UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a)
of the Securities Exchange Act of 1934
(Amendment No. )
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Sypris Solutions, Inc.
(Name of Registrant as Specified In Its Charter)
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
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Notice of 20092012 Annual Meeting
and
Proxy Statement
SYPRIS SOLUTIONS, INC.
101 Bullitt Lane, Suite 450
Louisville, Kentucky 40222
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
TIME | 10:00 a.m. EDT |
Tuesday, May |
PLACE | Lower Level Seminar Room |
101 Bullitt Lane, Louisville, Kentucky 40222 |
ITEMS OF BUSINESS | (1) To elect three Class I members of the Board of Directors, whose terms are described in the Proxy Statement. |
(2) To transact such other business as may properly come before the meeting and any postponement or adjournment thereof. |
RECORD DATE | Holders of record of Sypris Common Stock at the close of business on March |
ANNUAL REPORT | The Company’s |
PROXY VOTING | It is important that your shares be represented and voted at the meeting. You can vote your shares |
(1) | Visit the Web site noted on your proxy card |
(2) | Use the toll-free telephone |
(3) | Sign, date and return your proxy |
(4) | Attend the meeting |
A Proxy Statement describing matters to be considered at the Annual |
John R. McGeeney
Vice President, General Counsel and Secretary
April 7, 2009March 30, 2012
Important Notice Regarding the Availability of Proxy Materials
In accordance with the rules of the Securities and Exchange Commission, we are advising our stockholders of the availability on the Internet of our proxy materials related to the annual meeting described above. These rules allow companies to provide access to proxy materials in one of two ways. Because we have elected to utilize the “full set delivery” option, we are delivering to all stockholders paper copies of all the proxy materials, as well as providing access to those proxy materials on a publicly accessible Web site.
The notice of annual meeting of stockholders proxy statement,to be held on May 8, 2012, this Proxy Statement, form of proxy card and annual reportthe Sypris Solutions 2011 Annual Report on Form 10-K are available at www.sypris.com/proxymaterials.
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Sypris Solutions, Inc. 101 Bullitt Lane, Suite 450 Louisville, KY 40222 |
We are providing these proxy materialsthis Proxy Statement to you in connection with the solicitation by the Board of Directors of Sypris Solutions, Inc. of proxies to be voted at our 20092012 Annual Meeting of Stockholders and at any postponement or adjournment thereof. In this Proxy Statement, we refer to Sypris Solutions, Inc. as “Sypris,” “Sypris Solutions,” “we,” “our” or “the Company.”
You are cordially invited to attend the Annual Meeting on May 12, 2009,8, 2012, beginning at 10:00 a.m. EDT. The Annual Meeting will be held at 101 Bullitt Lane, Lower Level Seminar Room, Louisville, Kentucky 40222.
We are first mailing this Proxy Statement and accompanying forms of proxy and voting instructions on or about April 7, 2009,March 30, 2012, to holders of our Common Stock at the close of business on March 16, 2009,14, 2011 which is the Record Date“Record Date” for the Annual Meeting.
Proxies and Voting Procedures
Stockholder of Record: Shares Registered in Your Name
Your vote is important. Because many stockholders cannotIf you are a stockholder of record, you may a) vote in person at the meeting, b) vote by proxy using the enclosed proxy card, c) vote by proxy over the telephone, or d) vote by proxy on the internet, in each case as described below. You may still attend the Annual Meetingmeeting and vote in person a large number of stockholders can be represented onlyeven if you have already voted by proxy. Most stockholders have a choice of voting over the Internet, using a toll-free telephone number or completing a proxy card and mailing it in the postage-paid envelope provided. Please referIn order to your proxy card or the information forwarded by your bank, broker or other nominee to see which options are available to you. Please be aware that if you vote over the Internet you might incur costs such asor via telephone, please call the number or go to the website identified on the enclosed proxy card and Internet access charges for which you will be responsible.follow the instructions. The Internet and telephone voting facilities for eligible stockholders of record will close at 6:12:00 a.m. EDT on May 12, 2009.8, 2012.
You can revoke your proxy at any time before it is exercised by timely delivery of a properly executed, later-dated proxy (including an Internet or telephone vote)vote before the deadline) or by voting by ballot at the Annual Meeting. Simply attending the annual meeting will not, by itself, revoke your proxy.
In order to vote overBeneficial Owner: Shares Registered in the InternetName of Broker or via telephone, stockholders must have their voting form in hand and call the number or go to the website identified on the enclosed form and follow the instructions to vote on the Internet or via telephone.Bank
The method by whichIf you vote will in no way limit your right to vote at the Annual Meeting if you later decide to attend in person. If yourare a beneficial owner of shares are heldregistered in the name of ayour broker, bank broker or other nominee, you must obtainshould have received a proxy executed incard and voting instructions with these proxy materials from that organization rather than from us. Simply complete and mail the proxy card and voting instructions to ensure that your favor, fromvote is counted. Alternatively, you may vote by telephone or over the holder of record, to be able toInternet as instructed by your broker, bank or other nominee. To vote in person at the Annual Meeting.Meeting, you must obtain a valid proxy from your broker, bank or other nominee. Follow the instructions from your broker, bank or other nominee included with these proxy materials, or contact your broker, bank or other nominee to request a proxy card. Otherwise, your shares may not be voted with respect to certain proposals, including the election of directors.
Voting Procedures
All shares entitled to vote and represented by properly completed proxies received prior to the Annual Meeting, and not revoked, will be voted at the Annual Meeting in accordance with your instructions.If you do not indicate how your shares should be voted on a matter, the shares represented by your properly completed proxy will be voted as the Board of Directors recommends.
If any other matters are properly presented for consideration at the Annual Meeting, including, among other things, consideration of a motion to adjourn the meeting to another time or place in order to solicit additional proxies in favor of the recommendations of the Board of Directors, the persons named as proxies and acting thereunder will have discretion to vote on those matters according to their best judgment to the same extent as the
person delivering the proxy would be entitled to vote. AtAs of the date of this Proxy Statement, went to press, we did not anticipate that any other matters would be raised at the Annual Meeting.
Stockholders Entitled to Vote
StockholdersHolders of Sypris Common Stock at the close of business on the Record Date are entitled to receive notice of and to vote at the Annual Meeting. Each share of Common Stock is entitled to one vote on each matter properly brought before the meeting. Stockholders do not have the right to cumulate their votes in the election of directors.
On the Record Date, March 16, 2009,14, 2012, there were 19,613,90719,861,673 shares of Sypris Common Stock outstanding. A list of stockholders entitled to vote at the Annual Meeting will be available at the Annual Meeting and for 10 days prior to the Annual Meeting at the Company’s offices at 101 Bullitt Lane, Suite 450, Louisville, Kentucky 40222, between the hours of 8:30 a.m. and 5:30 p.m. local time.
Quorum
The presence, in person or by proxy, of the holders of a majority of the outstanding shares entitled to vote is necessary to constitute a quorum at the meeting for the election of directors.quorum. Abstentions and broker “non-votes” are counted as present and entitled to vote for purposes of determining whether a quorum exists. Aexists, but shares held by a broker, “non-vote” occurs whenbank or other nominee and not voted on any matter will not be counted for such purpose.Therefore, if you hold shares through a broker, bank or other nominee holdingit is important that you contact your broker with your voting instructions. If there is no quorum, the holders of a majority of shares for a beneficial owner does not vote on a particular proposal becausepresent at the nominee does not have discretionary voting power with respectmeeting in person or represented by proxy may adjourn the meeting to that item and has not received voting instructions from the beneficial owner.another date.
Gill Family
As of the Record Date, the Gill family beneficially owned an aggregate of 8,414,1638,738,763 shares or 42.8%43.2% of the Company’s outstanding Common Stock. For further information on ownership of Common Stock by the Gill family, seeStock Ownership of Certain Beneficial Owners.
Multiple Stockholders Sharing the Same Address
In accordance with a notice sent to eligibleMultiple stockholders who share a single address by one or more banks, brokers or nominees with accountholders who are Sypris stockholders, those stockholders will receive only one Annual Report and Proxy Statement at that address. This practice, known as “householding,” is designed to reducereduces printing and postage costs. However, if a stockholder residing at such an address wishesyou wish to receive a separate copy of the Annual Report or Proxy Statement in the future, he or sheyou may contact theyour broker, bank broker or nominee directly or contact Sypris at 101 Bullitt Lane, Suite 450, Louisville, Kentucky 40222 or at 502-329-2000. If you own your shares through a broker, bank broker or other nominee, and you are receiving multiple copies of our Annual Report and Proxy Statement, you can request householding by contacting the bank, broker or nominee.
Cost of Proxy Solicitation
Sypris will pay the cost of soliciting proxies. Sypris may reimburse brokerage firms and other persons representing beneficial owners of shares for expenses incurred in forwarding solicitation materials to such beneficial owners. Proxies may be solicited on behalf of the Company by directors, officers or employees of the Company, without additional compensation, in person or by telephone, facsimile or other electronic means.
Notice Regarding Availability of Proxy Materials
In accordance with the rules of the Securities and Exchange Commission (“SEC”), we are advising our stockholders of the availability on the Internet of our proxy materials related to the Annual Meeting described above. These rules allow companies to provide access to proxy materials in one of two ways. Because we have elected to utilize the “full set delivery” option, we are delivering to all stockholders paper copies of all the proxy materials, as well as providing access to those proxy materials on a publicly accessible Web site. The notice of annual meeting of stockholders, proxy statement, form of proxy card and annual report on Form 10-K are available at www.sypris.com/proxymaterials.
Board of Directors
Our Board of Directors has adopted the Sypris Solutions, Inc. Guidelines on Corporate Governance (the “Guidelines”) to address significant corporate governance issues.. The Guidelines provide a framework for the Company’s corporate governance initiatives and cover topics including, but not limited to, Board of DirectorDirectors and Committee composition and operation, director compensation and stock ownership requirements, and director tenure.risk management. The Nominating and Governance Committee is responsible for overseeing and reviewing the Guidelines on a regularan annual basis, and reporting any recommended changes to the Board of Directors. A current copy of the Guidelines is available on the Company’s website at www.sypris.com.
During 2008,2011, the Board of Directors held five regular meetings and sixone special meetings,meeting, and the Committees held fourteeneleven meetings. All directors attended at least 75%greater than 90% of the Board meetings and meetings of Committees of which they are members. Although the Company does not have a formal policy regarding attendance by members of the Board of Directors at the Company’s Annual Meeting of Stockholders, more than a majority of the directors have attended all Annual Meetings. Seven of the eight directors attended the 20082011 Annual Meeting.
Independence
The Board of Directors has determined that John F. Brinkley, William G. Ferko, William L. Healey, Sidney R. Petersen and Robert Sroka are “independent“independent” as defined by NASDAQ’s listing standards. Each of our Audit and Finance, Compensation, and Nominating and Governance committees is composed only of independent directors” as such term is defined in NASD Rule 4200(a)(15).identified below under the heading “Committees of the Board of Directors.”
In December 2008,2011, the Board of Directors appointed William G. Ferkoindependent directors selected John F. Brinkley to serve a one-year term as Lead Independent Director. In this capacity, Mr. Ferko has frequent contact with our management, consulting with our executive officers and others on a broad range of matters. Mr. Ferko,Brinkley, as Lead Independent Director, presides over periodic independent sessions of the Board of Directors in which only independent directors participate. Stockholders and other parties interested in communicating directly with the Lead Independent Director or with the independent directors as a group may do so by writing to the Lead Independent Director, c/o Sypris Solutions, Inc., 101 Bullitt Lane, Suite 450, Louisville, Kentucky 40222.
Communications with Stockholders
Our Board of Directors welcomes communications from our stockholders. Stockholders may send communications to the Board of Directors, or to any director in particular, c/o Sypris Solutions, Inc., 101 Bullitt Lane, Suite 450, Louisville, Kentucky 40222. Any stockholder correspondence addressed to the Board of Directors, or to any director in particular, in care of the Company, is forwarded by us to the addressee, without review by management.addressee.
Committees of the Board of Directors
During 2008,2011, the Board of Directors had fourthree ongoing Committees: the Audit and Finance Committee, the Compensation Committee the Executive Committee and the Nominating and Governance Committee.
Audit and Finance Committee
The current members of the Audit and Finance Committee are William G. Ferko (Chairman), Sidney R. Petersen (Chairman), William G. Ferko and Robert Sroka. During 2008,Each member of the Audit and Finance Committee met six times.
The current memberssatisfies the additional requirements of the Compensation Committee are Robert Sroka (Chairman), John F. BrinkleySEC and William L. Healey. During 2008,NASDAQ for audit committee membership, including the Compensation Committee met six times.
The current members of the Executive Committee are Robert E. Gill (Chairman), Jeffrey T. Gill, R. Scott Gill and Sidney R. Petersen. During 2008, the Executive Committee held no meetings and took no actions via unanimous written consent.
The current members of the Nominating and Governance Committee are William G. Ferko (Chairman), John F. Brinkley and William L. Healey. During 2008, the Nominating and Governance Committee met two times.
Audit and Finance Committee
The Audit and Finance Committee currently consists of three directors, each of whom satisfies theadditional independence requirements set forth in NASD Rule 4200(a)(15) and Rule 10A-3(b)(1) promulgated under the Securities Exchange Act of 1934, as amended. In addition, the Audit and Finance Committee, composed of the directors named in the preceding section, satisfies the requirements of NASD Rule 4350(d)(2).financial literacy requirements. The Board of Directors has also determined that each of Sidney R. Petersen and William G. Ferko qualify as “financial experts” for purposes of Item 407(d) of Regulation S-K.an “audit committee financial expert” as defined by SEC rules. During 2011, the Audit and Finance Committee met four times. The functions of the Audit and Finance
Committee are described below under the headingAudit and Finance Committee Report. The Audit and Finance Committee operates pursuant to a formal written charter that sets out the functions that this Committee is to perform. The Audit and Finance Committee reviews and reassesses the adequacy of the Audit and Finance Committee Charter on an annual basis. The Audit and Finance Committee Charter is attached as Exhibit A and is also available on the Company’s website at www.sypris.com.
Compensation Committee
The current members of the Compensation Committee currently consists of three directors, each of whom meetsare John F. Brinkley (Chairman), Robert Sroka and William L. Healey. During 2011, the NASD standard for independence set forth in NASD Rule 4200(a)(15).Compensation Committee met five times. The functions of the Compensation Committee include administering management incentive compensation plans, establishing the compensation of executive officers and reviewing the compensation of directors. The Committee generally approves equity awards for the Company’s other employees and non-equity compensation for the Company’s otherexecutive officers. However, the Committee has delegated to the Company’s Chief Executive Officer the discretion to award to non-executive employees in any one calendar year up to 100,000 stock options in the aggregate, with a maximum individual award of 10,000 options to any individual, and in addition, beginning in 2008 and until further amended by the Compensation Committee, up to 35,000 shares of restricted stock in the aggregate, with a maximum award of 3,500 shares to any individual.10,000. The Company’s Chief Executive Officer, with assistance from the Director of Human Resources and their support staff, provides recommendations to the Compensation Committee regarding compensation for those employees reporting directly to the Chief Executive Officer. However, the Committee retains full discretion to modify any compensation recommendations by managementthe Chief Executive Officer or any third parties.other members of management.
In 2008,2011, the CompanyCompany’s management engaged Mercer Human Resource Consulting, Inc.the assistance of Pearl Meyer & Partners (“Pearl Meyer”), a leading, global human resourcescompensation consulting firm, to assist the Compensation Committee in reviewing total compensation for the Company’s named executive officers, and other key employees. Merceremployees and directors. Pearl Meyer provided the Compensation Committee with relevant market data and alternatives to consider when making compensation decisions regarding the Chief Executive Officer, and the Company’s other executives.executives and the directors. In 2008, the Compensation Committee has had2011, direct access to Mercer and the opportunity to review various issues relating to executive compensation in executive sessionPearl Meyer, with Mercer,or without management in attendance, was offered to the Compensation Committee, on an “as needed” basis. Company management also engaged Pearl Meyer for assistance with general trends in compensation, specific advice with respect to particular employees and data requests to help clarify the appropriate compensation benchmarks for unique or “hybrid” job descriptions. For compensation decisions affecting 2009,2012, the Company has also engagedwill continue to utilize the assistance of Pearl Meyer & Partners.Meyer.
The Compensation Committee operates pursuant to a formal written charter that sets out the functions that this Committeeit is to perform. The Compensation Committee reviews and reassesses the adequacy of the Compensation Committee Charter on an annual basis. A current copy of the Compensation Committee Charter is available on the Company’s website at www.sypris.com.
Executive Committee
The Executive Committee currently consists of four directors. The functions of the Executive Committee include exercising the duties of the full Board of Directors when and if necessary between regular meetings of the Board of Directors. The Executive Committee possesses all of the power of the full Board of Directors,
except for certain powers under Delaware law which can only be exercised by the full Board. The Executive Committee operates pursuant to a formal written charter setting out the functions that this Committee is to perform. A current copy of the Executive Committee Charter is available on the Company’s website at www.sypris.com.
Nominating and Governance Committee
The current members of the Nominating and Governance Committee currently consists of three directors, each of whom satisfiesare William L. Healey (Chairman), John F. Brinkley and William G. Ferko. During 2011, the independence requirements set forth in NASD Rule 4200(a)(15).Nominating and Governance Committee met two times. The functions of the Nominating and Governance Committee include recommending nominees to the Board of Directors for election as directors of the Company and evaluating the performance and effectiveness of the Board of Directors, including a periodic assessment of the effectiveness of each of the directors.Directors. The Nominating and Governance Committee also makes recommendations to the Board of Directors from time to time as to matters of corporate governance.
The Nominating and Governance Committee employs an independent director profile to assess candidates for inclusion in the Company’s recommended slate of independent director nominees. The Nominating and Governance Committee takes a number of attributes into account during the nomination process, including an individual’s demonstrated leadership, maturity and public company experience. The Nominating and Governance Committee also places a value on building a diversity of viewpoints and backgrounds on the Board.Board of Directors, including diversity of religions, races, genders, nationalities, educational backgrounds, work experiences and extracurricular interests, which can have a positive impact on the business. A mix of talents, backgrounds, experiences and geographic locations of the individual Board members is also important and is considered in the
evaluation of potential candidates. In addition, the Nominating and Governance Committee will consider an individual’s integrity and commitment, as well as thea candidate’s experience in our core market industries, certain targeted knowledge areas, complex multi-industry and/or technological areas and manufacturing or service operations.
All nominees for election at this Annual Meeting of Stockholders are currently directors and were previously elected by stockholders. To date, the Nominating and Governance Committee has not engaged third parties to identify or evaluate potential director candidates. Currently, subject to any rights stockholders have to nominate director candidates under our bylaws, the Company’s policy is not to seek or accept director nominations recommended by security holders (other than those directors who are also security holders, acting in their capacity as directors), and has not received any such nominations by any non-director security holders to date. In light of the Company’s current size, market position and historically low rates of director turnover, the policy of the Nominating and Governance Committee has been to develop and maintain contacts with potential candidates for future membership on the Board, primarily through the business relationships of the Company’s current and former officers and directors. The Committee is actively considering the addition of one or more Directors, but no final decisions have yet been made by the Board of Directors as of the date of this Proxy Statement.
The Nominating and Governance Committee operates pursuant to a formal written charter that sets out the functions that this Committeeit is to perform. The Nominating and Governance Committee reviews and reassesses the adequacy of the Nominating and Governance Committee Charter on an annual basis. A current copy of the Nominating and Governance Committee Charter is available on the Company’s website at www.sypris.com.
Certain EmployeesBoard Leadership and Risk Oversight
Occasionally, we may have employees who areThe Company’s Board of Directors (“Board”) consists of our Chairman of the Board, Robert E. Gill, our President and Chief Executive Officer, Jeffrey T. Gill, R. Scott Gill and five independent directors. Additionally, the independent directors annually select a Lead Independent Director. Our independent directors generally meet in executive session, chaired by our Lead Independent Director, several weeks in advance of each regularly scheduled Board meeting. During 2011, the Lead Independent Director presided over four such meetings. The Board has three standing committees—Audit and Finance, Compensation, and Nominating and Governance, each of the committees is comprised solely of independent directors.
The Board with and through its committees is actively involved in oversight of risks that could affect the Company. While the oversight of certain risks related to compensation, financial or governance matters is conducted primarily through designated committees of the Board, as disclosed more fully in the charters of each of such committees, the full Board has retained responsibility for general oversight of risks. The Board satisfies this responsibility through full reports by each committee chair regarding the committee’s considerations and actions, as well as through regular reports directly from officers responsible for oversight of particular risks within the Company.
The Audit and Finance Committee is generally responsible for oversight of the Company’s relationship with its public accountants, financial reporting and internal controls, debt and credit agreements, and other financial compliance matters. The Compensation Committee is generally responsible for oversight of the recruitment, retention and motivation of the Company’s executive management and other employees, including compensation, performance evaluation processes and succession planning matters for directors, officers and other key personnel. The Nominating and Governance Committee is generally responsible for oversight of the nominating and self-evaluative processes with respect to service on the Company’s Board of Directors, and for oversight of other corporate governance matters.
Pursuant to our bylaws, our Guidelines and general practices, the Board reviews and determines the best board leadership structure for the Company at least annually. As part of our periodic board self-evaluation process, we evaluate our leadership structure to ensure that the Board continues to believe that it provides an effective and efficient structure for the Company and stockholders.
We believe that our current board leadership structure is common among other public companies in the United States, and that this leadership structure has been effective for the Company. We believe that having a separate Chairman of the Board and Chief Executive Officer, independent chairs for each of the Audit, Compensation, Nominating and Governance Committees and a Lead Independent Director provides a focused leadership structure for the Company and the Board. Together with regular executive officers. We compensate these individuals consistent with our policiesplanning, analysis and reporting, we believe that apply to all employees.this structure provides effective oversight of the material risks and opportunities facing the Company on an ongoing basis.
Code of Business Conduct
We have a corporate responsibility and compliance program which includes a written code of business conduct. We require all employees, including all officers and senior level executives, to adhere to our code of business conduct in addressing the legal and ethical issues encountered in conducting their work. The code of business conduct requires each of our employees to avoid conflicts of interest, comply with all laws and other legal requirements, conduct business in an honest, fair and ethical manner and otherwise act with integrity. Our employees are required to certify that they have received a copy of the code of business conduct and have been provided with training on the code of business conduct and their related legal obligations. Employees are required to report any conduct they believe to be an actual or apparent violation of the code of business conduct
or other Company policies and procedures. The code of business conduct details the procedures for confidential and anonymous reporting by employees and emphasizes our policy of non-retaliation. Our code of business conduct can be found on our corporate website at www.sypris.com. The information on our website is not part of this Proxy Statement and is not soliciting material.
Transactions with Related Persons
The Company’s code of business conduct requires all directors, executive officers and other employees of the Company to disclose and seek prior approval of any related partyperson transaction. The Company’s directors, including the Chief Executive Officer and President, must report any potential conflict of interest to the Audit and Finance Committee, in accordance with the Guidelines and the Audit and Finance Committee Charter. The other executive officers must report any potential conflict of interest to the Chief Executive Officer and President. The Audit and Finance Committee may approve, ratify or reject the transaction or refer the transaction to the full Board of Directors or other appropriate Committee of the Board, in its discretion. In addition, the Company requires each director, director nominee and executive officer to disclose any transactions involving related parties, or other potential conflicts of interest, in an annual written questionnaire. For 2008,2011, no related partyperson transactions (as defined in Item 404(a) of Regulation S-K) were reported or otherwise discovered by the Company.
RELATIONSHIP WITH INDEPENDENT PUBLIC ACCOUNTANTS
Ernst & Young LLP has served as the Company’s independent public accountants and auditors since and including the fiscal year ended December 31, 1989. Although the Audit and Finance Committee has not yet completed its process for selecting the independent public accountant and auditor for the Company with respect to its 20092012 financial statements, the Audit and Finance Committee has approved the interim engagement of Ernst & Young LLP to perform audit and audit-related services with respect to 2009.2012. The Audit and Finance Committee’s selection process includes consideration of the following factors: continuity of experience with the Company’s business, internal controls and technical accounting experience; independence; history of and reputation for thoroughness, accuracy, excellence and integrity; and reasonableness of fees. The Audit and Finance Committee has approved the fees described below for 2008.2011. The Audit and Finance Committee believes that the fees paid for non-audit services are compatible with the independence of Ernst & Young LLP.
Representatives of Ernst & Young LLP will be present at the Annual Meeting. They will be given an opportunity to make a statement, if they desire to do so, and they will be available to respond to appropriate questions after the meeting.
Fees Billed by Ernst & Young LLP
Audit and Non-Audit Fees
The following table presents fees billed for professional audit services rendered by Ernst & Young LLP for the audit of the Company’s annual financial statements for the years ended December 31, 20082011 and 20072010 and fees billed for other services rendered by Ernst & Young LLP during those periods.
Years Ended December 31, | Years Ended December 31, | |||||||||||||
2008 | 2007(4) | 2011 | 2010(5) | |||||||||||
Audit Fees (1) | $ | 1,008,470 | $ | 905,044 | $ | 831,050 | $ | 784,325 | ||||||
Audit-Related Fees (2) | 1,812 | 2,650 | — | 1,611 | ||||||||||
Tax Fees (3) | 137,910 | 320,043 | 146,498 | 161,551 | ||||||||||
All Other Fees (4) | — | — | ||||||||||||
|
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Total | $ | 1,148,192 | $ | 1,227,737 | $ | 977,548 | $ | 947,487 |
(1) | Audit Fees include fees associated with the annual audit, reviews of the Company’s quarterly reports on Form 10-Q, consultation regarding accounting and reporting matters related to the audit, review of documents filed with the SEC and an attestation report on the Company’s internal control over financial reporting for |
(2) | Audit-Related Fees principally |
(3) | Tax Fees consist of tax return preparation fees, tax services other than those directly related to the audit of the income tax |
(4) | All Other Fees consist of fees other than Audit Fees, Audit-Related Fees and Tax Fees. |
(5) | Fees reported for |
Policy on Audit and Finance Committee Pre-Approval of Audit and Non-Audit Services of Independent AuditorPublic Accountants
The Audit and Finance Committee’s policy is to pre-approve all audit and non-audit services provided by the independent public accountants, and auditors, either by a vote of a quorum of the Committee at any meeting or by the Committee’s authorized delegate for approvals between meetings, all of which are reported to the Committee at
its next meeting. These services may include audit services, audit-related services, tax services and other services. Pre-approvalWith some exceptions for certain longer-term projects, pre-approval is generally provided for up to one year, is detailed as to the particular service or category of services and is generally subject to a specific budget. The independent public accountants and auditors and management are required to periodically report to the full Audit and Finance Committee regarding the extent of services provided by the independent public accountants and auditors in accordance with this pre-approval, and the fees for the services performed to date. None of the services provided by the independent public accountants and auditors under the categories Audit-Related and Tax described above were approved by the Audit and Finance Committee pursuant to the waiver of pre-approval provisions set forth in Rule 2-01(c) of Regulation S-X.
AUDIT AND FINANCE COMMITTEE REPORT
The Audit and Finance Committee met with management periodically during the year to consider the adequacy of the Company’s internal controlscontrol over financial reporting and the objectivity of its financial reporting. The Audit and Finance Committee discussed these matters with the Company’s independent public accountants and auditors and with appropriate Company financial personnel. The Audit and Finance Committee also discussed with the Company’s senior management and independent public accountants and auditors the processes used to support the certifications by the Company’s chief executive officerChief Executive Officer and chief financial officer,Chief Financial Officer, which are required by the Securities and Exchange Commission and the Sarbanes-Oxley Act of 2002 for certain of the Company’s filings with the Securities and Exchange Commission.
The Audit and Finance Committee met privately with both the independent public accountants and auditors and Company financial personnel, each of whom has unrestricted access to the Audit and Finance Committee. The Audit and Finance Committee appointed Ernst & Young LLP as the independent public accountants and auditors for the Company in 2008 after reviewing the firm’s performance and independence from management, among other factors.
Management has primary responsibility for the Company’s financial statements and the overall reporting process, including the Company’s system of internal controls.control over financial reporting. Ernst & Young LLP, the Company’s independent public accountants, and auditors, is responsible for performing an independent audit of the Company’s financial statements in accordance with generally accepted auditing standards and expressing an opinion on the conformity of those audited financial statements in accordance with U.S. generally accepted accounting principles. Ernst & Young LLP is also responsible for performing an audit of the Company’s internal controls over financial reporting in accordance with the standards of the United States Public Company Accounting Oversight Board and expressing an opinion that the Company maintained effective internal control over financial reporting based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (the “COSO criteria”).Commission. The Audit and Finance Committee is responsible for monitoring and overseeing these processes.
The Audit and Finance Committee reviewed with management and Ernst & Young LLP the Company’s draft of Form 10-K for 2008,2011, including the Company’s audited financial statements and met separately with both management and Ernst & Young LLP to discuss and review those materials prior to issuance and filing with the Securities and Exchange Commission. Management has represented, and Ernst & Young LLP has confirmed, to the Audit and Finance Committee that the financial statements were prepared in accordance with U.S. generally accepted accounting principles.
The Audit and Finance Committee also discussed with Ernst & Young LLP matters required to be discussed by the Statement on Auditing Standards No. 61, as amended (AICPA, Professional Standards, Vol. 1. A U Section 380), as adopted by the Public Company Accounting Oversight Board in Rule 3200T, relating to communications with auditors.
In addition, the Audit and Finance Committee has received from the independent auditorspublic accountants the written disclosures and lettersthe letter required by applicable requirements of the Public Company Accounting Oversight Board
regarding the independent accountant’s communications with the Audit and Finance Committee concerning independence, has discussed with the independent auditorspublic accountants their independence from the Company and its management, and has considered whether the independent auditor’spublic accountants’ provision of non-audit services to the Company is compatible with maintaining the auditor’s independence. Ernst & Young LLP has confirmed by letter that, in its professional judgment, it is independent of the Company. The Audit and Finance Committee is not aware of any issues which could impair the independence of Ernst & Young LLP.
The Audit and Finance Committee discussed with managementreviewed and pre-approved Ernst & Young LLP the quality and adequacy of the Company’s internal controls and the overall quality of the Company’s financial reporting. The Audit and Finance Committee specifically addressed with management and Ernst & Young LLP, management’s annual report regarding the effectiveness of the Company’s system of internal controls over financial reporting, management’s ongoing responsibilities for establishing and maintaining an adequate system, management’s evaluation of any significant deficiencies or material weaknesses in that system, management’s process for evaluating the effectiveness of such internal controls and the framework that was used to evaluate the effectiveness of the system. Management has represented, and Ernst & Young LLP has confirmed, to the Audit and Finance Committee that based on the COSO criteria, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2008.
The Audit and Finance Committee reviewed with Ernst & Young LLP and pre-approved theirLLP’s proposed audit plans, audit scope, identification of audit risks and fees, either by vote of the Committee or by approval of the Committee’s authorized delegate acting between meetings. The Audit and Finance Committee also reviewed and pre-approved all non-audit services performed by Ernst & Young LLP and discussed with the independent public accountants and auditors their independence.LLP.
In reliance on the reviews and discussions referred to above, the Audit and Finance Committee recommended to the Board of Directors (and the Board of Directors has approved) that the Company’s audited financial statements be included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2008.2011.
William G. Ferko (Chairman)
Sidney R. Petersen (Chairman)
William G. Ferko
Robert Sroka
ELECTION OF DIRECTORS
The Board of Directors is divided into three classes with terms that expire at successive annual meetings. Three Class I directors will be elected at the Annual Meeting to serve for a three-year term expiring at our annual meeting in 20122015 or until their successors have been elected and qualified, or until the earliest of their death, resignation or retirement. We expect each nominee for election as a director at the Annual Meeting to be able to serve if elected. If any nominee is unable to serve, proxies will be voted in favor of the remainder of those nominees and for such substitute nominee as may be selected by the Board of Directors. The persons named as proxies in the accompanying form of proxy have advised us that at the Annual Meeting, unless otherwise directed, they intend to vote the shares covered by the proxies for the election of the nominees named below. The persons named as proxies may not vote for a greater number of persons than the number of nominees named below.
The Board of Directors has nominated John F. Brinkley, Robert E. Gill and William L. Healey to be elected at the Annual Meeting as Class I directors whose terms will expire in 2012.2015. All nominees are current directors.
Set forth below are the principal occupation of and certain other information regarding the nominees and the other directors whose terms of office will continue after the Annual Meeting. The biographies of each of the nominees and continuing directors that follow contain information regarding the person’s service as a director, business experience, director positions held currently or at any time during the last five years, information regarding involvement in certain legal or administrative proceedings, if applicable, and the experiences, qualifications, attributes or skills that caused the Nominating and Governance Committee and the Board to determine that the person should serve as a director for the Company beginning in 2012.
Vote Required and Recommendation of the Board of Directors
Nominees receiving the greatest number of votes duly cast for the election of directors will be elected. Abstentions and shares held by a broker, “non-votes”as nominee and not voted, are not counted as votes cast for purposes of, and therefore will have no impact as to, the election of directors.The Board of Directors recommends a vote FOR the election of the above-named nominees as Class I directors.
CLASS I DIRECTOR NOMINEES FOR TERMS EXPIRING IN 20122015
John F. Brinkley Age | John F. Brinkley has served as a director of Sypris since April 2005. Mr. Brinkley retired as General Manager, North American Automotive Operations Export Sales for Ford Motor Company in 1995 after a 33 year career with Ford. He also served in a variety of responsible management positions with Ford in Europe, including Vice President of Marketing, Director of Southern Europe Sales Operations and Director of Truck Operations. Mr. Brinkley is Chairman of the Compensation Committee, a member of the | |
Robert E. Gill Age | Robert E. Gill has served as Chairman of the Board of Sypris and its predecessor since 1983, and as President and Chief Executive Officer of its predecessor from 1983 to 1992. Prior to 1983, Mr. Gill served in a number of senior executive positions, including Chairman, President and Chief Executive Officer of Armor Elevator Company, Vice President of A. O. Smith Corporation and President and Chief Executive Officer of Elevator Electric Company. Mr. Gill holds a BS degree in Electrical Engineering from the University of Washington and an MBA from the University of California at Berkeley. | |
William L. Healey Age | William L. Healey has served as a director of Sypris since 1997. Mr. Healey currently serves as a private investor and business consultant. From 2002 to 2005, he served as President and Chief Executive Officer of Cal Quality Electronics, an electronics manufacturing company. Mr. Healey served as a private investor and consultant from 1999 to 2002. He served as Chairman of the Board of Smartflex Systems, an electronics manufacturing company, from 1996 to 1999 and as its President and Chief Executive Officer from 1989 to 1999. Prior to 1989, Mr. Healey served in a number of senior executive positions with Silicon Systems, including Senior Vice President of Operations. Mr. Healey also serves as a director of Microsemi Corporation and Pro-Dex Inc. Mr. Healey is |
CLASS II DIRECTORS WHOSE TERMS WILL EXPIRE IN 20102013
R. Scott Gill Age | R. Scott Gill has served as a director of Sypris and its predecessor since 1983. Mr. Gill |
Robert Sroka Age | Robert Sroka has served as a director of Sypris since 1997. Mr. Sroka has served as Principal of Rockland Advisory Group, an investment banking firm since May 2010, and served as Managing Director of Corporate Solutions Group, LLC, an investment banking firm, |
CLASS III DIRECTORS WHOSE TERMS EXPIRE IN 20112014
William G. Ferko Age | William G. Ferko has served as a director of Sypris since January 2005. Mr. Ferko | |
Jeffrey T. Gill Age | Jeffrey T. Gill has served as President and Chief Executive Officer of Sypris and its predecessor since 1992, and as Executive Vice President of its predecessor from 1983 to 1992. Mr. Gill holds a BS degree in Business Administration from the University of Southern California and an MBA from Dartmouth College. |
Sidney R. Petersen Age | Sidney R. Petersen has served as a director of Sypris since 1997 and of Sypris Electronics from 1994 until its merger with Sypris in 1998. Mr. Petersen retired as Chairman of the Board and Chief Executive Officer of Getty Oil in 1984, where he served in a variety of increasingly responsible management positions since 1955. He is |
STOCK OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
The following table sets forth information concerning the beneficial ownership of our Common Stock as of March 16, 200914, 2012 for (a) each director and nominee for director of the Company; (b) each person who is known by us to own 5% or more of our Common Stock; (c) the person who in 20082011 served as the President and Chief Executive Officer of the Company; (d) the two other most highly compensated executive officers named in the Summary Compensation Table; and (e) the directors and executive officers as a group. Except as otherwise noted, the persons named in the table have sole voting and investment power with respect to such securities.
Shares Beneficially Owned Common Stock | Shares Beneficially Owned Common Stock | ||||||||||||
Number | Percent | Number | Percent | ||||||||||
Robert E. Gill (1) | 1,000 | .005 | % | 16,000 | * | ||||||||
253 Canton Avenue East | |||||||||||||
Winter Park, Florida 32789 | |||||||||||||
Jeffrey T. Gill (2) | 6,032,734 | 30.7 | % | 6,326,734 | 31.4 | % | |||||||
101 Bullitt Lane, Suite 450 | |||||||||||||
Louisville, Kentucky 40222 | |||||||||||||
R. Scott Gill (3) | 5,655,095 | 28.8 | % | 5,670,695 | 28.5 | % | |||||||
161 East Chicago Avenue | |||||||||||||
Chicago, Illinois 60611 | |||||||||||||
GFP I, LP (4) | 3,274,666 | 16.7 | % | 3,274,666 | 16.5 | % | |||||||
1220 North Market Street, Suite 606 | |||||||||||||
Wilmington, Delaware 19801 | |||||||||||||
Gill Family Capital Management, Inc. (5) | 3,274,666 | 16.7 | % | 3,274,666 | 16.5 | % | |||||||
101 Bullitt Lane, Suite 450 | |||||||||||||
Louisville, KY 40222 | |||||||||||||
John F. Brinkley (6) | 28,579 | * | 44,179 | * | |||||||||
William G. Ferko (7) | 44,309 | * | 59,909 | * | |||||||||
William L. Healey (8) | 46,502 | * | 62,102 | * | |||||||||
Sidney R. Petersen (9) | 88,137 | * | 103,737 | * | |||||||||
Robert Sroka (10) | 140,938 | * | 46,821 | * | |||||||||
Richard L. Davis (11) | 240,163 | 1.2 | % | ||||||||||
Sergio L. M. de Carvalho (12) | 131,093 | * | |||||||||||
Current directors and executive officers as a group (15 persons) (13) | 9,839,435 | 49.0 | % | ||||||||||
John J. Walsh (11) | 166,642 | * | |||||||||||
Brian A. Lutes (12) | 125,276 | * | |||||||||||
Current directors and executive officers as a group (14 persons) (13) | 9,977,289 | 49.0 | % | ||||||||||
Dimensional Fund Advisors Inc. (14) | 1,528,375 | 7.9 | % | ||||||||||
Dimensional Fund Advisors LP (14) | 1,421,701 | 7.1 | % | ||||||||||
Needham Investment Management, LLC (15) | 1,075,300 | 5.6 | % | 1,012,800 | 5.1 | % | |||||||
Leviticus Partners, L. P. (16) | 1,785,359 | 9.3 | % | ||||||||||
AMH Equity, LLC (16) | 1,785,359 | 9.3 | % |
* |
(1) |
(2) |
|
holding a |
which Jeffrey T. Gill is trustee, are limited partners holding an aggregate of |
(3) | Includes 27,724 shares issuable under currently exercisable stock |
(4) | Voting and investment power is exercised through the General Partner. See footnotes (2) and (3). |
(5) | In its capacity as General Partner. See footnotes (2) and (3). |
(6) | Includes 11,381 shares issuable under currently exercisable stock options, these stock options will expire if not exercised on or before March 30, 2012, and |
(7) | Includes 5,175 shares issuable under currently exercisable stock |
(8) | Includes 19,434 shares issuable under currently exercisable stock options, these stock options will expire if not exercised on or before March 30, 2012, and |
(9) | Includes 19,896 shares issuable under currently exercisable stock options, these stock options will expire if not exercised on or before March 30, 2012, and |
(10) | Includes |
(11) | Includes |
(12) | Includes 18,000 shares issuable under currently exercisable stock options. Mr. |
(13) | Includes |
(14) | Based on a Schedule 13G filed February |
(15) | Based on |
|
|
SECTION 16(a) BENEFICIAL OWNERSHIP
REPORTING COMPLIANCE
Section 16(a) of the Securities Exchange Act of 1934, as amended, requires our directors, executive officers and persons who beneficially own more than 10% of Sypris Common Stock to file reports of holdings and transactions in Sypris stock with the Securities and Exchange Commission. Except as noted below, basedBased on our information, we believe that all Section 16(a) Securities and Exchange Commission filing requirements applicable to our directors, officers and other beneficial owners for 20082011 were timely met.
Mr. Robert E. Gill, Mrs. Virginia G. Gill, Mr. Jeffrey T. Gill, and Mr. R. Scott Gill each inadvertently filed one late Form 4 filing related to the transfer of limited partnership interests on May 13, 2008 due to an administrative error. These reports were subsequently filed by each individual on May 23, 2008.
There were inadvertent late filings on behalf of Mr. M. Glen French, Jr. with respect to a Form 3 and two Form 4 filings reporting three transactions that were not reported on a timely basis all due to an administrative error. Mr. French subsequently filed the required reports on April 29, 2008.
Executive officers of the Company are appointed by the Board of Directors and serve at the discretion of the Board of Directors. Set forth below are the ages, positions and certain other information regarding the executive officers of the Company.
Robert E. Gill Age | Robert E. Gill has served as Chairman of the Board of Sypris and its predecessor since 1983, and as President and Chief Executive Officer of its predecessor from 1983 to 1992. Prior to 1983, Mr. Gill served in a number of senior executive positions, including Chairman, President and Chief Executive Officer of Armor Elevator Company, Vice President of A. O. Smith Corporation and President and Chief Executive Officer of Elevator Electric Company. Mr. Gill holds a BS degree in Electrical Engineering from the University of Washington and an MBA from the University of California at Berkeley. | |
Jeffrey T. Gill Age | Jeffrey T. Gill has served as President and Chief Executive Officer of Sypris and its predecessor since 1992, and as Executive Vice President of its predecessor from 1983 to 1992. Mr. Gill holds a BS degree in Business Administration from the University of Southern California and an MBA from Dartmouth College. | |
Age | United Kingdom. Mr. | |
|
John J. Walsh Age | John J. Walsh has served as Vice President of Sypris since July 2008, and as President of its subsidiary, Sypris Electronics, since March |
Age | Brian A. Lutes has served as Vice President and Chief Financial Officer of Sypris since September 2008. From 2007 to 2008, Mr. Lutes served as Chief Financial Officer and Vice Chairman of Finance and Administration for MAG Industrial Automation Systems, a leading manufacturer of machine tools and systems serving the aerospace, automotive, construction, power generation and other durable goods industries. He served as Chief Financial Officer and Vice President of Finance and Administration for The Wornick Company, a provider of shelf-stable, ready-to-eat meals to military and consumer branded food companies, from 2005 to 2007 and as Senior Vice President for Fifth Third Bancorp from 2002 to 2004. Prior to 2002, Mr. Lutes served with the General Electric Company for seventeen years in a number of increasingly responsible executive positions within GE and GE Capital culminating with his assignment as Chief Financial Officer of Global Operations for GE Medical Systems. Mr. Lutes holds Bachelor and Masters degrees in Mechanical Engineering from the University of Louisville’s | |
Richard L. Davis Age | Richard L. Davis has served as Senior Vice President of Sypris since 1997, as Secretary from 1998 to 2003 and as Vice President and Chief Financial Officer of its predecessor from 1985 to 1997. Prior to 1985, Mr. Davis served in a number of management positions with Armor Elevator and Coopers and Lybrand. Mr. Davis holds a BS degree in Business Administration from Indiana University and an MBA from the University of Louisville. He is a certified public accountant in the state of Kentucky. | |
John R. McGeeney Age | John R. McGeeney has served as Vice President, General Counsel and Secretary of Sypris since August 2011 and as General Counsel and Secretary of Sypris from June |
Anthony C. Allen Age | Anthony C. Allen has served as Vice President, Treasurer and Assistant Secretary of Sypris since December 2004 and as Vice President of Finance and Information Systems and Assistant Secretary of Sypris from 2003 to December 2004. Mr. Allen served as Vice President, Controller and Assistant Secretary of Sypris from 1997 to 2003. He served as Vice President of Finance of Sypris’ predecessor from 1994 to 1998 and as Vice President and Controller from 1987 to 1994. Prior to 1987, Mr. Allen served in a variety of management positions with Armor Elevator. Mr. Allen holds a Bachelors degree in Business Administration from Eastern Kentucky University and an MBA from Bellarmine University. He is a certified public accountant in the state of Kentucky. |
The following table sets forth information concerning the compensation of the Company’s President and Chief Executive Officer, and the two other most highly compensated executive officers who served in such capacities as of December 31, 20082011 (the “named executive officers”), for services rendered to the Company during the past fiscal year.
“Total” compensation, as reported in column (j) of the Summary Compensation Table, reflects the dollar amount of equity awards granted to named executive officers in 2008 as recognized for financial statement reporting purposes. This includes annual amortizations in 2008 of various equity grants made in 2008 as well as in prior years. “Total” compensation does not include amortizations for certain awards of performance based restricted stock which are not yet reportable under Statement of Financial Accounting Standards (“SFAS”) No. 123(R), including 100% of the restricted stock awards to Mr. Gill.
Name and Principal Position | Year | Salary ($) | Bonus ($) | Stock Awards ($) | Option Awards ($) | Non-Equity Incentive Plan Compensation | All Other ($) | Total ($) | ||||||||||||||||
(a) | (b) | (c) | (d)(1) | (e)(2) | (f)(3) | (g)(4) | (i)(5) | (j) | ||||||||||||||||
J. T. Gill, President and | 2007 | 550,000 | 75,000 | — | 19,975 | — | 44,731 | 689,706 | ||||||||||||||||
Chief Executive Officer | 2008 | 586,538 | — | — | 20,035 | 150,000 | 48,272 | 804,845 | ||||||||||||||||
R. L. Davis, Senior Vice President | 2007 | 290,962 | — | 69,270 | 37,867 | 30,000 | 31,418 | 459,517 | ||||||||||||||||
2008 | 303,769 | — | 56,609 | 21,419 | 60,000 | 34,892 | 476,689 | |||||||||||||||||
S. L. M. de Carvalho, Vice President (6) | 2008 | 330,962 | — | 49,577 | — | 60,000 | 30,970 | 471,509 |
Name and Principal Position | Year | Salary ($) | Bonus ($) | Stock Awards ($) | Option Awards ($) | All Other ($) | Total ($) | |||||||||||||||||||||
(a) | (b) | (c) | (d)(1) | (e)(2) | (f)(2) | (i)(3) | (j) | |||||||||||||||||||||
J. T. Gill, President and Chief | 2011 | 611,538 | — | — | 538,240 | 60,163 | 1,209,941 | |||||||||||||||||||||
Executive Officer | 2010 | 535,385 | — | — | 243,744 | 56,526 | 835,655 | |||||||||||||||||||||
J. J. Walsh, Vice President | 2011 | 342,236 | 60,000 | 102,750 | — | 35,883 | 540,869 | |||||||||||||||||||||
2010 | 324,063 | 95,000 | 71,250 | — | 37,289 | 527,602 | ||||||||||||||||||||||
B. A. Lutes, Vice President & | 2011 | 316,942 | 40,000 | 102,750 | — | 45,250 | 504,942 | |||||||||||||||||||||
Chief Financial Officer | 2010 | 285,769 | — | 71,250 | — | 95,290 | 452,309 |
(1) | The amounts in column (d) reflect discretionary bonus payments allocated by the Compensation Committee to certain executive officers, including to Mr. |
(2) | The amounts in column (e) and in column (f) reflect |
(3) |
Participant J. T. Gill R. L. Davis New 4 Year Option
Awards Vested Stock Options
Surrendered Grant Date Fair Value of Stock
Awards and Option Awards 18,828 41,685 $ 22,997 12,304 27,240 $ 15,028
The amounts in column (i) include the aggregate dollar amounts of all perquisites and other compensation offered by the Company which included auto leases or auto allowances for personal and business use, relocation expenses (for Mr. Lutes), Company 401(k) matching contributions, |
All employees in the United States not covered by a collective bargaining agreement are automatically enrolled in the Company’s 401(k) retirement savings plan (“401(k) Plan”), a tax-qualified plan, at a pre-tax contribution rate of 3%. Employees may opt out of the plan or may elect to change their contribution in increments of 1% of pre-tax salary. Historically, the Company has contributed a matching amount of 100% of the participating employeesemployees’ first 3% of eligible salary. Beginning inIn April of 2009, the Company intends to suspendsuspended the matching contribution pending further review byat the Compensation CommitteeBoard’s discretion. In October of 2010 and in August of 2011, the Board.Company reinstated incremental matching contributions of 1%, respectively, at the Board’s discretion. Company contributions vest at the rate of 20% per year with 100% vesting attained at 5 years of service. In December of 2011 the Board approved an amendment to the Company’s 401(k) Plan pursuant to which, effective on January 1, 2012, the Company will contribute a matching amount of 50% of each participating employee’s first 6% of eligible salary.
Stock options and restricted stock awards granted in 2011 and 2010 were awarded under the 2010 Sypris Omnibus Plan and the 2004 Sypris Equity Plan (“Plans”), are subject to accelerated vesting upon any change ofin control of the Company, pursuant to the terms of the Plan.Plans. The respective values of the unvested stock options and the unvested shares of restricted stock which would have become vested for the named executive officers in
the event of a change in control, calculated as of December 31, 2008,30, 2011, would have been as follows: $54,722$1,071,121 for Mr. Gill, $45,368$448,840 for Mr. CarvalhoLutes and $47,652$470,792 for Mr. Davis.Walsh. For stock options, these valuations reflect (i) the number of each such individual’s unvested stock options on December 31, 2011, multiplied by (ii) the amount, if any, by which the Company’s stock price on, December 30, 2011, which was the last trading day of 2011, exceeded the strike price of such options. For restricted stock, these valuations reflect (i) the number of each such individual’s unvested shares of restricted stock on December 31, 2008,2011, multiplied by (ii) the Company’s stock price on December 31, 2008. None30, 2011.
In March of the named executive officers above had stock options with a strike price which exceeded the Company’s stock price on the last trading day of 2008.
Effective as of March 9, 2009 for the pay period ending March 20, 2009, the Company has reduced Mr. Gill’s salary by 20%, and the salaries of thecertain other executive officers, including Mr. Davis and Mr. de Carvalho,Lutes, by 15%. In July of 2010, the Company reinstated the salary for Mr. Gill and certain other executive officers back to the 2008 levels, including Mr. Lutes. Effective as of March 9, 2009,2, 2011, the Company’s executive officers and certain other key employees, including Mr. DavisLutes and Mr. Carvalho, haveWalsh, entered into one-year employment agreements with the Company. IfCompany which expired on March 2, 2012. Under those contracts, if terminated without Causecause then (i) these employees would continuehave continued to receive their current salary for a period of 12 months following the date of termination, provided that if they becomebecame employed by another entity during such time, these employees would have only receivereceived 30% of such salary, and (ii) all of the employee’s outstanding restricted stock and stock options would have become 100% vested and remainremained exercisable until the expiration datedates then in effect for any such stock options. The employment agreements also containcontained confidentiality, non-compete and non-solicitation covenants by the employee during the term of the agreement. Effective May 9, 2009, the Company’s executive officers and certain other key employees, including Mr. Lutes and Mr. Walsh entered into Three-Year Bonus Agreements which upon vesting on May 9, 2012 would require payments to Mr. Lutes and Mr. Walsh of $450,000, respectively. If terminated without cause before May 9, 2012, these employees would be entitled to receive a pro rata portion of the three-year bonus within thirty (30) days of such termination date, and this Agreement will automatically terminate without further notice or obligation by the Company. All or any portion of the three-year bonus award may be paid in Common Stock (valued at its closing price on May 8, 2012, or any earlier termination date), at the sole election of the Board.
On December 20, 2011, the Board of Directors authorized the Company to enter into an Executive Equity Repurchase Agreement (the “Repurchase Agreement”) that certain members of the Company’s management team and directors may elect to join on a voluntary basis, including Mr. Gill, Mr. Lutes and Mr. Walsh. By electing to join the Repurchase Agreement the individuals would be required to offer the Company a first right to purchase shares of Common Stock of the Company beneficially owned by those individuals at then-current market prices, subject to certain exceptions.
There are two circumstances, subject to certain exceptions in each case, in which an individual would be required to offer to sell shares of Common Stock beneficially held by such person to the Company under the Repurchase Agreement. The first is when any individual proposes to transfer more than 1,500 shares of Common Stock to a third party. The second is when an individual separates service from the Company. In that second circumstance, the Company has the right to acquire all of the shares of Common Stock beneficially owned by the departing person. In both circumstances, the price per share, if accepted by the Company, would be based on the average of the closing prices of the Common Stock on NASDAQ for a trailing five trading day period. As of the date of this Proxy Statement Mr. J.T. Gill, Mr. Lutes and Mr. Walsh have elected to participate.
OUTSTANDING EQUITY AWARDS AT FISCAL YEAR END 2008YEAR-END 2011
OPTION AWARDS | STOCK AWARDS | |||||||||||||||||
Name | Number of Securities Underlying Unexercised Options (#) Exercisable | Number of Securities Underlying Unexercised Options (#) Unexercisable | Option Exercise Price ($) | Option Expiration Date | Number of Shares or Units of Stock that Have Not Vested (#) | Market Value of Shares or Units of Stock That Have Not Vested($) | Equity Incentive Plan Awards: Number of Unearned Shares, Units of Other Rights That Have Not Vested(#) | Equity Incentive Plan Awards Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) | Grant Date | |||||||||
(a) | (b) | (c) | (e) | (f) | (g) | (h)(9) | (i) | (j)(8) | (k) | |||||||||
J.T Gill | 20,000(1) | 10.36 | 3/1/2012 | 3/2/2006 | ||||||||||||||
18,828 | 4.31 | 3/30/2012 | 3/31/2008 | |||||||||||||||
13,400(9) | 8,147 | 8/1/2005 | ||||||||||||||||
20,000(10) | 12,200 | 3/2/2006 | ||||||||||||||||
56,309(11) | 34,348 | 3/1/2007 | ||||||||||||||||
57,799(11) | 35,257 | 2/26/2008 | ||||||||||||||||
R.L. Davis | 40,000 | 6.25 | 2/26/2009 | 2/27/2001 | ||||||||||||||
8,000 | 2,000(2) | 8.25 | 2/24/2011 | 2/25/2003 | ||||||||||||||
2,600 | 665(2) | 8.25 | 2/24/2011 | 2/25/2003 | ||||||||||||||
38,400 | 9,600(3) | 8.27 | 2/25/2011 | 2/26/2003 | ||||||||||||||
12,500(1) | 10.36 | 3/1/2012 | 3/2/2006 | |||||||||||||||
12,304 | 4.31 | 3/30/2012 | 3/31/2008 | |||||||||||||||
6,000(4) | 3,660 | 8/1/2005 | ||||||||||||||||
9,000(5) | 5,490 | 3/2/2006 | ||||||||||||||||
15,000(6) | 9,150 | 1/12/2007 | ||||||||||||||||
5,936(7) | 3,621 | 3/1/2007 | ||||||||||||||||
17,809(11) | 10,863 | 3/1/2007 | ||||||||||||||||
18,820(11) | 11,151 | 2/26/2008 | ||||||||||||||||
6,093(12) | 3,717 | 2/26/2008 | ||||||||||||||||
S. L. M. de Carvalho | 20,000(13) | 12,200 | 6/25/2007 | |||||||||||||||
30,000(14) | 18,300 | 6/25/2007 | ||||||||||||||||
18,280(11) | 11,151 | 2/26/2008 | ||||||||||||||||
6,093(12) | 3,717 | 2/26/2008 |
OPTION AWARDS | STOCK AWARDS | |||||||||||||||||||||||||||
Name | Grant Date | Number of Securities Underlying Unexercised Options (#) Exercisable | Number of Securities Underlying Unexercised Options(#) Unexercisable | Option Exercise Price ($) | Option Expiration Date | Number That Have | Market Value of Shares or Units of Stock That Have Not Vested ($) | |||||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h)(7) | |||||||||||||||||||||
J. T. Gill | 3/2/2006 | 20,000 | 10.36 | 3/1/2012 | ||||||||||||||||||||||||
3/31/2008 | 18,828 | 4.31 | 3/30/2012 | |||||||||||||||||||||||||
2/25/2009 | 300,000(1) | 0.82 | 2/25/2014 | |||||||||||||||||||||||||
3/2/2010 | 131,889(1) | 2.85 | 3/2/2015 | |||||||||||||||||||||||||
4/1/2011 | 200,000(1) | 4.11 | 4/1/2016 | |||||||||||||||||||||||||
J. J. Walsh | 3/31/2008 | 18,000 | 42,000(2) | 4.13 | 3/31/2014 | |||||||||||||||||||||||
3/31/2008 | 20,100(4) | 78,792 | ||||||||||||||||||||||||||
2/25/2009 | 50,000(5) | 196,000 | ||||||||||||||||||||||||||
3/2/2010 | 25,000(5) | 98,000 | ||||||||||||||||||||||||||
4/1/2012 | 25,000(5) | 98,000 | ||||||||||||||||||||||||||
B. A. Lutes | 9/15/2008 | 18,000 | 42,000(3) | 2.10 | 9/15/2015 | |||||||||||||||||||||||
9/15/2008 | 20,000(6) | 78,400 | ||||||||||||||||||||||||||
2/25/2009 | 25,000(5) | 98,000 | ||||||||||||||||||||||||||
3/2/2010 | 25,000(5) | 98,000 | ||||||||||||||||||||||||||
4/1/2011 | 25,000(5) | 98,000 |
(1) | Stock option awards which vest 100% on the third anniversary of the grant date, with a five-year option term. |
(2) | Stock option awards which vest 30%, 30% and 40% on |
(3) | Stock option awards which vest |
(4) | Restricted stock awards which vest in one-third |
(5) | Restricted stock |
(6) | Restricted stock awards which vest |
Name | Fees Earned or Paid in Cash ($) | Stock Awards ($) | All Other Compensation ($) | Total ($) | ||||||||||||
(a)(1) | (b) | (c)(3) | (g)(2) | (h) | ||||||||||||
J. F. Brinkley | 45,875 | 20,384 | 5,000 | 71,259 | ||||||||||||
W. G. Ferko | 45,875 | 20,384 | 5,000 | 71,259 | ||||||||||||
R. E. Gill(4) | — | — | 345,821 | 345,821 | ||||||||||||
R. S. Gill | 32,125 | 20,384 | 5,000 | 57,509 | ||||||||||||
W. L. Healey | 42,875 | 20,384 | 5,000 | 68,259 | ||||||||||||
S. R. Petersen | 38,375 | 20,384 | 5,000 | 63,759 | ||||||||||||
R. Sroka | 44,625 | 20,384 | 5,000 | 70,009 |
(1) | The directors listed in column (a) had the following aggregate amounts of option awards outstanding at fiscal year end (Mr. Brinkley, 11,381; Mr. Ferko, 5,175; Mr. R. Scott Gill, 27,724; Mr. Healey, 19,434; Mr. Petersen, 19,896; and |
Name | Fees Earned or Paid in Cash ($) | Stock Awards ($)(4) | All Other Compensation | Total ($) | ||||||||
(a)(2) | (b) | (d) | (g)(1) | (h) | ||||||||
J. F. Brinkley | 65,550 | 11,425 | — | 76,975 | ||||||||
W. G. Ferko | 31,900 | 47,825 | — | 79,725 | ||||||||
R. E. Gill | — | — | 327,420 | 327,420 | ||||||||
R. S. Gill | 68,850 | — | — | 68,850 | ||||||||
W. L. Healey | 30,802 | 46,173 | — | 76,975 | ||||||||
S. R. Petersen | 33,595 | 50,380 | — | 83,975 | ||||||||
R. Sroka | 85,100 | — | — | 85,100 |
The amount provided in column (g) represents the annual salary |
Participant J. F. Brinkley W. G. Ferko R. E. Gill R. S. Gill W. L. Healey S. R. Petersen R. Sroka 4 Year Option
Awards Vested Stock Options
Surrendered Grant Date Fair Value
of Stock Awards and
Option Awards 11,381 17,743 $ 13,901 5,175 4,478 $ 6,321 — — — 27,724 58,636 $ 33,862 19,434 40,282 $ 23,737 19,896 35,116 $ 24,301 6,387 10,493 $ 7,801
(3) | The amounts in column |
(4) | Mr. R. E. Gill does not receive separate compensation for his services as a director in addition to his total compensation for services as an executive officer. Mr. R. E. Gill is also the father of the Company’s President and Chief Executive Officer, Jeffery T. Gill and R. Scott Gill. |
In 2008,2011, non-employee directors (John F.(Mr. Brinkley, William G.Mr. Ferko, Mr. R. Scott Gill, William L.Mr. Healey, Sidney R.Mr. Petersen and RobertMr. Sroka) each received an annual retainer. Beginning in April 2008, the average annual retainer for each non-employee director was adjusted to account for additional time requirements for members of the Compensation Committee and rangedranging from approximately $70,000$33,000 to $86,000,$46,000, payable after each quarter, in equal installments in cash or a combination of 40% cash and 60% stock, at each director’s election. In 2008, Messrs. Brinkley, R.S. Gill and Sroka elected to receive 100% of their compensation in the form of cash, while Messrs. Ferko, Healey and Petersen elected to receive 40% in cash and 60% in common stock (valued at the latest closing price available at the time of the award.) For the fourth quarter of 2008, the Directors Compensation Program was amended to discontinue the equity election. In 2009, theinstallments. Additionally, non-employee directors will receive a base amount ofreceived 5,200 shares of common stock, in lieubringing the value of total compensation excluding perquisites, to a portionrange of their overall cash compensation, with the remaining portionapproximately $53,000 to be paid in cash.$66,000.
All directors are reimbursed for travel and related expenses for attending Board and Committee meetings. In 2008,2011, the Company held 4three meetings which required board members to travel. We also provide non-employee directors with travel accident insurance when on Company business. Directors who are employees of Sypris or its affiliates are not eligible to receive compensation for services as a director. As of the date of this Proxy Statement all of the directors other than R.S. Gill have elected to participate in the Repurchase Agreement.
AVAILABILITY OF REPORT ON FORM 10-K
A stockholders’ letter and a copy of our Annual Report on Form 10-K, which together constitute our Annual Report to Stockholders, has been mailed concurrently with this Proxy Statement to stockholders entitled to notice of and to vote at the Annual Meeting. Such Annual Report is not incorporated into this Proxy Statement and shall not be considered proxy solicitation material. Stockholders may also request a copy of the Company’s Report on Form 10-K which may be obtained without charge by writing to John R. McGeeney, Secretary, Sypris Solutions, Inc., 101 Bullitt Lane, Suite 450, Louisville, Kentucky 40222.
The Board of Directors does not intend to bring any other matter before the Annual Meeting and has not been informed that any other matter is to be presented by others. If any other matter properly comes before the Annual Meeting, the proxies will be voted with the discretion of the person or persons voting the proxies.
You are cordially invited to attend the Annual Meeting. Whether or not you plan to attend the Annual Meeting, please vote your shares over the Internet or by telephone, or mark, sign, date and promptly return the proxy card sent to you in the envelope provided. No postage is required for mailing in the United States.
SUBMISSION OF STOCKHOLDER PROPOSALS
Any stockholder who intends to present a proposal at the Annual Meeting in the year 20102013 (the “2013 Annual Meeting”) must deliver the proposal to the Company’s corporate Secretary at 101 Bullitt Lane, Suite 450, Louisville, Kentucky 40222:40222 in compliance with the following deadlines and procedures:
NotFor any proposal that a stockholder wishes to include in our proxy materials for the 2013 Annual Meeting pursuant to Rule 14a-8 under the Securities Act of 1934, the proposal must be submitted no later than December 8, 2009, ifNovember 30, 2012. The proposal also must comply with SEC regulations set forth in Rule 14a-8 regarding the inclusion of stockholder proposals in company-sponsored proxy materials.
For any proposal is submittedthat a stockholder wishes to propose for inclusionconsideration at the 2013 Annual Meeting but does not wish to include in ourthe proxy materials for that meeting pursuant to Rule 14a-8, underour bylaws require a notice of the Securities Actproposal to be delivered not later than 10 days after the public announcement of 1934.the meeting date or, if earlier, the date on which notice of the meeting was mailed. The notice of the proposal also must comply with the content requirements for such notices set forth in our bylaws.
StockholderTo the extent any proposals received after February 22, 2010, will be considered untimely, andare presented for consideration at the 2013 Annual Meeting but are not described in our proxy materials for that meeting, the proxies solicited by Sypris for next year’s annual meetingthe 2013 Annual Meeting may confer discretionary authority to the persons named as proxy holders to vote on any such matters without a description of them in the proxy statement for that annual meeting.proposals.
John R. McGeeney
Vice Presient, General Counsel and Secretary
April 7, 2009March 30, 2012
Sypris Solutions, Inc.
Audit and Finance Committee
Charter
The Audit and Finance Committee of the Board of Directors (the “Audit and Finance Committee”) shall be composed of three or more Outside Directors and shall meet the test for Independence, financial literacy and financial expertise requirements of Section 10A of the Securities Exchange Act of 1934, the Nasdaq Stock Market and any other applicable regulatory requirements. The Audit and Finance Committee shall provide assistance to the Board of Directors in fulfilling its responsibility to stockholders, potential stockholders and the investment community with regard to accounting, reporting practices, and the quality and integrity of the Company’s financial statements. The Audit and Finance Committee shall maintain free and open communications between the Board of Directors, the independent auditors, any internal auditors and the executive officers of the Company.
The Audit and Finance Committee shall be responsible for the appointment of independent auditors, discussing the scope of the auditor’s examination, reviewing financial statements and consulting with the independent auditors on the adequacy of internal controls. The ultimate accountability of the independent auditors is to the Audit and Finance Committee and to the Board of Directors as representatives of the Company’s stockholders. The Audit and Finance Committee shall also be responsible for providing oversight with regard to the Company’s debt and credit arrangements, acquisitions, divestitures and proposals for changes in the Company’s capitalization and financing strategies. In fulfilling its duties, the Audit and Finance Committee shall have the authority, to the extent deemed necessary or appropriate, to retain outside legal, accounting or other advisors. The Company shall provide funding, as determined by the Audit and Finance Committee, for compensation payable to the independent auditors for the purpose of rendering or issuing an audit report, and to advisors employed by the Audit and Finance Committee.
The Chairman of the Audit and Finance Committee shall have demonstrated experience in accounting and/or financial management. The Audit and Finance Committee shall meet at least four times during the year for the purposes of performing its duties. The Audit and Finance Committee shall meet in separate executive sessions with management, the internal auditors and the independent auditors as needed. The purpose and duties of the Audit and Finance Committee shall include, but not be limited to, the following:
Electronic Voting Instructions You can vote by Internet or telephone! Available 24 hours a day, 7 days a week! Instead of mailing your proxy, you may choose one of the two voting methods outlined below to vote your proxy. | ||
VALIDATION DETAILS ARE LOCATED BELOW IN THE TITLE BAR. Proxies submitted by the |
The Vice President and Chief Financial Officer will have a dotted line reporting relationship to the Audit and Finance Committee and will be responsible for providing the Audit and Finance Committee with data, analysis, special reports and other forms of assistance as may be requested by the Audit and Finance Committee from time-to-time. The Audit and Finance Committee shall report the results of its deliberations, actions and observations to the Board of Directors of the Company.
While the Audit and Finance Committee has the responsibilities and powers set forth in this Charter, it is not the duty of the Audit and Finance Committee to plan or conduct audits or to determine that the Company’s financial statements are complete and accurate and are in accordance with generally accepted accounting principles. This is the responsibility of management and the independent accountants. Nor is it the duty of the Audit and Finance Committee to conduct investigations, to resolve disagreements, if any, between management and the independent accountants or to assure compliance with laws and regulations and the Company’s corporate policies.
The following individuals currently serve as members of the Audit and Finance Committee of the Company’s Board of Directors:
Sidney R. Petersen, Chairman
William G. Ferko
Robert Sroka
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Vote by Internet Ÿ Go towww.investorvote.com/SYPR Ÿ Or scan the QR code with your smartphone Ÿ Follow the steps outlined on the secure website |
Using a black ink pen, mark your votes with an X as shown in this example. Please | x | Vote by telephone Ÿ Call toll free 1-800-652-VOTE (8683) within the USA, US territories & Canada on a touch tone telephone Ÿ Follow the instructions provided |
q IF YOU HAVE NOT VOTED VIA THE INTERNETOR TELEPHONE, FOLD ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE. q |
A | Election of Directors — | The Board of Directors recommends a voteFOR all the nominees. |
1.Election of Directors: | For | Withhold | + | |||||||||||||||
01 - John F. Brinkley | ¨ | ¨ | ||||||||||||||||
02 - Robert E. Gill |
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03 - William L. Healey |
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Vote 24 hours a day, 7 days a week.
If you vote by telephone or over the Internet, do not mail your proxy card.
Telephone and Internet votes must be received by 6:00 a.m. EDT on May 12, 2009
to be included in the final tabulation.
| Non-Voting Items |
If voting by mail, this proxy card must be signed and dated below.
ò Please fold and detach card at perforation before mailing. ò
Change of Address— Please print your new address below. | Comments— Please print your comments below. | Meeting Attendance | ||||||
Mark the box to the right if you plan to attend the Annual Meeting. | ¨ | |||||||
SYPRIS SOLUTIONS, INC.
Revocable Proxy for Annual Meeting of Stockholders to be held on May 12, 2009
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS OF SYPRIS SOLUTIONS, INC.
The undersigned appoints Robert E. Gill and Jeffrey T. Gill, and each of them, as proxies for the undersigned, with full power of substitution to vote all shares the undersigned is entitled to vote at the Annual Meeting of Stockholders of Sypris Solutions, Inc. (the “Company”) to be held at 101 Bullitt Lane, Lower Level Seminar Room, Louisville, Kentucky on Tuesday, May 12, 2009, at 10:00 a.m. local time, or any adjournment thereof, as follows, hereby revoking any proxy previously given.
Authorized Signatures — This section must be completed for your vote to be counted. — Date and Sign Below |
Please sign exactly as |
PLEASEMARK,SIGN,DATE,ANDRETURNTHISPROXYCARDPROMPTLYUSINGTHEENCLOSEDENVELOPE.
Date (mm/dd/yyyy) — Please print date below. | Signature 1 — Please keep signature within the box. | Signature 2 — Please keep signature within the box. | ||||||
// |
01FUFB
2012 Annual Meeting
2012 Annual Meeting of
Sypris Solutions Stockholders
Tuesday, May 8, 2012, 10:00 a.m., EDT
Lower Level Seminar Room, 101 Bullitt Lane
Louisville, KY 40222
YOUR VOTE IS IMPORTANT
If you do not vote by telephone or Internet, please sign and date this proxy card and return it promptly in the enclosed postage-paid envelope, or otherwise to National City Bank, P.O. Box 535300, Pittsburgh, PA 15253, so your shares will be represented at the Annual Meeting.envelope. If you vote by telephone or Internet, it is not necessary to return this proxy card.
Important Notice Regarding the Availability of Proxy Materials for
the Annual Meeting to be Held on May 12, 2009:8, 2012:
The notice of annual meeting of stockholders, proxy statement, proxy card and
annual report to stockholders are available atwww.sypris.com/proxymaterials.
ò Please fold and detach card at perforation before mailing. ò
q IF YOU HAVE NOT VOTED VIA THE INTERNETOR TELEPHONE, FOLD ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE. q |
SHARES REPRESENTED BY THIS PROXY WILL BE VOTED AS DIRECTED BY THE STOCKHOLDER. IF NO DIRECTION IS SUPPLIED, THE PROXY WILL BE VOTED “FOR” ALL THE NOMINEES LISTED IN ITEM 1.
The Board of Directors recommends a vote “FOR” all of the nominees.
Nominees: (1) John F. Brinkley (2) Robert E. Gill (3) William L. Healey
q FOR ALL q WITHHOLD ALL q FOR ALL EXCEPT
(Instructions: To withhold authority to vote for any individual nominee, write that nominee’s name in the space provided below.)
q Please mark this box if you plan to attend the Annual Meeting.Proxy — Sypris Solutions, Inc.
Notice of 2012 Annual Meeting of Stockholders
Lower Level Seminar Room, 101 Bullitt Lane, Louisville, KY 40222
Proxy Solicited by Board of Directors for Annual Meeting — May 8, 2012
The undersigned appoints Robert E. Gill and Jeffery T. Gill, and each of them, as Proxies for the undersigned, or any of them, each with the power of substitution. The Proxies are hereby authorized to represent and vote the shares of the undersigned, with all the powers which the undersigned would possess if personally present, at the Annual Meeting of Stockholders of Sypris Solutions to be held on May 8, 2012 or at any postponement or adjournment thereof.
Shares represented by this proxy will be voted by the Proxies as directed. If no directions are indicated, the Proxies will have authority to vote FOR John F. Brinkley, Robert E. Gill and William L. Healey.
In their discretion, the Proxies are authorized to vote upon such other business as may properly come before the meeting.
(CONTINUED ON REVERSE SIDE)Items to be voted appear on reverse side.)