

 

(i)  Subject to (iv) below, shares will next be repurchased from Shareholder’s Successor and Other Shareholders’ successors due to the death of Shareholder or Other Shareholders, and if not all shares may be repurchased due to the Repurchase Limitations, shares will be repurchased from Shareholder’s Successor and the other shareholders’ successors on a prorata basis (based on the number of shares as to which a shareholder’s Put Options apply in such year in relation to the total number of shares as to which Put Options held in the aggregate by Shareholder and Other Shareholders apply in such year);

 

(ii)  If additional shares can be repurchased pursuant to the Repurchase Limitations, shares will next be repurchased from Shareholder and Other Shareholders due to the disability of Shareholder or Other Shareholders, and if not all shares may be purchased due to the Repurchase Limitations, shares will be repurchased from Shareholder and the Other Shareholders on a prorata basis (based on the number of shares as to which the Put Options apply in such year in relation to the total number of shares as to which Put Options held in the aggregate by Shareholder and Other Shareholders apply in such year);

 

(iii)  If additional shares can be repurchased pursuant to the Repurchase Limitations, shares will next be repurchased from Shareholder and Other Shareholders due to the retirement of Shareholder or Other Shareholders, and if not all shares may be purchased due to the Repurchase Limitations, shares will be repurchased from Shareholder and the Other Shareholders on a prorata basis (based on the number of shares as to which the Put Options apply in such year in relation to the total number of shares as to which Put Options held in the aggregate by Shareholder and Other Shareholders apply in such year); and

 

(iv) If the Repurchase Limitations limit repurchases in any year, in the next year, any shares held by Shareholder or Other Shareholders that could not be repurchased shall first be repurchased in the following year in which repurchases can be made under the Repurchase Limitations (before any other shares shall be repurchased under the above priorities), and if all such shares cannot be repurchased in the following year, shares will be repurchased from Shareholder and Other Shareholders on a prorata basis (based on the number of shares of a shareholder that were not repurchased in the prior year in relation to the total number of shares held in the aggregate by Shareholder and Other Shareholder that were not repurchased in the prior year).

 

5



 

4.                                       Call Option.  If a Triggering Event occurs and the Company does not receive a Put Notice with respect thereto as provided in Section 3, or receives a Put Notice as to fewer than all of the Shares held by Shareholder, the Company shall have, on the expiration of the last Put Option following retirement, disability or death, the option (the “Call Option”) to purchase any or all Shares held by Shareholder or Shareholder’s Successor on the terms and subject to the conditions of Section 3 hereof.  The Company shall have 90 days from the expiration of the last Put Option Election Period to exercise the Call Option.  In the event of the death of Shareholder, Shareholder’s Successor shall promptly inform the Company of Shareholder’s death.  If the Company is not given notice of Shareholder’s death (or receives notice after the Call Option would have otherwise expired), the Company shall have 90 days from actual notice of Shareholder’s death to exercise the Call Option.  If Shareholder leaves the service of the Company for any reason other than death, retirement or disability, the Company shall have 90 days from the date of Shareholder’s departure to require Shareholder to sell the Shares to the Company at the per share price then in effect for repurchases pursuant to Section 3.  In the event repurchases cannot be made by reason of restrictions described in Section 3.6.1, the Company’s Call Option shall apply as soon as such restrictions are no longer applicable.

 

5.                                       Assignment by the Company. The right of the Company to purchase any part of the Shares under Section 2 or Section 4 of this Agreement may be assigned in whole or in part to any person or persons designated by the Board of Directors of the Company.

 

6.                                            Obligations Binding Upon Transferees. Except as otherwise provided in Section 2, All transferees of Shares or any interest therein will receive and hold such Shares or interests subject to the provisions of this Agreement. Any sale or transfer of the Shares will be void unless the provisions of this Agreement are met.

 

7.                                       Termination. This Agreement will terminate on the earlier of (i) the closing of an underwritten public offering of Class A Common Stock of the Company or (ii) the closing date of a sale of assets or merger of the Company pursuant to which shareholders of the Company receive securities of a buyer whose shares are publicly traded.

 

8.                                       Transfers in Violation. The Company will not be required to (a) transfer on its books any Shares that have been sold or transferred in violation of any of the provisions set forth in this Agreement, or (b) treat as owner of such Shares, or accord the right to vote as such owner, or pay dividends to any transferee to whom such Shares are purported to have been so transferred.

 

9.                                       Enforcement. The Company and Shareholder acknowledge that the other party will suffer irreparable harm if either party fails to comply with this Agreement, and that monetary damages will be inadequate to compensate the parties for such failure. Accordingly, the parties agree that this Agreement may be enforced by specific

 

6



 

performance or other injunctive relief, in addition to any other remedies available at law or in equity.

 

10.                                 Governing Law. This Agreement will be governed by, and will be construed and enforced in accordance with, the laws of the state of Oregon.

 

11.                                      Miscellaneous.

 

11.1 Shareholder Rights. Subject to the provisions and limitations hereof, Shareholder may, during the term of this Agreement, exercise all rights and privileges of a shareholder of the Company with respect to the Shares.

 

11.2 Notices. Any notice, demand, or request required or permitted to be given under this Agreement must be in writing and will be deemed given when delivered personally, or three days after being deposited in the United States mail as certified or registered mail, return receipt requested, with postage prepaid, or the day following facsimile transmission, with confirmed transmission, in either case addressed, if to the Company, to it at the address shown below its signature; and if to Shareholder, at Shareholder’s address shown on the stock records of the Company, or at such other address as any party may designate by 10 days’ advance written notice to the other party.

 

11.3 Amendment; Waiver. Except as provided in Section 11.7, this Agreement may be amended only by the written consent of the Company and Shareholder. No waiver of any provision of this Agreement will be effective unless in writing and signed by the waiving party.

 

11.4 Assignment. The rights and benefits of this Agreement will inure to the benefit of and be enforceable by the Company and its respective successors and assigns. Except as otherwise provided herein, the rights and obligations of Shareholder under this Agreement may not be assigned without the prior written consent of the Company.

 

11.5 Attorneys’ Fees. If suit or action is filed by any party to enforce this Agreement or otherwise with respect to the subject matter of this Agreement, the prevailing party will be entitled to recover reasonable attorneys’ fees and expenses incurred in preparation for and prosecution of such suit or action at trial, on appeal, and in connection with any petition for review.

 

11.6 Effective Date; Effect on Prior Agreements.  This Agreement shall be effective upon, and subject to, the sale of Class C Preferred Stock to the ESCO Corporation Employee Stock Ownership Plan contemplated by the Second Restated Articles of Incorporation of the Company.  In the event that such sale does not occur by December 31, 2006, this Agreement shall be of no effect and the Prior Agreements shall remain in effect.  Upon the effective date of this Agreement, this Agreement shall supersede and replace the Prior Agreements, except as otherwise provided in Schedule A.

 

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11.7  Section 409A. This Agreement is intended to comply with the provisions of Section 409A the Internal Revenue Code of 1986, as amended, and shall be interpreted in accordance with Section 409A and Treasury regulations and other interpretive guidance issued thereunder.  If the Company at any time determines that this Agreement would cause or may cause any arrangement between the Company and Shareholder to be nonqualified deferred compensation subject to Section 409A, the Company may amend this Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Company determines to be necessary or appropriate to (a) allow the arrangement not to be subject to Section 409A, or (b) comply with the requirements of Section 409A.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

SHAREHOLDER:

 

ESCO CORPORATION

 

 

 

 

 

By:

 

 

 

Name:

 

 

 

Title:

 

 

 

 

Address:

 

 

 

 

 

 

 

 

8



 

CONSENT OF SPOUSE

 

The undersigned spouse of Shareholder has read and hereby approves the foregoing Agreement. The undersigned hereby agrees to be irrevocably bound by the Agreement and further agrees that any community interest will be similarly bound by the Agreement. I hereby appoint my spouse as my attorney-in-fact with respect to any amendment or exercise of any rights under the Agreement.

 

 

 

 

 

Spouse of Shareholder

 

9



 

Schedule A

 

Not Applicable

 



 

Schedule A

 

[The following will be added if a Shareholder holds Class A Common Stock and Class A Preferred Stock before the reclassifications and elects to have the existing Stock Purchase Agreement (Restated) continue to apply to the Class A Common Shares received upon the reclassification of the Shareholder’s Class A Preferred Stock:

 

Shareholder and the Company agree that this Agreement shall not apply to shares of Class A Common Stock of the Company that Shareholder acquired pursuant to the Restated Articles upon the reclassification of shares of Class A Preferred Stock held by Shareholder.  With respect to these shares of Class A Common Stock, the Stock Purchase Agreement (Restated) between the Company and Shareholder shall continue to apply.]

 



Basic Info X:

Name: Schedule of Parties to Termination of Restated Stock Transfer Restriction Agreement
Type: Schedule of Parties to Termination of Restated Stock Transfer Restriction Agreement
Date: June 28, 2011
Company: ESCO Corp
State: Oregon

Other info: