SECURITIES AND EXCHANGE COMMISSION
the Securities
Aerojet Rocketdyne Holdings, Inc. | ||
(Name of Person(s) Filing Proxy Statement, | ||
GenCorp Inc.
(Name of Registrant as Specified in Its Charter)
(Name of Persons(s) Filing Proxy Statement, if Other Than the Registrant)
1) Title of each class of securities to which transaction applies: | ||||
2) Aggregate number of securities to which transaction applies: | ||||
3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined): | ||||
4) Proposed maximum aggregate value of transaction: | ||||
5) Total fee paid: | ||||
o Fee paid previously with preliminary | ||||
o Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the | ||||
1) Amount Previously Paid: | ||||
2) Form, Schedule or Registration Statement No.: | ||||
3) Filing Party: | ||||
4) Date Filed: |
| ||||
| ||||
| ||||
|
2001 Aerojet Road Rancho Cordova, CA 95742 or mail to: P.O. Box 537012 Sacramento, CA 95853-7012 |
February 7, 2014
Stockholder:
2001 Aerojet Road Rancho Cordova, CA 95742 or mail to: P.O. Box 537012 Sacramento, CA 95853-7012 |
|
| |
|
| |
| 1. To elect eight directors to our Board of Directors to serve until the | |
2. | ||
| ||
| ||
3. To ratify the appointment of PricewaterhouseCoopers LLP, an independent registered public accounting firm, as independent auditors of the Company for the fiscal year ending | ||
| ||
RECORD DATE: | You are entitled to vote at the | |
VIRTUAL ANNUAL MEETING ADMISSION: |
| |
PROXY VOTING: | It is important that your shares be represented and voted at the meeting. You may vote your shares by voting | |
INSPECTION OF LIST OF
STOCKHOLDERS OF RECORD: | A list of the |
By Order of the Board of Directors,
/s/ KATHLEEN E. REDD
Vice President,
Chief Financial Officer and Assistant Secretary
By Order of the Board of Directors, /s/ Kathleen E. Redd KATHLEEN E. REDD Vice President, Chief Financial Officer and Assistant Secretary |
Page | ||
2001 Aerojet Road Rancho Cordova, CA 95742 or mail to: P.O. Box 537012 Sacramento, CA 95853-7012 |
STOCKHOLDERS
April 27, 2016
Pacific Time. Our 2016 Annual Meeting will be a completely virtual meeting of stockholders, which will be conducted via a live webcast. You can attend the Annual Meeting online, vote your shares electronically and submit questions during the meeting by visiting ajrd.onlineshareholdermeeting.com.
To elect eight directors to our Board of Directors (the Board’s nominees are: Thomas A. Corcoran; Eileen P. Drake; James R. Henderson; Warren G. Lichtenstein; David A. Lorber;Lance W. Lord; Merrill A. McPeak; James H. Perry; Scott J. Seymour; and Martin Turchin) to serve until the 20152017 annual meeting of shareholdersstockholders and until their respective successors have been duly elected and qualified (“Proposal 1”);
To consider and approve the Company’s reincorporation from the State of Ohio to the State of Delaware (“Proposal 2”);
To consider and approve an advisory resolution to approve executive compensation (“Proposal 3”2”);
To ratify the appointment of PricewaterhouseCoopers LLP (“PwC”), an independent registered public accounting firm, as independent auditors of the Company for the fiscal year ending November 30, 2014December 31, 2016 (“Proposal 4”3”); and
Any other matter that may properly be brought before the Annual Meeting.
Shareholders
It is important that your shares are represented at
possible by one of the following methods to make sure your shares are represented if you later decide not to participate in the virtual Annual Meeting online.
2
telephone or the Internet. If you provide voting instructions by mail, telephone, or the Internet, the Trustee will vote your shares as you have directed (or not vote your shares, if that is your direction). If you do not provide voting instructions, the Trustee will vote your
In person at
Meeting:
You may voterecord.
Telephone:
You may vote by calling the toll-free telephone number indicated on your proxy card. Easy-to-follow voice prompts allow you to vote your shares and confirm that your voting instructions have been properly recorded.before the meeting date:
You may vote by going to the InternetMail:
You may vote by completing, signing, dating and returning a proxy card which will be mailed to you if you request delivery of a full set of proxy materials. A postage-paid envelope will be provided along with the proxy card.3
Meeting. Shareholdersajrd.onlineshareholdermeeting.com. Stockholders of record will be verified against an official list available electronically at the Annual Meeting. The Company reserves the right to deny admittance to anyone who cannot adequately show proof of share ownership as of the Record Date.
Returning a later-dated, signed proxy card;
Sending written notice of revocation to the Company, c/o the Secretary;
Submitting a new, proper proxy by telephone, Internet or paper ballot, after the date of the earlier voted proxy; or
Attending the Annual Meeting via the Internet at ajrd.onlineshareholdermeeting.com and voting in person.
4
Proposalsand 3 and 4 will require the affirmative vote of the holders of at least a majority of all of the votes cast. Abstentionsshares present in person or represented by proxy and broker non-votes will have the effect of negative votes with respectentitled to Proposal 2. Abstentions and brokervote. Broker non-votes will have no effect on the outcome of the vote on Proposals 32 and 4.
3. Abstentions will have the same effect as a vote against Proposals 2 and 3.
WHY IS GENCORP PROPOSING TO REINCORPORATE IN DELAWARE?
We believe that reincorporation from the State of Ohio to the State of Delaware (the “Reincorporation”) will give us more flexibility, clarity and predictability with respect to our corporate, legal and governance affairs and that the Company and its shareholders would benefit from such advantages. The Delaware General Corporation Law of the State of Delaware (“DGCL”) is frequently revised and updated to accommodate changing legal and business needs and is more comprehensive, widely used and interpreted than other state corporate laws, including the Ohio General Corporation Law (“OGCL”).
In addition, Delaware courts (such as the Court of Chancery and the Delaware Supreme Court) are highly regarded for their considerable expertise in dealing with corporate legal issues and for producing a substantial body of case law construing the DGCL, which provides businesses with a greater degree of predictability than most, if not all, other jurisdictions provide. Because the judicial system is based largely on legal precedents, the abundance of Delaware case law should serve to facilitate corporate governance by our officers and directors by allowing the Board and management to make corporate decisions and take corporate actions with greater assurance as to the validity and consequences of those decisions and actions.
The Reincorporation also may enable the Company to attract and retain more easily qualified candidates willing to serve on the Board and in management because many such candidates are already familiar with Delaware corporate law, including provisions relating to director and officer indemnification, from their past business experience. In addition, Delaware law provides more predictability than Ohio law with respect to the liability of directors and officers, including what constitutes an actionable breach of fiduciary duties.
As the Company plans for the future, we believe that it is essential to be able to draw upon well-established principles of corporate governance in making legal and business decisions. The prominence and predictability of Delaware corporate law provide a reliable foundation on which the Company’s governance decisions can be based.
5
HOW WILL THE REINCORPORATION BE ACCOMPLISHED, AND WHAT WILL THE EFFECTS BE ON THE COMPANY?
We are incorporated in Ohio and, as such, our corporation is currently governed by Ohio law. As a result of the Reincorporation, we will be incorporated in Delaware and our corporation will be governed by Delaware law. The Reincorporation will be effected by a plan of conversion, which will provide that we will: (1) file with the Secretary of State of the State of Ohio a certificate of conversion, and (2) file with the Secretary of State of the State of Delaware (i) a certificate of conversion and (ii) a certificate of incorporation. The plan of conversion, the Ohio certificate of conversion, the Delaware certificate of conversion and the Delaware certificate of incorporation will be substantially in the forms appended to this Proxy Statement as Appendix A, Appendix B, Appendix C and Exhibit A to Appendix A, respectively.
In the Reincorporation, each outstanding share of our Common Stock will automatically be converted into one share of common stock of GenCorp Inc., a Delaware corporation into which we will be deemed converted upon the completion of the Reincorporation (“GenCorp (Delaware)”). Outstanding options to purchase shares of our Common Stock and other equity awards relating to our Common Stock likewise will become options to purchase the same number of shares of common stock or equity awards, as applicable, of GenCorp (Delaware), with no change in the exercise price or other terms or provisions of the options or equity awards. Your proportional percentage ownership of the Company will remain unchanged and will not be affected in any way by Reincorporation.
Our business, directors, officers, employees, assets and liabilities and the location of our offices will remain unchanged by the Reincorporation. Following the Reincorporation, our name will continue to be “GenCorp Inc.” and our shares of Common Stock will continue to be listed on the New York Stock Exchange under the symbol “GY.”
WHO MUST APPROVE THE DELAWARE REINCORPORATION?
The affirmative vote of the holders of at least two-thirds of our outstanding Common Stock is required to approve the Reincorporation in Delaware.
HOW WILL THE REINCORPORATION AFFECT MY RIGHTS AS A SHAREHOLDER?
Your rights as a shareholder currently are governed by Ohio law and the provisions of our Articles of Incorporation, as amended, and our Amended Code of Regulations (the “Code of Regulations”). As a result of the Reincorporation, you will become a shareholder of GenCorp (Delaware) with rights governed by Delaware law and the provisions of the certificate of incorporation and the bylaws of GenCorp (Delaware), which differ in certain respects from your current rights. These important differences are discussed and summarized in this Proxy Statement under “Proposal 2 — Approval of the Reincorporation of the Company from the State of Ohio to the State of Delaware — Rights of our Shareholders Prior to and After the Reincorporation from Ohio to Delaware.” Forms of GenCorp (Delaware)’s certificate of incorporation and bylaws are appended to this Proxy Statement as Exhibits A and B to Appendix A.
WILL GENCORP (DELAWARE) HAVE NEW “ANTI-TAKEOVER” PROTECTION?
Generally, no. The Reincorporation is not being proposed for anti-takeover reasons. In fact, the statutory anti-takeover provisions available to Delaware companies are generally believed to be less extensive than those available to Ohio companies. For a discussion of possible anti-takeover effects of the Reincorporation, see “Proposal 2 — Approval of the Reincorporation of the Company from the State of Ohio to the State of Delaware — Possible Anti-Takeover Effect of Provisions.”
6
WHO WILL MANAGE GENCORP (DELAWARE)?
The current directors and officers of the Company will become the directors and officers of GenCorp (Delaware).
SHOULD I SEND IN MY STOCK CERTIFICATES?
No. Please do not send us your stock certificates. Following the Reincorporation, stock certificates previously representing our common stock may be delivered in effecting sales (through a broker or otherwise) of shares of GenCorp (Delaware) common stock. It will not be necessary for you to exchange your existing stock certificates for stock certificates of GenCorp (Delaware), and if you do so, it will be at your own cost.
WHAT ARE THE TAX CONSEQUENCES OF THE REINCORPORATION TO ME?
The Reincorporation is intended to be a tax-free reorganization under the Internal Revenue Code of 1986, as amended (the “Code”). Assuming the Reincorporation qualifies as a reorganization, no gain or loss will be recognized to the holders of our capital stock as a result of consummation of the Reincorporation, and no gain or loss will be recognized by us. Generally, you will have the same basis in and holding period with respect to the GenCorp (Delaware) common stock received by you pursuant to the Reincorporation as you have in the shares of our Common Stock held by you as of immediately prior to the time the Reincorporation is consummated. See also “Proposal 2 — Approval of the Reincorporation of the Company from the State of Ohio to the State of Delaware — Certain Federal Income Tax Consequences.”
95853-7012.
others for their reasonable expenses in forwarding solicitation material to the beneficial owners of the stock.
WHO SHOULD I CALL IF I HAVE ANY QUESTIONS?
If you have any questions, or need assistance voting, please contact the Company’s proxy solicitor:
Okapi Partners LLC
Shareholders Call Toll Free: (877) 259-6290
Banks and Brokers Call Collect: (212) 297-0720
Shareholders who wish to receive a separate written copy of this Proxy Statement, or the Company’s Annual Report onForm 10-K, now or in the future, should submit their written request to Secretary, GenCorp Inc., 2001 Aerojet Road, Rancho Cordova, California 95742.
7
Business.
14.
2015.
8
director with L-3 Communications Holdings, Inc. (and member of the Audit Committee). Mr. Corcoran was a Director with Force Protection, Inc., REMEC, Inc., United Industrial Corporation, ONPATH Technologies, Inc.
71.
9
58.
DAVID A. LORBER
50.
Mr. Lorber is a Co-Founder and Portfolio Manager for FrontFour Capital Group LLC, a hedge fund since 2007. Mr. Lorber is also a Co-Founder and Principal after 37 years of FrontFour Capital Corp. Previously, Mr. Lorber was a Senior Investment Analyst at Pirate Capital LLC, a hedge fund from 2003 to 2006. Prior to that, Mr. Lorber was an Analyst at Vantis Capital Management LLC, a money management firm and hedge fund from 2001 to 2003 and an Associate at Cushman & Wakefield, Inc. Mr. Lorber also serves as a Director of Ferro Corporation. Mr. Lorbermilitary service. He last served as a DirectorCommander, Air Force Space Command during which he was responsible for the development, acquisition and operation of Fisher Communications Inc.Air Force space and of Huntingdon Capital Corp.missile weapon systems. He led more than 39,700 personnel who provided space and as a Trustee of IAT Air Cargo Facilities Income Fund. Mr. Lorber bringsintercontinental ballistic missile combat capabilities to the Board significant financialNorth American Aerospace Defense Command and investment industry experience and experience as a public company director. Mr. LorberU.S. Strategic Command. Gen. Lord currently serves as Chairman of the Organization & Compensation Committee and as a member of the Audit Committee.Board of the Sletten Construction Company and Marotta Controls Corporation. He is Chairman, Board of Advisors to the National Disaster Radio Authority. Gen. Lord is the CEO and founder of L2 Aerospace, LLC. He is the 2014 recipient of the American Astronautical Society Military Astronautics Award. He is a Senior Associate of the Four Star Group; a member of the Iridium Corporation’s Government Advisory Board; a member of the Board of Advisors for the Challenger Learning Center in Colorado Springs, Colorado; chairman of the Board of Advisors to USO Colorado Springs; a Falcon Foundation Trustee; and President of the Association of Air Force Missileers. Age 35.
69.
General
10
member of the Joint Chiefs of Staff, he and the other service chiefs were military advisors to the Secretary of Defense, the National Security Council and the President of the United States. Following retirement from active service, GeneralGen. McPeak began a second career in business. Since 1995, GeneralGen. McPeak has been President of McPeak and Associates, a management consulting firm that is active as an investor, advisor and director of early development stage companies. A subsidiary, Lost Wingman Press, recently published Hangar Flying; book oneFlying and Below the Zone; the first two books of a planned three-volume memoir. GeneralGen. McPeak has long service as a director of public companies, including Tektronix, Inc. and Trans World Airlines, Inc. He was for several years Chairman of ECC International Corp. His current public company directorships include Lilis Energy, Inc. (since January 29, 2015); Lion Biotechnologies, Inc. (Lead Outside Director and member of the Audit Committee) (f/k/a Genesis Biopharma) (since 2011, and for which he was acting CEO from January to July 2013) focused on immunology for treatment of Stage IV metastatic melanoma,melanoma; Research Solutions, Inc. (and member of the Audit Committee) (f/k/a Derycz Scientific) (since 2010), publishing and distributing scientific journal articles, Miller Energy Resources (since 2010), engaged in oil and gas exploration and production,articles; and DGT Holdings Corp. (since 2005) (and member of the Audit Committee), a real estate business. He previously served as a director of Miller Energy Resources (Lead Outside Director 2010—2014); Mosquito Consolidated Gold (Chairman, 2011-2012),2011—2012); Point Blank Solutions, Inc. (2008-2011),(2008—2011); MathStar, Inc. (2005-2010),(2005—2010); QPC Lasers (Vice Chairman, 2006-2009),2006—2009); and Gigabeam Corp. (2004-2009)(2004—2009). From 2003 to 2012, GeneralGen. McPeak was Chairman of Ethicspoint, Inc., a Portland, Oregon-based startup that became a leading provider of risk management and compliance software-as-a-service. In February 2012, Ethicspoint was bought by a private equity firm, merged with other companies and rebranded as NAVEX Global. GeneralGen. McPeak remainsremained a board member of NAVEX Global. He also currently servesGlobal, which was sold again in 2014 for a price that established it as the most successful business startup in recent Oregon history. From 2012 to 2014, he was Chairman of Coast Plating, Inc., a Los Angeles-based, privately held provider of metal processing and finishing services, primarily to the aerospace industry. GeneralCoast Plating was acquired by Private Equity, renamed Valence Surface Technologies, and is now the largest privately held firm of its kind in the country. Gen. McPeak remains a Director. Gen. McPeak received a Bachelor of Arts degree in economics from San Diego State College and a Master of Science degree in international relations from George Washington University. In 1992, San Diego State University honored GeneralGen. McPeak with its first ever Lifetime Achievement Award. In 1995, George Washington University gave him its Distinguished Alumni Award, the “George.” He was among the initial seven inductees to the Oregon Aviation Hall of Honor. He is a member of the Council on Foreign Relations, New York City. In 2008 and 2009, GeneralGen. McPeak was a national co-chairman of Obama for President. In 2011, he became Chairman of the American Battle Monuments Commission, the federal agency that oversees care and maintenance of 24 cemeteries abroad that constitute the final resting place for almost 125,000 American war dead. GeneralGen. McPeak will bringbrings to the Board extensive experience in management consulting and a successful military career, including his position as Chief of Staff of the U.S. Air Force and a member of the Joint Chiefs of Staff. GeneralGen. McPeak currently serves as a member of the Organization & Compensation Committee and as a member of the Corporate Governance & Nominating Committee. Age 77.
79.
11
SCOTT J. SEYMOUR
Director since 2010
Mr. Seymour has served as President and CEO of the Company since January 2010. He served as President of Aerojet Rocketdyne, Inc. (“Aerojet Rocketdyne,” f/k/a Aerojet-General Corporation) from January 2010 until August 2012. Prior to that, Mr. Seymour had served as a consultant to Northrop Grumman Corporation, a global defense and technology company (“Northrop”), since March 2008. Mr. Seymour joined Northrop in 1983. Prior to becoming a consultant in March 2008, Mr. Seymour most recently served as Corporate Vice President and President of Integrated Systems Sector of Northrop from 2002 until March 2008. Mr. Seymour also served as Vice President, Air Combat Systems, Vice President and B-2 Program Manager and Vice President, Palmdale Operations, of Northrop, from 1998 to 2001, 1996 to 1998 and 1993 to 1996, respectively. Prior to joining Northrop, Mr. Seymour was involved in the manufacture and flight-testing of F-14A, EF-111A and F/A-18A aircraft for each of Grumman Aerospace Corporation and McDonnell Aircraft Company. Mr. Seymour is a member of the National Museum United States Air Force Board of Managers and the Board of the Air Warrior Courage Foundation. He is also a member of the Florida Institute of Technology Board of Trustees and a director of the Astronauts Memorial Foundation. Mr. Seymour serves as a Manager of the Board of Managers of Easton Development Company, LLC, a subsidiary of GenCorp. Mr. Seymour’s extensive experience as a senior executive provides the Board with significant operational expertise and an in-depth knowledge of the aerospace and defense industry. Age 63.
54.
74.
12
to the Board, the Corporate Governance & Nominating Committee will consider all factors deemed relevant by its members. These factors may include the underlying reasons why shareholdersstockholders “withheld” votes for election from such Director (if ascertainable), the length of service and qualifications of the Director whose resignation has been tendered, the Director’s contributions to the Company, whether by accepting such resignation the Company will no longer be in compliance with any applicable law, rule, regulation or governing document, and whether or not accepting the resignation is in the best interests of the Company and our shareholders.stockholders. Within 90 days thereafter, the Board, taking into account the recommendation of the Corporate Governance & Nominating Committee and such additional information and factors that the Board believes to be relevant, must determine whether to accept or reject the resignation. The Director that tendered the resignation shall not participate in the consideration or determination of whether to accept such resignation. The Board shall disclose by press release its decision to accept or reject the resignation and, if applicable, the reasons for rejecting the resignation. If a majority of the Corporate Governance & Nominating Committee members receive a Majority Withheld Vote at the same election, then the independent Directors who did not receive a Majority Withheld Vote will appoint a committee of independent Directors to consider the resignation offers and recommend to the Board whether to accept or reject them.
On January 30, 2013, the Board approved the elimination of the
13
to choose whether to elect a non-executive Chairman, who would not be an officer of the Company, or have one person serve in both capacities. Since March 2007, the Board has appointed a non-executive to serve as Chairman of the Board.
preparing the agenda for Board meetings in consultation with the CEO;
presiding over all meetings of the shareholdersstockholders and Board, including all executive sessions of the independent Directors;
serving as liaison between the CEO and the Board;
collaborating with senior management to provide timely information to the Board; and
collaborating with the Organization & Compensation Committee to review the performance of the CEO.
14
conduct and a commitment to compliance with the law. Each of these committees is required to regularly report on its actions and to make recommendations to the Board, including recommendations to assist the Board with its overall risk oversight function. The Board retains oversight responsibility for all subject matters not specifically assigned to a committee, including risks presented by the Company’s business strategy, competition, regulation, general industry trends, and capital structure.
the director has received, or has an immediate family member who has received, during any twelve-month period within the last three years, more than $120,000 in direct compensation from the listed Company, other than director and committee fees and pension or other forms of deferred compensation for prior service (provided such compensation is not contingent in any way on continued service);
(a) the director is a current partner or employee of a firm that is the listed Company’s internal or external auditor; (b) the director has an immediate family member who is a current partner of such a firm; (c) the director has an immediate family member who is a current employee of such a firm and personally works on the listed Company’s audit; or (d) the director or an immediate family member was within the last three years (but
the director or an immediate family member is, or has been within the last three years, employed as an executive officer of another company where any of the listed Company’s present executive officers at the same time serves or served on that company’s compensation committee; or
15
the director is a current employee, or an immediate family member is a current executive officer, of a company that has made payments to or received payments from, the listed Company for property or services in an amount which, in any of the last three fiscal years, exceeds the greater of $1 million, or 2% of such other listed Company’s consolidated gross revenues.
95853-7012.
Name | Audit | Corporate Governance & Nominating | Organization & Compensation | |||
Thomas A. Corcoran | X | X | ||||
James R. Henderson | X | X* | ||||
Warren G. Lichtenstein | X | |||||
David A. Lorber | X | X* | ||||
Merrill A. McPeak | X | X | ||||
James H. Perry | X* | |||||
Martin Turchin | X | X | ||||
Total meetings in fiscal 2013 | 5 | 2 | 8 |
Name | Audit | Corporate Governance & Nominating | Organization & Compensation |
Thomas A. Corcoran | X | X | |
James R. Henderson | X | X* | |
Warren G. Lichtenstein | X | ||
Lance W. Lord | X | ||
Merrill A. McPeak | X | X* | |
James H. Perry | X* | X | |
Martin Turchin | X | X | |
Total meetings in fiscal 2015 | 7 | 2 | 8 |
* | Committee Chairman |
16
evaluates the appropriateness of the
requirements, including the effectiveness of the Company’s corporate Ethics and Compliance Program.
17
elected.
stockholders. These advance notice provisions provide, among other things that:
• | for an annual meeting of stockholders, written notice of a stockholder’s intention to make business proposals or nominate persons for election to the Board must be delivered to the Company not later than the ninetieth (90th) day or earlier than the one hundred twentieth (120th) day prior to the first anniversary of the preceding year’s annual meeting. If an annual meeting of stockholders is held more than thirty (30) days before or more than seventy (70) days after the first anniversary of the preceding year’s annual meeting, notice by the stockholder must be delivered (i) not earlier than one hundred twenty (120) days prior to such annual meeting; and (ii) not later than the close of business on the later of the ninetieth (90th) day prior to such annual meeting or the tenth (10th) day following the day on which public announcement is first made of the date of the annual meeting; and |
• | if the Company has called a special meeting for the purpose of electing one or more directors to the Board, written notice of a stockholder’s intention to nominate persons for election to the Board before such special meeting must be delivered to the Company (i) not earlier than the one hundred twentieth (120th) day; and (ii) not later than the close of business on the later of the ninetieth (90th) day prior to such special meeting or the tenth (10th) day following the day on which public announcement is first made of the date of the special meeting and of the nominees proposed by the Board to be elected at such meeting. |
Shareholders
18
Non-Employee
19
specified by the participating director.
Value of Equity Ownership* Thomas A. Corcoran James R. Henderson Warren G. Lichtenstein David A. Lorber Merrill A. McPeak James H. Perry Martin Turchin Value is based on the stock price on November Fees Earned or Paid ($)(1) Stock Awards ($)(2)(3) Option/SARs Awards ($)(2)(3) All Other Compensation ($)(4) Total ($) Thomas A. Corcoran James R. Henderson Warren G. Lichtenstein David A. Lorber Merrill A. McPeak James H. Perry Martin Turchin The amounts reported in this column for each non-employee Director reflect the dollar amount of the Board and Committee fees paid in fiscal April 2013,March 2015, each non-employee Director received $75,000$90,000 worth of equity compensation, with the exception of the Chairman of the Board, who received $95,000$210,000 worth of equity compensation pursuant to the 2009 Incentive Plan. This grant consisted of 1,4173,880 restricted shares of Common Stock and 7,355 Stock Appreciation Rights (“SARs”) for non-employee Directors other than the Chairman of the Board, who received 1,7959,055 restricted shares of Common Stock and 9,317 SARs.Stock. These awards vest in 50% increments on the six-month and twelve-month anniversary of the grant date. Non-EmployeeNon-employee Directors also receive a one-time award of 500 restricted shares of Common Stock as part of their initial election to the Board. All restricted shares of Common Stock may be voted, but ownership may not transfer until such shares are vested. Unless otherwise approved by the Board, unvested shares will be forfeited in the event of a voluntary resignation or refusal to stand for re-election. The SARs have a seven-year term under the 2009 Incentive Plan. Effective November 13, 2013, the annual equity award for each non-employee Director is $90,000, with the exception of the Chairman of the Board who receives an annual equity award of $110,000. Also, effective November 13, 2013, the annual equity awards will be delivered in restricted shares of Common Stock with the same vesting schedule as historical awards.$150,000.five times the annual cash retainer or $275,000. In calculating the amount of equity owned by a Director, the Board looks at the value of Common Stock owned by such Director (restricted stock and stock owned outright), the value of any phantom stock owned by such Director as part of the Deferred Compensation Plan for Non-Employee Directors, if any and the value of any vested “in the money” options or SARsStock Appreciation Rights (“SARs”) (i.e. market value of Company stock in excess of the strike price for the stock option or SAR). Directors have five years from the date of their election to the Board to meet the thresholds set forth in these equity ownership guidelines. The Board routinely reviews these guidelines and considers adjustments when appropriate, including adjustments for material fluctuations in the Company’s stock price. Effective13, 2013,30, 2015, not all of the ownership guideline for non-employee Directors was changedheld equity in the Company equal in market value to five-times the annual cash retainer or $275,000.guidelines in place at the time. However, those that do not meet the requirements are in the transition period set forth in the guidelines and are anticipated to meet the guidelines by the end of the transition period. The following table shows the current status of equity ownership for each non-employee Director as of November 30, 2013.2015.Name Date of Election Years as a Director $2,318,157 09/24/08 5.3 4,328,112 03/05/08 5.8 2,914,492 03/05/08 5.8 3,076,266 03/31/06 7.8 150,855 03/27/13 0.7 3,057,116 05/16/08 5.6 2,866,307 03/05/08 5.8 Name Date of Election Years as a Director Thomas A. Corcoran $ 2,458,568 09/24/2008 7.2 James R. Henderson 3,532,972 03/05/2008 7.7 Warren G. Lichtenstein 3,438,677 03/05/2008 7.7 Lance W. Lord 110,064 02/02/2015 0.8 Merrill A. McPeak 565,723 03/27/2013 2.7 James H. Perry 3,363,511 05/16/2008 7.5 Martin Turchin 3,169,151 03/05/2008 7.7 * 29, 201330, 2015 of $18.34.GenCorpAerojet Rocketdyne Foundation matches employee and Director gifts to accredited, non-profit colleges, universities, secondary and elementary public or private schools located in the United States. Gifts made were matched dollar for dollar up to $3,000 per calendar year.One Director participated in this plan for one month in20fiscal 2013, and three Directors participated in this plan in full fiscal 2013. The Company also reimburses Directors for reasonable travel and other expenses incurred in attending Board and Committee meetings.2013of Directors in fiscal 2013.2015. Employee Directors are not compensated for services as a director.Name $ 81,956 $ 59,714 $ 56,243 $ — $ 197,913 118,712 78,092 56,243 — 253,047 123,213 85,326 71,246 — 279,785 96,964 67,218 56,243 — 220,425 51,217 50,964 56,243 — 158,424 91,961 64,716 56,243 — 212,920 91,961 64,716 56,243 — 212,920 Name Thomas A. Corcoran $ 90,440 $ 135,185 $ — $ 3,000 $ 228,625 James R. Henderson 120,946 150,427 — — 271,373 Warren G. Lichtenstein 140,951 280,422 — — 421,373 Lance W. Lord 51,207 111,148 — — 162,355 Merrill A. McPeak 93,447 136,688 — — 230,135 James H. Perry 114,452 147,191 — — 261,643 Martin Turchin 99,439 139,674 — — 239,113 (1) 2013.2015. Non-employee Directors have a choice to receive all or a portion of their director fees in fully vested Common Stock of the Company, in which the number of shares is determined by the closing price of the Common Stock as of the applicable pay date. If a Director elects to receive fees in Common Stock, an additional grant of restricted shares of Common Stock are given in an amount equal in value to 50% of the amount of fees paid in fully vested Common Stock. This additional grant is reported in the “Stock Awards” column. Non-EmployeeNon-employee Directors also have a choice to defer all or a portion of Common Stockfully vested and restricted stock grants.shares of Common Stock. Distribution of deferred stock can be made in a single payment or at least two but no more than 10 annual installments, with a choice to begin distribution 30 days following retirement from the Board, on a date specified by the participant, or upon attainment of an age 75.specified by the participating director. The following table shows director fees that were paid in fully vested Common Stock in fiscal 2013.
Pay Date | Thomas A. Corcoran | James R. Henderson | Warren G. Lichtenstein | David A. Lorber | Merrill A. McPeak | James H. Perry | Martin Turchin | |||||||||||||||||||||||
01-15-13 | Stock Awards (#) | 1,401 | 2,803 | 1,401 | 1,401 | — | 1,401 | 1,401 | ||||||||||||||||||||||
01-15-13 | Grant Date Fair Value | $ 13,744 | $ 27,497 | $ 13,744 | $ 13,744 | $ | — | $ 13,744 | $ 13,744 | |||||||||||||||||||||
04-15-13 | Stock Awards (#) | 3,241 | 5,071 | 4,335 | 4,435 | 1,889 | 4,037 | 4,037 | ||||||||||||||||||||||
04-15-13 | Grant Date Fair Value | $ 40,739 | $ 63,743 | $ 54,491 | $ 55,748 | $ | 23,745 | $ 50,745 | $ 50,745 | |||||||||||||||||||||
07-15-13 | Stock Awards (#) | 808 | 808 | 1,617 | 808 | 808 | 808 | 808 | ||||||||||||||||||||||
07-15-13 | Grant Date Fair Value | $ 13,736 | $ 13,736 | $ 27,489 | $ 13,736 | $ | 13,736 | $ 13,736 | $ 13,736 | |||||||||||||||||||||
10-15-13 | Stock Awards (#) | 826 | 826 | 1,653 | 826 | 826 | 826 | 826 | ||||||||||||||||||||||
10-15-13 | Grant Date Fair Value | $ 13,737 | $ 13,736 | $ 27,489 | $ 13,736 | $ | 13,736 | $ 13,736 | $ 13,736 |
Pay Date | Thomas A. Corcoran | James R. Henderson | Warren G. Lichtenstein | Lance W. Lord | Merrill A. McPeak | James H. Perry | Martin Turchin | |||||||||||||||
01/15/2015 | Stock Awards (#) | 800 | 800 | 1,601 | — | 800 | 800 | 800 | ||||||||||||||
01/15/2015 | Grant Date Fair Value | $ | 13,736 | $ | 13,736 | $ | 27,489 | $ | — | $ | 13,736 | $ | 13,736 | $ | 13,736 | |||||||
04/15/2015 | Stock Awards (#) | 2,358 | 3,819 | 2,801 | 568 | 2,502 | 3,508 | 2,789 | ||||||||||||||
04/15/2015 | Grant Date Fair Value | $ | 49,235 | $ | 79,741 | $ | 58,485 | $ | 11,860 | $ | 52,242 | $ | 73,247 | $ | 58,234 | |||||||
07/15/2015 | Stock Awards (#) | 571 | 571 | 1,143 | 285 | 571 | 571 | 571 | ||||||||||||||
07/15/2015 | Grant Date Fair Value | $ | 13,733 | $ | 13,733 | $ | 27,489 | $ | 6,854 | $ | 13,733 | $ | 13,733 | $ | 13,733 | |||||||
10/15/2015 | Stock Awards (#) | 822 | 822 | 1,645 | 411 | 822 | 822 | 822 | ||||||||||||||
10/15/2015 | Grant Date Fair Value | $ | 13,736 | $ | 13,736 | $ | 27,488 | $ | 6,868 | $ | 13,736 | $ | 13,736 | $ | 13,736 | |||||||
Total | Stock Awards (#) | 4,551 | 6,012 | 7,190 | 1,264 | 4,695 | 5,701 | 4,982 | ||||||||||||||
Total | Grant Date Fair Value | $ | 90,440 | $ | 120,946 | $ | 140,951 | $ | 25,582 | $ | 93,447 | $ | 114,452 | $ | 99,439 |
(2) | The amounts reported in these columns for each non-employee Director reflect the grant date fair value of stock awards in fiscal |
21
The following table shows each grant of restricted stock and SARs granted during fiscal 2013 to each non-employee Director who served as a Director in fiscal 2013, and the aggregate grant date fair value for each award.
Name | Grant Date | Stock Awards (#) | Grant Date Fair Value ($) | ||||
Thomas A. Corcoran | 01/15/2015 | 400 | (A) | $ | 6,868 | ||
03/31/2015 | 3,880 | (B) | 89,977 | ||||
04/15/2015 | 1,179 | (A) | 24,618 | ||||
07/15/2015 | 285 | (A) | 6,854 | ||||
10/15/2015 | 411 | (A) | 6,868 | ||||
Total | 6,155 | 135,185 | |||||
James R. Henderson | 01/15/2015 | 400 | (A) | 6,868 | |||
03/31/2015 | 3,880 | (B) | 89,977 | ||||
04/15/2015 | 1,909 | (A) | 39,860 | ||||
07/15/2015 | 285 | (A) | 6,854 | ||||
10/15/2015 | 411 | (A) | 6,868 | ||||
Total | 6,885 | 150,427 | |||||
Warren G. Lichtenstein | 01/15/2015 | 800 | (A) | 13,736 | |||
03/31/2015 | 9055 | (B) | 209,985 | ||||
04/15/2015 | 1,400 | (A) | 29,232 | ||||
07/15/2015 | 571 | (A) | 13,733 | ||||
10/15/2015 | 822 | (A) | 13,736 | ||||
Total | 12,648 | 280,422 | |||||
Lance W. Lord | 02/01/2015 | 500 | (C) | 8,400 | |||
03/31/2015 | 3,880 | (B) | 89,977 | ||||
04/15/2015 | 284 | (A) | 5,930 | ||||
07/15/2015 | 142 | (A) | 3,415 | ||||
10/15/2015 | 205 | (A) | 3,426 | ||||
Total | 5,011 | 111,148 | |||||
Merrill A. McPeak | 01/15/2015 | 400 | (A) | 6,868 | |||
03/31/2015 | 3,880 | (B) | 89,977 | ||||
04/15/2015 | 1,251 | (A) | 26,121 | ||||
07/15/2015 | 285 | (A) | 6,854 | ||||
10/15/2015 | 411 | (A) | 6,868 | ||||
Total | 6,227 | 136,688 | |||||
James H. Perry | 01/15/2015 | 400 | (A) | 6,868 | |||
03/31/2015 | 3,880 | (B) | 89,977 | ||||
04/15/2015 | 1,754 | (A) | 36,624 | ||||
07/15/2015 | 285 | (A) | 6,854 | ||||
10/15/2015 | 411 | (A) | 6,868 | ||||
Total | 6,730 | 147,191 | |||||
Martin Turchin | 01/15/2015 | 400 | (A) | 6,868 | |||
03/31/2015 | 3,880 | (B) | 89,977 | ||||
04/15/2015 | 1,394 | (A) | 29,107 | ||||
07/15/2015 | 285 | (A) | 6,854 | ||||
10/15/2015 | 411 | (A) | 6,868 | ||||
Total | 6,370 | 139,674 |
|
|
|
| |||||||
| ||||||||||
| ||||||||||
| ||||||||||
| ||||||||||
| ||||||||||
| ||||||||||
| ||||||||||
22
(A) | These shares vest on the earlier of the Director’s retirement from the Board or the one year anniversary of the grant date. |
(B) | These equity awards vest in 50% increments on the six-month and twelve-month anniversary of the grant date. |
(C) |
|
(3) | The following table shows the amount of outstanding and unexercised SARs and option awards and unvested stock awards as of November 30, |
Name | Unvested Stock Awards | Outstanding and Unexercised SARs | ||
Thomas A. Corcoran | 3,846 | 84,907 | ||
James R. Henderson | 5,462 | 125,118 | ||
Warren G. Lichtenstein | 5,399 | 101,869 | ||
David A. Lorber | 4,443 | 104,907 | ||
Merrill A. McPeak | 2,970 | 7,355 | ||
James H. Perry | 4,244 | 99,907 | ||
Martin Turchin | 4,244 | 99,907 |
|
23
Name | Unvested Stock Awards | Outstanding and Unexercised Option Awards | Outstanding and Unexercised SARs | |||
Thomas A. Corcoran | 4,215 | — | 84,907 | |||
James R. Henderson | 4,945 | — | 113,118 | |||
Warren G. Lichtenstein | 8,121 | 43,546 | 101,869 | |||
Lance W. Lord | 3,071 | — | — | |||
Merrill A. McPeak | 4,787 | — | 7,355 | |||
James H. Perry | 4,790 | — | 99,907 | |||
Martin Turchin | 4,430 | — | 99,907 |
Beneficial Owner | Amount and Nature of Beneficial Ownership(1)(2) | Percent of Class | ||
Directors | ||||
Thomas A. Corcoran(3) | 71,705 | * | ||
James R. Henderson(4) | 155,829 | * | ||
Warren G. Lichtenstein(5) | 87,614 | * | ||
David A. Lorber | 104,477 | * | ||
Merrill A. McPeak(6) | 8,335 | * | ||
James H. Perry | 104,103 | * | ||
Martin Turchin(7) | 93,699 | * | ||
Executive Officers | ||||
Scott J. Seymour(8) | 725,980 | 1.18% | ||
Kathleen E. Redd(9) | 273,580 | * | ||
Warren M. Boley, Jr. | 101,589 | * | ||
Christopher C. Cambria | 47,314 | * | ||
John D. Schumacher | 18,610 | * | ||
Richard W. Bregard | 55,968 | * | ||
All Current Directors and Executive Officers as a group (13 persons) | 1,848,803 | 3.00% |
Beneficial Owner | Amount and Nature of Beneficial Ownership(1)(2) | Percent of Class | ||
Directors | ||||
Thomas A. Corcoran(3) | 85,967 | * | ||
James R. Henderson(4) | 130,572 | * | ||
Warren G. Lichtenstein(5) | 183,041 | * | ||
Lance W. Lord(6) | 6,960 | * | ||
Merrill A. McPeak(7) | 31,817 | * | ||
James H. Perry | 129,990 | * | ||
Martin Turchin (8) | 118,909 | * | ||
Executive Officers | ||||
Eileen P. Drake | 210,218 | * | ||
Kathleen E. Redd (9) | 317,493 | * | ||
Christopher C. Cambria | 82,829 | * | ||
John D. Schumacher(10) | 57,286 | * | ||
Mark A. Tucker | 77,064 | * | ||
Former Executive Officers | ||||
Scott J. Seymour(11) | 842,601 | 1.3% | ||
All Current Directors and Executive Officers as a group (12 persons) | 1,432,146 | 2.2% |
* | Less than 1.0% |
(1) | Includes restricted shares granted under the 1999 Equity and Performance Incentive Plan, the 2009 Incentive Plan, and shares owned outright. The number of shares beneficially owned by a current officer of the Company includes shares credited in the |
(2) | Includes shares issuable upon the exercise of stock options that may be exercised within 60 days after |
(3) | Includes |
(4) | Includes |
(5) | Includes |
(6) | Includes |
(7) | Includes |
(8) | Includes 24,915 shares held in the name of the Rabbi Trust, 7,500 shares held in the name of Martin Turchin IRA Rollover, 3,000 shares held in the name of Peter Turchin Trust, 1,000 shares held in the name of Coulter Turchin Trust, and 1,000 shares held in the name of Tyler Turchin Trust. |
|
(9) | Includes |
24
(10) | Includes 2,332 shares held in the Aerojet Rocketdyne Retirement Savings Plan Trust. |
(11) | Includes 155,907 shares held in the Scott J. Seymour and Kathleen T. Goette Seymour Family Trust and 90,462 shares held in the Scott J. Seymour Equity Trust dated December 23, 2012. |
On September 9, 2011, the Company repurchased $15.5 million principal amount of its 2 1/4% convertible subordinated debentures from SPH Group Holdings LLC for an aggregate purchase price of $15,438,000, plus brokerage commissions and accrued and unpaid interest, which was a Related Party Transaction. A member
25
2015 from SP Corporate primarily for the use of an aircraft for business travel. As of November 30, 2015, the Company had a payable due to SP Corporate of $0.5 million.
2015.
2015.
2015.
David A. Lorber
26
19, 2016
2015.
David
Merrill A. McPeak
19, 2016
Name | Title | Other Business Experience | Age | |||||
| Chief Operating Officer, March 2015 — June 2015; President of Pratt & Whitney AeroPower’s auxiliary power unit and small turbojet propulsion business, UTC 2012 — 2015; Vice President of Operations, UTC 2009 — 2012; Vice President of Quality, Environmental Health & Safety, and Achieving Competitive Excellence, UTC 2003 — 2009; Product Line Manager and Plant Manager, Ford Motor Company 1996 — 2003; United States Army 1989 — 1996. | 49 | ||||||
Mark A. Tucker | Chief Operating Officer of the Company (since | Senior Vice President, | 57 | |||||
Kathleen E. Redd | Vice President, Chief Financial Officer (since January 2009), and Assistant Secretary of the Company (since March 2012) | Secretary, February 2009 — March 2012; Vice President, Controller and Acting Chief Financial Officer September 2008 — January 2009; Vice President, Finance 2006 — 2008; Assistant Corporate Controller, 2002 — 2006; Acting Vice President Controller GDX Automotive, 2003 — 2004 (concurrent with Assistant Corporate Controller position during divestiture activities); Vice President, Finance, for Grass Valley Group, 2001 — 2002; Vice President, Finance for JOMED, Inc., 2000 — 2001; Controller for EndoSonics Corporation, 1996 — 2000. |
| 54 |
27
|
| |||||
Name | Title | Other Business Experience | Age | |||
|
|
| ||||
Christopher C. Cambria | Vice President, General Counsel (since September 2011), and Secretary of the Company (since March 2012) | Self employed legal consultant 2010 — 2011. Senior Vice President and Senior Counsel, Mergers and Acquisitions for L-3 Communications Holdings 2006 — 2009; Senior Vice President, Secretary and General Counsel 2001 — 2006; and Vice President, General Counsel and Secretary 1997 — |
| |||
John D. Schumacher | Vice President, | President, Astrium Americas and Vice President, Space, EADS North America April 2011 — April 2013; Vice President, Washington Operations, Aerojet Rocketdyne May 2006 — April 2011; Director, Whitney, Bradley & Brown Consulting September 2005 — May 2006; Chief of Staff, National Aeronautics and Space Administration (NASA) May 2003 — September 2005; Associate Administrator for External Relations, NASA 1994 — 2003; Deputy Associate Administrator, NASA 1990 — |
| |||
|
|
|
28
Company.
to continue to compete successfully.
Competitive Compensation — providesattract and retain high caliber executives and key personnel by providing compensation that is competitive with compensation for executive officers providing comparable services to similarly-situated companies, taking into account our size and complexity and the markets we serve;
Retention Incentives — providesretain high caliber executives by providing incentives for long-term continued employment with the Company or incentives for certain critical talent to achieve key short-term or mid-term strategic initiatives; and
Stakeholder Incentives — promotespromote an ownership interest that aligns management and shareholders.stockholders. In this regard, the Organization & Compensation Committee approved robust share ownership guidelines that apply to our Named Executive Officers,named executive officers, where over a period of time, each Named Executive Officernamed executive officer is expected to own shares of our Common Stock equal in total market value to a designated multiple of such named executive officer’s annual salary.
Base salary increases forofficers. Specifically, given the named executive officers were based oncomplexity of multiple strategic initiatives and the pre-acquisition organization peer group and survey data as these changes were made priorimportance to the acquisitionshareholders of the Rocketdyne Business.
Annual incentive targets for the named executive officers were based on the pre-acquisition organization peer group and survey data as these changes were made prior to the acquisition of the Rocketdyne Business.
29
Long-term incentive awards for the named executive officers were based on a 50/50 blend ofpre-acquisition and post-acquisition peer group and survey data as these grants occurredremaining competitive in the last week of the fiscal year and, given the acquisition date that occurred almost exactly in the middle of the fiscal year,industry, the Organization & Compensation Committeecommittee diversified the metric from a single cumulative Free Cash Flow metric for the prior fiscal 2014 grants to five metrics (revenue, EBITDAP, ROIC, cumulative CIP investments, and cumulative CIP savings) in consultation with Hay Group felt that this was most appropriate.
Long-term incentive awards for fiscal 2013 were more heavily weighted towards performance-based restricted stock than full value shares than in previous years.
The proxy peer group was revised twice during fiscal 2013, both reflected later in this Compensation Discussion and Analysis, onceorder to reflect normal course changes in the peer group based on continued business fit to GenCorp and once, following the acquisition of the Rocketdyne Business, to reflect the significantly increased size of the organization. This second iteration of the peer group will be used going forward for executive compensation benchmarking purposes.
President.
30
named executive officers.
$334,544.
31
MOOG Inc. | Heico Corp. | |
Curtiss Wright Corp. | Triumph Group Inc. | |
Teledyne Technologies Incorporated. | Hexcel Corp. | |
| Transdigm Group Inc. | |
| ||
| ||
AAR Corp. | ||
| ||
| ||
|
Following our acquisition of the Rocketdyne Business in June 2013, Hay Group was asked to develop a post-acquisition peer group to reflect the substantial increase in the size of our organization for executive compensation benchmarking going forward. That comparator group used for the remainder of fiscal 2013 is comprised of the following companies:
| ||
| ||
| ||
| ||
| Woodward Inc. | |
BE Aerospace Inc. | Kaman Corp. | |
Orbital Sciences Corp. | Barnes Group Inc. |
officers:
Ms. Redd’s total compensation was benchmarked against both the comparative data included in Hay Group’s broad based industry study and the comparator group, each of which were given a weighting of 60% and 40%, respectively, and blended into one comparative benchmark. Ms. Redd’s targeted total direct compensation for fiscal 2013 was at the 34th percentile of the blended comparative benchmark. Ms. Redd’s actual total direct compensation for fiscal 2013 was at or near the 39th percentile of the blended comparative benchmark. Ms. Redd’s target total direct compensation fell below the targeted approach of the median of the market given that base pay, annual incentive target and payout and half of her normal course long-term incentive award was based on pre-acquisition market data and this comparison is entirely to the post-acquisition market data. When including Ms. Redd’s long-term retention award for actual total direct compensation, she is at the 75th percentile of the market for the current year.
Mr. Boley’s total compensation was benchmarked against both the comparative data included in Hay Group’s broad based industry study and the comparator group, each of which were given a weighting of 60% and 40%, respectively, and blended into one comparative benchmark. Mr. Boley’s targeted total direct compensation for fiscal 2013 was at the 28th percentile of the blended comparative benchmark. Mr. Boley’s
32
actual total direct compensation for fiscal 2013 was at or near the 32nd percentile of the blended comparative benchmark. Mr. Boley fell below our targeted approach of the median of the market given that base pay, annual incentive target and payout, and half of the long-term incentive award was based on pre-acquisition market data and this comparison is entirely to thepost-acquisition market data.
Mr. Cambria’s total compensation was benchmarked against the comparative data included in Hay Group’s broad based industry study. For fiscal 2013, Mr. Cambria’s targeted total direct compensation was at or near the 50th percentile of the benchmark. Mr. Cambria’s actual total direct compensation for fiscal 2013 was at or near the 55th percentile of the benchmark. Mr. Cambria’s target and actual total direct compensation fell at or slightly above our targeted approach of the median of the market.
Mr. Schumacher’s total compensation was benchmarked against the comparative data included in Hay Group’s broad based industry study. For fiscal 2013, Mr. Schumacher’s targeted total direct compensation was at or near the 39th percentile of the benchmark. Mr. Schumacher’s actual total direct compensation for fiscal 2013 was at or near the 29th percentile of the benchmark. Mr. Schumacher was hired during the course of 2013 and as such his initial targeted placement is appropriate for comparison to the post-acquisition market. His actual total direct compensation is low given that Mr. Schumacher only worked part of the year and received a prorated annual incentive payout in fiscal 2013 yet is benchmarked to a full year competitive benchmark. Mr. Schumacher received a sign-on Stock Appreciation Right Award with a grant date fair value of $152,564 and a sign-on bonus of $75,000 that increased his actual total direct competitiveness from the 29th percentile to the 44th percentile on an actual total direct compensation basis.
Mr. Bregard’s total compensation was benchmarked against the comparative data included in Hay Group’s broad based industry study. For fiscal 2013, Mr. Bregard’s targeted total direct compensation was at or near the 32nd percentile of the benchmark given that he was not included in long-term incentive awards in fiscal 2013 given his anticipated retirement. Mr. Bregard’s actual total direct compensation for fiscal 2013 was at or near the 17th percentile of the benchmark, including his base salary and prorated annual incentive paid for the time while he was an employee. Mr. Bregard received a retention payout of $265,364 early in fiscal 2013 that combined with other elements brings his actual total direct compensation to 54th percentile of the benchmark. Mr. Bregard received an additional retention payout during fiscal 2013 in the amount of $200,000, bringing his actual total direct compensation to the 81st percentile of the benchmark. Mr. Bregard also received $85,598 for contractual work following his retirementretired from the Company which bringseffective June 1, 2015. In connection with his actual total direct compensation to 93rd percentileretirement, Mr. Seymour resigned as President and CEO and as a director of the benchmark. Finally,Company’s Board. Mr. Bregard receivedSeymour continued to serve in a $12,956 retirement payment following his retirement fromconsulting capacity through December 31, 2015 which facilitated the company, bringing his actual total direct compensation to the 94th percentiletransition of the benchmark. On June 26, 2013, the Board of Directors approved accelerated vesting of Mr. Bregard’s outstanding unvested restricted stock awards in recognition of his service to the Company. The value of these accelerations does not have an attributable value given the assumptions in the original grants and therefore does not increase the competitiveness of Mr. Bregard’s actual total direct compensation to the benchmark.
Hay Group reviewed year-over-year changes to the proxy peer group data and pay program detail, as well as Hay Group’s knowledge of ongoing market trends, to further understand market movement for base, bonus and long-term incentives for comparable positions and to understand our compensation relative to market for GenCorp’s Named Executive Officers. This review was conducted both prior to and following the acquisition of the Rocketdyne Business in June 2013. While base salary and target annual and long-term incentives remained relatively stable year-over-year for the pre-acquisition peer group and Hay Group survey data, Hay Group’s analysis showed an increase in all elements of compensation when shifting to the post-acquisition peer group and Hay Group survey data for the executive positions that have greater responsibility and accountability in the post-acquisition organization. Most of the shift was in the form of increased use of long-term incentive vehicles, both in terms of value and contribution to mix of pay. Hay
33
Group will continue to monitor in the coming year to determine if this is a continuing trend as they begin to advise the Company on setting compensation levels and mix for the upcoming year.
leadership.
Base salary;
Short-term annual cash incentive awards;
Long-term compensation equity incentive awards, including restricted stock, performance basedperformance-based restricted stock, stock options and cash-settled SARs; and
In-service and post-retirement/employment benefits —- pension and 401(k) savings plans; however, defined benefit pension benefits were frozen effective fiscal 2009.
connection with their promotions.
34
salary plus annual cash incentive) will be within a competitive range of total cash compensation against the market if performance targets are met.
The Organization & Compensation Committee set
The Organization & Compensation Committee, approves the annual cash incentive program for the executive officers of the Company. The target annual incentive pay is established through an analysis of compensation for other relevant executive positions as noted in SEC filings for our peer group andbroad-based studies, and is intended to provide a competitive level of compensation when the executives achieve their performance objectives. Withwith the input of our PresidentCEO and CEO, President, Aerojet Rocketdyne,President; Vice President, CFO and Assistant Secretary,Secretary; and Vice President or Senior Director Human Resources,Resources; the Organization & Compensation Committee determines the following:
sets the overall Company and individual performance objectives and corresponding performance and payout ranges for the fiscal year;
sets performance measures for the fiscal year;
establishes a target, threshold, and maximum incentive opportunity for each executive officer; and
measures performance and determines awards for the prior fiscal year.
Scott J. Seymour,
Kathleen E. Redd, Vice President, CFO and Assistant Secretary — 50%
Warren M. Boley, Jr., President, Aerojet RocketdyneMark A. Tucker, COO — 60%
John D. Schumacher, VP, Business RelationsVice President, Washington Operations — 45%
Christopher C. Cambria, Vice President, General Counsel and Secretary — 50%
Richard W. Bregard, Former DeputyMr. Seymour’s payout level was 125%, however due to his retirement he is not eligible to receive the President, Aerojet Rocketdyne — 50%
35
Executive Targets | Threshold Opportunity | Target Opportunity | Maximum Opportunity | Actual Performance | Actual Achievement | |||||||||||||||||||||||||||||
(Dollars in millions) | 1st half | 2nd half | 1st half | 2nd half | 1st half | 2nd half | Blended | |||||||||||||||||||||||||||
Contract Profit(1) | 16.67% | 25.00% | 50.00% | $ | 53.9 | $ | 88.2 | 43.45% | 20.85% | 32.15% | ||||||||||||||||||||||||
•Threshold | $ | 42.6 | $ | 81.8 | ||||||||||||||||||||||||||||||
•Target | $ | 47.0 | $ | 94.6 | ||||||||||||||||||||||||||||||
•Maximum | $ | 56.4 | $ | 106.2 | ||||||||||||||||||||||||||||||
Total Cash Flow(2) | 16.67% | 25.00% | 50.00% | $ | 20.4 | $ | 57.1 | 50.00% | 38.62% | 44.31% | ||||||||||||||||||||||||
•Threshold | $ | 5.3 | $ | 35.8 | ||||||||||||||||||||||||||||||
•Target | $ | 7.2 | $ | 48.2 | ||||||||||||||||||||||||||||||
•Maximum | $ | 9.6 | $ | 64.5 | ||||||||||||||||||||||||||||||
Contract Awards(3) | 16.66% | 25.00% | 50.00% | $ | 527.2 | $ | 949.2 | 23.84% | 45.78% | 34.81% | ||||||||||||||||||||||||
•Threshold | $ | 505.5 | $ | 810.9 | ||||||||||||||||||||||||||||||
•Target | $ | 530.7 | $ | 851.2 | ||||||||||||||||||||||||||||||
•Maximum | $ | 604.3 | $ | 969.1 | ||||||||||||||||||||||||||||||
Personal Factors(4) | 25.00% | 25.00% | 25.00% | 22% - 24% | ||||||||||||||||||||||||||||||
•Threshold — 0 x multiplier | ||||||||||||||||||||||||||||||||||
•Target — 1 x multiplier | ||||||||||||||||||||||||||||||||||
Other(5) | -10.00% | 0.00% | 10.00% | 0% | 0% | 0% | ||||||||||||||||||||||||||||
•+ / – 10% | ||||||||||||||||||||||||||||||||||
Totals | 65.00% | 100.00% | 185.00% | (6) | 117.29% | 105.25% | 133.27% - 135.27% |
Executive Targets | Threshold Opportunity | Target Opportunity | Maximum Opportunity | Actual Performance Corporate | Actual Performance Aerojet Rocketdyne | Actual Achievement Corporate | Actual Achievement Aerojet Rocketdyne | |||||||
(Dollars in millions) | ||||||||||||||
Contract Profit(1) | 12.5% | 25.0% | 50.0 | % | $ | 130.5 | $ | 130.5 | —% | —% | ||||
Ÿ Threshold — $155.6 | ||||||||||||||
Ÿ Target — $172.3 | ||||||||||||||
Ÿ Maximum — $198.7 | ||||||||||||||
Operating Cash Flow | 12.5% | 25.0% | 50.0 | % | $ | 29.1 | $ | 110.0 | 21.9% | 16.8% | ||||
Corporate (2) | Aerojet Rocketdyne(3) | |||||||||||||
Ÿ Threshold — $16.6 | Ÿ Threshold — $104.3 | |||||||||||||
Ÿ Target — $33.3 | Ÿ Target — $121.0 | |||||||||||||
Ÿ Maximum — $59.7 | Ÿ Maximum — $147.4 | |||||||||||||
Contract Awards(4) | 12.5% | 25.0% | 50.0 | % | $ | 1,837.9 | $ | 1,837.9 | 50.0% | 50.0% | ||||
Ÿ Threshold — $1,300.0 | ||||||||||||||
Ÿ Target — $1,453.8 | ||||||||||||||
Ÿ Maximum — $1,599.2 | ||||||||||||||
Personal Factors(5) | 12.5% | 25.0% | 37.5 | % | — | — | —% | —% | ||||||
Ÿ Threshold — 0 x multiplier | ||||||||||||||
Ÿ Target — 1 x multiplier | ||||||||||||||
Totals | 50.0% | 100.0% | 187.5 | % | (6) | 71.9% | 66.8% |
(1) | We defined Contract Profit to be net sales recognized for our Aerospace and Defense segment less cost of sales of our Aerospace and Defense segment, exclusive of certain corporate costs, certain retirement benefit costs and other non-contract related costs. |
(2) | We defined |
(3) | We defined Aerojet Rocketdyne Operating Cash Flow to be the Aerospace and Defense segment cash provided by operating activities net of cash used in financing activities, exclusive of debt issuance costs, repayments on debt and proceeds from the issuance of debt. |
(4) | We defined Contract Awards to be the amount of money to be received for a contract of our Aerospace and Defense segment that has been directly appropriated by the U.S. Congress or for which a purchase order has been received from a commercial customer. |
|
(5) |
|
(6) | Under the terms of the Company’s annual incentive plan, each |
36
The criteria used in fiscal 2013 applicable to our Aerojet Rocketdyne Named Executive Officers including Messrs. Boley and Bregard were the following:
Executive Targets | Threshold Opportunity | Target Opportunity | Maximum Opportunity | Actual Performance | Actual Achievement | |||||||||||||||||||||||||||||
(Dollars in millions) | 1st half | 2nd half | 1st half | 2nd half | 1st half | 2nd half | Blended | |||||||||||||||||||||||||||
Contract Profit(1) | 16.67 | % | 25.00 | % | 50.00 | % | $ | 53.9 | $ | 88.2 | 43.44% | 20.86% | 32.15% | |||||||||||||||||||||
•Threshold | $ | 42.6 | $ | 81.8 | ||||||||||||||||||||||||||||||
•Target | $ | 47.0 | $ | 94.6 | ||||||||||||||||||||||||||||||
•Maximum | $ | 56.4 | $ | 106.2 | ||||||||||||||||||||||||||||||
Total Cash Flow(2) | 16.67 | % | 25.00 | % | 50.00 | % | $ | 50.7 | $ | 116.0 | 44.11% | 50.00% | 47.05% | |||||||||||||||||||||
•Threshold | $ | 42.5 | $ | 94.5 | ||||||||||||||||||||||||||||||
•Target | $ | 46.6 | $ | 103.6 | ||||||||||||||||||||||||||||||
•Maximum | $ | 52.0 | $ | 115.5 | ||||||||||||||||||||||||||||||
Contract Awards(3) | 16.66 | % | 25.00 | % | 50.00 | % | $ | 527.2 | $ | 949.2 | 23.84% | 45.78% | 34.81% | |||||||||||||||||||||
•Threshold | $ | 505.5 | $ | 810.9 | ||||||||||||||||||||||||||||||
•Target | $ | 530.7 | $ | 851.2 | ||||||||||||||||||||||||||||||
•Maximum | $ | 604.3 | $ | 969.1 | ||||||||||||||||||||||||||||||
Personal Factors(4) | 25.00 | % | 25.00 | % | 25.00 | % | 23% | |||||||||||||||||||||||||||
•Threshold — 0 x multiplier | ||||||||||||||||||||||||||||||||||
•Target — 1 x multiplier | ||||||||||||||||||||||||||||||||||
Other(5) | -10.00 | % | 0.00 | % | 10.00 | % | 0% - 2.5% | |||||||||||||||||||||||||||
•+ / – 10% | ||||||||||||||||||||||||||||||||||
Totals | 65.00 | % | 100.00 | % | 185.00 | %(6) | 111.39% | 116.64% | 137.01% - 139.51% |
|
|
|
|
|
|
37
Compensation” column of the Summary Compensation Table, which follows this Compensation Discussion and Analysis:
Name | Payout Level | Base Salary | Blended Actual Performance Achievement Percentage | Cash Incentive Awards | ||||||||
Award at 100% Target Performance | Award at 185% Maximum Performance | Actual Awards at Achievement Percentage | ||||||||||
Executive Officers as of November 30, 2013 | ||||||||||||
Scott J. Seymour | 125% | $640,020 | 135.27% | $800,025 | $1,480,046 | $1,082,194 | ||||||
Kathleen E. Redd | 50% | 386,175 | 134.27% | $193,088 | $357,212 | $259,259 | ||||||
Warren M. Boley, Jr. | 60% | 361,375 | 139.51% | $216,825 | $401,126 | $302,493 | ||||||
Christopher C. Cambria | 50% | 326,477 | 133.27% | $163,239 | $301,991 | $217,548 | ||||||
John D. Schumacher | 45% | 300,000 | 133.27% | $135,000 | $249,750 | $104,950(1) | ||||||
Former Executive Officers as of November 30, 2013 | ||||||||||||
Richard W. Bregard | 50% | 275,979 | 137.01% | $137,990 | $255,281 | $110,284(1) |
Name | Payout Level | Base Salary | Cash Incentive Awards | ||||||||||||||
Award at 100% Target Performance | Award at 187.5% Maximum Performance | Actual Performance Achievement Percentage | Discretionary Award Percentage | Actual Payout at Achievement Percentage | |||||||||||||
Eileen P. Drake 1st half (1) | 75% | $ | 500,000 | $ | 187,500 | $ | 351,563 | 71.9 | % | 35.0 | % | $ | 200,437 | ||||
Eileen P. Drake 2nd half (1) | 100% | 700,000 | 350,000 | 656,250 | 71.9 | % | 35.0 | % | 374,150 | ||||||||
Eileen Drake Total | 537,500 | 1,007,813 | 574,587 | ||||||||||||||
Kathleen E. Redd | 65% | 416,654 | 270,825 | 507,797 | 71.9 | % | 35.0 | % | 289,512 | ||||||||
Mark A. Tucker 1st half (2) | 55% | 420,000 | 115,500 | 216,563 | 66.8 | % | 35.0 | % | 117,579 | ||||||||
Mark A. Tucker 2nd half (2) | 65% | 420,000 | 136,500 | 255,938 | 66.8 | % | 35.0 | % | 138,957 | ||||||||
Mark A. Tucker Total | 252,000 | 472,501 | 256,536 | ||||||||||||||
John D. Schumacher | 55% | 325,260 | 178,893 | 335,424 | 71.9 | % | 35.0 | % | 191,237 | ||||||||
Christopher C. Cambria | 55% | 351,419 | 193,280 | 362,401 | 71.9 | % | — | % | 138,969 |
(1) |
|
(2) | Mr. Tucker’s payout level for the first six months |
metric.Named Executive Officer’snamed executive officer’s individual performance, measured against the annual performance goals described above,for each, are used to determine each Named Executive Officer’snamed executive officer’s target cash incentive award as well as each Named Executive Officer’snamed executive officer’s individual performance and contribution as related to the achievement of such performance goals. ForIn order for the named executive officer’s individual performance to be a factor in their cash incentive award, the Company must first achieve all three financial metrics at the threshold level. Once all three financial metrics are achieved, for each Named Executive Officer,named executive officer, other than the PresidentCEO and CEO,President, the Organization & Compensation Committee consideredconsiders individual performance, as assessed by the PresidentCEO and CEO. ThePresident. Individual performance of the CEO and President and CEO wasis assessed directly by the Board.The assessments described below pertain toOrganization & Compensation Committee.20132015, personal performance andfactors were used to helpnot included in the Organization & Compensation Committee determineCommittee’s determination of the size of each Named Executive Officer’s 2013named executive officer’s 2015 annual incentive payment.For Mr. Seymour, our President and CEO,payment given that the Organization & Compensation Committee considered his overall leadership role inCompany did not achieve the successful acquisitionthreshold level of the Rocketdyne Business which required the achievement of numerous elements including obtaining financing, government regulatory approvals, and post transaction close submittal of a restructuring proposal to the government documenting the statement of work and costs required to combine the companies. Consideration was also givenperformance for the oversight required to assure the management team remained focused on the core business during the acquisition period including performance on customer production programs, continued research and technology development for continued organic growth, compliance with government regulatory requirements and the stand up of the common Oracle ERP system.For Ms. Redd, our Vice President, CFO and Assistant Secretary, the President and CEO considered her key role in accomplishing the Rocketdyne Business acquisition, her leadership of theits contract profit financial aspects of the Company’s ERP system, and her contributions to increasing market awareness of the Company.38For Mr. Boley, our President, Aerojet Rocketdyne, the President and CEO considered his role in carrying out the initiatives tied to the Aerojet Rocketdyne operating units business strategy, the stand up of the new ERP system, and the integration of the Rocketdyne Business.For Mr. Cambria, our Vice President, General Counsel and Secretary, the President and CEO considered his leadership in closing the Pratt & Whitney Rocketdyne acquisition, establishing and integrating the GenCorp Legal organization, resolving various environmental liabilities, and making improvements in government oversight and compliance.For Mr. Schumacher, our Vice President, Business Relations, the President and CEO considered his leadership in guiding and coordinating government affairs initiatives as well as his management of the Aerojet Rocketdyne Washington Operations to ensure integrated strategies and plans and compliance across all businesses. He also considered Mr. Schumacher’s contributions to international business development initiatives.For Mr. Bregard, our Deputy to the President, Aerojet Rocketdyne, for the seven months of the fiscal year prior to his retirement, the President and CEO considered his efforts in leading the Project Management Office for the acquisition and integration of the Rocketdyne Business as well as his role as the Steering Committee Chair for the ERP implementation.5, 2014,18, 2016, the Organization & Compensation Committee met and approved fiscal 20132015 annual cash incentive awards, which are reported above and in the “Non-Equity Incentive Plan Compensation” column of the Summary Compensation Table, which follows this Compensation Discussion and Analysis.Annual Incentive Plan Changes for Fiscal 2014Key refinements to the Annual Incentive Plan structure pertaining to the Named Executive Officers which took effect in fiscal 2014 include the following:Elimination of the non-financial “other” metric;
Three financial measures (contract profit, total cash flow, and contract awards) had the threshold payout lowered from 16.67% to 12.5%; and
The personal factors now have a payout of 12.5% at threshold (decrease from 16.67%), 25% at target (consistent with current year) and 37.5% at maximum (increase from 25%).
The Organization & Compensation Committee made these changes to provide greater differentiation between payouts at threshold, target and maximum performance and continue to develop a pay for performance culture.
Payout levels for our current Named Executive Officers for fiscal 2014 as a percentage of base salary are as follows:
Scott J. Seymour, President and CEO — 125%
Kathleen E. Redd, Vice President, CFO and Assistant Secretary —60%
Warren M. Boley, Jr., President, Aerojet Rocketdyne —70%
John D. Schumacher, VP, Business Relations — 55%
Christopher C. Cambria, Vice President, General Counsel and Secretary —50%
39
Long-Term Incentives (Equity-Based Compensation)
to focus on the importance of returns to shareholders;
to promote the achievement of long-term performance goals;
to encourage executive retention; and
to promote higher levels of Company stock ownership by executives for increased alignment with shareholderstockholder interests.
Restricted stock (time-based)
Restricted stock (performance-based) — A grant of performance-based restricted stock is an award of shares of Common Stock that vests over a period of time after the grant date (depending upon the vesting conditions set by the Organization & Compensation Committee) provided that the relevant performance goals are met. Performance-based restricted stock awards are designed to drive financial performance as the awards vest from 0%50% to 125%200% of target based on performance, attract and retain executives by providing them with some of the benefits associated with stock ownership during the restriction period, while incentivizing them to remain with the Company. During the restricted performance period, the executives may not sell, transfer, pledge, assign or otherwise convey their
40
restricted stock. However, executives may vote their shares and are entitled to receive dividend payments, if any are made. Executives who voluntarily resign or are terminated for cause prior to the end of the restriction period forfeit their restricted stock unless otherwise determined by the Organization & Compensation Committee. The Company believes that continual analysis and alignment to shareholder value creation is an important part of an executive compensation program. Therefore, the 2015 LTIP was designed to consists of a performance-based grant of restricted stock |
The 2013 LTIP consists of two performance-based grants and a service-based grant.grant of stock options. The grants for the 20132015 LTIP were made on November 22, 2013, with the exception of the supplemental shares granted to Ms. Redd which were granted on May 9, 2013.March 30, 2015. The performance-based grants vest on or about January 31, 2016,2018, based on meeting performance targets atfor the three year performance period ending November 30, 20152017 and subject to the approval by the Organization & Compensation Committee.Committee in early 2018. The service-based grants vest on November 22, 2016. The supplemental shares grantedMarch 30, 2018. See the 2015 Grants of Plan-Based Awards table for share amounts and grant date fair value of these grants specific to Ms. Redd vest on May 9, 2016.
the named executive officers.
The performance targets for the second performance-based grant are (i) revenue, (ii) earnings before interest, taxes, depreciation and amortization, and retirement benefit expense (“EBITDAP”), and (iii) capital turnover (“GenCorp financial targets”). The participant in this group of restricted stock is Mr. Boley with 24,939 shares which represent the maximum number of shares that may vest. Performance shares that would vest at target for Mr. Boley would be 19,951.
canceled upon his retirement.
Seymour’s grant being canceled upon his retirement.
to align with our pay-for-performance philosophy.
41
44.
45.
42
Company’s Common Stock.
Name | Value of Equity Ownership* | Date of Election | Years as an Officer | |||
Scott J. Seymour | $11,751,733 | 01/06/2010 | 4.0 | |||
Kathleen E. Redd | 4,851,026 | 07/01/2006 | 7.5 | |||
Warren M. Boley, Jr. | 1,755,010 | 08/20/2012 | 1.3 | |||
Christopher C. Cambria | 1,015,706 | 09/12/2011 | 2.3 | |||
John D. Schumacher | 294,650 | 04/29/2013 | 0.6 |
Name | Value of Equity Ownership* | Date of Election | Years as an Officer | ||
Eileen P. Drake | $ | 3,855,310 | 03/02/2015 | 0.8 | |
Kathleen E. Redd | 4,496,912 | 01/21/2009 | 6.9 | ||
Mark A. Tucker | 773,391 | 10/07/2013 | 2.2 | ||
John D. Schumacher | 655,812 | 04/29/2013 | 2.6 | ||
Christopher C. Cambria | 1,239,815 | 09/12/2011 | 4.2 |
* | Value is based on the stock price on November |
Severance
Scott J. Seymour
On January 6, 2010, Mr. Seymour received 120,000 sharessalary for the first six months of the Company’s restricted common stockfiscal year and an optionup to purchase 100,000100% of Ms. Drake’s base salary for the last six months of the fiscal year, with such target bonuses to be pro-rated to reflect the partial performance period in the first six months; and (iii) a grant of 120,000 shares of the Company’s common stock in the form of performance shares (the “Option”“Promotion Award”) underpursuant to the GenCorp Inc. Amendedterms and Restatedconditions of the 2009 Equity and Performance Incentive Plan (“2009 Incentive Plan”). The Option haswith a per share exercise price equalvesting year term from fiscal 2015 to the last sales price reported for the Company’s common stock on the NYSE on the datefiscal 2018, 40,000 of grant. Mr. Seymourwhich shall vest if environmental remediation reimbursement advancement agreements are achieved, 40,000 of which shall vest if competitive improvement program restructuring execution is alsoachieved, and 40,000 of which shall vest if AR1 program achievement is attained. In addition, Ms. Drake will be eligible to participate in future grants pursuant to the 2009 Incentive Plan and other Company performance incentive plans extended towith a target opportunity of 200% of her base salary in effect for the senior executives of the Company generally, at levels commensurate with his position.
Mr. Seymour’s employment agreement has a five-year term, unless earlier terminated in accordance with its terms. then-current fiscal year.
43
salary paid in installments; (ii) an incentive payment based uponany bonuses earned and paid by the amountdate of termination; (iii) other than the previous year’s incentive, prorated based on the number of months of the year that Mr. Seymour worked for the Company priorPromotion Award which shall not vest, to the extent unvested at the time of Ms. Drake’s termination paid in a lump sum; (iii)of employment, immediate full vesting of any sharesall of Ms. Drake’s equity awards under the Company’s restricted common stock or options that are scheduled to vest within one year2009 Incentive Plan (at target performance, if applicable); (iv) outplacement services provided by the Company-designated outplacement firm for a period of eighteen (18) months starting no later than ninety (90) days from the date of termination with a maximum value of employment$25,000; (v) in the case of Death, life insurance benefits paid in accordance with the terms of the policy and (iv) incentives earned but unpaid with respect to the fiscal year ending on or precedingcoverage in which Ms. Drake was enrolled before the date of Death; and (vi) in the case of termination pursuantdue to Disability, the annual cash incentive program.
Also under thisCompany shall pay for the premiums associated with a six (6) month continuation, without any required contributions from Ms. Drake (but subject to all other plan and policy terms) in Ms. Drake’s Company provided life insurance policy in which she is enrolled before the date of termination; and (vii) provided Ms. Drake timely elects and is eligible for COBRA coverage, the Company shall pay for the premiums associated with six (6) months of Ms. Drake’s continued participation, without any required contributions from Ms. Drake (but subject to all other plan terms, including co-payments and deductibles) in the Aerojet Rocketdyne Medical Plan, Aerojet Rocketdyne Dental Plan, and the Aerojet Rocketdyne Vision Plan (the “Benefit Plans”) in which she is enrolled before the date of termination.
Richard W. Bregard Retention Agreement
On February 6, 2012, the Company’s subsidiary, Aerojet Rocketdyne, entered into a Retention Agreement with Mr. Bregard (the “Retention Agreement”) to ensure that Mr. Bregard remained with Aerojet Rocketdyne through at least November 30, 2012 and to encourage a successful transition to Mr. Bregard’s retirement. The Retention Agreement provided that Mr. Bregard receive a payment equal to his annual base salary then in effect if he stayed with Aerojet Rocketdyne through at least November 30, 2012, or his termination qualified as an Eligible Early Termination (as defined below).
In the event of an Eligible Early Termination, Mr. Bregard would have been entitled to receive a lump sum payment equal to the base salary that he would have received from but excluding the termination date through and including November 30, 2012 and reimbursement of health insurance premiums payableMs. Drake’s equity awards under the Consolidated Omnibus Reconciliation Act of 1986. Mr. Bregard was entitled2009 Incentive Plan (at target performance, if applicable); (v) Ms. Drake will have the opportunity to continue to participate in the fiscal 2012 short term cash incentive programCompany provided life insurance policy in which she is enrolled before the event that he remaineddate of termination at an amount of 1x Base Salary for a period of twelve (12) months following the date of termination; (vi) provided Ms. Drake timely elects and is eligible for COBRA coverage, the Company shall pay for the premiums associated with Aerojet Rocketdyne through November 30, 2012 or his termination qualified as an Eligible Early Termination, but was not entitledeighteen (18) months of Ms. Drake’s continued participation, without any required contributions from Ms. Drake (but subject to participateall other plan terms, including co-payments and deductibles) in the long-term incentive or equity-based compensation programscertain health-related benefit plans in fiscal 2012 or thereafter. An “Eligible Early Termination” means a termination of Mr. Bregard before November 30, 2012 either (i) at the request or upon the initiation of Aerojet Rocketdyne other than for Cause as defined in the Retention Agreement, (ii) duewhich Ms. Drake is enrolled prior to the death or disability as defined indate of termination; and (vii) outplacement services provided by the Retention AgreementCompany-designated outplacement firm for a period of Mr. Bregard, or (iii) at the request or initiationeighteen (18) months starting no later than ninety (90) days from Ms. Drake’s date of Mr. Bregard in the event that (A) he was no longertermination with a direct report to maximum value of $25,000.
TheGeneral Release Agreement (the “Transition Agreement”) Under the terms of this agreement were metthe Transition Agreement for the term that commenced June 2, 2015 and concluded December 31, 2015 (the “Transition Term”), in exchange for assisting with the transition and a general release of all claims, the Company: (i) paid and will continue to pay Mr. BregardSeymour his regular base salary per bi-weekly pay period, less required withholding and other required deductions, for fifteen (15) pay periods; and (ii) continued Mr. Seymour’s enrollment in the Company’s insurance benefits through December 31, 2015. Mr. Seymour was paid $265,364 on December 13, 2012. On February 12, 2013,not eligible for any incentive pay under the Retention Agreement wasCompany’s Short-term Incentive Plan, vacation accrual or pay, bonus or other form of compensation in relation to the services he performs during the Transition Term.
From July 9,November 22, 2013 through November 30, under the Company’s Long-term Incentive Plan (“2013 Mr. Bregard was contracted as a temporary part-time employee to provide additional transition of his duties and to support the acquisition team through the first stages of integration. Mr. Bregard earned $85,598 in this capacity.
On April 1, 2013, Mr. Bregard began his Required Minimum Distribution (RMD) for his GenCorp pension, and subsequent to his retirement, he began receiving his pension on July 1, 2013. In 2013, his pension compensation totaled $12,956.
44
On June 26, 2013, the Board of Directors approved accelerated vesting of Mr. Bregard’s outstanding unvested restricted stock awards in recognition of his service to the Company. The accelerated vesting included 9,455 shares of service-based restricted stockLTIP”) that were scheduled to vest on November 30,22, 2016 so as to accelerate the vesting to the effective date of the Transition Agreement; and (ii) vested the 63,875 performance-based shares granted under the Company’s 2013 12,174 sharesLTIP on November 22, 2013 on schedule and according to actual performance achieved as determined by the Company’s Board or the Organization & Compensation Committee as a result of service-based restricted stock scheduledMr. Seymour re-executing his agreement in January 2016. Mr. Seymour will forfeit all of his other unvested equity awards, including but not limited to vestgrants made on April 7, 2014 and March 30, 2014,2015, and 12,174 shareswill be treated as retired for the purpose of performance-based restricted stock scheduledany options that already vested on June 1, 2015.
Other
The GenCorpAerojet Rocketdyne Foundation matches all employee and Director gifts to accredited, non-profit colleges, universities, secondary and elementary public or private schools located in the United States. Gifts made are matched dollar for dollar up to $3,000 per calendar year per donor.
As part of an employment offer, the Company paid a hiring bonus of $25,000 to Mr. Cambria on his employment commencement date of September 12, 2011. The bonus was conditioned upon Mr. Cambria’s acceptance of the employment offer and employment with the Company for a period of one year. In the event Mr. Cambria voluntarily terminated his employment with the Company or was terminated for cause within the one-year period, Mr. Cambria agreed to reimburse the Company within 30 days of termination.
The restriction period on this hiring bonus has lapsed.
Accounting Guidance for Stock Compensation
45
Therefore, we reserve the right to design programs that recognize a full range of performance criteria important to our success, even where the compensation paid under such programs may not be deductible.
46
Name and Principal Position | Year | Salary(1) | Bonus | Stock Awards(2) | Options/ SARs Awards(2) | Non-Equity Incentive Plan Compensation(3) | All Other Compensation(4) | Total(5) | ||||||||||||||||||||||||
Executive Officers as of November 30, 2013 |
| |||||||||||||||||||||||||||||||
Scott J. Seymour | 2013 | $ | 626,936 | $ | — | $ | 1,203,229 | (6) | $ | — | $ | 1,082,194 | $ | 14,475 | $ | 2,926,834 | ||||||||||||||||
President and CEO | 2012 | 587,885 | $ | — | 825,002 | — | 1,117,500 | 16,334 | 2,546,721 | |||||||||||||||||||||||
2011 | 550,000 | — | 278,642 | 116,149 | 935,000 | 87,046 | 1,966,837 | |||||||||||||||||||||||||
Kathleen E. Redd | 2013 | 381,028 | — | 955,699 | (7) | — | 259,259 | 11,475 | 1,607,461 | |||||||||||||||||||||||
Vice President, CFO and Assistant Secretary | 2012 | 366,819 | — | 298,450 | — | 262,081 | 11,250 | 938,600 | ||||||||||||||||||||||||
2011 | 347,003 | — | 95,328 | 39,735 | 241,000 | 12,100 | 735,166 | |||||||||||||||||||||||||
Warren M. Boley, Jr.(8) | 2013 | 357,651 | — | 469,774 | (9) | — | 302,493 | 21,004 | 1,150,922 | |||||||||||||||||||||||
President, Aerojet Rocketdyne | 2012 | 127,885 | — | 469,960 | — | 99,750 | 12,075 | 709,670 | ||||||||||||||||||||||||
Christopher C. Cambria(10) | 2013 | 323,117 | — | 222,004 | (11) | — | 217,548 | 15,180 | 777,849 | |||||||||||||||||||||||
Vice President, General Counsel and Secretary | 2012 | 316,558 | — | 186,002 | — | 220,550 | 51,755 | 774,865 | ||||||||||||||||||||||||
2011 | 65,577 | 25,000 | (12) | — | 69,766 | 52,000 | 10,132 | 222,475 | ||||||||||||||||||||||||
John D. Schumacher(13) Vice President, Business Relations | 2013 | 178,846 | 75,000 | 240,017 | (14) | 152,564 | 104,950 | 6,750 | 758,127 | |||||||||||||||||||||||
Former Executive Officers as of November 30, 2013 | ||||||||||||||||||||||||||||||||
Richard W. Bregard | 2013 | 283,805 | 200,000 | (15) | — | — | 110,284 | 11,264 | 605,353 | |||||||||||||||||||||||
Deputy to the President, Aerojet Rocketdyne | 2012 | 263,177 | 265,364 | (15) | — | — | 189,072 | 11,143 | 728,756 | |||||||||||||||||||||||
2011 | 250,712 | 35,000 | 109,749 | — | 174,000 | 10,676 | 580,137 |
Name and Principal Position | Year | Salary(1) | Bonus | Stock Awards(2) | Options/SARs Awards(2) | Non-Equity Incentive Plan Compensation(3) | All Other Compensation(4) | Total | ||||||||||||||||
Executive Officers as of November 30, 2015 | ||||||||||||||||||||||||
Eileen P. Drake(7) | ||||||||||||||||||||||||
CEO and President | 2015 | $ | 477,695 | $ | 200,000 | (5) | $ | 3,916,338 | (6) | $ | 241,662 | $ | 574,587 | $ | 76,585 | $ | 5,486,867 | |||||||
Kathleen E. Redd | 2015 | 414,289 | 200,000 | 418,340 | (6) | 269,603 | 289,512 | 11,925 | 1,603,669 | |||||||||||||||
Vice President, CFO and Assistant Secretary | 2014 | 390,294 | — | 482,731 | — | 242,711 | 11,700 | 1,127,436 | ||||||||||||||||
2013 | 381,028 | — | 955,699 | — | 259,259 | 11,475 | 1,607,461 | |||||||||||||||||
Mark A. Tucker (8) | ||||||||||||||||||||||||
Chief Operating Officer | 2015 | 384,341 | — | 264,614 | (6) | 170,523 | 256,536 | 10,921 | 1,086,935 | |||||||||||||||
John D. Schumacher (9) | 2015 | 322,421 | 105,000 | 243,929 | (6) | 157,199 | 191,237 | 23,532 | 1,043,318 | |||||||||||||||
Vice President, Washington Operations | 2014 | 302,217 | — | 300,015 | — | 172,013 | 15,738 | 789,983 | ||||||||||||||||
2013 | 178,846 | 75,000 | 240,017 | 152,564 | 104,950 | 6,750 | 758,127 | |||||||||||||||||
Christopher C. Cambria | 2015 | 339,619 | — | 286,941 | (6) | 184,925 | 138,969 | 11,664 | 962,118 | |||||||||||||||
Vice President, General Counsel and Secretary | 2014 | 327,285 | — | 326,472 | — | 168,952 | 11,700 | 834,409 | ||||||||||||||||
2013 | 323,117 | — | 222,004 | — | 217,548 | 15,180 | 777,849 | |||||||||||||||||
Former Executive Officers as of November 30, 2015 | ||||||||||||||||||||||||
Scott J. Seymour | 2015 | $ | 744,712 | $ | — | $ | — | $ | 117,116 | $ | — | $ | 14,925 | $ | 876,753 | |||||||||
President and CEO | 2014 | 682,597 | — | 1,440,041 | — | 906,250 | 11,700 | 3,040,588 | ||||||||||||||||
2013 | 626,936 | — | 1,203,229 | — | 1,082,194 | 14,475 | 2,926,834 |
(1) | The amount reported in this column |
(2) | The amount reported in this column |
(3) | The amount reported in this column |
(4) | The amounts reported in this column |
Name | Severance | Company Matching Contribution to 401(k) Plan | Company Matching Contribution to Benefits Restoration Plan- Savings Plan | Matching Gift by the GenCorp Foundation | Perquisites And Other Personal Benefits(A) | Total | ||||||||||||||||||
Executive Officers as of November 30, 2013 | ||||||||||||||||||||||||
Scott J. Seymour | $ | — | $ | 11,475 | $ | — | $ | 3,000 | $ | — | $ | 14,475 | ||||||||||||
Kathleen E. Redd | — | 11,475 | — | — | — | 11,475 | ||||||||||||||||||
Warren M. Boley, Jr. | — | 12,687 | — | — | 8,317 | 21,004 | ||||||||||||||||||
Christopher C. Cambria | — | 11,475 | — | — | 3,705 | 15,180 | ||||||||||||||||||
John D. Schumacher | — | 6,750 | — | — | — | 6,750 | ||||||||||||||||||
Former Executive Officers as of November 30, 2013 |
| |||||||||||||||||||||||
Richard W. Bregard | — | 11,264 | — | — | — | 11,264 |
Name | Company Matching Contribution to 401(k) Plan | Company Matching Contribution to Benefits Restoration Plan- Savings Plan | Matching Gift by the Aerojet Rocketdyne Foundation | Perquisites And Other Personal Benefits(A) | Total | ||||||||||
Executive Officers as of November 30, 2015 | |||||||||||||||
Eileen P. Drake | $ | 11,123 | $ | — | $ | — | $ | 65,462 | $ | 76,585 | |||||
Kathleen E. Redd | 11,925 | — | — | — | 11,925 | ||||||||||
Mark A. Tucker | 10,921 | — | — | — | 10,921 | ||||||||||
John D. Schumacher | 11,925 | 9,007 | 2,600 | — | 23,532 | ||||||||||
Christopher C. Cambria | 11,664 | — | — | — | 11,664 | ||||||||||
Former Executive Officers as of November 30, 2015 | |||||||||||||||
Scott J. Seymour | 11,925 | — | 3,000 | — | 14,925 |
|
47
(5) |
Ms. |
Name | Year | Change in Pension Value | ||||||
Kathleen E. Redd | 2011 | $ | 26,199 | |||||
Richard W. Bregard | 2011 | 311 |
Because the plans are frozen, these amounts represent changes in actuarial assumptions, primarily the decrease in the discount rate and a change in mortality assumption used to measure the present value of benefits accrued up until the freeze date, which is the same for all plan participants. There is no further accrual of pension benefits for service. Information regarding these pension plans is set forth in further detail under the section entitled2013Pension Benefits on page 53.
(6) |
|
Name | Grant Date Fair Value of Performance-Based and Service-Based Grants at 100% Target Vesting | Grant Date Fair Value of Performance-Based Grant at 200% Maximum Vesting | |||
Eileen P. Drake Service-Based Grants | 1,627,359 | N/A | |||
Eileen P. Drake Performance Grant A | 374,979 | $ | 749,957 | ||
Eileen P. Drake Performance Grant B | 1,914,000 | N/A | |||
Eileen P. Drake Total | 3,916,338 | N/A | |||
Kathleen E. Redd | 418,340 | 836,682 | |||
Mark A. Tucker | 264,614 | 529,227 | |||
John D. Schumacher | 243,929 | 487,857 | |||
Christopher C. Cambria | 286,941 | 573,881 |
(7) | Ms. |
|
(8) | Mr. Tucker was appointed COO on |
(9) |
|
|
|
|
Mr. Schumacher commenced his employment with the Company on April 29, 2013. |
|
|
48
Name | Grant Date | Estimated Possible Non-Equity Incentive Awards ($)(1) | Estimated Future Payouts Under Equity Incentive Plan Awards(#) | Other Units(#) | All Other Options(#) | Exercise ($/Sh) | Grant Date Awards($) | |||||||||||||||||||||||||||||||||||||
Threshold (2) | Target | Maximum | Threshold | Target | Maximum | |||||||||||||||||||||||||||||||||||||||
Executive Officers as of |
| |||||||||||||||||||||||||||||||||||||||||||
Scott J. Seymour | ||||||||||||||||||||||||||||||||||||||||||||
Annual Incentive Award | $ | — | $ | 800,025 | $ | 1,480,046 | ||||||||||||||||||||||||||||||||||||||
Restricted Stock | 11-22-13 | 17,033 | $ | 300,803 | ||||||||||||||||||||||||||||||||||||||||
Restricted Stock | 11-22-13 | 25,550 | 51,100 | 63,875 | 902,426 | (3) | ||||||||||||||||||||||||||||||||||||||
Kathleen E. Redd | ||||||||||||||||||||||||||||||||||||||||||||
Annual Incentive Award | — | 193,088 | 357,212 | |||||||||||||||||||||||||||||||||||||||||
Restricted Stock | 11-22-13 | 6,451 | 113,925 | |||||||||||||||||||||||||||||||||||||||||
Restricted Stock | 11-22-13 | 9,677 | 19,353 | 24,191 | 341,774 | (3) | ||||||||||||||||||||||||||||||||||||||
Restricted Stock | 05-09-13 | 36,523 | 500,000 | |||||||||||||||||||||||||||||||||||||||||
Warren M. Boley, Jr. | ||||||||||||||||||||||||||||||||||||||||||||
Annual Incentive Award | — | 216,825 | 401,126 | |||||||||||||||||||||||||||||||||||||||||
Restricted Stock | 11-22-13 | 6,650 | 117,439 | |||||||||||||||||||||||||||||||||||||||||
Restricted Stock | 11-22-13 | 9,976 | 19,951 | 24,939 | 352,335 | (3) | ||||||||||||||||||||||||||||||||||||||
Christopher C. Cambria | ||||||||||||||||||||||||||||||||||||||||||||
Annual Incentive Award | — | 163,239 | 301,991 | |||||||||||||||||||||||||||||||||||||||||
Restricted Stock | 11-22-13 | 3,143 | 55,505 | |||||||||||||||||||||||||||||||||||||||||
Restricted Stock | 11-22-13 | 4,714 | 9,428 | 11,785 | 166,499 | (3) | ||||||||||||||||||||||||||||||||||||||
John D. Schumacher | ||||||||||||||||||||||||||||||||||||||||||||
Annual Incentive Award | — | 78,750 | 145,688 | |||||||||||||||||||||||||||||||||||||||||
Restricted Stock | 11-22-13 | 3,398 | 60,009 | |||||||||||||||||||||||||||||||||||||||||
Restricted Stock | 11-22-13 | 5,097 | 10,193 | 12,741 | 180,008 | (3) | ||||||||||||||||||||||||||||||||||||||
SARs | 04-29-13 | 20,000 | 13.01 | 152,564 | (4) | |||||||||||||||||||||||||||||||||||||||
Former Executive Officers as |
| |||||||||||||||||||||||||||||||||||||||||||
Richard W. Bregard | ||||||||||||||||||||||||||||||||||||||||||||
Annual Incentive Award | — | 80,494 | 148,914 |
Name | Grant Date | Estimated Possible Payouts Under Non-Equity Incentive Plan Awards ($) (1) | Estimated Future Payouts Under Equity Incentive Plan Awards (#) | Other Stock Awards: Number of Shares of Stock or Units (#) | All Other Option Awards: Number of Securities Underlying Options (#) | Exercise or Base Price of Options/SARs ($/Sh) | Grant Date Fair Value of Stock and Option/SARs Awards ($) | ||||||||||||||||||||
Threshold (2) | Target | Maximum | Threshold | Target | Maximum | ||||||||||||||||||||||
Executive Officers as of November 30, 2015 | |||||||||||||||||||||||||||
Eileen P. Drake | |||||||||||||||||||||||||||
Annual Incentive Award | $ | — | $ | 537,500 | $ | 1,007,813 | |||||||||||||||||||||
Restricted Stock | 03/02/2015 | 25,667 | $ | 499,993 | |||||||||||||||||||||||
Restricted Stock | 03/02/2015 | 57,873 | 1,127,366 | ||||||||||||||||||||||||
Restricted Stock | 03/30/2015 | 8,131 | 16,261 | 32,522 | 374,979 | (3) | |||||||||||||||||||||
Restricted Stock | 11/18/2015 | 120,000 | 1,914,000 | (5) | |||||||||||||||||||||||
Stock Options | 03/30/2015 | 17,848 | $ | 23.06 | 241,662 | ||||||||||||||||||||||
Kathleen E. Redd | |||||||||||||||||||||||||||
Annual Incentive Award | — | 270,825 | 507,797 | ||||||||||||||||||||||||
Restricted Stock | 03/30/2015 | 8,469 | 16,938 | 33,876 | 390,590 | (3) | |||||||||||||||||||||
Restricted Stock | 04/17/2015 | 678 | 1,355 | 2,710 | 27,750 | (4) | |||||||||||||||||||||
Stock Options | 03/30/2015 | 18,591 | 23.06 | 251,722 | |||||||||||||||||||||||
Stock Options | 04/17/2015 | 1,487 | 20.48 | 17,881 | |||||||||||||||||||||||
Mark A. Tucker | |||||||||||||||||||||||||||
Annual Incentive Award | — | 252,000 | 472,501 | ||||||||||||||||||||||||
Restricted Stock | 03/30/2015 | 5,738 | 11,475 | 22,950 | 264,614 | (3) | |||||||||||||||||||||
Stock Options | 03/30/2015 | 12,594 | 23.06 | 170,523 | |||||||||||||||||||||||
John D. Schumacher | |||||||||||||||||||||||||||
Annual Incentive Award | — | 178,893 | 335,424 | ||||||||||||||||||||||||
Restricted Stock | 03/30/2015 | 5,289 | 10,578 | 21,156 | 243,929 | (3) | |||||||||||||||||||||
Stock Options | 03/30/2015 | 11,610 | 23.06 | 157,199 | |||||||||||||||||||||||
Christopher C. Cambria | |||||||||||||||||||||||||||
Annual Incentive Award | — | 193,280 | 362,401 | ||||||||||||||||||||||||
Restricted Stock | 03/30/2015 | 5,715 | 11,429 | 22,858 | 263,553 | (3) | |||||||||||||||||||||
Restricted Stock | 04/17/2015 | 571 | 1,142 | 2,284 | 23,388 | (4) | |||||||||||||||||||||
Stock Options | 03/30/2015 | 12,544 | 23.06 | 169,846 | |||||||||||||||||||||||
Stock Options | 04/17/2015 | 1,254 | 20.48 | 15,079 | |||||||||||||||||||||||
Former Executive Officers as of November 30, 2015 | |||||||||||||||||||||||||||
Scott J. Seymour | |||||||||||||||||||||||||||
Stock options Modification | 01/06/2010 | 7,135 | (6) | ||||||||||||||||||||||||
Stock options Modification | 11/30/2010 | 762 | (6) | ||||||||||||||||||||||||
Stock options Modification | 03/30/2011 | 11,494 | (6) | ||||||||||||||||||||||||
Stock options Modification | 02/05/2014 | 97,725 | (6) |
(1) | Reflects the possible payout amounts of non-equity incentive plan awards that could have been earned in fiscal |
(2) | If |
(3) | Vesting of this performance-based restricted stock grant is based on financial performance for fiscal |
(4) | Vesting of this performance-based restricted stock grant is based on financial performance for fiscal 2017. The grant date fair value at the maximum of 200% vesting would be $55,501 for Ms. Redd and $46,776 for Mr. Cambria. |
(5) | Vesting of this |
49
(6) | These stock option grants were modified pursuant to the Transition Agreement wherein Mr. Seymour has retired. Therefore his vested stock options remain exercisable until the end of their ten year life. |
Name | Option/SARs Awards | Stock Awards | ||||||||||||||||||||||||||||||||||
Number of Securities Underlying Unexercised Options/SARs (#) Exercisable | Number of Securities Underlying Unexercised Options/SARs (#) Unexercisable | Equity Plan Awards: Number of Securities Underlying Unexercised Unearned Option/SARs (#) | Option/ SARs Exercise Price ($) | Option/ SARs Expiration Year | Service-Based Equity Awards | Equity Incentive Plan Awards | ||||||||||||||||||||||||||||||
Number of (#) | Market Value ($)(1) | Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) | Market or Payout Value of Unearned Shares, or Other Rights That Have Not Vested ($)(1) | |||||||||||||||||||||||||||||||||
Executive Officers as of November 30, 2013 |
| |||||||||||||||||||||||||||||||||||
Scott J. Seymour | ||||||||||||||||||||||||||||||||||||
Restricted Stock | 17,033 | (2) | $ | 312,385 | ||||||||||||||||||||||||||||||||
63,875 | (3) | $ | 1,171,468 | |||||||||||||||||||||||||||||||||
30,242 | (4) | 554,638 | ||||||||||||||||||||||||||||||||||
113,407 | (5) | 2,079,884 | ||||||||||||||||||||||||||||||||||
115,907 | (6) | 2,125,734 | ||||||||||||||||||||||||||||||||||
Stock Options | — | — | 82,026 | (6) | $ | 6.01 | 2018 | |||||||||||||||||||||||||||||
188,697 | — | — | 4.91 | 2017 | ||||||||||||||||||||||||||||||||
100,000 | — | — | 7.14 | 2017 | ||||||||||||||||||||||||||||||||
Kathleen E. Redd | ||||||||||||||||||||||||||||||||||||
Restricted Stock | 6,451 | (2) | 118,311 | |||||||||||||||||||||||||||||||||
24,191 | (3) | 443,663 | ||||||||||||||||||||||||||||||||||
36,523 | (7) | 669,832 | ||||||||||||||||||||||||||||||||||
10,940 | (4) | 200,640 | ||||||||||||||||||||||||||||||||||
41,026 | (5) | 752,417 | ||||||||||||||||||||||||||||||||||
39,653 | (6) | 727,236 | ||||||||||||||||||||||||||||||||||
SARs | 20,000 | — | — | 4.25 | 2018 | |||||||||||||||||||||||||||||||
1,500 | — | — | 13.75 | 2017 | ||||||||||||||||||||||||||||||||
2,560 | — | — | 13.19 | 2016 | ||||||||||||||||||||||||||||||||
2,500 | — | — | 18.71 | 2015 | ||||||||||||||||||||||||||||||||
Stock Options | 1,750 | 6.00 | 2019 | |||||||||||||||||||||||||||||||||
— | — | 28,061 | (6) | 6.01 | 2018 | |||||||||||||||||||||||||||||||
64,555 | — | 4.91 | 2017 | |||||||||||||||||||||||||||||||||
35,000 | — | 4.54 | 2019 | |||||||||||||||||||||||||||||||||
Warren M. Boley, Jr. | ||||||||||||||||||||||||||||||||||||
Restricted Stock | 6,650 | (2) | 121,961 | |||||||||||||||||||||||||||||||||
24,939 | (3) | 457,381 | ||||||||||||||||||||||||||||||||||
50,000 | (8) | 917,000 | ||||||||||||||||||||||||||||||||||
10,000 | (5) | 183,400 | ||||||||||||||||||||||||||||||||||
10,000 | (6) | 183,400 | ||||||||||||||||||||||||||||||||||
Christopher C. Cambria | ||||||||||||||||||||||||||||||||||||
Restricted Stock | 3,143 | (2) | 57,643 | |||||||||||||||||||||||||||||||||
11,785 | (3) | 216,137 | ||||||||||||||||||||||||||||||||||
6,818 | (4) | 125,042 | ||||||||||||||||||||||||||||||||||
25,568 | (5) | 468,917 | ||||||||||||||||||||||||||||||||||
SARs | 13,333 | 6,667 | (9) | 4.00 | 2018 | |||||||||||||||||||||||||||||||
John D. Schumacher | ||||||||||||||||||||||||||||||||||||
Restricted Stock | 3,398 | (2) | 62,319 | |||||||||||||||||||||||||||||||||
12,741 | (3) | 233,670 | ||||||||||||||||||||||||||||||||||
SARs | 20,000 | (10) | 13.01 | 2020 | ||||||||||||||||||||||||||||||||
Former Executive Officers as of November 30, 2013 |
| |||||||||||||||||||||||||||||||||||
Richard W. Bregard | ||||||||||||||||||||||||||||||||||||
SARs | 1,500 | 13.75 | 2017 | |||||||||||||||||||||||||||||||||
4,256 | 13.19 | 2016 | ||||||||||||||||||||||||||||||||||
Stock Options | 10,000 | 4.54 | 2019 | |||||||||||||||||||||||||||||||||
500 | 6.00 | 2019 |
50
2015.
Name | Option/SARs Awards | Stock Awards | ||||||||||||||||||||||
Number of Securities Underlying Unexercised Options/SARs (#) Exercisable | Number of Securities Underlying Unexercised Options/SARs (#) Unexercisable | Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Option/SARs (#) | Option/ SARs Exercise Price ($) | Option/ SARs Expiration Year | Service-Based Equity Awards | Equity Incentive Plan Awards | ||||||||||||||||||
Number of Shares or Units of Stock That Have Not Vested (#) | Market Value of Shares or Units of Stock That Have Not Vested ($)(1) | Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) | Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($)(1) | |||||||||||||||||||||
Executive Officers as of November 30, 2015 | ||||||||||||||||||||||||
Eileen P. Drake | ||||||||||||||||||||||||
Restricted Stock | — | $ | — | 120,000 | (2) | $ | 2,104,800 | |||||||||||||||||
— | — | 16,261 | (3) | 285,218 | ||||||||||||||||||||
57,873 | (4) | 1,015,092 | — | — | ||||||||||||||||||||
25,667 | (5) | 450,199 | — | — | ||||||||||||||||||||
Stock Options | — | 17,848 | (12 | ) | — | $ | 23.06 | 2022 | ||||||||||||||||
Kathleen E. Redd | ||||||||||||||||||||||||
Restricted Stock | — | — | 1,355 | (3) | 23,767 | |||||||||||||||||||
— | — | 16,938 | (3) | 297,093 | ||||||||||||||||||||
6,988 | (6) | 122,570 | — | — | ||||||||||||||||||||
— | — | 20,964 | (7) | 367,709 | ||||||||||||||||||||
6,451 | (8) | 113,151 | — | — | ||||||||||||||||||||
— | — | 12,096 | (9) | 212,164 | ||||||||||||||||||||
36,523 | (10) | 640,613 | — | — | ||||||||||||||||||||
SARs | 20,000 | — | — | 4.25 | 2018 | |||||||||||||||||||
Stock Options | — | 1,487 | (11 | ) | — | 20.48 | 2022 | |||||||||||||||||
— | 18,591 | (12 | ) | — | 23.06 | 2022 | ||||||||||||||||||
5,612 | — | — | 16.59 | 2021 | ||||||||||||||||||||
1,750 | — | — | 6.00 | 2019 | ||||||||||||||||||||
22,449 | — | — | 6.01 | 2018 | ||||||||||||||||||||
64,555 | — | — | 4.91 | 2017 | ||||||||||||||||||||
35,000 | — | — | 4.54 | 2019 | ||||||||||||||||||||
Mark A. Tucker | ||||||||||||||||||||||||
Restricted Stock | — | — | 11,475 | (3) | 201,272 | |||||||||||||||||||
4,777 | (6) | 83,789 | — | — | ||||||||||||||||||||
— | — | 14,331 | (7) | 251,366 | ||||||||||||||||||||
5,833 | (14) | 102,311 | — | — | ||||||||||||||||||||
Stock Options | — | 12,594 | (12 | ) | — | 23.06 | 2022 | |||||||||||||||||
John D. Schumacher | ||||||||||||||||||||||||
Restricted Stock | — | — | 10,578 | (3) | 185,538 | |||||||||||||||||||
4,343 | (6) | 76,176 | — | — | ||||||||||||||||||||
— | — | 13,029 | (7) | 228,529 | ||||||||||||||||||||
3,398 | (8) | 59,601 | — | — | ||||||||||||||||||||
— | — | 6,371 | (9) | 111,747 | ||||||||||||||||||||
SARs | 13,333 | 6,667 | (13) | — | 13.01 | 2020 | ||||||||||||||||||
Stock Options | — | 11,610 | (12) | — | 23.06 | 2022 | ||||||||||||||||||
Christopher C. Cambria | ||||||||||||||||||||||||
Restricted Stock | — | — | 1,142 | (3) | 20,031 | |||||||||||||||||||
— | — | 11,429 | (3) | 200,465 | ||||||||||||||||||||
4,726 | (6) | 82,894 | — | — | ||||||||||||||||||||
— | — | 14,178 | (7) | 248,682 | ||||||||||||||||||||
3,143 | (8) | 55,128 | — | — | ||||||||||||||||||||
— | — | 5,893 | (9) | 103,363 | ||||||||||||||||||||
SARs | 20,000 | — | — | 4.00 | 2018 | |||||||||||||||||||
Stock Options | — | 12,544 | (12 | ) | — | 23.06 | 2022 | |||||||||||||||||
— | 1,254 | (11 | ) | — | 20.48 | 2022 | ||||||||||||||||||
Former Executive Officers as of November 30, 2015 | ||||||||||||||||||||||||
Scott J. Seymour | ||||||||||||||||||||||||
Restricted Stock | — | $ | — | 31,938 | (9) | $ | 560,193 | |||||||||||||||||
Stock Options | 16,405 | — | — | $ | 16.59 | 2021 | ||||||||||||||||||
65,621 | — | — | 6.01 | 2018 | ||||||||||||||||||||
100,000 | — | — | 7.14 | 2017 |
(1) | The market value was calculated by multiplying the number of shares by the closing market price of the Company’s Common Stock of |
(2) |
|
(3) | The vesting date for these performance-based restricted stock awards is on or about January 31, |
(4) | This service-based restricted stock award vests in 50% increments on January 3, 2016 and January 3, 2017. |
(5) | The vesting date for this service-based restricted stock award is March 2, 2018. |
(6) | The vesting date for these service-based restricted stock awards is |
(7) | The vesting date for these performance-based restricted stock awards is on or about January 31, |
(8) | The vesting date for these service-based restricted stock awards is November 22, 2016. |
(9) | The vesting date for these performance-based |
(10) | The vesting date for this service-based restricted stock award for Ms. Redd is |
| |
(11) | These service-based |
|
(12) | These service-based stock options vest in one-third increments on March 30th each year, becoming fully vested in 2018. |
(13) | Mr. Schumacher’s unvested SARs vest in one-third increments on April |
2013
(14) | Mr. Tucker’s service-based restricted stock award vests in one-third increments on October 7th each year, becoming fully vested in 2016. |
Name | Option/SARs Awards | Stock Awards | ||||||||||||||
Number of (#) | Value ($)(1) | Number of (#)(2) | Value Realized on Vesting ($)(3) | |||||||||||||
Executive Officers as of November 30, 2013 |
| |||||||||||||||
Scott J. Seymour | — | $ | — | 40,000 | $ | 387,200 | ||||||||||
Kathleen E. Redd | — | — | — | — | ||||||||||||
Warren M. Boley, Jr. | — | — | — | — | ||||||||||||
Christopher C. Cambria | — | — | — | — | ||||||||||||
John D. Schumacher | — | — | — | — | ||||||||||||
Former Executive Officers as of November 30, 2013 |
| |||||||||||||||
Richard W. Bregard | — | $ | — | 40,031 | (4) | $ | 615,529 |
Name | Option/SARs Awards | Stock Awards | |||||||||
Number of Shares Acquired on Exercise (#) | Value Realized on Exercise ($)(1) | Number of Shares Acquired on Vesting (#)(2) | Value Realized on Vesting ($)(3) | ||||||||
Executive Officers as of November 30, 2015 | |||||||||||
Eileen P. Drake | — | $ | — | — | $ | — | |||||
Kathleen E. Redd | 6,560 | 34,888 | 51,966 | 964,597 | |||||||
Mark A. Tucker | — | — | 19,875 | 344,717 | |||||||
John D. Schumacher | — | — | — | — | |||||||
Christopher C. Cambria | — | — | 32,386 | 601,152 | |||||||
Former Executive Officers as of November 30, 2015 | |||||||||||
Scott J. Seymour | 188,697 | $ | 3,547,504 | 160,682 | $ | 3,019,523 |
(1) | The value realized on vesting represents the difference between the closing market price of the Company’s Common Stock on the exercise date and the exercise price multiplied by the number of shares underlying each option exercised. |
51
(2) | The amounts reported in this column reflect restricted stock awards that vested during fiscal |
(3) | The value realized on vesting is calculated by multiplying the number of shares vested by the closing market price of the Company’s Common Stock on the vesting date. |
|
52
Name | Plan Name | Number of Years Credited Service (#)(1) | Present Value of Accumulated Benefit ($)(2) | Payments During Fiscal 2013 ($) | ||||
Executive Officers as of November 30, 2013 | ||||||||
Kathleen E. Redd | Qualified Pension Plan | 6.50 | $ 238,158 | $ — | ||||
2009 Pension BRP Plan | 6.50 | 62,815 | — | |||||
John D. Schumacher(3) | Qualified Pension Plan | 2.58 | 124,261 | — | ||||
2009 Pension BRP Plan | 2.58 | 7,535 | — | |||||
Former Executive Officers as of November 30, 2013 | ||||||||
Richard W. Bregard | Qualified Pension Plan | 4.50 | 247,131 | 12,956 | ||||
2009 Pension BRP Plan | 4.50 | 24,749 | — |
Name | Plan Name | Number of Years Credited Service (#)(1) | Present Value of Accumulated Benefit ($)(2) | Payments During Fiscal 2015 ($) | |||
Kathleen E. Redd | Qualified Pension Plan | 6.50 | $ | 305,831 | $ — | ||
2009 Pension BRP Plan | 6.50 | 81,458 | — | ||||
John D. Schumacher(3) | Qualified Pension Plan | 2.58 | 149,008 | — | |||
2009 Pension BRP Plan | 2.58 | 9,207 | — |
(1) | Credited service under the Qualified Pension Plan and the 2009 Pension BRP Plan is determined for all participants in accordance with such plans and is through February 1, 2009, the freeze date for these plans in which the |
53
Company discontinued future benefit accruals for all |
(2) | The amounts reported in this column were calculated based on the accrued benefit as of February 1, 2009, the date benefit accruals were frozen for |
(3) | Mr. Schumacher’s pension benefits were earned from his previous employment with the Company beginning June 12, 2006 through the pension freeze date for non-collective |
2013
54
Name | Executive Contributions in fiscal 2013 ($)(1) | Company Contributions in ($)(2) | Aggregate Earnings in fiscal 2013 ($)(3) | Aggregate Withdrawals/ Distributions ($) | Aggregate Balance at November 30, 2013 ($) | |||||||||||||||
Executive Officers as of November 30, 2013 |
| |||||||||||||||||||
Scott J. Seymour | $ | — | $ | — | $ | 5,625 | $ | — | $ | 518,807 | ||||||||||
Kathleen E. Redd | — | — | 9,606 | — | 55,592 | |||||||||||||||
Warren M. Boley, Jr. | — | — | — | — | — | |||||||||||||||
Christopher C. Cambria | — | — | — | — | — | |||||||||||||||
John D. Schumacher | — | — | — | — | — | |||||||||||||||
Former Executive Officers as of November 30, 2013 |
| |||||||||||||||||||
Richard W. Bregard | — | — | — | — | — |
Name | Executive Contributions in fiscal 2015 ($)(1) | Company Contributions in fiscal 2015 ($)(2) | Aggregate Earnings in fiscal 2015 ($)(3) | Aggregate Withdrawals/ Distributions ($) | Aggregate Balance at November 30, 2015 ($) | ||||||||||
Executive Officers as of November 30, 2015 | |||||||||||||||
Eileen P. Drake | $ | — | $ | — | $ | — | $ | — | $ | — | |||||
Kathleen E. Redd | — | — | (2,664 | ) | — | 59,996 | |||||||||
Mark A. Tucker | — | — | — | — | — | ||||||||||
John D. Schumacher | 46,888 | 9,007 | (211 | ) | — | 55,684 | |||||||||
Christopher C. Cambria | — | — | — | — | — | ||||||||||
Former Executive Officers as of November 30, 2015 | |||||||||||||||
Scott J. Seymour (4) | $ | — | $ | — | $ | 7,145 | $ | — | $ | 531,890 |
(1) | The amounts reported in this column reflect compensation earned in fiscal |
(2) | The amounts reported in this column reflect company matches under the 2009 401(k) BRP Plan earned in fiscal |
(3) | The amounts reported in this column reflect interest credited on account holdings and the change in value of other investment holdings. |
(4) | Mr. Seymour’s balance will be distributed to him in July 2016. |
On February 6, 2012, the Company’s subsidiary, Aerojet Rocketdyne, entered into a Retention Agreement with Mr. Bregard to ensure that Mr. Bregard remained with Aerojet Rocketdyne through at least November 30, 2012 and to encourage a successful transition to Mr. Bregard’s retirement, as described under the section entitledSeverance Agreement, Employment Agreement and Plan Provisions — Richard W. Bregard Retention Agreement on page 44.
35.
55
Eileen P. Drake
Also under this employment agreementelection at any time for a terminationreasons other than Cause, or by Ms. Drake for Good Reason (and not for Death or Disability or in connection with a change in controlcontrol), then Ms. Drake shall be entitled to receive the Accrued Obligations and severance payments and benefits equal to the following: (i) twelve (12) months of her base salary paid in installments; (ii) other than the Promotion Award which shall not vest, to the extent unvested at the time of Ms. Drake’s termination of employment, immediate full vesting of all of Ms. Drake’s equity awards under the 2009 Incentive Plan (at target performance, if applicable); (iii) Ms. Drake will have the opportunity to continue to participate in the Company provided life insurance policy in which Mr. Seymour’sshe is enrolled before the date of termination at an amount of 1x Base Salary for a period of twelve (12) months following the date of termination; (iv) provided Ms. Drake timely elects and is eligible for COBRA coverage, the Company shall pay for the premiums associated with eighteen (18) months of Ms. Drake’s continued participation, without any required contributions from Ms. Drake (but subject to all other plan terms, including co-payments and deductibles) in the Benefit Plans in which Executive is enrolled prior to the date of termination; and (v) outplacement services provided by the Company-designated outplacement firm for a period of eighteen (18) months starting no later than ninety (90) days from the date of termination with a maximum value of $25,000.
termination at an amount of 1x Base Salary for a period of twelve (12) months following the date of termination; (vi) provided Ms. Drake timely elects and is eligible for COBRA coverage, the Company shall pay for the premiums associated with eighteen (18) months of Ms. Drake’s continued participation, without any required contributions from Ms. Drake (but subject to all other plan terms, including co-payments and deductibles) in certain health-related benefit plans in which Ms. Drake is enrolled prior to the date of termination; and (vii) outplacement services provided by the Company-designated outplacement firm for a period of eighteen (18) months starting no later than ninety (90) days from Ms. Drake’s date of termination with a maximum value of $25,000.
or contractual relationship or accept any other employment; or (ii) provide any information regarding any employee or consultant of the Company or any of its parent, subsidiary, or affiliated entities, and any predecessor thereto, to any person, including, but not limited to, recruiters and prospective employers. In addition, for the Transition Term, Mr. Seymour will not compete with the business of the Company or any of its parent, subsidiary, or affiliated entities, directly or indirectly, including, without limitation, managing, being employed by, controlling, or operating any competing business.
56
| ||||
| ||||
| ||||
| ||||
| ||||
| ||||
|
As of November 30, 2013, there are no other scenarios other than what is discussed in this section in which a Named Executive Officer would get benefits above and beyond normal employee policy.
Name | Cash Severance | ||
Eileen P. Drake without Cause | $ | 736,822 | |
Eileen P. Drake Death or Disability | 729,038 | ||
Eileen P. Drake with Change in Control | 1,624,322 | ||
Kathleen E. Redd | — | ||
Christopher C. Cambria | — | ||
John D. Schumacher | — | ||
Mark A. Tucker | — |
Beneficial Owner | Amount and Nature of Beneficial Ownership | Percent of Class | ||||
GAMCO Investors, Inc. One Corporate Center Rye, NY 10580 | 9,243,916 | (1) | 14.3 | % | ||
BlackRock, Inc. 40 East 52nd Street New York, NY 10022 | 7,050,694 | (2) | 10.9 | % | ||
BlueMountain Capital Management, LLC 280 Park Avenue 12th Floor New York, NY 10017 | 4,776,982 | (3) | 7.4 | % | ||
FMR LLC 245 Summer Street Boston, MA 02210 | 4,404,701 | (4) | 6.8 | % | ||
NewSouth Capital Management, Inc. 999 S. Shady Grove Road Suite 501 Memphis, TN 38120 | 4,171,740 | (5) | 6.5 | % | ||
Steel Partners Holdings L.P. 590 Madison Avenue 32nd Floor New York, NY 10022 | 4,180,997 | (6) | 6.5 | % | ||
Victory Capital Management, Inc. 4900 Tiedeman Rd 4th Floor Brooklyn, OH 44144 | 3,500,633 | (7) | 5.4 | % |
| ||||
| ||||
| ||||
| ||||
| ||||
|
57
(1) | Includes shares beneficially owned by Mario J. Gabelli and various affiliated entities, including Gabelli Funds, LLC, GAMCO Asset Management Inc., Teton Advisors, Inc., Gabelli Securities, Inc., GGCP, Inc., and GAMCO Investors, Inc. Gabelli Funds, LLC reported sole voting power and sole dispositive power with respect to |
(2) | BlackRock, Inc. reported sole voting power with respect to |
| |
(3) | BlueMountain Capital Management, LLC |
| |
(4) | FMR LLC reported sole voting power with respect to 119,769 shares and sole dispositive power with respect to the |
(5) | NewSouth Capital Management, Inc. reported sole voting power with respect to 3,425,945 shares and sole dispositive power with respect to the 4,171,740 shares. The foregoing information is according to an Amendment No. 2 to a Schedule 13G dated December 31, 2015 and filed with the SEC on February 12, 2016. |
(6) | Consists of shares owned directly by SPH Group Holdings LLC (“SPHG Holdings”). Steel Partners Holdings L.P. (“Steel Holdings”) owns 99% of the membership interests of SPH Group LLC (“SPHG”). SPHG is the sole member of SPHG Holdings. Steel Partners Holdings GP Inc. (“Steel Partners GP”) is the general partner of Steel Holdings, the managing member of SPHG and the manager of SPHG Holdings. By virtue of these relationships, each of Steel Holdings, SPHG and Steel Holdings GP may be deemed to beneficially own the shares owned directly by SPHG Holdings. Each of the foregoing may be deemed to have shared voting and dispositive power with respect to such shares. All of the foregoing information is according to Amendment No. 22 to a Schedule 13D dated October 28, 2013 and filed with the SEC on October 28, 2013. |
| |
(7) | Victory Capital Management |
|
58
2015.
APPROVAL OF THE REINCORPORATION OF THE COMPANY FROM
THE STATE OF OHIO TO THE STATE OF DELAWARE
In this section of the Proxy Statement, we sometimes refer to the Company as an Ohio corporation before reincorporation as “GenCorp (Ohio)” and the Company as a Delaware corporation after the Reincorporation as “GenCorp (Delaware).”
The Board has unanimously approved and recommends to our shareholders this proposal to change the Company’s state of incorporation from Ohio to Delaware. If our shareholders approve this proposal, we will accomplish the Reincorporation by domesticating in Delaware as provided in the OGCL and converting to a Delaware corporation as provided in the DGCL.
Summary
Assuming that shareholder approval of this proposal is obtained and the Reincorporation becomes effective:
the affairs of the Company will cease to be governed by Ohio corporation laws, the affairs of the Company will become subject to Delaware corporation laws, and the Company’s existing Articles of Incorporation and existing Code of Regulations will be replaced by a new certificate of incorporation and new bylaws, as more fully described below;
GenCorp (Delaware) will (i) be deemed to be the same entity as GenCorp (Ohio) for all purposes under the laws of Delaware, (ii) continue to have all of the rights, privileges and powers of GenCorp (Ohio), except for such changes that result from being subject to Delaware law and becoming subject to the Delaware certificate of incorporation and Delaware bylaws, (iii) continue to possess all of the properties of and debts owed to GenCorp (Ohio) and (iv) continue to have all of the debts, liabilities and obligations of GenCorp (Ohio);
each outstanding share of GenCorp (Ohio) Common Stock will continue as an outstanding share of GenCorp (Delaware) common stock, and each outstanding option, warrant or other right to acquire shares of GenCorp (Ohio) Common Stock will continue as an outstanding option, warrant or other right to acquire shares of GenCorp (Delaware) common stock;
each employee benefit plan, incentive compensation plan or other similar plan of GenCorp (Ohio) will continue as an employee benefit plan, incentive compensation plan or other similar plan of GenCorp (Delaware); and
each director or officer of GenCorp (Ohio) will continue to hold his or her respective office with GenCorp (Delaware).
General Information
The Board has adopted a plan of conversion substantially in the form attached as Appendix A to this Proxy Statement (the “Plan of Conversion”) to accomplish the Reincorporation. This proposal will require the approval of with the affirmative vote of holders of two-thirds of the outstanding shares of the Company. Those shares present in person or represented by proxy, representing common stock outstanding at the close of business on the record date, will be entitled to vote on the proposal. Assuming that shareholder approval of this proposal is obtained, the Company intends to file with the Ohio Secretary of State a certificate of conversion (the “Ohio Certificate of Conversion”) and intends to file with the Delaware Secretary of State (i) a certificate of conversion (the “Delaware Certificate of Conversion”) and (ii) a certificate of
59
incorporation, which will govern the Company as a Delaware corporation, substantially in the form attached as Exhibit A to the Plan of Conversion (the “Delaware Certificate of Incorporation”). In addition, assuming that shareholder approval of this proposal is obtained and the Ohio Certificate of Conversion, Delaware Certificate of Conversion and Delaware Certificate of Incorporation are filed, the bylaws substantially in the form of Exhibit B to the Plan of Conversion will be the bylaws for GenCorp (Delaware) (the “Delaware Bylaws”), and the Company will enter into a new indemnification agreement with each director and executive officer of GenCorp (Delaware), based upon provisions of Delaware law, substantially in the form attached as Exhibit C to the Plan of Conversion (the “Delaware Indemnification Agreement”). Approval of this proposal by our shareholders will constitute approval of the Reincorporation and the Plan of Conversion. Upon approval of the Reincorporation and the filing and effectiveness of the appropriate documents with the State of Ohio and the State of Delaware, the Company will be a Delaware corporation governed by the Delaware Certificate of Incorporation and the Delaware Bylaws.
There will be no interruption in trading of the shares of the Company’s Common Stock as a result of the Reincorporation. GenCorp (Ohio)’s Common Stock will continue to trade on the New York Stock Exchange under the same symbol, “GY,” and the Chicago Stock Exchange under the same symbol, “GY.” GenCorp (Delaware) will continue to file periodic reports and other documents as and to the extent required by the rules and regulations of the SEC. Shareholders who own shares of GenCorp (Ohio) Common Stock that are freely tradable prior to the Reincorporation will continue to have freely tradable shares in GenCorp (Delaware) after the Reincorporation, and shareholders holding restricted shares of GenCorp (Ohio) Common Stock prior to the Reincorporation will continue to hold shares in GenCorp (Delaware) after the Reincorporation subject to the same restrictions on transfer. In summary, the Reincorporation will not change the respective positions under federal securities laws or stock exchange rules of the Company or its shareholders.
Reasons for the Reincorporation
For many years, Delaware has followed a policy of encouraging incorporation in that state and, in furtherance of that policy, has been a leader in adopting, construing, and implementing comprehensive, flexible corporate laws responsive to the legal and business needs of corporations organized under its laws. Many corporations have initially chosen Delaware, or chosen to reincorporate in Delaware, in a manner similar to that proposed by the Company. We believe the principal reasons for considering the Reincorporation are:
the development in Delaware over the last century of a well-established body of case law construing the DGCL, which provides businesses with a greater measure of predictability than exists in any other jurisdiction; the certainty afforded by the well-established principles of corporate governance under Delaware law are of benefit to GenCorp (Ohio) and its shareholders and should assist GenCorp (Ohio) in its ability to continue to attract and retain outstanding directors and officers;
the DGCL itself, which is generally acknowledged to be the most advanced and flexible corporate statute in the country;
the Delaware Court of Chancery, which brings to its handling of complex corporate issues a level of experience, a speed of decision and a degree of sophistication and understanding unmatched by any other court in the country, and the Delaware Supreme Court, the only appeals court, which is highly regarded and currently consists primarily of former Vice Chancellors and corporate practitioners; and
the Delaware General Assembly, which each year considers and adopts statutory amendments that have been proposed by the Corporation Law Section of the Delaware bar to meet changing business needs.
60
Changes as a Result of Reincorporation
If this proposal is approved, the Reincorporation will effect a change in the legal domicile of the Company and other changes of a legal nature, the most significant of which are described below in the section entitled “Rights of our Shareholders Prior to and After the Reincorporation from Ohio to Delaware.” The Reincorporation is not expected to affect any of the Company’s material contracts with any third parties, and the Company’s rights and obligations under such material contracts will continue as rights and obligations of GenCorp (Delaware). The Reincorporation itself will not result in any change in the Company’s business, jobs, management, number of employees, assets, liabilities or net worth (other than transaction costs incident to the Reincorporation). Further, the directors and officers of GenCorp (Ohio) immediately prior to the Reincorporation will continue as the directors and officers of GenCorp (Delaware) immediately after the Reincorporation, and the subsidiaries of GenCorp (Ohio) immediately prior to the Reincorporation will continue as the subsidiaries of GenCorp (Delaware) immediately after the Reincorporation.
The Plan of Conversion
The Reincorporation will be effected pursuant to the Plan of Conversion to be adopted by GenCorp (Ohio). The Plan of Conversion provides that the Company will convert into a Delaware corporation and will be subject to all of the provisions of the DGCL. By virtue of the conversion, all of the rights, privileges and powers of GenCorp (Ohio), all property owned by GenCorp (Ohio), all debts due to GenCorp (Ohio) and all causes of action belonging to GenCorp (Ohio) immediately prior to the conversion will remain vested in GenCorp (Delaware) following the conversion. In addition, by virtue of the conversion, all debts, liabilities and duties of the Company immediately prior to the conversion will remain attached to GenCorp (Delaware) following the conversion. Each director and officer of GenCorp (Ohio) will continue to hold his or her respective office with GenCorp (Delaware).
If this proposal is approved by our shareholders, the Reincorporation would become effective upon the filing (and acceptance thereof by the Ohio Secretary of State and the Delaware Secretary of State, as applicable) and effectiveness of the Ohio Certificate of Conversion, the Delaware Certificate of Conversion and the Delaware Certificate of Incorporation. If this proposal is approved, it is anticipated that the Board will cause the Reincorporation to be effected as soon as practicable thereafter. However, the Reincorporation may be delayed by the Board or the Plan of Conversion may be terminated and abandoned by action of the Board of Directors at any time prior to the effective time of the Reincorporation, whether before or after approval by the Company’s shareholders, if the Board determines for any reason that such delay or termination would be in the best interests of the Company and its shareholders.
Company shareholders will not be required to exchange their GenCorp (Ohio) stock certificates for new GenCorp (Delaware) stock certificates. Following the effective time of the Reincorporation, any GenCorp (Ohio) stock certificates submitted to the Company for transfer, whether pursuant to a sale or otherwise, will automatically be exchanged for GenCorp (Delaware) stock certificates. Shareholders of the Company should not destroy any stock certificate(s) and should not submit any certificate(s) to the Company unless and until requested to do so.
Effect of Vote for the Reincorporation
A vote in favor of the Reincorporation is a vote in favor of the Plan of Conversion, the Ohio Certificate of Conversion, the Delaware Certificate of Conversion, the Delaware Certificate of Incorporation, the Delaware Bylaws and the Delaware Indemnification Agreement.
61
Effect of Not Obtaining the Required Vote for Approval
If we fail to obtain the requisite vote of shareholders for approval of this proposal, the Reincorporation will not be consummated and the Company will continue to be incorporated in Ohio and governed by the OGCL, the Company’s existing Articles of Incorporation and the Company’s existing Code of Regulations.
Description of the Company’s Capital Stock Upon the Effectiveness of the Reincorporation
Assuming that this proposal is approved by our shareholders and the Reincorporation becomes effective, the Company will convert into GenCorp (Delaware), which will be a corporation incorporated in the State of Delaware. The rights of shareholders of GenCorp (Delaware) will generally be governed by Delaware law, the Delaware Certificate of Incorporation and the Delaware Bylaws. The following is a description of the capital stock of GenCorp (Delaware) upon the effectiveness of the Reincorporation. This description is not intended to be complete and is qualified in its entirety by reference to Delaware law, including the DGCL, and the full texts of the Delaware Certificate of Incorporation and the Delaware Bylaws, copies of which are attached as Exhibits A and B, respectively, to the Plan of Conversion, which is attached as Appendix A to this Proxy Statement.
General
Upon the effectiveness of the Reincorporation, the authorized capital of GenCorp (Delaware) will continue to be 150,000,000 shares of common stock, par value $0.10 per share and 15,000,000 shares of preference stock, par value $1.00.
Description of Capital Stock
Upon the effectiveness of the Reincorporation, GenCorp (Delaware) will continue to be authorized to issue 150,000,000 shares of common stock, and all of the issued and outstanding shares of Common Stock at that time will remain issued and outstanding. GenCorp (Ohio) is authorized to issue 15,000,000 shares of preference stock, none of which are issued and outstanding. A series of the preference stock has been designated “Series A Cumulative Preference Stock” and is comprised of 1,500,000 shares of preference stock. No series of preference stock is designated in the Delaware Certificate of Incorporation. The Delaware Certificate of Incorporation will authorize 15,000,000 shares of preference stock, par value $1.00 per share.
Upon the effectiveness of the Reincorporation, the holders of outstanding shares of GenCorp (Delaware) common stock will continue to be entitled to receive dividends and other distributions out of assets legally available at times and in amounts as the Board may determine from time to time. All shares of GenCorp (Delaware) common stock will be entitled to participate ratably with respect to dividends or other distributions after the payment in full of any preferential amounts to which holders of GenCorp (Delaware) preference stock may be entitled from time to time.
If GenCorp (Delaware) is liquidated, dissolved or wound up, voluntarily or involuntarily, holders of GenCorp (Delaware) common stock will be entitled to share ratably in all assets of GenCorp (Delaware) available for distribution to GenCorp (Delaware) shareholders after the payment in full of any preferential amounts to which holders of GenCorp (Delaware) preference stock may be entitled from time to time.
Holders of GenCorp (Delaware) common stock will continue to be entitled to one vote per share on all matters to be voted upon by shareholders, subject to any class or series voting rights to which holders of GenCorp (Delaware) preference stock may be entitled from time to time. Shareholders will continue to not be entitled to cumulate votes in voting for directors.
62
There will be no preemption, redemption, sinking fund or conversion rights applicable to GenCorp (Delaware) common stock under the Delaware Certificate of Incorporation or the Delaware Bylaws.
Under both the Company’s existing Articles of Incorporation and the Delaware Certificate of Incorporation, the Board has the authority to issue shares of preference stock in one or more series and to establish the designations, preferences and rights, including voting rights, of each series. The authority of the Board to issue preferred shares without the additional approval of the shareholders could have a possible anti-takeover effect, which we describe in more detail below in the section entitled “Possible Anti-Takeover Effect of Provisions — Authorized Preferred Stock.”
The Charters and Bylaws and Code of Regulations of GenCorp (Delaware) and GenCorp (Ohio)
The provisions of the Delaware Certificate of Incorporation and the Delaware Bylaws are similar in substance to those of the Company’s existing Articles of Incorporation and Code of Regulations in most respects. The differences include but are not limited to: (i) the elimination of the ability of shareholders to amend the provisions of the Delaware Certificate of Incorporation without appropriate action being taken first by the Board; (ii) the empowerment of the Board to amend the Delaware Bylaws (whereas the power to amend the existing Code of Regulations is vested solely in the shareholders of GenCorp (Ohio)); and (iii) the elimination of the requirement that action without a meeting by shareholders must be approved by the unanimous vote of shareholders (Delaware law provides for action to be taken without a meeting by the written consent of the holders of that number of shares necessary to authorize the proposed action being taken if it were voted on at a meeting of stockholders at which all shares entitled to vote were present and voted).
In addition, the proposed Reincorporation includes the implementation of certain other provisions in the Delaware Certificate of Incorporation and the Delaware Bylaws that are different from the Company’s existing Articles of Incorporation and Code of Regulations. For a discussion of such changes, see “Rights of our Shareholders Prior to and After the Reincorporation from Ohio to Delaware.” This discussion of the Delaware Certificate of Incorporation and the Delaware Bylaws is qualified by reference to Exhibits A and B, respectively, to the Plan of Conversion, which is attached as Appendix A to this Proxy Statement. In addition, GenCorp (Delaware) could implement certain other changes by amending the Delaware Certificate of Incorporation or the Delaware Bylaws in the future.
Limitation of Director Liability and Indemnification
The Company’s existing Code of Regulations requires that GenCorp (Ohio) indemnify the directors and officers of GenCorp (Ohio) to the fullest extent permitted or authorized under the laws of Ohio. Through the OGCL, Ohio has codified the directors’ common law duty of care and, in part, their common law duty of loyalty. Because of this codification, Ohio law is generally more protective of directors and officers than Delaware law.
Under Section 1701.59 of the OGCL, a director of an Ohio corporation would be liable in damages for actions taken or not taken as a director only if the plaintiff proves by clear and convincing evidence that the director’s action or failure to act was undertaken with deliberate intent to cause injury to, or with reckless disregard for the best interests of, the corporation or if the director approved (i) an illegal dividend, distribution or share repurchase by the corporation, (ii) a distribution to shareholders during the winding up of the corporation’s affairs without paying or making provision for the payment of all known obligations of the corporation or (iii) the making of a loan, other than in the usual course of business, to an officer, director or shareholder of the corporation. Each officer and director of GenCorp (Ohio) is entitled to advancement of expenses incurred in connection with lawsuits or proceedings arising out of his or her service to the fullest extent permitted or authorized by the laws of Ohio. The officers and directors of GenCorp (Ohio) are also
63
entitled to a broad scope of indemnification against not only expenses but also costs, liability, judgments, fines, excise taxes assessed with respect to employee benefit plans, penalties and amounts paid in settlement to the fullest extent permitted or authorized by the laws of Ohio.
The Delaware Certificate of Incorporation provides that, to the fullest extent permitted by Delaware law, no director of GenCorp (Delaware) will be personally liable to GenCorp (Delaware) or its shareholders for monetary damages for breach of fiduciary duty as a director. Delaware law currently provides that this limitation of liability does not apply to liability:
for any breach of the director’s duty of loyalty to GenCorp (Delaware) or its shareholders;
for acts or omissions not in good faith or that involve intentional misconduct or a knowing violation of law;
under Section 174 of the DGCL (imposing liability for unlawful distributions to shareholders and unlawful repurchases of shares); or
for any transaction from which the director derived any improper personal benefit.
However, in the event the DGCL is amended to authorize corporate action further eliminating or limiting the personal liability of directors, then the liability of our directors will be eliminated or limited to the fullest extent permitted by the DGCL, as so amended. The Delaware Bylaws further provide that GenCorp (Delaware) will indemnify each of its directors, officers and employees to the fullest extent authorized by the DGCL and may indemnify other persons as authorized by the DGCL. These provisions do not eliminate any monetary liability of directors under the federal securities laws. If this proposal is approved and the Reincorporation is consummated, GenCorp (Delaware) expects to enter into the Delaware Indemnification Agreement with each of its executive officers and directors.
Changes to Employee Benefit Plans
All of GenCorp (Ohio)’s employee benefit plans (including stock option and other equity-based plans) would be continued by GenCorp (Delaware), and each stock option and other equity-based award issued and outstanding pursuant to such plans would automatically be converted into a stock option or other equity-based award with respect to the same number of shares of GenCorp (Delaware), upon the same terms and subject to the same conditions as set forth in the applicable plan under which the award was granted and in the agreement reflecting the award. Approval of the Reincorporation would constitute approval of the assumption of these plans by GenCorp (Delaware). Assuming the Reincorporation is approved, GenCorp (Delaware) would continue GenCorp (Ohio)’s other employee benefit arrangements upon the terms and subject to the conditions currently in effect.
Dissenters’ or Appraisal Rights
Under Ohio law, shareholders will not be entitled to dissenters’ rights or appraisal rights as a result of the Reincorporation.
Certain Federal Income Tax Consequences
THE FOLLOWING DISCUSSION IS INTENDED ONLY AS A SUMMARY OF CERTAIN UNITED STATES FEDERAL INCOME TAX CONSEQUENCES OF THE REINCORPORATION AND DOES NOT PURPORT TO BE A COMPLETE ANALYSIS OR DISCUSSION OF ALL OF THE REINCORPORATION’S POTENTIAL TAX EFFECTS. HOLDERS OF OUR COMMON STOCK ARE URGED TO CONSULT THEIR OWN TAX ADVISORS AS TO THE SPECIFIC TAX CONSEQUENCES TO THEM OF THE REINCORPORATION AND THE APPLICABILITY AND EFFECT OF FEDERAL, STATE, LOCAL AND OTHER APPLICABLE TAX LAWS.
64
The Company believes that the Reincorporation from Ohio to Delaware will constitute a reorganization within the meaning of Section 368(a)(1)(F) of the Code. Assuming that the Reincorporation will be treated for U.S. federal income tax purposes as a reorganization within the meaning of Section 368(a)(1)(F) of the Code, and subject to the qualifications and assumptions described in this Proxy Statement:
|
|
|
The Company does not intend to request a ruling from the Internal Revenue Service regarding the federal income tax consequences of the Reincorporation.
If the Reincorporation fails to qualify as a reorganization within the meaning of Section 368(a)(1)(F) of the Code or otherwise as a tax-free reorganization, shareholders of GenCorp (Delaware) would recognize gain or loss with respect to each share of GenCorp (Ohio) capital stock deemed to have been exchanged pursuant to the Reincorporation equal to the difference between the shareholder’s basis in such share and the fair market value of the GenCorp (Delaware) capital stock received in exchange therefor. A shareholder’s aggregate basis in the GenCorp (Delaware) capital stock so received would equal the stock’s fair market value, and the shareholder’s holding period for such stock would begin the day of the Reincorporation.
Accounting Treatment
We expect that the Reincorporation will have no effect from an accounting perspective because there is no change in the entity as a result of the Reincorporation. As such, the financial statements of GenCorp (Ohio) previously filed with the SEC will remain the financial statements of GenCorp (Delaware) following the Reincorporation.
Rights of our Shareholders Prior to and After the Reincorporation from Ohio to Delaware
Summarized below are the most significant provisions of the OGCL and DGCL, along with the differences between the rights of the shareholders of the Company immediately before and immediately after the Reincorporation that will result from the differences between the OGCL and the DGCL and related differences between the Company’s existing Articles of Incorporation and the Company’s existing Code of Regulations, on the one hand, and the Delaware Certificate of Incorporation and the Delaware Bylaws, on the other hand. The summary below is not an exhaustive list of all differences or a complete description of the differences described, and is qualified in its entirety by reference to the OGCL, the DGCL, the Company’s existing Articles of Incorporation, the Company’s existing Code of Regulations, the Delaware Certificate of Incorporation and the Delaware Bylaws. Copies of the Company’s existing Articles of Incorporation and the Company’s existing Code of Regulations have been filed as Exhibit 3.3 to the Company’s Annual Report on Form 10-K for the fiscal year ended November 30, 2010 and Exhibit 3.2 to the Company’s Annual Report on Form 10-K for the fiscal year ended November 30, 2007, respectively.
65
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
66
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
67
| ||
|
| |
|
| |
|
| |
|
|
68
Significant Provisions to be Carried Over
Authorized Shares
As previously noted, upon the effectiveness of the Reincorporation, GenCorp (Delaware) will continue to be authorized to issue 150,000,000 shares of common stock, and all of the issued and outstanding shares of Common Stock at that time will remain issued and outstanding. GenCorp (Ohio) is authorized to issue 15,000,000 shares of preference stock, none of which are issued and outstanding. For more information, see the section above entitled “Description of the Company’s Capital Stock Upon the Effectiveness of the Reincorporation — Description of Capital Stock.”
Size of Board
The existing Code of Regulations authorizes the directors to fix or change the number of directors, provided, that the Board must consist of no less than seven (7), and no more than seventeen (17), directors. The Delaware Bylaws provide that the Board shall consist of such number of directors (not less than one (1)) as set from time to time by the Board.
Term and Election of Directors
The Company’s existing Articles of Incorporation and the Delaware Certificate of Incorporation both provide that directors serve until the first annual meeting following the annual meeting at which they were elected and until their successors are elected and qualified, or their earlier removal, resignation or death.
The Company’s existing Code of Regulations provides for majority voting in uncontested elections of directors. The Delaware Bylaws provide for plurality voting in all elections of directors.
Filling of Vacancies on the Board
Both the Company’s existing Code of Regulations and the Delaware Bylaws authorize a majority of the remaining directors to fill any vacancy in the Board.
Special Meeting of Shareholders
The existing Code of Regulations authorizes the Chairman of the Board, the President, a Vice President and the majority of the Board to call special meetings of shareholders. The Delaware Bylaws authorize the Board to call special meetings of shareholders. The Code of Regulations provides that shareholders holding at least 25% of the outstanding shares entitled to vote thereat may call special meetings of shareholders. The DGCL does not require a corporation to call a special meeting at the request of stockholders. The Delaware Bylaws, however, provide that special meetings shall be called by the President or the Secretary upon the written request of stockholders representing at least 25% in voting power of the stock entitled to vote on the matter.
No Cumulative Voting
The shareholders of GenCorp (Ohio) do not, and the stockholders of GenCorp (Delaware) will not, have the right of cumulative voting in the election of directors.
No Preemptive Rights
The shareholders of GenCorp (Ohio) do not, and the stockholders of GenCorp (Delaware) will not, have preemptive rights to acquire newly issued capital stock.
69
Amendments to the Articles of Incorporation and the Delaware Certificate of Incorporation
Under the OGCL, an amendment to a corporation’s articles of incorporation must be adopted by the affirmative vote of the holders of at least two-thirds of the voting power of the corporation, or a different proportion, but not less than a majority of the voting power, as provided in the articles. Rather than adopting Ohio’s default two-thirds’ approval requirement, the existing Articles of Incorporation require the affirmative vote of a majority of the voting power of GenCorp (Ohio) to approve any amendment thereto, except where an amendment would affect the right to cumulate votes in an election of directors (which right currently does not exist), in which case such an amendment must be adopted by the affirmative vote of the holders of 80% of the outstanding shares of GenCorp (Ohio) Common Stock and preference stock.
To amend a corporation’s certificate of incorporation, the DGCL requires the directors of the corporation to adopt a resolution that sets forth and declares the advisability of the proposed amendment and either calls a special meeting of the stockholders to consider and vote on the proposed amendment or directs that the proposed amendment be considered and voted on at the next annual meeting of stockholders. The DGCL further provides that an amendment to the certificate of incorporation must be adopted by the affirmative vote of the holders of a majority of the outstanding voting shares of the corporation, or by a greater vote as provided in the certificate of incorporation. The Delaware Certificate of Incorporation does not vary from the statutory rule provided by the DGCL, which means that it will not include the 80% voting requirement in the existing Articles of Incorporation.
Amendments to the Code of Regulations and the Delaware Bylaws
The holders of at least a majority of the voting power of GenCorp (Ohio) may amend the Code of Regulations at a meeting of shareholders held for such purpose; the holders of at least two-thirds of the voting power of GenCorp (Ohio) may amend the Code of Regulations without a meeting by written consent. However, the affirmative vote of at least 80% of GenCorp (Ohio)’s voting power is required to amend (i) Sections 1, 2, 3, 4 and 11 of Article 2 (relating to vacancies in the Board and the number and election of directors, their qualification, removal and respective terms of office) or (ii) Section 2 of Article 7 (relating to amendments of provisions related to matters enumerated in (i) above).
The holders of at least a majority of the voting power of GenCorp (Delaware) would be permitted to amend the Delaware Bylaws at a meeting of stockholders held for such or without a meeting by written consent. However, the affirmative vote of at least 80% of GenCorp (Delaware)’s voting power is required to amend those sections of the Bylaws relating to Sections 3.1 and 3.3 of the Bylaws (relating to the number of directors and vacancies on the Board).
In addition, the Delaware Certificate of Incorporation empowers the Board to amend the Delaware Bylaws.
Certain Other Effects of the Reincorporation
The rights of stockholders of GenCorp (Delaware) will be governed by the DGCL and the Delaware Certificate of Incorporation and the Delaware Bylaws rather than the OGCL and the Company’s existing Articles of Incorporation and Code of Regulations. It is not practical to summarize in this Proxy Statement all of the differences between the DGCL and the OGCL or between the Delaware Certificate of Incorporation and the Delaware Bylaws, on the one hand, and the Company’s existing Articles of Incorporation and Code of Regulations, on the other. Instead, this section summarizes some of the significant differences and describes how those differences may affect the rights and interests of stockholders of GenCorp (Ohio).
70
Transfer Restrictions
The existing Articles of Incorporation contain certain restrictions on the transfer of GenCorp (Ohio)’s stock in order to reduce the risk of a potential adverse effect on its ability to utilize its net operating loss carryforwards. The Company, however, no longer has significant net operating loss carryforwards. As a result, the Delaware Certificate of Incorporation does not contain restrictions on the transfer of GenCorp (Delaware)’s stock.
Removal of Directors
The existing Code of Regulations provides that the holders of at least 80% of the voting power of GenCorp (Ohio) entitling them to elect directors in place of those to be removed may remove any director from office without assigning any cause. The Delaware Bylaws provides that the holders of at least a majority of the voting power of GenCorp (Delaware) may remove any director with or without cause at any annual or special meeting of the stockholders.
Quorum
The existing Code of Regulations provides that, at any meeting of the shareholders, the presence in person or by proxy of the holders of at least a majority of the voting power of GenCorp (Ohio) constitutes a quorum for such meeting. The Delaware Bylaws would provide that at any meeting of stockholders, the presence in person or by proxy of the holders of at least a majority of the voting power of GenCorp (Delaware) constitutes a quorum for such meeting.
Advance Notice of Stockholder Business and Nominations
The existing Code of Regulations does not provide for advance notice with respect shareholder business proposals and director nominations. The Delaware Bylaws add advance notice provisions that a stockholder must follow if he, she or it intends to bring business proposals or director nominations, as applicable, before a meeting of stockholders. These advance notice provisions, among other things:
Provide that for an annual meeting of stockholders, written notice of a stockholder’s intention to make business proposals or nominate persons for election to the Board must be delivered to GenCorp (Delaware) not later than the ninetieth (90th) day or earlier than the one hundred twentieth (120th) day prior to the first anniversary of the preceding year’s annual meeting. If an annual meeting of stockholders is held more than thirty (30) days before or more than seventy (70) days after the first anniversary of the preceding year’s annual meeting, notice by the stockholder must be delivered (i) not earlier than one hundred twenty (120) days prior to such annual meeting and (ii) not later than the close of business on the later of the 90th day prior to such annual meeting or the 10th day following the day on which public announcement is first made of the date of the annual meeting.
Provide that if GenCorp (Delaware) has called a special meeting for the purpose of electing one or more directors to the Board, written notice of a stockholder’s intention to nominate persons for election to the Board before such special meeting must be delivered to GenCorp (Delaware) (i) not earlier than the 120th day and (ii) not later than the close of business on the later of the 90th day prior to such special meeting or the 10th day following the day on which public announcement is first made of the date of the special meeting and of the nominees proposed by the Board to be elected at such meeting.
With respect to persons that the stockholder proposes to directly nominate as a director, provide that the stockholder’s notice must set forth (i) as to each individual whom the stockholder proposes to nominate, all information relating to the person that is required to be disclosed in solicitations of proxies for the election of directors or is otherwise required, pursuant to Section 14(a) of the Exchange Act, and (ii) such person’s written consent to being named in the proxy statement as a nominee and to serving as a director if elected.
71
With respect to any other business (other than the nomination of persons for the election of directors), provide that the stockholder’s notice must set forth (i) a brief description of the business desired to be brought before the meeting, (ii) the text of the proposal or business (including the text of any resolutions proposed for consideration or, in the case of a proposed amendment to the Delaware Bylaws, the language of the proposed amendment), (iii) the reasons for conducting such business at the meeting, and (iv) any material interest in such business of such stockholder and the beneficial owner, if any, on whose behalf the proposal is made.
Provide other specifications for the content of the stockholder notice, including the name and address of the stockholder, the number of shares of GenCorp (Delaware)’s capital stock beneficially owned by such stockholder, a description of all arrangements or understandings between the stockholder and any other person with respect to the business proposal or nomination, any derivative security or other arrangement in GenCorp (Delaware)’s capital stock and statements on whether the stockholder intends to deliver a proxy statement to holders of GenCorp (Delaware)’s outstanding capital stock or solicit proxies in support of its proposal or nomination.
Approval Requirements Applicable to Certain Transactions
Under the OGCL, an agreement of merger or consolidation must be approved by the directors of each constituent corporation and adopted by the affirmative vote of the shareholders of each constituent Ohio corporation (other than the surviving corporation in the case of a merger) holding at least two-thirds of the corporation’s voting power, or a different proportion, but not less than a majority of the voting power, as provided in the articles of incorporation. In the case of a merger, the OGCL also requires the adoption of the agreement of merger by the shareholders of the surviving corporation by similar vote, if one or more of the following conditions exist:
the articles of incorporation or regulations of the surviving corporation then in effect require that the agreement be adopted by the shareholders or by the holders of a particular class of shares of that corporation;
the agreement of merger conflicts with the articles of incorporation or the code of regulations of the surviving corporation then in effect, or changes the articles of incorporation or the code of regulations, or authorizes any action that, if it were being made or authorized apart from the merger, would otherwise require adoption by the shareholders or by the holders of a particular class of shares of that corporation;
the merger involves the issuance or transfer by the surviving corporation to the shareholders of the other constituent corporation or corporations of shares of the surviving corporation that would entitle the holders of the shares immediately after the consummation of the merger to exercise one-sixth or more of the voting power of that corporation in the election of directors; or
the agreement of merger makes a change in the directors of the surviving corporation that would otherwise require action by the shareholders or by the holders of a particular class of shares of that corporation.
Under the OGCL, the merger of a 90%-owned subsidiary into its parent corporation only needs to be approved by the board of directors of each constituent Ohio corporation.
Subject to limited exceptions, the OGCL requires the approval of two-thirds of the voting power of the corporation, or a different proportion as provided in the articles of incorporation (not less than a majority of the corporation’s voting power), for:
the consummation of combinations or majority share acquisitions involving the transfer or issuance by the acquiring corporation of shares that would entitle the holders to exercise at least one-sixth of the voting power of the corporation in the election of directors immediately after the consummation of the transaction;
72
the disposition of all or substantially all of the corporation’s assets other than in the usual and regular course of business; and
voluntary dissolutions.
GenCorp (Ohio) has not adopted Ohio’s default two-thirds’ approval requirement for mergers and consolidations, dissolutions and asset sales; instead, the Article of Incorporation only require the affirmative vote of a majority of the outstanding voting power of GenCorp (Ohio) to approve such transactions.
Under the DGCL, an agreement of merger or consolidation must be approved and declared advisable by the board of directors of each constituent corporation and adopted by the affirmative vote of the stockholders of each constituent corporation holding at least a majority of the outstanding voting power, or by a greater vote as provided in the certificate of incorporation. Additionally, the DGCL provides that, unless its certificate of incorporation provides otherwise, no vote of the stockholders of the surviving corporation is required to approve a merger if:
the agreement of merger does not amend in any respect the corporation’s certificate of incorporation;
each share of stock of such surviving corporation outstanding immediately prior to the effective date of the merger is to be an identical outstanding or treasury share of the surviving corporation after the effective date of the merger; and
either no shares of common stock of the surviving corporation and no shares, securities or obligations convertible into such stock are to be issued or delivered in the merger or the number of shares of common stock of the surviving corporation to be issued or delivered in the merger plus the number of shares of common stock into which any other shares, securities or obligations to be issued or delivered in the merger are initially convertible does not exceed 20% of the shares of common stock of the corporation outstanding immediately prior to the effective date of the merger.
Under the DGCL, the merger of a 90%-owned subsidiary into its parent corporation only needs to be approved by the board of directors of the parent corporation. In addition, under the DGCL, unless the corporation’s certificate of incorporation provides otherwise, a corporation may engage in a merger without a stockholder vote where the merger causes the corporation’s stockholders to become stockholders in a holding company of which the corporation becomes a direct or indirect wholly owned subsidiary, provided that the holding company shares received by the corporation’s stockholders have the same rights as the shares formerly held by such stockholders, the certificate of incorporation and bylaws of the holding company have the same provisions as the certificate of incorporation and bylaws of the corporation, and the other requirements set forth in Section 251(g) of the DGCL are complied with.
The DGCL does not require stockholder approval in the case of combinations (other than business combinations coming within Section 203 of the DGCL) and majority share acquisitions. The DGCL requires the approval by the holders of a majority of the outstanding voting stock of the corporation of (i) the disposition of all or substantially all of a corporation’s property and assets and (ii) the dissolution of the corporation, unless a greater vote is provided for in the certificate of incorporation. The Delaware Certificate of Incorporation would not change the effect of Delaware law with respect to such voting requirements.
Actions by Shareholders without a Meeting
Under the OGCL, unless the articles of incorporation or the code of regulations adopted by the shareholders prohibit the authorization or taking of any action of the shareholders without a meeting, any action which may be authorized or taken at a meeting of the shareholders may be authorized or taken without such meeting by the written approval of all the shareholders entitled to notice of the meeting. However, in the case of an amendment to or adoption or repeal of a corporation’s code of regulations, the
73
OGCL only requires the written approval of two-thirds of all outstanding shares entitled to vote, or a different proportion but not less than a majority of the voting power, as provided in the articles of incorporation or the code of regulations. GenCorp (Ohio)’s existing Articles of Incorporation and the Code of Regulations do not prohibit shareholders from taking actions by written consent without a meeting and the Code of Regulations permit the holders of at least two-thirds of the voting power of GenCorp (Ohio) to amend the Code of Regulations by written consent without a meeting.
Under the DGCL, unless the certificate of incorporation provides otherwise, any action which may be authorized or taken at a meeting of the stockholders may be authorized or taken without a meeting, without prior notice and without a vote, by written consent of the holders of shares of outstanding stock having the votes necessary to authorize or take the action at a meeting at which all shares entitled to vote thereon were present and voted. The Delaware Certificate of Incorporation does not vary from the Delaware statutory default rule.
Class Voting
Under the OGCL, holders of a particular class of shares are entitled to vote as a separate class if the rights of such class are affected by mergers, consolidations or amendments to the articles of incorporation, and as otherwise provided in the articles of incorporation. The DGCL requires voting by separate classes only with respect to amendments to the certificate of incorporation which adversely affect the holders of such classes or which increase or decrease the aggregate number of authorized shares or the par value of the shares of any such classes, and as otherwise provided in the certificate of incorporation.
Appraisal and Dissenters’ Rights
Under the OGCL, dissenting shareholders are entitled to dissenters’ rights in connection with (i) the lease, sale, exchange, transfer or other disposition of all or substantially all of the assets of a corporation and (ii) amendments to a corporation’s articles of incorporation that change either the rights of shareholders in a substantially prejudicial manner, the purpose of the corporation substantially or the corporation into a nonprofit corporation. In addition, the following shareholders of Ohio corporations are also entitled to appraisal rights:
shareholders of a corporation being merged, consolidated or converted into a surviving or new entity;
shareholders of a corporation that survives a merger who are entitled to vote on the adoption of an agreement of merger;
shareholders of the acquiring corporation in a combination or a majority share acquisition who are entitled to vote on the adoption of the transaction; and
shareholders of a subsidiary corporation (at least 90%-owned by its parent corporation) into which the parent corporation is merged.
Under the DGCL, appraisal rights are available only in connection with statutory mergers or consolidations, or amendment of a corporation’s certificate of incorporation to cause it to become a public benefit corporation. In addition, in the case of mergers other than mergers causing a corporation to become a public benefit corporation, unless the certificate of incorporation provides otherwise (and the Delaware Certificate of Incorporation does not so provide), the DGCL does not provide appraisal rights for any class or series of stock (i) listed on a national securities exchange or (ii) held of record by more than 2,000 stockholders, except that appraisal rights are available for stockholders who, by the terms of the agreement of merger or consolidation, are required to accept anything other than:
shares of the corporation surviving or resulting from the merger or consolidation;
shares of any other corporation which at the effective time of the merger or consolidation are either listed on a national securities exchange or held of record by more than 2,000 shareholders;
74
cash in lieu of fractional shares; or
any combination of the foregoing shares and cash in lieu of fractional shares.
Dividends
The directors of an Ohio corporation may declare and pay dividends on outstanding shares of the corporation in an amount that does not exceed the surplus of the corporation (the excess of its assets over the sum of its liabilities and stated capital). An Ohio corporation may not pay any dividend to the holders of shares of any class in violation of the rights of the holders of shares of any other class, or when a corporation is insolvent or there is reasonable ground to believe that by such payment it would be rendered insolvent. An Ohio corporation must notify its shareholders if a dividend is paid out of capital surplus.
The directors of a Delaware corporation may declare and pay dividends upon the shares of its capital stock out of any surplus of the corporation (the excess of its assets over the sum of its liabilities and capital) and, if it has no surplus, out of any net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year, provided that such payment will not reduce capital below the amount of capital represented by all classes of shares having a preference upon the distribution of assets.
Repurchases
Under the OGCL, a corporation may repurchase its own shares if authorized to do so by its articles of incorporation or under certain additional limited circumstances but may not do so if immediately thereafter its assets would be less than its liabilities plus its stated capital, if any, or if the corporation is insolvent or would be rendered insolvent by such a purchase. The existing Articles of Incorporation permit GenCorp (Ohio) to repurchase its shares.
Under the DGCL, a corporation may not repurchase its stock if its capital is impaired or the repurchase would cause its capital to be impaired, except that a corporation may purchase out of capital shares of preferred stock (or, if no shares of preferred stock are outstanding, shares of common stock), if such stock will be retired upon its acquisition and if the capital of the corporation will be reduced in accordance with the applicable provisions of the DGCL. Otherwise, shares of common stock must be purchased out of surplus, if any. One of the advantages to reincorporating into Delaware is that there is a well-established body of case law construing the DGCL, including with respect to the criteria for a corporation to repurchase its securities.
Revocability of Proxies
Under the OGCL, a duly executed proxy is revocable unless the appointment is coupled with an interest, except that proxies given in connection with the shareholder authorization of a control share acquisition are revocable at all times prior to obtaining shareholder authorization, whether or not coupled with an interest. Under the DGCL, a duly executed proxy is irrevocable if it states that it is irrevocable and if, and only as long as, it is coupled with an interest sufficient in law to support an irrevocable power.
Comparison of Director and Officer Liability and Indemnification Under Ohio and Delaware Law
Ohio
Section 1701.13(E) of the OGCL authorizes corporations to indemnify or agree to indemnify any person who was or is a party, or is threatened to be made a party, to any threatened, pending or completed action, suit or proceeding (other than derivative actions) by reason of the fact that the person is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, trustee, officer, employee, member, manager or agent of another entity, against expenses, including
75
attorneys’ fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by the person in connection with such action, suit or proceeding, if the person acted in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the corporation and, with respect to any criminal action or proceeding, if the person had no reasonable cause to believe the person’s conduct was unlawful. The termination of any action, suit or proceeding by judgment, order, settlement or conviction, or upon a plea ofnolo contendere or its equivalent, will not, of itself, create a presumption that the person did not act in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the corporation and, with respect to any criminal action or proceeding, the person had reasonable cause to believe that the person’s conduct was unlawful. An Ohio corporation may also provide indemnification in derivative actions for expenses and attorneys’ fees actually and reasonably incurred in connection with the defense or settlement of an action if the officer, director, employee or agent acted in good faith and in a manner such person reasonably believed to be in, or not opposed to, the best interests of the corporation. Ohio law does not expressly authorize indemnification against judgments, fines and amounts paid in settlement in such actions. An Ohio corporation may not indemnify a director, officer, employee or agent in derivative actions for expenses and attorneys’ fees if such person is adjudged to be liable to the corporation for negligence or misconduct in the performance of such person’s duties to the corporation, unless and only to the extent that a court determines that, despite the adjudication of liability, such person is fairly and reasonably entitled to indemnity.
Section 1701.13(E) of the OGCL provides directors, officers, employees and agents of Ohio corporations with an absolute right to indemnification for expenses (including attorneys’ fees) actually and reasonably incurred by them to the extent they are successful in defense of any action, suit or proceeding, including derivative actions, brought against them, or in defense of any claim, issue or matter asserted in any such proceeding. A director, officer, employee or agent is entitled to such indemnification if such person’s success is “on the merits or otherwise,” thus mandating indemnification if the indemnitee is successful on the merits or if the indemnitee is successful, for example, in asserting a procedural defense, such as a claim that the action is barred by the applicable statute of limitations, or if the indemnitee is released pursuant to a negotiated settlement without making payment or providing other consideration.
Unless otherwise provided in the corporation’s articles of incorporation or regulations, directors (but not officers, employees or agents) of Ohio corporations are entitled to mandatory payment of expenses by the corporation as they are incurred, in advance of the final disposition of the action, suit or proceeding, provided the director agrees to cooperate with the corporation concerning the matter and to repay the amount advanced if it is proved by clear and convincing evidence that the director’s act or failure to act was done with deliberate intent to cause injury to the corporation or with reckless disregard for the corporation’s best interests.
Section 1701.13(E) of the OGCL states that the indemnification provided thereby is not exclusive of any other rights granted to those persons seeking indemnification under the articles of incorporation, the regulations, any agreement, a vote of the shareholders or disinterested directors or otherwise.
The OGCL authorizes Ohio corporations to purchase and maintain insurance or furnish similar protection, including, but not limited to, trust funds, letters of credit and self-insurance, for director, officer, employee or agent liability, regardless of whether that individual is otherwise eligible for indemnification by the corporation.
The existing Code of Regulations provides directors and officers with the broadest indemnification permitted under Section 1701.13(E) of the OGCL. The Code of Regulations require GenCorp (Ohio) to indemnify and hold harmless any person who is or was a director or officer of GenCorp (Ohio) and who is or was a party or is threatened to be made a party to, or is or was involved or threatened to be involved in, any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or
76
investigative, by reason of the fact that the person is or was a director or officer of GenCorp (Ohio), or is or was serving at the request of GenCorp (Ohio) as a director, trustee, officer, employee or agent of another corporation, limited liability company, partnership, joint venture, trust or other enterprise, from and against any expenses (including attorneys’ fees) incurred by a director in defending any such action, suit or proceeding as they are incurred, in advance of the final disposition thereof, and may pay, in the same manner and to the full extent them permitted by the OGCL, such expenses incurred by any other person.
The existing Code of Regulations states that the indemnification provided thereby is not exclusive of any other rights to which any person seeking indemnification may be entitled. Additionally, the Code of Regulations provides that GenCorp (Ohio) may purchase and maintain insurance, or furnish similar protection, including, but not limited to, trust funds, letters of credit or self-insurance, for or on behalf of any person who is or was a director, officer, employee or agent of GenCorp (Ohio), or is or was serving at the request of GenCorp (Ohio) as a director, trustee, officer, employee or agent of another corporation, limited liability company, partnership, joint venture, trust or other enterprise against any liability asserted against such person and incurred by such person in any such capacity, or arising out of such person’s status as such, whether or not GenCorp (Ohio) would have the power to indemnify such person against such liability under the Code of Regulations.
Ohio has codified the directors’ common law duty of care and, in part, their common law duty of loyalty. Section 1701.59(B) of the OGCL provides in pertinent part:
A director shall perform the director’s duties as a director, including the duties as a member of any committee of the directors upon which the director may serve, in good faith, in a manner the director reasonably believes to be in or not opposed to the best interests of the corporation, and with the care that an ordinarily prudent person in a like position would use under similar circumstances.
Under Ohio law, unless otherwise provided in a corporation’s articles of incorporation or regulations, a director of the corporation is not liable for damages for any action that the director takes or fails to take as a director of the corporation unless it is proved by clear and convincing evidence that such director’s action or failure to act was undertaken with deliberate intent to cause injury to the corporation or with reckless disregard for the best interests of the corporation. This higher standard of proof must be met in any action brought against a director for breach of such director’s duties, including any action involving or affecting: (i) a change or potential change in control of the corporation; (ii) a termination or potential termination of the director’s service to the corporation as a director; or (iii) the director’s service in any other position or relationship with the corporation. The higher standard of proof, however, does not affect the liability of directors for unlawful loans, dividends or distributions under Section 1701.95 of the OGCL. There is no comparable provision limiting the liability of officers, employees or agents of Ohio corporations.
Ohio law provides specific statutory authority for directors to consider, in addition to the interests of the corporation’s shareholders, each of the following in determining what the directors reasonably believe to be in the best interests of the corporation:
the interests of the corporation’s employees, suppliers, creditors and customers;
the economy of the state and nation;
community and societal considerations; and
the long-term and the short-term interests of the corporation and its shareholders and the possibility that these interests may be best served by the continued independence of the corporation.
Delaware law contains no similar specific statutory authority.
77
Delaware
Section 102(b)(7) of the DGCL permits a Delaware corporation to limit or eliminate a director’s personal liability to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director, except with respect to:
a breach of the director’s duty of loyalty to the corporation or its stockholders;
acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law;
an unlawful distribution to stockholders or repurchase of shares for which directors would be liable under Section 174 of the DGCL; or
any transaction from which the director derived an improper personal benefit.
The Delaware Certificate of Incorporation eliminates the personal liability of the directors of GenCorp (Delaware) to the fullest extent permitted by Section 102(b)(7) of the DGCL.
Section 145 of the DGCL authorizes corporations to indemnify any person who was or is a party or is threatened to be made a party to any action, suit or proceeding by reason of the fact that the person is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another entity, against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by the person in connection with such action, suit or proceeding if the person acted in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe the person’s conduct was unlawful. This indemnification does not apply to an action by or in the right of the corporation — a “derivative action.” The standard differs in the case of derivative actions, in that indemnification only extends to attorneys’ fees and other expenses actually and reasonably incurred in connection with the defense or settlement of such actions. The DGCL requires court approval before a corporation may indemnify a person who has been found liable to the corporation. To the extent that a present or former director or officer of a corporation is successful on the merits or otherwise in defense of any action, suit or proceeding, including derivative actions, brought against such person or in defense of any claim, issue or matter asserted in any such proceeding, indemnification for attorneys’ fees and other expenses is mandated by the DGCL. Advancement of expenses incurred by a director or officer is permissive only and the indemnified person must repay such expenses if it is ultimately determined that he or she is not entitled to indemnification. Section 145 of the DGCL, like Section 1701.13(E) of the OGCL, states that the indemnification and advancement of expenses provided thereby is not exclusive of any other rights to which any person seeking indemnification may be entitled under any bylaw, agreement, vote of stockholders or disinterested directors or otherwise.
The Delaware Bylaws require GenCorp (Delaware) to indemnify and hold harmless any person who was or is a party or is threatened to be made a party to, or is involved in, any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that the person is or was a director or officer of GenCorp (Delaware), or is or was serving at the request of GenCorp (Delaware) as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, or as a member of any committee or similar body, to the fullest extent permitted by the laws of Delaware as they may exist from time to time. The right to indemnification conferred in the Delaware Bylaws also includes the right to be paid by GenCorp (Delaware) for the expenses incurred in connection with any such proceeding in advance of its final disposition to the fullest extent permitted by the laws of Delaware as they may exist from time to time. However, the Delaware Bylaws provide that no indemnification or advancement of expenses will be available for any action initiated by the indemnitee (other than an action to enforce indemnification or advancement rights under the Delaware Bylaws) unless such action is approved by the Board.
78
Section 145 of the DGCL authorizes Delaware corporations to purchase liability insurance for their directors, officers, employees and agents, regardless of whether any such individual is otherwise eligible for indemnification by the corporation. Similarly, the Delaware Bylaws permit GenCorp (Delaware) to purchase and maintain liability insurance on behalf of any person who is or was a director, officer, employee or agent of GenCorp (Delaware), or is or was serving at the request of GenCorp (Delaware) as a director, officer, employee or agent for another corporation, partnership, joint venture, trust or other enterprise against any expense, liability, or loss.
Possible Anti-Takeover Effect of Provisions
Both the existing Articles of Incorporation and Code of Regulations, as well as Ohio law, and the Delaware Certificate of Incorporation and Delaware Bylaws, as well as Delaware law, contain some provisions that may be viewed as having a possible anti-takeover effect.
Authorized Preferred Shares
Under both the Article of Incorporation and the Delaware Certificate of Incorporation, the Board is authorized to issue 15,000,000 preferred shares. In each case, the Board may issue these preferred shares in one or more series and may establish the designations, preferences and rights, including voting rights, of each series. These preferred shares of GenCorp (Ohio) are, and the shares of preferred stock of GenCorp (Delaware) would be (upon the filing of a certificate of designations with the Delaware Secretary of State pursuant to a Board resolution), available for issuance from time to time to any person for such consideration as the Board may determine without the requirement of further action by our shareholders, except as required by the New York Stock Exchange or other exchange on which our shares are then listed. These preferred shares may be issued for any proper corporate purpose. Some potential corporate purposes include the issuance in a public or private sale for cash as a means of obtaining additional capital for use in our business and operations, issuance as part or all of the consideration required to be paid for acquisitions of other business properties and issuance as a share dividend to equity holders. The Board does not intend to issue any preferred stock except on terms that the Board deems to be in the best interests of GenCorp (Delaware) and its stockholders. Depending on its terms, the issuance of preferred stock may or may not have a dilutive effect on the equity interest or voting power of the then current shareholders of GenCorp (Ohio).
Although our Board has no present intention to do so, authorized but unissued and undesignated preferred shares may also be issued as a defense to an attempted takeover. For example, the Board could, to the extent consistent with the directors’ fiduciary duties, sell a block of preferred stock to a “white knight” or to persons who are loyal to current management, thereby diluting the share ownership of persons seeking to obtain control. The Board could utilize the authorized but unissued and undesignated preferred stock to fund a new rights plan or “poison pill.”
Actions by Shareholders Without a Meeting
For a discussion of actions by shareholders without a meeting under GenCorp (Ohio)’s constitutive documents, the OGCL, GenCorp (Delaware)’s constitutive documents and the DGCL, see “—Certain Other Effects of the Reincorporation – Actions by Shareholders without a Meeting.” The Ohio requirement that actions by written consent without a meeting be unanimous (subject to the exceptions applicable to an amendment to or adoption or repeal of a corporation’s regulations) may have the effect of delaying, deferring or preventing a tender offer or takeover attempt that a shareholder may consider to be in its best interest.
79
Special Meetings of Shareholders
Limits on the rights of shareholders to call special meetings of shareholders could have an anti-takeover effect as a potential acquirer may wish to call a special meeting of shareholders for the purpose of considering the removal of directors or an acquisition offer. The Code of Regulations provides that shareholders of GenCorp (Ohio) holding at least 25% of the outstanding shares entitled to vote thereat may call special meetings of shareholders. The DGCL does not require a corporation to call a special meeting at the request of stockholders. The Delaware Bylaws, however, provide that special meetings may be called by the President or the Secretary upon the written request of stockholders representing at least 25% in voting power of the stock entitled to vote on the matter
Vote Required and Board Recommendation
The affirmative vote of the holders of at least two-thirds of the outstanding shares is necessary to approve this proposal. Abstentions and broker non-votes will have the effect of negative votes with respect to this proposal.
The Board unanimously recommends a vote FOR the Reincorporation
80
PROPOSAL 3
ADVISORY VOTE ON GENCORP’SAEROJET ROCKETDYNE’S EXECUTIVE COMPENSATION PROGRAM
Pursuant
81
3
2016.
Fiscal Year Ended | ||||||||
2013 | 2012 | |||||||
In Thousands | ||||||||
Legacy Aerojet | $ | 2,740 | $ | 2,660 | ||||
Rocketdyne Business Acquisition | 550 | — | ||||||
Rocketdyne Business Post Acquisition | 1,750 | — | ||||||
All Other | 560 | 238 | ||||||
|
|
|
| |||||
Total Audit fees | $ | 5,600 | $ | 2,898 | ||||
|
|
|
|
Fiscal Year Ended | ||||||||
2015 | 2014 | |||||||
In Thousands | ||||||||
Audit fees | $ | 4,776 | $ | 6,359 |
Audit related
Fiscal Year Ended | ||||||||
2013 | 2012 | |||||||
In Thousands | ||||||||
Rocketdyne Business Acquisition | $ | — | $ | 309 | ||||
Department of Energy | 25 | — | ||||||
|
|
|
| |||||
Total Audit-related fees | $ | 25 | $ | 309 | ||||
|
|
|
|
82
Fiscal Year Ended | ||||||||
2015 | 2014 | |||||||
In Thousands | ||||||||
Audit-related fees | $ | 78 | $ | 100 |
Fiscal Year Ended | ||||||||
2013 | 2012 | |||||||
In Thousands | ||||||||
All Other | $ | 43 | $ | 19 | ||||
|
|
|
| |||||
Total Tax fees | $ | 43 | $ | 19 | ||||
|
|
|
|
Fiscal Year Ended | ||||||||
2015 | 2014 | |||||||
In Thousands | ||||||||
Tax fees | $ | 17 | $ | 36 |
Fiscal Year Ended | ||||||||
2013 | 2012 | |||||||
In Thousands | ||||||||
Oracle ERP Implementation | $ | 299 | $ | 230 | ||||
All Other | 4 | 7 | ||||||
|
|
|
| |||||
Total All other fees | $ | 303 | $ | 237 | ||||
|
|
|
|
Fiscal Year Ended | ||||||||
2015 | 2014 | |||||||
In Thousands | ||||||||
All other fees | $ | 4 | $ | 4 |
amounts.
83
Shareholders
P.O. Box 537012, Sacramento, California 95853-7012.
and Assistant Secretary
February 7, 2014
84
APPENDIX A
FORM OF PLAN OF CONVERSION
OF
GENCORP INC., an Ohio corporation
TO
GENCORP INC., a Delaware corporation
This PLAN OF CONVERSION, dated as of [ ], 2014 (including all of the Exhibits attached hereto, this “Plan”), is hereby adopted by GenCorp Inc., an Ohio corporation (the “Company”), in order to set forth the terms, conditions and procedures governing the conversion of the Company from an Ohio corporation to a Delaware corporation pursuant to Section 265 of the General Corporation Law of the State of Delaware, as amended (the “DGCL”), and Section 1701.792 of the Ohio General Corporation Law, as amended (the “OGCL”).
RECITALS
WHEREAS, the Company is a corporation established and existing under the laws of the State of Ohio;
WHEREAS, conversion of an Ohio corporation into a Delaware corporation is permitted under Section 265 of the DGCL and Section 1701.792 of the OGCL;
WHEREAS, the Board of Directors of the Company has determined that it would be advisable and in the best interests of the Company and its shareholders for the Company to convert from an Ohio corporation to a Delaware corporation pursuant to Section 265 of the DGCL and Section 1701.792 of the OGCL; and
WHEREAS, the form, terms and provisions of this Plan have been authorized, approved and adopted by the Board of Directors of the Company and the Company’s shareholders.
NOW, THEREFORE, the Company hereby adopts this Plan as follows:
1.Conversion; Effect of Conversion.
(a) At the Effective Time (as defined in Section 3 below), the Company shall be converted from an Ohio corporation to a Delaware corporation pursuant to Section 265 of the DGCL and Section 1701.792 of the OGCL (the “Conversion”) and the Company, as converted to a Delaware corporation (the “Converted Company”), shall thereafter be subject to all of the provisions of the DGCL, except that notwithstanding Section 106 of the DGCL, the existence of the Converted Company shall be deemed to have commenced on the date the Company commenced its existence in the State of Ohio. The Company shall not be required to wind up its affairs or pay its liabilities and distribute its assets, and the Conversion shall not be deemed a dissolution of the Company. The Conversion otherwise shall have the effects specified in the DGCL and OGCL.
(b) At the Effective Time, by virtue of the Conversion and without any further action on the part of the Company or its shareholders, the Converted Company shall, for all purposes of the laws of the State of Delaware, be deemed to be the same entity as the Company. At the Effective Time, by virtue of the Conversion and without any further action on the part of the Company or its shareholders, for all purposes of the laws of the State of Delaware, all of the rights, privileges and powers of the Company, and all property, real, personal and mixed, and all debts due to the Company, as well as all other things and causes of action belonging to the Company, shall remain vested in the Converted Company and shall be the property of the Converted Company and the title to any real property vested by deed or otherwise in the Company shall not revert or be in any way impaired by reason of the Conversion; but all rights of creditors and all liens upon any property of the Company shall be preserved unimpaired, and all debts, liabilities and duties of the
A-1
Company shall remain attached to the Converted Company at the Effective Time, and may be enforced against the Converted Company to the same extent as if said debts, liabilities and duties had originally been incurred or contracted by the Converted Company in its capacity as a corporation of the State of Delaware. The rights, privileges, powers and interests in property of the Company, as well as the debts, liabilities and duties of the Company, shall not be deemed, as a consequence of the Conversion, to have been transferred to the Converted Company at the Effective Time for any purpose of the laws of the State of Delaware.
(c) The Conversion shall not be deemed to affect any obligations or liabilities of the Company incurred prior to the Conversion or the personal liability of any person incurred prior to the Conversion.
(d) At the Effective Time, the name of the Converted Company shall be:
GenCorp Inc.
(e) The Company intends for the Conversion to constitute a reorganization within the meaning of Section 368(a)(1)(F) of the Internal Revenue Code of 1986, as amended, and for this Plan to constitute a “plan of reorganization” within the meaning of Treasury Regulation Section 1.368-2(g).
2.Filings. As promptly as practicable following the date hereof, the Company shall cause the Conversion to be effective by:
(a) executing and filing (or causing to be executed and filed) a Certificate of Conversion pursuant to Section 1701.811 of the OGCL in a form reasonably acceptable to any officer of the Company (the “Ohio Certificate of Conversion”) with the Ohio Secretary of State;
(b) executing and filing (or causing to be executed and filed) a Certificate of Conversion pursuant to Sections 103 and 265 of the DGCL in a form reasonably acceptable to any officer of the Company (the “Delaware Certificate of Conversion”) with the Delaware Secretary of State; and
(c) executing, acknowledging and filing (or causing to be executed, acknowledged and filed) a Certificate of Incorporation of GenCorp Inc. substantially in the form set forth onExhibit A hereto (the “Delaware Certificate of Incorporation”) with the Delaware Secretary of State.
3.Effective Time. The Conversion shall become effective upon the filing and effectiveness of the Ohio Certificate of Conversion, the Delaware Certificate of Conversion and the Delaware Certificate of Incorporation with the applicable secretary of state (the time of the effectiveness of the Conversion, the “Effective Time”).
4.Effect of Conversion on Common Stock. Upon the terms and subject to the conditions of this Plan, at the Effective Time, by virtue of the Conversion and without any further action on the part of the Company or its shareholders, each share of issued common stock, $0.10 par value per share, of the Company (“Company Common Stock”) shall convert into one validly issued, fully paid and nonassessable share of common stock, $0.10 par value per share, of the Converted Company (“Converted Company Common Stock”).
5.Effect of Conversion on Outstanding Stock Options. Upon the terms and subject to the conditions of this Plan, at the Effective Time, by virtue of the Conversion and without any further action on the part of the Company or its shareholders, each option to acquire shares of Company Common Stock outstanding immediately prior to the Effective Time shall convert into an equivalent option to acquire, upon the same terms and conditions (including the exercise price per share applicable to each such option) as were in effect immediately prior to the Effective Time, the same number of shares of Converted Company Common Stock.
A-2
6.Effect of Conversion on Outstanding Warrants or Other Rights. Upon the terms and subject to the conditions of this Plan, at the Effective Time, by virtue of the Conversion and without any further action on the part of the Company or its shareholders, each warrant or other right to acquire shares of Company Common Stock outstanding immediately prior to the Effective Time shall convert into an equivalent warrant or other right to acquire, upon the same terms and conditions (including the exercise price per share applicable to each such warrant or other right) as were in effect immediately prior to the Effective Time, the same number of shares of Converted Company Common Stock.
7.Effect of Conversion on Stock Certificates. Upon the terms and subject to the conditions of this Plan, at the Effective Time, all of the outstanding certificates that immediately prior to the Effective Time represented shares of Company Common Stock immediately prior to the Effective Time shall be deemed for all purposes to continue to evidence ownership of and to represent the same number of shares of Converted Company Common Stock.
8.Effect of Conversion on Employee Benefit, Incentive Compensation or Other Similar Plans. Upon the terms and subject to the conditions of this Plan, at the Effective Time, by virtue of the Conversion and without any further action on the part of the Company or its shareholders, each employee benefit plan, incentive compensation plan or other similar plan to which the Company is a party shall continue to be a plan of the Converted Company. To the extent that any such plan provides for the issuance of Company Common Stock, at the Effective Time, such plan shall be deemed to provide for the issuance of Converted Company Common Stock. A number of shares of Converted Company Common Stock shall be reserved for issuance under such plan or plans equal to the number of shares of Company Common Stock so reserved immediately prior to the effective date of the Conversion.
9.Further Assurances. If, at any time after the Effective Time, the Converted Company shall determine or be advised that any deeds, bills of sale, assignments, agreements, documents or assurances or any other acts or things are necessary, desirable or proper, consistent with the terms of this Plan, (a) to vest, perfect or confirm, of record or otherwise, in the Converted Company its right, title or interest in, to or under any of the rights, privileges, immunities, powers, purposes, franchises, properties or assets of the Company, or (b) to otherwise carry out the purposes of this Plan, the Converted Company, its officers and directors and the designees of its officers and directors, are hereby authorized to solicit in the name of the Converted Company any third-party consents or other documents required to be delivered by any third-party, to execute and deliver, in the name and on behalf of the Converted Company all such deeds, bills of sale, assignments, agreements, documents and assurances and do, in the name and on behalf of the Converted Company, all such other acts and things necessary, desirable or proper to vest, perfect or confirm its right, title or interest in, to or under any of the rights, privileges, immunities, powers, purposes, franchises, properties or assets of the Company and otherwise to carry out the purposes of this Plan.
10.Effect of Conversion on Directors and Officers. The members of the Board of Directors and the officers of the Converted Company immediately after the Effective Time shall be those individuals who were serving as directors and officers, respectively, of the Company.
11.Delaware Bylaws. To the fullest extent permitted by law, at the Effective Time, the bylaws of the Converted Company shall be substantially in the form set forth onExhibit B hereto (the “Delaware Bylaws”), and the Board of Directors of the Converted Company shall approve and ratify the Delaware Bylaws as promptly as practicable following the Effective Time.
12.Delaware Indemnification Agreements. As promptly as practicable following the Effective Time, the Converted Company shall enter into an Indemnification Agreement substantially in the form set forth onExhibit C hereto with each member of the Board of Directors of the Converted Company, and each officer of the Converted Company, that is currently a party to an indemnification agreement with the Company.
A-3
13.Termination. At any time prior to the Effective Time, this Plan may be terminated and the transactions contemplated hereby may be abandoned by action of the Board of Directors of the Company if, in the opinion of the Board of Directors of the Company, such action would be in the best interests of the Company and its shareholders. In the event of termination of this Plan, this Plan shall become void and of no effect.
14.Third Party Beneficiaries. This Plan shall not confer any rights or remedies upon any person other than as expressly provided herein.
15.Severability. Whenever possible, each provision of this Plan will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Plan is held to be prohibited by or invalid under applicable law, such provision will be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of this Plan.
16.Governing Law. This Plan shall be construed in accordance with and governed by the law of the State of Delaware, without regard to the conflict of laws provisions thereof.
A-4
Exhibit A to Appendix A
CERTIFICATE OF INCORPORATION
OF
GENCORP INC.
FIRST: The name of this corporation is GenCorp Inc. (the “Corporation”).
SECOND: The registered office of the Corporation in the State of Delaware is to be located at 1209 Orange Street, Wilmington, New Castle County, Delaware, 19801. The registered agent at such address in charge thereof shall be The Corporation Trust Company, Corporation Trust Center.
THIRD: The purpose of the Corporation is to engage in any lawful act or activity for which corporations may be organized under the General Corporation Law of the State of Delaware (the “DGCL”).
FOURTH: (A) The aggregate number of shares of stock that the Corporation is authorized to issue is One Hundred Sixty-Five Million (165,000,000), of which One Hundred Fifty Million (150,000,000) shares are common stock having a par value of Ten Cents ($0.10) per share (“Common Stock”), and Fifteen Million (15,000,000) shares are preferred stock having a par value of One Dollar ($1.00) per share (“Preferred Stock”).
(B) Preferred Stock may be issued from time to time in one or more series. The board of directors of the Corporation (the “Board”) is hereby authorized to provide for the issuance of shares of Preferred Stock in one or more series and, by filing a certificate pursuant to the applicable law of the State of Delaware (any such certificate, a “Preferred Stock Designation”), to establish from time to time the number of shares to be included in each such series and to fix the designation, powers, preferences, and rights of the shares of each such series and the qualifications, limitations, and restrictions thereof. The authority of the Board with respect to each series shall include, but shall not be limited to and shall not require (unless otherwise required by applicable law), determination of the following:
(i) The designation of the series, which may be by distinguishing number, letter, or title;
(ii) The number of shares of the series, which number the Board may thereafter (except where otherwise provided in the applicable Preferred Stock Designation) increase or decrease (but not below the number of shares thereof then outstanding);
(iii) The amounts payable on, and the preferences, if any, of, shares of the series in respect of dividends, and whether such dividends, if any, shall be cumulative or noncumulative;
(iv) The dates on which dividends, if any, shall be payable;
(v) The redemption rights and price or prices, if any, for shares of the series;
(vi) The terms and amount of any sinking fund provided for the purchase or redemption of shares of the series;
(vii) The amounts payable on, and the preferences, if any, of, shares of the series in the event of any voluntary or involuntary liquidation, dissolution, or winding up of the affairs of the Corporation;
Ex. A-1
(viii) Whether the shares of the series shall be convertible into or exchangeable for shares of any other class or series, or any other security, of the Corporation or any other corporation, and, if so, the specification of such other class or series or such other security, the conversion or exchange price or prices or rate or rates, any adjustments thereto, the date or dates at which such shares shall be convertible or exchangeable, and all other terms and conditions upon which such conversion or exchange may be made;
(ix) Restrictions on the issuance of shares of the same series or of any other class or series;
(x) The voting rights, if any, of the holders of shares of the series.
(C) Common Stock shall be subject to the express terms of any series of Preferred Stock. Except as may otherwise be provided in this Certificate of Incorporation, in a Preferred Stock Designation, or by applicable law, (i) each holder of shares of Common Stock shall be entitled to one vote for each share of Common Stock so held upon all questions presented to the stockholders of the Corporation, (ii) only shares of Common Stock shall be voted in elections of directors and for all other purposes, and (iii) shares of Preferred Stock shall not entitle the holder thereof to vote at or receive notice of any meeting of the stockholders of the Corporation.
(D) No share of Common Stock or Preferred Stock shall give any holder thereof any preemptive right to subscribe for any shares of any class or series of stock of the Corporation whether now or hereafter authorized.
FIFTH: The name and mailing address of the incorporator is Christopher C. Cambria, 2001 Aerojet Road, Rancho Cordova, CA 95742.
SIXTH: Provisions for the management of the business and for the conduct of the affairs of the Corporation and provisions creating, defining, limiting, and regulating the powers of the Corporation, the Board, and the stockholders are as follows:
(A) The Board shall have the power to make, adopt, alter, amend, and repeal the bylaws of the Corporation without the assent or vote of the stockholders, including without limitation the power to fix, from time to time, the number of directors that shall constitute the whole Board, subject to the right of the stockholders to alter, amend, and repeal the bylaws made by the Board.
(B) Election of directors of the Corporation need not be by written ballot unless the bylaws so provide.
(C) The Board in its discretion may submit any contract or act for approval or ratification at any annual meeting of the stockholders or at any meeting of the stockholders called for the purpose of considering any such contract or act, and any contract or act that shall be approved or be ratified by the vote of the holders of a majority of the stock of the Corporation that is represented in person or by proxy at such meeting and entitled to vote thereat (provided that a lawful quorum of stockholders be there represented in person or by proxy) shall be as valid and as binding upon the Corporation and upon all the stockholders as though it had been approved or ratified by every stockholder of the Corporation, whether or not the contract or act would otherwise be open to legal attack because of directors’ interest or for any other reason.
(D) In addition to the powers and authority herein or by statute expressly conferred upon it, the Board is hereby expressly empowered to exercise all such powers and to do all such acts and things as may be exercised or done by the Corporation; subject, nevertheless, to the provisions of the statutes of the State of Delaware and of this Certificate of Incorporation as they may be amended, altered, or changed from time to time, and to any bylaws from time to time made by the Board or stockholders;provided, however, that no bylaw so made shall invalidate any prior act of the Board that would have been valid if such bylaw had not been made.
Ex. A-2
(E) The holders of shares of stock of the Corporation of any class that is not otherwise entitled to voting power shall not be entitled to vote upon the increase or decrease in the number of authorized shares of such class.
SEVENTH: To the fullest extent permitted by the DGCL, including, without limitation, as provided in Section 102(b)(7) of the DGCL, as the same exists or may hereafter be amended, a director of the Corporation shall not be personally liable to the Corporation or its stockholders for monetary damages for breach of fiduciary duty as a director. If the DGCL is amended after the effective date hereof to authorize corporate action further eliminating or limiting the personal liability of directors, then the liability of a director of the Corporation shall be eliminated or limited to the fullest extent permitted by the DGCL as so amended. Any repeal or modification of this Article SEVENTH by the stockholders of the Corporation shall not adversely affect any right or protection of a director of the Corporation existing at the time of such repeal or modification or with respect to events occurring prior to such time.
EIGHTH: (A) Each person who was or is made a party to, or is threatened to be made a party to, or is involved in any action, suit, or proceeding, whether civil, criminal, administrative, or investigative (hereinafter a “proceeding”), by reason of the fact that he or she is or was a director or officer of the Corporation or is or was serving at the request of the Corporation as a director, officer, employee, or agent of another corporation or of a partnership, joint venture, trust, or other enterprise, including service with respect to employee benefit plans, whether the basis of such proceeding is alleged action in an official capacity as such director, officer, employee, or agent, or in any other capacity while serving as such director, officer, employee, or agent, shall be indemnified and held harmless by the Corporation to the fullest extent permitted by the DGCL, as the same exists or may hereafter be amended (but, in the case of any such amendment, only to the extent that such amendment permits the Corporation to provide broader indemnification rights than the DGCL permitted the Corporation to provide prior to such amendment), against all expense, liability, and loss (including attorneys’ fees, judgments, fines, other expenses and losses, amounts paid or to be paid in settlement, and excise taxes or penalties arising under the Employee Retirement Income Security Act of 1974) reasonably incurred or suffered by such person in connection therewith, and such indemnification shall continue as to a person who has ceased to be a director, officer, employee, or agent, and shall inure to the benefit of his or her heirs, executors, and administrators;provided, however, that, except as provided in paragraph (B) hereof, the Corporation shall indemnify any such person seeking indemnification in connection with a proceeding (or part thereof) initiated by such person only if such proceeding (or part thereof) was authorized by the Board. The right to indemnification conferred in this Article EIGHTH shall be a contract right and shall include the right of a director or officer to be paid by the Corporation the expenses (including attorneys’ fees) incurred in defending any such proceeding in advance of its final disposition;provided, however, that the payment of such expenses incurred by a director or officer in his or her capacity as a director or officer (and not in any other capacity in which service was or is rendered by such person while a director or officer including, without limitation, service to an employee benefit plan) in advance of the final disposition of a proceeding shall be made only upon delivery to the Corporation of an undertaking, which undertaking shall itself be sufficient without the need for further evaluation of any credit aspects of the undertaking or with respect to such advancement, by or on behalf of such director or officer, to repay all amounts so advanced if it shall ultimately be determined by a final, non-appealable order of a court of competent jurisdiction that such director or officer is not entitled to be indemnified under this Article EIGHTH or otherwise.
(B) If a claim under paragraph (A) of this Article EIGHTH is not paid in full by the Corporation within sixty (60) days after a written claim, together with reasonable evidence as to the amount of such claim, has been received by the Corporation, except in the case of a claim for advancement of expenses (including attorneys’ fees), in which case the applicable period shall be twenty (20) days, the claimant may at any time thereafter bring suit against the Corporation to recover the unpaid amount of the claim, and, if
Ex. A-3
successful in whole or in part, the claimant shall also be entitled to be paid the expense, including attorneys’ fees, of prosecuting such suit. It shall be a defense to any such suit, other than a suit brought to enforce a claim for expenses (including attorneys’ fees) incurred in defending any proceeding in advance of its final disposition where the required undertaking, if any is required, has been tendered to the Corporation, that the claimant has not met the standards of conduct that make it permissible under the DGCL for the Corporation to indemnify the claimant for the amount claimed, but the burden of proving such defense shall be on the Corporation. Neither the failure of the Corporation (including the Board or a committee thereof, independent legal counsel, or its stockholders) to have made a determination prior to the commencement of such suit that indemnification of the claimant is proper in the circumstances because he or she has met the applicable standard of conduct set forth in the DGCL, nor an actual determination by the Corporation (including the Board or a committee thereof, independent legal counsel, or its stockholders) that the claimant has not met such applicable standard of conduct, shall be a defense to the suit or create a presumption that the claimant has not met the applicable standard of conduct. In any suit brought by an indemnitee to enforce a right to indemnification or to advancement of expenses hereunder, or by the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the burden of proving that the indemnitee is not entitled to such indemnification, or to such advancement of expenses, under this Article EIGHTH or otherwise shall be on the Corporation.
(C) The right to indemnification and the payment of expenses incurred in defending a proceeding in advance of its final disposition conferred in this Article EIGHTH shall not be exclusive of any other right that any person may have or hereafter acquire under any statute, provision of the certificate of incorporation, bylaw, agreement, or vote of stockholders or disinterested directors, or otherwise.
(D) The Corporation may maintain insurance, at its expense, to protect itself and any director, officer, employee, or agent of the Corporation or another corporation, partnership, joint venture, trust, or other enterprise against any such expense, liability, or loss, whether or not the Corporation would have the power to indemnify such person against such expense, liability, or loss under the DGCL.
(E) In the case of a claim for indemnification or advancement of expenses against the Corporation under this Article EIGHTH arising out of acts, events, or circumstances for which the claimant, who was at the relevant time serving as a director, officer, employee, or agent of any other entity at the request of the Corporation, may be entitled to indemnification or advancement of expenses pursuant to such other entity’s certificate of incorporation, bylaws, or other governing document, or a contractual agreement between the claimant and such entity, the claimant seeking indemnification or advancement of expenses hereunder shall first seek indemnification or advancement of expenses pursuant to any such governing document or agreement. To the extent that amounts to be paid in indemnification or advancement to a claimant hereunder are paid by such other entity, the claimant’s right to indemnification and advancement of expenses hereunder shall be reduced.
NINTH: Whenever a compromise or arrangement is proposed between this corporation and its creditors or any class of them and/or between this corporation and its stockholders or any class of them, any court of equitable jurisdiction within the State of Delaware may, on the application in a summary way of this corporation or of any creditor or stockholder thereof or on the application of any receiver or receivers appointed for this corporation under § 291 of Title 8 of the Delaware Code or on the application of trustees in dissolution or of any receiver or receivers appointed for this corporation under § 279 of Title 8 of the Delaware Code order a meeting of the creditors or class of creditors, and/or of the stockholders or class of stockholders of this corporation, as the case may be, to be summoned in such manner as the said court directs. If a majority in number representing three fourths in value of the creditors or class of creditors, and/or of the stockholders or class of stockholders of this corporation, as the case may be, agree to any compromise or arrangement and to any reorganization of this corporation as consequence of such compromise or arrangement, the said compromise or arrangement and the said reorganization shall, if
Ex. A-4
sanctioned by the court to which the said application has been made, be binding on all the creditors or class of creditors, and/or on all the stockholders or class of stockholders, of this corporation, as the case may be, and also on this corporation.
TENTH: Unless the Corporation consents in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware shall be the sole and exclusive forum for (A) any derivative action or proceeding brought on behalf of the Corporation, (B) any action asserting a claim of breach of a fiduciary duty owed by any director, officer, or other employee of the Corporation to the Corporation or the Corporation’s stockholders, (C) any action asserting a claim arising pursuant to any provision of the DGCL, or (D) any action asserting a claim governed by the internal affairs doctrine as such doctrine exists under the law of the State of Delaware.
ELEVENTH: The Corporation hereby expressly elects not to be governed by Section 203 of the DGCL.
TWELFTH: The Corporation reserves the right to restate this Certificate of Incorporation and to amend, alter, change, or repeal any provision contained in this Certificate of Incorporation in the manner now or hereafter prescribed by law, and all rights and powers conferred herein on stockholders, directors, and officers are subject to this reserved power.
THE UNDERSIGNED, being the sole incorporator, for the purpose of forming a corporation pursuant to the DGCL and the Acts amendatory thereof and supplemental thereto, does make and file this Certificate of Incorporation, hereby declaring and certifying that the facts stated herein are true, and accordingly hereunto has set my hand and seal this , 2014.
|
Ex. A-5
Exhibit B to Appendix A
GENCORP INC.
BYLAWS
| ||
|
| |
|
| |
| ||
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| ||
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| ||
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
Ex. B-1
| ||
|
| |
|
| |
| ||
|
| |
|
| |
|
| |
| ||
|
| |
|
|
Ex. B-2
GENCORP INC.
BYLAWS
ARTICLE 1. OFFICES
Section 1.1.Registered Office. The address of the registered office of the Corporation in Delaware shall be 1209 Orange Street, Wilmington, New Castle County, Delaware, 19801. The registered agent at such address in charge thereof shall be The Corporation Trust Company, Corporation Trust Center, all of which shall be subject to change from time to time as permitted by law.
Section 1.2.Other Offices. The Corporation may also have an office or offices or place or places of business within or without the State of Delaware as the Board may from time to time designate.
ARTICLE 2. STOCKHOLDERS’ MEETINGS
Section 2.1.Annual Meeting. The annual meeting of the Stockholders shall be held at the principal place of business of the Corporation or at such other place as shall be designated in the notice of such meeting on such date and at such hour during the month of
Section 2.2.Special Meetings. Special meetings of the Stockholders for any purpose or purposes may be called at any time by the Board and shall be called upon written request by Stockholders holding shares of Stock entitling such Stockholders to cast at least twenty-five percent (25%) of the votes that would be cast if all issued and outstanding shares of Stock entitled to vote at such meeting were present and voted. Such written request shall be delivered to the President or Secretary, and upon delivery thereof, it shall be the duty of the President or Secretary to give notice of such meeting in the manner hereinafter provided. If such written request be refused, the Stockholders making such request may call such meeting by giving notice thereof in the manner hereinafter provided.
Section 2.3.Notice of Stockholder Business and Nominations.
(a)Annual Meetings of Stockholders.
(1) Nominations of persons for election to the Board of the Corporation and the proposal of other business to be considered by the Stockholders may be made at an annual meeting of Stockholders only (A) pursuant to the Corporation’s notice of meeting (or any supplement thereto), (B) by or at the direction of the Board or any committee thereof, or (C) by any Stockholder who was a Stockholder at the time the notice provided for in this Section 2.3 is delivered to the Secretary of the Corporation, who is entitled to vote at the meeting, and who complies with the notice procedures set forth in this Section 2.3.
(2) For any nominations or other business to be properly brought before an annual meeting by a Stockholder pursuant to clause (C) of paragraph (a)(1) of this Section 2.3, the Stockholder must have given timely notice thereof in writing to the Secretary of the Corporation, and any such proposed business (other than the nominations of persons for election to the Board) must constitute a proper matter for Stockholder action. To be timely, a Stockholder’s notice shall be delivered to the Secretary at the principal executive offices of the Corporation not later than the close of business on the ninetieth (90th) day, nor earlier than the close of business on the one hundred twentieth (120th) day, prior to the first anniversary of the preceding year’s annual meeting (provided, however, that in the event that the date of the annual meeting is more than thirty (30) days before or more than seventy (70) days after such anniversary date, notice by the Stockholder must be so delivered not earlier than the close of business on the one hundred twentieth (120th) day prior to such annual meeting and not later than the close of business on the later of the ninetieth (90th) day prior to such annual meeting or the tenth (10th) day following the day on which public announcement of the date of such meeting is first made by the Corporation). In no event shall the public announcement of an
Ex. B-3
18, 2016
adjournment or postponement of an annual meeting commence a new time period (or extend any time period) for the giving of a Stockholder’s notice as described above. Such Stockholder’s notice shall set forth (A) as to each person whom the Stockholder proposes to nominate for election as a Director (i) all information relating to such person that is required to be disclosed in solicitations of proxies for election of Directors in an election contest, or is otherwise required, in each case pursuant to and in accordance with Section 14(a) of the Exchange Act and the rules and regulations promulgated thereunder, and (ii) such person’s written consent to being named in the proxy statement as a nominee and to serving as a Director if elected; (B) as to any other business that the Stockholder proposes to bring before the meeting, a brief description of the business desired to be brought before the meeting, the text of the proposal or business (including the text of any resolutions proposed for consideration and, in the event that such business includes a proposal to amend the Bylaws of the Corporation, the language of the proposed amendment), the reasons for conducting such business at the meeting, and any material interest in such business of such Stockholder and the beneficial owner, if any, on whose behalf the proposal is made; and (C) as to the Stockholder giving the notice and the beneficial owner, if any, on whose behalf the nomination or proposal is made (i) the name and address of such Stockholder, as they appear on the Corporation’s books, and of such beneficial owner, (ii) the class or series and number of shares of Stock that are owned beneficially and of record by such Stockholder and such beneficial owner, (iii) a description of any agreement, arrangement, or understanding with respect to the nomination or proposal between or among such Stockholder and/or such beneficial owner, any of their respective affiliates or associates, and any others acting in concert with any of the foregoing, including, in the case of a nomination, the nominee, (iv) a description of any agreement, arrangement, or understanding (including any derivative or short positions, profit interests, options, warrants, convertible securities, stock appreciation or similar rights, hedging transactions, and borrowed or loaned shares) that has been entered into as of the date of the Stockholder’s notice by, or on behalf of, such Stockholder and such beneficial owners, whether or not such instrument or right shall be subject to settlement in underlying shares of Stock, the effect or intent of which is to mitigate loss to, manage risk or benefit of share price changes for, or increase or decrease the voting power of, such Stockholder or such beneficial owner, with respect to securities of the Corporation, (v) a representation that the Stockholder is a holder of record of Stock entitled to vote at such meeting and intends to appear in person or by proxy at the meeting to propose such business or nomination, (vi) a representation whether the Stockholder or the beneficial owner, if any, intends or is part of a group that intends (I) to deliver a proxy statement and/or form of proxy to holders of at least the percentage of the outstanding Stock required to approve or adopt the proposal or elect the nominee and/or (II) otherwise to solicit proxies or votes from Stockholders in support of such proposal or nomination, and (vii) any other information relating to such Stockholder and beneficial owner, if any, required to be disclosed in a proxy statement or other filings required to be made in connection with solicitations of proxies for, as applicable, the proposal and/or for the election of Directors in an election contest pursuant to and in accordance with Section 14(a) of the Exchange Act and the rules and regulations promulgated thereunder. The foregoing notice requirements of this Section 2.3 shall be deemed satisfied by a Stockholder with respect to business other than a nomination if the Stockholder has notified the Corporation of his, her, or its intention to present a proposal at an annual meeting in compliance with applicable rules and regulations promulgated under the Exchange Act and such Stockholder’s proposal has been included in a proxy statement that has been prepared by the Corporation to solicit proxies for such annual meeting. The Corporation may require any proposed nominee to furnish such other information as the Corporation may reasonably require to determine the eligibility of such proposed nominee to serve as a Director.
(3) Notwithstanding anything in the second sentence of paragraph (a)(2) of this Section 2.3 to the contrary, in the event that the number of Directors to be elected to the Board of the Corporation at the annual meeting is increased effective after the time period for which nominations would otherwise be due under paragraph (a)(2) of this Section 2.3, and there is no public announcement by the Corporation naming the nominees for the additional directorships at least one hundred (100) days prior to the first anniversary of the
Ex. B-4
preceding year’s annual meeting, a Stockholder’s notice required by this Section 2.3 shall also be considered timely, but only with respect to nominees for the additional directorships, if it shall be delivered to the Secretary at the principal executive offices of the Corporation not later than the close of business on the tenth (10th) day following the day on which such public announcement is first made by the Corporation.
(b)Special Meetings of Stockholders. Only such business shall be conducted at a special meeting of Stockholders as shall have been brought before the meeting pursuant to the Corporation’s notice of meeting. Nominations of persons for election to the Board may be made at a special meeting of Stockholders at which Directors are to be elected pursuant to the Corporation’s notice of meeting (1) by or at the direction of the Board or any committee thereof or Stockholders pursuant to Section 2.2 hereof, or (2) provided that the Board or Stockholders pursuant to Section 2.2 hereof has determined that Directors shall be elected at such meeting, by any Stockholder of the Corporation who is a Stockholder at the time the notice provided for in this Section 2.3 is delivered to the Secretary of the Corporation, who is entitled to vote at the meeting and upon such election and who complies with the notice procedures set forth in this Section 2.3. In the event the Corporation calls a special meeting of Stockholders for the purpose of electing one or more Directors, any such Stockholder entitled to vote in such election of Directors may nominate a person or persons (as the case may be) for election to such position(s) as specified in the Corporation’s notice of meeting, if the Stockholder’s notice required by paragraph (a)(2) of this Section 2.3 shall be delivered to the Secretary at the principal executive offices of the Corporation not earlier than the close of business on the one hundred twentieth (120th) day prior to such special meeting and not later than the close of business on the later of the ninetieth (90th) day prior to such special meeting or the tenth (10th) day following the day on which public announcement is first made of the date of the special meeting and of the nominees proposed by the Board to be elected at such meeting. In no event shall the public announcement of an adjournment or postponement of a special meeting commence a new time period (or extend any time period) for the giving of a Stockholder’s notice as described above.
(c)General.
(1) Except as otherwise expressly provided in any applicable rule or regulation promulgated under the Exchange Act, only such persons who are nominated in accordance with the procedures set forth in this Section 2.3 shall be eligible to be elected at an annual or special meeting of Stockholders to serve as Directors, and only such business shall be conducted at a meeting of Stockholders as shall have been brought before the meeting in accordance with the procedures set forth in this Section 2.3. Except as otherwise provided by law, the chairman of the meeting shall have the power and duty (A) to determine whether a nomination or any business proposed to be brought before the meeting was made or proposed, as the case may be, in accordance with the procedures set forth in this Section 2.3 (including whether the Stockholder or beneficial owner, if any, on whose behalf the nomination or proposal is made solicited (or is part of a group that solicited) or did not so solicit, as the case may be, proxies or votes in support of such Stockholder’s nominee or proposal in compliance with such Stockholder’s representation as required by clause (a)(2)(C)(vi) of this Section 2.3), and (B) if any proposed nomination or business was not made or proposed in compliance with this Section 2.3, to declare that such nomination shall be disregarded or that such proposed business shall not be transacted. Notwithstanding the foregoing provisions of this Section 2.3, unless otherwise required by law, if the Stockholder (or a qualified representative of the Stockholder) does not appear at the annual or special meeting of Stockholders to present a nomination or proposed business, such nomination shall be disregarded and such proposed business shall not be transacted, notwithstanding that proxies in respect of such vote may have been received by the Corporation. For purposes of this Section 2.3, to be considered a qualified representative of the Stockholder, a person must be a duly authorized officer, manager or partner of such Stockholder or must be authorized by a writing executed by such Stockholder or an electronic transmission delivered by such Stockholder to act for such Stockholder as
Ex. B-5
proxy at the meeting of Stockholders, and such person must produce such writing or electronic transmission, or a reliable reproduction of the writing or electronic transmission, at the meeting of Stockholders.
(2) For purposes of this Section 2.3, “public announcement” shall include disclosure in a press release reported by the Dow Jones News Service, Associated Press, or other national news service, or in a document publicly filed by the Corporation with the Securities and Exchange Commission pursuant to Section 13, 14, or 15(d) of the Exchange Act and the rules and regulations promulgated thereunder.
(3) Notwithstanding the foregoing provisions of this Section 2.3, a Stockholder shall also comply with all applicable requirements of the Exchange Act and the rules and regulations promulgated thereunder with respect to the matters set forth in this Section 2.3;provided, however, that any references in these Bylaws to the Exchange Act or the rules and regulations promulgated thereunder are not intended to and shall not limit any requirements applicable to nominations or proposals as to any other business to be considered pursuant to this Section 2.3 (including paragraphs (a)(1)(C) and (b) hereof), and compliance with paragraphs (a)(1)(C) and (b) of this Section 2.3 shall be the exclusive means for a Stockholder to make nominations or submit other business (other than, as provided in the penultimate sentence of (a)(2), business other than nominations brought properly under and in compliance with Rule 14a-8 of the Exchange Act, as may be amended from time to time). Nothing in this Section 2.3 shall be deemed to affect any rights (A) of Stockholders to request inclusion of proposals or nominations in the Corporation’s proxy statement pursuant to applicable rules and regulations promulgated under the Exchange Act, or (B) of the holders of any series of Preferred Stock to elect Directors pursuant to any applicable provisions of the certificate of incorporation.
Section 2.4.Time and Place of Special Meetings. Special meetings of the Stockholders shall be held at such times and at such places as shall be designated in the notices of such meetings.
Section 2.5.Notice of Meetings. Notice of all Stockholders’ meetings shall be given in writing (a) by the President or Secretary or another officer of the Corporation authorized to give such notice, or (b) in case of a special meeting duly requested by Stockholders pursuant to Section 2.2 and for which the President or Secretary has refused to give notice, by the Stockholders entitled to call such meeting. Notice of any Stockholders’ meeting shall state the date and hour when and the place where it is to be held, the record date for determining the Stockholders entitled to vote at such meeting if such date is different from the record date for determining the Stockholders entitled to notice of such meeting, and, in the case of a special meeting, the purpose or purposes for which such meeting is called. Subject to Section 6.3, and unless otherwise required by law, not more than sixty (60) nor less than ten (10) days prior to any such meeting, such notice shall be given to each Stockholder entitled to vote at such meeting as of the record date for determining the Stockholders entitled to notice of the meeting, directed by United States mail, postage prepaid, to such Stockholder’s address as it appears upon the records of the Corporation.
Section 2.6.Record Date. The Board may fix a date, which date shall not precede the date upon which the resolution fixing such date is adopted by the Board and shall not be more than sixty (60) nor less than ten (10) days preceding any meeting of Stockholders, as the record date for the determination of the Stockholders entitled to notice of such meeting. If the Board so fixes a date, such date shall also be the record date for determining the Stockholders entitled to vote at such meeting unless the Board determines, at the time it fixes such record date, that a later date on or before the date of such meeting shall be the date for making such determination. If no record date is fixed by the Board, the record date for determining Stockholders entitled to notice of and to vote at a meeting of Stockholders shall be at the close of business on the day next preceding the day on which notice is given, or, if notice is waived, at the close of business on the day next preceding the day on which such meeting is held.
Section 2.7.List of Stockholders. The officer who has charge of the Stock ledger of the Corporation shall prepare and make, at least ten (10) days before every meeting of Stockholders, a complete list of the Stockholders entitled to vote at the meeting;provided, however, that if the record date for determining the
Ex. B-6
Stockholders entitled to vote is less than ten (10) days before the meeting date, the list shall reflect the Stockholders entitled to vote as of the tenth (10th) day before the meeting date, arranged in alphabetical order, and showing the address of each Stockholder and the number of shares of Stock registered in the name of each Stockholder. Such list shall be open to the examination of any Stockholder for any purpose germane to the meeting for a period of at least ten (10) days prior to the meeting, during ordinary business hours, at the principal place of business of the Corporation. A list of Stockholders entitled to vote at the meeting shall be produced and kept at the time and place of the meeting during the whole time thereof and may be examined by any Stockholder who is present. The stock ledger shall be the only evidence as to who are the Stockholders entitled to vote in person or by proxy at any meeting of Stockholders.
Section 2.8.Voting. Except as may be otherwise required by law, the Certificate of Incorporation, or these Bylaws, (a) every Stockholder shall be entitled to one (1) vote for each share of Stock held of record by such Stockholder on the record date for determining the Stockholders entitled to vote or act by written consent; (b) in all matters other than the election of Directors, the affirmative vote of the majority of shares of Stock present in person or represented by proxy at a Stockholders’ meeting having a quorum and entitled to vote on the subject matter shall be the act of the Stockholders; and (c) Directors shall be elected by a plurality of the votes of the shares of Stock present in person or represented by proxy at a Stockholders’ meeting having a quorum and entitled to vote on the election of Directors.
Section 2.9.Proxies. At any meeting of the Stockholders, any Stockholder entitled to vote thereat may be represented and may vote by duly authorized proxy or proxies. In the event that a Stockholder shall authorize three (3) or more persons to act as proxies, a majority of such persons present at the meeting, or if only one (1) such person shall be present, then that one (1), shall have and may exercise all of the powers conferred by such authorization upon all of the persons so authorized unless the authorization shall otherwise provide.
Section 2.10.Quorum. Except as may be otherwise required by law or the Certificate of Incorporation, at any meeting of the Stockholders, the presence in person or by proxy of the holders of record of shares of Stock that would constitute a majority of the votes if all outstanding shares of Stock entitled to vote at such meeting were present and voted shall be necessary to constitute a quorum;provided, however, that, where a separate vote by a class or series of Stock is required, a quorum shall consist of the presence in person or by proxy of the holders of record of shares of Stock that would constitute a majority of the votes of such class or series if all outstanding shares of Stock of such class or series entitled to vote at such meeting were present and voted. In the absence of a quorum and until a quorum is secured, either the chairman of the meeting or a majority of the votes cast at the meeting by Stockholders who are present in person or by proxy may adjourn the meeting, from time to time, without further notice if the time and place of the adjourned meeting are announced at the meeting at which the adjournment is taken. No business shall be transacted at any such adjourned meeting except such as might have been lawfully transacted at the original meeting.
Section 2.11.Adjournment. Any meeting of Stockholders may be adjourned at the meeting from time to time, either by the chairman of the meeting, for an announced proper purpose, or by the Stockholders, for any purpose, to reconvene at a later time and at the same or some other place, and, unless otherwise required by law, notice need not be given of any such adjourned meeting if the time and place thereof are announced at the meeting at which the adjournment is taken. No business shall be transacted at any such adjourned meeting except such as might have been lawfully transacted at the original meeting.
Section 2.12.Organization of Meetings. Meetings of Stockholders shall be presided over by the chairman of the meeting, who shall be one of the following, here listed in the order of preference: (a) the Chairman; or (b) in the Chairman’s absence, the President; or (c) in the President’s absence, a Vice President; or (d) in the absence of the foregoing officers, a chairman chosen by the Stockholders at the meeting. The Secretary shall act as secretary of the meeting, but in such officer’s absence, the chairman of the meeting shall appoint a secretary of the meeting.
Ex. B-7
Section 2.13.Conduct of Meetings. Subject to and to the extent permitted by law, the Board may adopt by resolution such rules and regulations for the conduct of meetings of Stockholders as it shall deem appropriate. Except to the extent inconsistent with law or such rules and regulations as adopted by the Board, the chairman of any meeting of Stockholders shall have the right and authority to prescribe such rules, regulations, and procedures, and to do all such acts, as in the judgment of such chairman are appropriate for the proper conduct of the meeting. Such rules, regulations, or procedures, whether adopted by the Board or prescribed by the chairman of the meeting, may include, without limitation, the following: (a) the establishment of an agenda or order of business for the meeting and announcement of the date and time of the opening and closing of the polls for each matter upon which the Stockholders will vote at the meeting; (b) rules and procedures for maintaining order at the meeting and the safety of those present; (c) limitations on attendance at or participation in the meeting to Stockholders, their duly authorized proxies, or such other persons as the chairman of the meeting shall determine; (d) restrictions on entry to the meeting after the time fixed for the commencement thereof; (e) limitations on the time allotted to questions or comments by participants; and (f) appointment of inspectors of election and other voting procedures, including those procedures set out in Section 231 of the DGCL. Unless and to the extent determined otherwise by the Board or the chairman of the meeting, meetings of Stockholders shall not be required to be held in accordance with the rules of parliamentary procedure.
ARTICLE 3. BOARD OF DIRECTORS
Section 3.1.Number. Except as may be otherwise provided in the Certificate of Incorporation with respect to the rights of holders of any class or series of Stock having a preference over the Common Stock, the entire Board shall consist of one (1) or more Directors, the total number thereof to be authorized first by the incorporator of the Corporation and thereafter from time to time by resolution of the Board. This Section 3.1 shall not be amended except pursuant to (a) the affirmative vote of a majority of the total number of Directors, or (b) the affirmative vote of the holders of record of shares of Stock entitled to at least eighty percent (80%) of the total voting power of the issued and outstanding shares of Stock.
Section 3.2.Term and Qualification. Directors shall hold office until the next annual election and until their successors are elected and qualified, or until their earlier death, resignation, or removal. Directors need not be Stockholders.
Section 3.3.Vacancies. If there be a vacancy on the Board by reason of death, resignation, or otherwise, or if there be any newly created directorships resulting from an increase in the authorized number of Directors, such vacancy or directorship shall be filled by the affirmative vote of a majority of the Directors then in office, although less than a quorum. Any Director chosen by reason of such vacancy or such newly created directorship shall hold office until the next annual meeting and until such Director’s successor is elected and qualified, or until such Director’s earlier death, resignation, or removal. This Section 3.3 shall not be amended except pursuant to (a) the affirmative vote of a majority of the total number of Directors, or (b) the affirmative vote of the holders of record of shares of Stock entitled to at least eighty percent (80%) of the total voting power of the issued and outstanding shares of Stock.
Section 3.4.Meetings. The Board may by resolution provide for regular meetings to be held at such times and places as it may determine, and such meetings may be held without further notice. Special meetings of the Board may be called by the Chairman or by the President, or by not less than one-third (1/3) of the Directors then in office. Subject to Section 6.3, notice of the time and place of such meeting shall be given by or at the direction of the person or persons calling the meeting, and shall be delivered personally or telephoned to each Director at least twenty-four (24) hours prior to the time of the meeting, or sent by First Class United States mail, postage prepaid, to each Director at such Director’s address as shown on the records of the Corporation, in which case such notice shall be deposited in the United States mail no
Ex. B-8
later than the fourth (4th) business day preceding the day of the meeting. Unless otherwise specified in the notice of a special meeting, any and all business may be transacted at such meeting.
Section 3.5.Action Without a Meeting. Any action required or permitted to be taken at any meeting of the Board or of any committee thereof may be taken without a meeting if all the Directors or all members of the committee, as the case may be, consent thereto in writing or by electronic transmission, and such writings or electronic transmissions are filed with the minutes of proceedings of the Board or committee, as the case may be.
Section 3.6.Quorum. At any meeting of the Board, the presence of (a) a majority of the Directors then in office or (b) one-third (1/3) of the total number of Directors, whichever is greater, shall be necessary to constitute a quorum for the transaction of business. Notwithstanding the foregoing, if at any meeting of the Board there shall be less than a quorum present, a majority of those present may adjourn the meeting from time to time without further notice if the time and place of the adjourned meeting are announced at the meeting at which the adjournment is taken.
Section 3.7.Vote Necessary to Act and Participation by Conference Telephone. The vote of the majority of the Directors present at a meeting at which a quorum is present shall be the act of the Board, except as may otherwise be provided by law, the Certificate of Incorporation, or these Bylaws. Participation in a meeting by conference telephone or similar means by which all participating Directors can hear each other shall constitute presence in person at such meeting.
Section 3.8.Executive and Other Committees.
(a) The Board may by resolution designate an Executive Committee and/or one or more other committees, each committee to consist of two (2) or more Directors, except that the Executive Committee, if any, shall consist of not less than (3) Directors. Any such committee, to the extent provided in such resolution or in these Bylaws, shall have and may exercise the powers and authority of the Board in the management of the business and affairs of the Corporation, except in reference to powers or authority expressly forbidden such committee by law, and may authorize the seal of the corporation to be fixed to all papers that may require it.
(b) During the intervals between meetings of the Board, the Executive Committee, unless restricted by resolution of the Board, shall possess and may exercise, under the control and direction of the Board, all of the powers of the Board in the management and control of the business of the Corporation to the fullest extent permitted by law. All action taken by the Executive Committee shall be reported to the Board at its first meeting thereafter and shall be subject to revision or rescission by the Board;provided, however, that rights of third parties shall not be affected by any such action by the Board.
(c) If any member of any such committee other than the Executive Committee is absent or disqualified, the member or members thereof present at any meeting and not disqualified from voting, whether or not such member or members constitute a quorum, may unanimously appoint another Director to act at the meeting in the place of any such absent or disqualified member.
(d) Any such committee shall meet at stated times or on notice to all of its own number. It shall fix its own rules of procedure. A majority shall constitute a quorum, but the affirmative vote of a majority of the whole committee shall be necessary to act in every case.
Section 3.9.Indemnification.
(a) Each person who was or is made a party to, or is threatened to be made a party to, or is involved in any action, suit, or proceeding, whether civil, criminal, administrative, or investigative (hereinafter a “proceeding”), by reason of the fact that he or she is or was a Director or officer of the Corporation or is or was serving at the request of the Corporation as a director, officer, employee, or agent
Ex. B-9
of another corporation or of a partnership, joint venture, trust, or other enterprise, including service with respect to employee benefit plans, whether the basis of such proceeding is alleged action in an official capacity as such director, officer, employee, or agent, or in any other capacity while serving as such director, officer, employee, or agent, shall be indemnified and held harmless by the Corporation to the fullest extent permitted by the DGCL, as the same exists or may hereafter be amended (but, in the case of any such amendment, only to the extent that such amendment permits the Corporation to provide broader indemnification rights than the DGCL permitted the Corporation to provide prior to such amendment), against all expense, liability, and loss (including attorneys’ fees, judgments, fines, other expenses and losses, amounts paid or to be paid in settlement, and excise taxes or penalties arising under the Employee Retirement Income Security Act of 1974) reasonably incurred or suffered by such person in connection therewith, and such indemnification shall continue as to a person who has ceased to be a Director, officer, employee, or agent, and shall inure to the benefit of his or her heirs, executors, and administrators;provided, however, that, except as provided in paragraph (b) hereof, the Corporation shall indemnify any such person seeking indemnification in connection with a proceeding (or part thereof) initiated by such person only if such proceeding (or part thereof) was authorized by the Board. The right to indemnification conferred in this Section 3.9 shall be a contract right and shall include the right of a Director or officer to be paid by the Corporation the expenses (including attorneys’ fees) incurred in defending any such proceeding in advance of its final disposition;provided, however, that the payment of such expenses incurred by a Director or officer in his or her capacity as a Director or officer (and not in any other capacity in which service was or is rendered by such person while a Director or officer including, without limitation, service to an employee benefit plan) in advance of the final disposition of a proceeding shall be made only upon delivery to the Corporation of an undertaking, which undertaking shall itself be sufficient without the need for further evaluation of any credit aspects of the undertaking or with respect to such advancement, by or on behalf of such Director or officer, to repay all amounts so advanced if it shall ultimately be determined by a final, non-appealable order of a court of competent jurisdiction that such Director or officer is not entitled to be indemnified under this Section 3.9 or otherwise.
(b) If a claim under Section 3.9(a) is not paid in full by the Corporation within sixty (60) days after a written claim, together with reasonable evidence as to the amount of such claim, has been received by the Corporation, except in the case of a claim for advancement of expenses (including attorneys’ fees), in which case the applicable period shall be twenty (20) days, the claimant may at any time thereafter bring suit against the Corporation to recover the unpaid amount of the claim, and, if successful in whole or in part, the claimant shall also be entitled to be paid the expense, including attorneys’ fees, of prosecuting such suit. It shall be a defense to any such suit, other than a suit brought to enforce a claim for expenses (including attorneys’ fees) incurred in defending any proceeding in advance of its final disposition where the required undertaking, if any is required, has been tendered to the Corporation, that the claimant has not met the standards of conduct that make it permissible under the DGCL for the Corporation to indemnify the claimant for the amount claimed, but the burden of proving such defense shall be on the Corporation. Neither the failure of the Corporation (including the Board or a committee thereof, independent legal counsel, or the Stockholders) to have made a determination prior to the commencement of such suit that indemnification of the claimant is proper in the circumstances because he or she has met the applicable standard of conduct set forth in the DGCL, nor an actual determination by the Corporation (including the Board or a committee thereof, independent legal counsel, or the Stockholders) that the claimant has not met such applicable standard of conduct, shall be a defense to the suit or create a presumption that the claimant has not met the applicable standard of conduct. In any suit brought by an indemnitee to enforce a right to indemnification or to advancement of expenses hereunder, or by the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the burden of proving that the indemnitee is not entitled to such indemnification, or to such advancement of expenses, under this Section 3.9 or otherwise shall be on the Corporation.
Ex. B-10
(c) The right to indemnification and the payment of expenses incurred in defending a proceeding in advance of its final disposition conferred in this Section 3.9 shall not be exclusive of any other right that any person may have or hereafter acquire under any statute, provision of the Certificate of Incorporation, Bylaw, agreement, or vote of Stockholders or disinterested Directors, or otherwise.
(d) The Corporation may maintain insurance, at its expense, to protect itself and any Director, officer, employee, or agent of the Corporation or another corporation, partnership, joint venture, trust, or other enterprise against any such expense, liability, or loss, whether or not the Corporation would have the power to indemnify such person against such expense, liability, or loss under the DGCL.
(e) In the case of a claim for indemnification or advancement of expenses against the Corporation under this Section 3.9 arising out of acts, events, or circumstances for which the claimant, who was at the relevant time serving as a director, officer, employee, or agent of any other entity at the request of the Corporation, may be entitled to indemnification or advancement of expenses pursuant to such other entity’s certificate of incorporation, bylaws, or other governing document, or a contractual agreement between the claimant and such entity, the claimant seeking indemnification or advancement of expenses hereunder shall first seek indemnification or advancement of expenses pursuant to any such governing document or agreement. To the extent that amounts to be paid in indemnification or advancement to a claimant hereunder are paid by such other entity, the claimant’s right to indemnification and advancement of expenses hereunder shall be reduced.
Section 3.10.Removal. Except as may be otherwise provided in the Certificate of Incorporation with respect to the rights of holders of any class or series of Stock having a preference over the Common Stock, Directors may be removed from office at any time, with or without cause, by the affirmative vote of the holders of record of shares of Stock that would constitute a majority of the votes if all outstanding shares entitled to vote thereon were voted.
Section 3.11.Chairman. The Board shall elect a Chairman from among the Directors. The Chairman shall preside at all meetings of the Board and shall perform such other duties as may be directed by resolution of the Board or as otherwise set forth in these Bylaws.
ARTICLE 4. OFFICERS
Section 4.1.Officers. The Corporation shall have a President, a Secretary, and a Treasurer, all of whom shall be chosen by the Board. The Corporation may also have one or more Vice Presidents, Assistant Secretaries, Assistant Treasurers, and other officers as the Board may deem advisable, all of whom shall be chosen by the Board. Any two (2) or more offices may be held by the same person. All officers shall hold office for one (1) year and until their successors are selected and qualified, unless otherwise specified by the Board;provided, however, that any officer shall be subject to removal at any time by the affirmative vote of a majority of the total number of Directors. The officers shall have such powers and shall perform such duties, executive or otherwise, as from time to time may be assigned to them by the Board and, to the extent not so assigned, as generally pertain to their respective offices, subject to the control of the Board.
Section 4.2.President. The President shall be the chief executive officer of the Corporation and shall have such other powers and shall perform such other duties as may be assigned by the Board.
Section 4.3.Vice President. The Vice President, or, if there be more than one (1), the Vice Presidents, in order of their seniority by designation (or if not designated, in order of their seniority of election), shall perform the duties of the President during the President’s absence or disability to act. The Vice Presidents shall have such other powers and shall perform such other duties as may be assigned by the Board or the Executive Committee.
Ex. B-11
Section 4.4.Secretary. The Secretary shall issue notices of all meetings for which notice is required to be given, shall keep the minutes thereof, shall have charge of the corporate seal and corporate record books, shall cause to be prepared for each meeting of Stockholders the list of Stockholders referred to in Section 2.7, and shall have such other powers and shall perform such other duties as may be assigned by the Board or the Executive Committee.
Section 4.5.Treasurer. The Treasurer shall have the custody of all moneys and securities of the Corporation, and shall keep adequate and correct accounts of the Corporation’s business transactions, including accounts of its assets, liabilities, receipts, disbursements, gains, losses, statutory capital, and shares. The funds of the Corporation shall be deposited in the name of the Corporation by the Treasurer in such depositories as the Board may from time to time designate. The Treasurer shall have such other powers and shall perform such other duties as may be assigned by the Board or the Executive Committee.
Section 4.6.Assistant Secretary. The Assistant Secretary shall perform all the duties of the Secretary in case of the absence or disability of the Secretary, and shall have such other powers and shall perform such other duties as may be assigned by the Board or the Executive Committee.
Section 4.7.Assistant Treasurer. The Assistant Treasurer shall perform all the duties of the Treasurer in case of the absence or disability of the Treasurer, and shall have such other powers and shall perform such other duties as may be assigned by the Board or the Executive Committee.
Section 4.8.Other Officers. Other officers of the Corporation shall have such powers and shall perform such duties as may be assigned by the Board or the Executive Committee.
Section 4.9.Authority to Sign. Except as otherwise specifically provided by the Board or the Executive Committee, checks, notes, drafts, contracts, and other instruments authorized by the Board or the Executive Committee may be executed and delivered in the name and on behalf of the Corporation by the Chairman, the President, a Vice President, the Secretary, an Assistant Secretary, the Treasurer, or an Assistant Treasurer.
ARTICLE 5. STOCK
Section 5.1. Certificates. Shares of Stock shall be represented by certificates,provided that the Board may provide by resolution that some or all of any or all classes or series of Stock shall be uncertificated shares. Any such resolution shall not apply to shares represented by a certificate until such certificate is surrendered to the Corporation. Every holder of record of Stock represented by certificates shall be entitled to have a certificate signed by or in the name of the Corporation by the Chairman or the President or a Vice President, and by the Treasurer or an Assistant Treasurer, or the Secretary or an Assistant Secretary, certifying the number of shares of Stock owned by such holder. Any of or all the signatures on the certificate may be a facsimile. In case any officer, transfer agent, or registrar who has signed or whose facsimile signature has been placed upon a certificate shall have ceased to be such officer, transfer agent, or registrar before such certificate is issued, it may be issued by the Corporation with the same effect as if such person were such officer, transfer agent, or registrar at the date of issue.
Section 5.2.Lost, Stolen, or Destroyed Stock Certificates; Issuance of New Certificates. The Corporation may issue a new certificate of Stock in the place of any certificate theretofore issued by it and alleged to have been lost, stolen, or destroyed, and the Corporation may require the owner of the lost, stolen, or destroyed certificate, or such owner’s legal representative, to give the Corporation a bond sufficient to indemnify it against any claim that may be made against it on account of the alleged loss, theft, or destruction of any such certificate or the issuance of such new certificate.
Ex. B-12
ARTICLE 6. MISCELLANEOUS
Section 6.1.Seal. The corporate seal shall have the name of the Corporation inscribed thereon and shall be in such form as may be approved from time to time by the Board.
Section 6.2.Fiscal Year. The fiscal year of the Corporation shall be determined by resolution of the Board.
Section 6.3.Waiver of Notice of Meetings of Stockholders, Directors, and Committees. Any waiver of notice given by the person entitled to notice, whether before or after the time stated therein, shall be deemed equivalent to notice. Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except when the person attends a meeting for the express purpose of objecting, and does object, at the beginning of such meeting, to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be transacted at nor the purpose of any regular or special meeting of the Stockholders, Directors, or members of a committee of the Board need be specified in a waiver of notice.
ARTICLE 7. CONSTRUCTION AND DEFINED TERMS
Section 7.1.Construction. As appropriate in context, whenever the singular number is used in these Bylaws, the same includes the plural, and whenever the plural number is used in these Bylaws, the same includes the singular. As used in these Bylaws, each of the neuter, masculine, and feminine genders includes the other two genders. As used in these Bylaws, “include,” “includes,” and “including” shall be deemed to be followed by “without limitation”.
Section 7.2.Defined Terms. As used in these Bylaws,
“Board” means the board of directors of the Corporation.
“Bylaws” means these bylaws of the Corporation, as the same may be amended from time to time.
“Certificate of Incorporation” means the Certificate of Incorporation of the Corporation, as the same may be amended from time to time.
“Common Stock” means the common stock of the Corporation, par value Ten Cents ($0.10) per share.
“Corporation” means GenCorp Inc.
“Exchange Act” means the Securities Exchange Act of 1934, as amended.
“DGCL” means the General Corporation Law of the State of Delaware, as the same may be amended from time to time.
“Director” means a member of the Board.
“Stock” means the authorized capital stock of the Corporation.
“Stockholder” means a holder of record of shares of Stock. For the avoidance of doubt, the existence of treasury shares of Stock shall not cause the Corporation to be a Stockholder.
Ex. B-13
Exhibit C to Appendix A
INDEMNIFICATION AGREEMENT
THIS AGREEMENT (the “Agreement”) is made this day of 2014 by and between GenCorp, Inc., a Delaware corporation (“GenCorp”), and (“Indemnitee”).
RECITALS
WHEREAS, Indemnitee is a [director/officer] of GenCorp; and
WHEREAS, it is in the best interests of GenCorp and its stockholders that Indemnitee continue in Indemnitee’s service to GenCorp as such [director/officer], and that Indemnitee be insulated from the litigation risks associated with such service as permitted under Delaware law and the Certificate of Incorporation of GenCorp (the “Certificate of Incorporation”); and
WHEREAS, to induce Indemnitee to continue in such service, GenCorp wishes to provide, pursuant to Section 145(f) of the General Corporation Law of the State of Delaware (the “DGCL”) and Paragraph (C) of Article Eighth of the Certificate of Incorporation, the indemnification and other rights set forth herein, in addition to and independent of any such rights that Indemnitee may have under the DGCL, the Certificate of Incorporation, the Bylaws of GenCorp (the “Bylaws”), or otherwise (subject, however, to Section 14 of this Agreement),
NOW, THEREFORE, GenCorp and Indemnitee, for and in consideration of the mutual promises and covenants set forth herein and intending to be legally bound hereby, agree as follows:
1.Indemnification. If Indemnitee was or is made a party to, threatened to be made a party to, or involved as a party, witness, or otherwise in any action, suit, or proceeding, whether civil, criminal, administrative, or investigative, by reason of the fact that Indemnitee is or was a director or officer of GenCorp (any such action, suit, or proceeding, a “Proceeding”), Indemnitee shall be indemnified and held harmless by GenCorp against all expense, liability, and loss (including attorneys’ fees, judgments, fines, other expenses and losses, amounts paid or to be paid in settlement, and excise taxes or penalties arising under the Employee Retirement Income Security Act of 1974) (all such expense, liability, and loss, “Losses”) reasonably incurred or suffered by Indemnitee in connection therewith, and such indemnification shall continue as to Indemnitee after Indemnitee shall have ceased to be such director or officer of GenCorp, and shall inure to the benefit of Indemnitee’s heirs, executors, and administrators.
2.Advance Indemnification. GenCorp shall pay to or on behalf of Indemnitee the expenses (including attorneys’ fees) incurred by Indemnitee in any Proceeding, in advance of its final disposition, upon GenCorp’s receipt from or on behalf of Indemnitee of reasonable evidence of such expenses, together with a written undertaking by Indemnitee to repay all amounts so advanced if it shall ultimately be determined by a final, non-appealable order of a court of competent jurisdiction that Indemnitee is not entitled to be indemnified under this Agreement. If, and to the extent that, such ultimate determination is made, GenCorp shall be entitled to reimbursement by Indemnitee of any amounts paid in advance toward such indemnification pursuant to this Section 2.
3.Limitation. The indemnification rights afforded by this Agreement are intended to provide for indemnification, including advance indemnification, of Indemnitee by GenCorp to the fullest extent permitted by the DGCL;provided, however, that except as provided in Section 5 of this Agreement, GenCorp shall indemnify Indemnitee in connection with a proceeding (or part thereof) initiated by Indemnitee only if such proceeding (or part thereof) was authorized by the board of directors of GenCorp.
4.Subrogation. In the event and to the extent that Indemnitee receives indemnification or advance indemnification hereunder, (a) GenCorp shall be subrogated, to the fullest extent permitted by Delaware law, to any right of action that Indemnitee may have against any third person respecting the loss so
Ex. C-1
indemnified or the expenses so advanced, and (b) Indemnitee shall hold in trust for, and pay to, GenCorp any amounts that Indemnitee may recover in damages or settlement from any third person respecting the loss so indemnified or the expenses so advanced.
5.Right to Bring Action. If an amount due under Section 1 or 2 of this Agreement is not paid in full by GenCorp within sixty (60) days (or, in the case of an amount due under Section 2, within twenty (20) days) after a written claim, together with reasonable evidence as to the amount of such claim and the written undertaking required under Section 2, if applicable, has been received by GenCorp, Indemnitee may at any time thereafter bring suit against GenCorp to recover the unpaid amount of the claim, and Indemnitee shall also be entitled to be paid the expense, including reasonable attorneys’ fees, of prosecuting such suit. In any suit brought by Indemnitee to enforce a right to indemnification or to advance indemnification under this Agreement, or by GenCorp to enforce a right to reimbursement of advanced amounts under this Agreement, the burden of proving that Indemnitee is not entitled to such indemnification or advance indemnification shall be on GenCorp.
6.Non-Exclusivity. The rights provided to Indemnitee in Sections 1, 2, and 3 of this Agreement shall supplement, and not supersede or supplant, (a) any insurance that GenCorp may have heretofore purchased and maintained on behalf of Indemnitee or may later purchase and maintain on behalf of Indemnitee, or (b) any right to indemnification or advance indemnification under the Certificate of Incorporation or Bylaws, or any statute or agreement, or otherwise, but only insofar as the Certificate of Incorporation, the Bylaws, such statute or agreement, or such other source may provide broader indemnification or advance indemnification rights than are provided herein.
7.Non-Assignment. This Agreement and the parties’ obligations hereunder are non-assignable and non-transferable by either party without the prior written consent of the other party.
8.Governing Law. This Agreement shall be construed and enforced in accordance with, and governed by, the laws of the State of Delaware without regard to principles of conflict of laws to the extent that such principles would cause the laws of any other jurisdiction to apply.
9.Consent to Jurisdiction; Service of Process. Each of the parties consents to the personal jurisdiction of, and the laying of venue in, the courts of the State of Delaware, as to any action or proceeding relating to the enforcement, interpretation, or validity of this Agreement. Each of the parties hereby consents that, in any such action or proceeding, process may be validly served upon such party by delivery in person, by certified mail, return receipt requested, or by Federal Express or a comparable overnight delivery service providing a record of receipt, in each case to the address set forth in Section 10 of this Agreement.
10.Notices.
(a) Any written notice, offer, demand, claim, undertaking, invoice, or communication required or permitted to be given or submitted under any provision of this Agreement shall be deemed to have been given or submitted only if (i) personally delivered; (ii) mailed by certified mail, return receipt requested; or (iii) sent by Federal Express or a comparable overnight delivery service providing a record of receipt, in each case to the party’s address as set forth below:
If to Indemnitee:
If to GenCorp:
Ex. C-2
(b) Notices delivered personally or sent by overnight delivery shall be effective upon delivery. Notices mailed by certified mail, return receipt requested, shall be effective three (3) days after deposit with the United States Postal Service.
(c) Either party may change such party’s address for purposes of this Agreement by giving written notice of such change to the other party in the manner hereinbefore provided for the giving of notice.
11.Severability. If any covenant, condition, term, or provision of this Agreement is found to be illegal by a court of competent jurisdiction, or if the application thereof to any person or any circumstance shall to any extent be determined to be invalid or unenforceable by a court of competent jurisdiction, the remainder of this Agreement, or the application of such covenant, condition, term, or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby but shall be valid and enforceable to the fullest extent permitted by law.
12.Survival. Each party agrees that such party’s obligations hereunder shall survive the termination of Indemnitee’s service as a director or officer of GenCorp.
13.Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same document.
14.Entire Agreement. This Agreement constitutes the entire agreement between the parties concerning its subject matter, and it replaces all earlier agreements between them, whether written or oral, concerning its subject matter.
15.Section Headings. The section headings in this Agreement are inserted for convenience only and do not define or limit the scope, extent, or intent of this Agreement or any of the provisions hereof.
IN WITNESS WHEREOF, each party has executed this Agreement effective as of the date and year first above written.
| ||
| ||
| ||
| ||
|
Ex. C-3
APPENDIX B
OHIO CERTIFICATE OF CONVERSION
B-1
Jon HustedOhio secretary of state180 East Broad Street, Suite 103 (ground floor) . Columbus, ohio 43215 Toll Free: (877) SOS-FILE (767-3453) Central Ohio: (614) 466-3910www.ohiosecretaryofstate.gov . busserv@ohiosecretaryofstate.govPlease return the approval certificate to:Name: GenCORP Inc. (Individual or Business Name)To the attention of:Christopher C. Cambria(If necessary)Address: P.O Box 537012City: SacramentoState: californiaZIP Code: 95853Phone Number:E-mail Address: Christopher C. Cambria@gencorp.comCheck here if you would like to receive important notices via e-mail from the Ohio Secretary of State’soffice regarding Business Services.Check here if you would like to be signed up for our Filing Notification System for the business entitybeing created or updated by filing this form. This is a free service provided to notify you via e-mail whenany document is filed on your business record.Type of Service Being Requested: (PLEASE CHECK ONE BOX BELOW) Regular Service: Only the filing fee listed on page one of the form is required and the filing will be processed in approximately 3-7 business days. The processing time may vary based on the volume of filings received by our office.Expedite Service 1: By including an Expedite fee of $100.00, in addition to the regular filing fee on page one of the form, the filing will be processed within 2 business days after it is received by our office. Expedite Service 2: By including an Expedite fee of $200.00, in addition to the regular filing fee on page one of the form, the filing will be processed within 1 business day after it is received by our office.This service is only available to walk-in customers who hand deliver the document to the Client Service Center. Expedite Service 3: By including an Expedite fee of $300.00, in addition to the regular filing fee on page one of the form, the filing will be processed within 4 hours after it is received by our office, if received by 1:00 p.m. This service is only available to walk-in customers who hand deliver the document to the Client Service Center. Preclearance Filing: For the purpose of advising as to the acceptability of the proposed filing, a form that is to be submitted at a later date for processing may be submitted for examination for a fee of $50.00. The Preclearance will be complete within 1-2 business days.
Form 700 Prescribed Jon Husted Ohio secretary of state Central Ohio: (614) 466-3910 Toll Free: (877) SOS-FILE (767-3453) www.ohiosecretaryofstate.gov. busserv@ohiosecretaryofstate.gov Makes checks payable to OhioSecretary of State Mail is form to one of the following: Regular Filing (nonexpedite) P.O. Box 1329 Columbus, OH4321 6 Expedite Filing (Two-business day processing time requires an additional $100.00). P.O. Box 1390 Columbus, OH 43216 Certificate for Conversion for Entities Converting Within or Off the Records of the Ohio Secretary of State Filing Fee: $125 (CHECK ONLY ONE (1) BOX) (1) Converting Within The Records of the Ohio (2) Converting Off The Records of the Ohio Se cretary of State Secretary of State (187-VXX) Name of the converting entity Jurisdiction of Formation Charter/Registration Number The converting entity is a: (Check Only (1) One Box) Domestic Corporation (For-Profitor Non profit) Partnership Foreign Corporation (For-Profit or Nonprofit) Domestic Limited Partnership Domestic Nonprofit Limited L iability Company Foreign Limited Partnership Foreign Nonprofit Limited Liability Company Domestic Limited Liability Partnership Domestic For-Profit Limited Liability Company Foreign Limited Liability Partnership Foreign For-Profit Limited Liability Company The converting entity here by states that it has complied with alllawsin the jurisdiction under which it exists and that those laws permit the conversion.
Name of the converted entity Jurisdiction of Formation The converted entity is a: (Check Only (1) One Box) Domestic Corporation (For-Profit) PartnershipForeign Corporation (For-Profit or Nonprofit) Domestic Limited Partnership Domestic Nonprofit Limited Liability Company Foreign Limited Partnership Foreign Nonprofit Limited Liability Company Domestic Limited Liability Partnership Domestic For-Profit Limited Liability Company Foreign Limited Liability Partnership Foreign For-Profit Limited Liability CompanyEffective Date (The conversion is effective upon the filing of this certificate or on a later date (Optional) specified in the certificate) Name and address of the person or entity that will provide a copy of the declaration of conversion upon written request. NameMailing AddressCity State Zip CodeRequired information that must accompany conversion certificate if box 2 is checkedIf the converting entity is a domestic or foreign entity that will not be licensed in Ohio, provide the name and address of the statutory agent upon whom any process, notice or demand may be served. Name of Statutory Agent Mailing Address City State Zip Code If the agent is an individual using a P.O. Box, check this box to confirm that the agent is an Ohio resident. See instructions for additional filing requirements if (1) the conversion creates a new domestic entity, (2) the converted entity is a foreign entity that desires to transact business in Ohio; or (3) if a domestic corporation or foreign corporation licensed in Ohio is the converting entity.
IN WITNESS WHEREOF, the conversion is authorized on behalf of the converting entity and that each person signing the certificate of conversion is authorized to do so. Required Must be signed by an authorized representative. SignatureBy (if applicable) Print Name Signature By (if applicable) Print Name SignatureBy (if applicable)Print Name
Complete the information in this section. AFFIDAVIT In lieu of dissolution releases from various governmental authorities. Name of Corporation The undersigned, being first duly sworn, declares that on the dates indicated below, each of the named state governmental agencies was advised IN WRITING of the scheduled date of filing of the Certificate and was advised IN WRITING of the acknowledgement by the corporation of the applicability of the provisions of section 1701.95 of the ORC. Agency Date Notified Agency Date Notified Ohio Bureau of Workers’ Ohio Job & Family Services Compensation Status and Liability Section 30 W. Spring Street Data Correspondence Control Columbus, Ohio 43215 Fax: 614-752-4811 Phone: 614-466-2319 *Only required for domestic for-profit corporations Overnight: Regular: P.O. Box 182413 P.O. Box 182413 Columbus, OH 43218-2413 Columbus, OH 43218-2413 Agency Date Notified The corporation is not required to pay or the Ohio Department of Taxation department of taxation has not assessed any Taxpayer Services Division/Tax Release Unit personal property tax.PO Box 182382 Columbus, OH 43218-2382 Dissolution@tax.state.oh.us *Complete this date notified field only if the corporation is a domestic non-profit corporation or foreign corporation. [see* note below] *Note: Domestic for-profit corporations must submit with this filing a Certificate of Tax Clearance issued by the Ohio Department of Taxation. Note: This affidavit must be signed by one or more persons executing the certificate or by an officer of the corporation. Signature Title Name Mailing Address Zip Code City State Acknowledged before me and subscribed in my presence on Date Seal Commission Expires Notary Public Date
AFFIDAVIT OF PERSONAL PROPERTY State of County of Name of Officer of Title of Officer Name of Corporation and that this affidavit is made in compliance with Section of the Ohio Revised Code. That above-named corporation: (Check one (1) of the following) Has no personal property in any county in OhioIs the type required to pay personal property taxes to state authorities only Has personal property in the following county (ies) Signature: Title:Acknowledged before me and subscribed in my presence on Date Seal Notary PublicExpiration date of Notary Public’s CommissionDate
Instructions for Certificate of Conversion For Entities Converting
WITHIN or OFF the Records of the Ohio Secretary of State
This form should be used to file a certificate of conversion to document that an entity converted “within (entities already on record with our office and remaining on record following the conversion filing)” or “off (entities already on record with our office who will no longer be on record following the conversion filing)” the records of the Ohio Secretary of State.
Converting Entity Information
Pursuant to Ohio Revised Code §§1701.811, 1705.381, 1776.72 and 1782.4310, the certificate of conversion must set forth the name of the converting entity, the jurisdiction of formation of the converting entity and the form of the converting entity. The authorized representative signing the certificate on behalf of the converting entity agrees that the converting entity has complied with all of the laws under which it exists and that the laws permit the conversion.
Converted Entity Information
You must state the name of the converted (resulting) entity, the converted entity’s jurisdiction of formation and the form of the converted entity.
Effective Date
The effective date of the conversion may be on or after the date of filing of the certificate pursuant to Ohio Revised Code §§1701.811, 1705.381, 1776.72 and 1782.4310. If no date is specified, the effective date will be the date of filing.
Name and Mailing Address
Please provide the name and mailing address of the person or entity that is to provide a copy of the declaration of conversion in response to any written request made by a shareholder, partner, or member of the converting entity.
Original Appointment of Statutory Agent and Acceptance of Appointment
Pursuant to Ohio Revised Code §§1701.811, 1705.381, 1776.72 and 1782.4310, if the converted entity is a foreign entity that will not be licensed in this state, a statutory agent must be appointed to accept service of process on behalf of the entity. The statutory agent must be one of the following: (1) an Ohio resident; (2) an Ohio corporation; or (3) a foreign corporation that is licensed to do business in Ohio. An individual agent using a P.O. Box address must check the appropriate box to confirm that he or she is an Ohio resident. If the agent is a foreign corporation, the corporation may need to satisfy additional requirements to serve as a statutory agent. (Please see Ohio Revised Code §§1701.07, 1702.06, 1705.06, 1776.07 or 1782.04 for more information).
Additional Requirements
Filing a New Domestic Business Entity (for conversions within records only)
Pursuant to Ohio Revised Code §§1701.811, 1705.381, 1776.72 and 1782.4310, if the conversion results in a new domestic corporation, limited liability company, limited partnership, or other partnership, any organizational document required to be filed to create that type of entity shall be filed with the certificate of conversion. There is no additional fee to file the organizational
Filing for a Foreign License to Transact Business in Ohio (for conversions within records only)
If the converted entity is a foreign entity that desires to transact business in Ohio, the certificate of conversion shall be accompanied by the information required by division (B)(7), (8), (9), or (10) of section 1701.791, 1705.37, 1776.69 or 1782.432 of the Ohio Revised Code.
Requirements of Corporations (Domestic or Foreign) Converting Off the Records
If a foreign or domestic corporationlicensed in Ohio is a converting entity and the converted entity is not a foreign or domestic corporation to be licensed in Ohio, Ohio Revised Code §§1701.81 requires that additional information be submitted with the certificate.
A domestic corporation must provide the affidavits, receipts, certificates or other evidence required by Ohio Revised Code §§1701.86(H). A foreign corporation must submit the affidavits, receipts, certificates or other evidence required by Ohio Revised Code §§1703.17 (C) or (D) if they are the converting entity. The required affidavits are attached to this form for your convenience.
Additional Provisions
If the information you wish to provide for the record does not fit on the form, please attach additional provisions on a single-sided, 8 1/2 x 11 sheet(s) of paper.
Signature(s)
After completing all information on the filing form, please make sure that the form is signed by at least one authorized representative on behalf of the converting entity. By signing each authorized representative states that the conversion is authorized on behalf of the converting entity and that he or she is authorized to sign the certificate on behalf of the converting entity. Please include the title of each authorized representative beneath the signature line.
**Note: Our office cannot file or record a document that contains a social security number or tax identification number. Please do not enter a social security number or tax identification, in any format, on this form.
APPENDIX C
CERTIFICATE OF CONVERSION
OF
GENCORP INC.
(an Ohio corporation)
to
GENCORP INC.
(a Delaware corporation)
Pursuant to Section 265 of the Delaware General Corporation Law
|
|
|
|
|
IN WITNESS WHEREOF, the undersigned, being duly authorized to sign on behalf of the converting Non-Delaware Corporation has executed this Certificate of Conversion on the day of [ ], 2014.
C-1
Signature [PLEASE SIGN WITHIN BOX] Date THIS VOTING INSTRUCTION CARD IS VALID ONLY WHEN SIGNED AND DATED. KEEP THIS PORTION FOR YOUR RECORDS DETACH AND RETURN THIS PORTION ONLY TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS: To vote by Internet 1) Read the Proxy Statement and have this card at hand. 2) Go to www.proxyvote.com 3) Follow the online instructions. To vote by Telephone 1) Read the Proxy Statement and have this card at hand. 2) Call toll-free at 1-800-690-6903 3) Follow the recorded instructions. To vote by Mail 1) Read the Proxy Statement. 2) Check the appropriate boxes on this card. 3) Sign, date and return the card in the enclosed envelope provided. If you vote by Internet or Telephone, please do not mail your card. FIDELITY INVESTMENTS P.O. BOX 9112 FARMINGDALE, NY 11735 2. To consider and approve the reincorporation of the company from the state of Ohio to the state of Delaware. NOTE: To consider and act on such other business as may properly be brought before the meeting or any adjournments or postponements thereof. 3. To consider and approve an advisory resolution to approve executive compensation. 4. To ratify the appointment of PricewaterhouseCoopers LLP, an independent registered public accounting firm, as independent auditors of the company for the fiscal year ending November 30, 2014. M65022-Z62124 GENCORP INC. To withhold authority to vote for any individual nominee(s), mark “For All Except” and write the number(s) of the nominee(s) on the line below. 01) Thomas A. Corcoran 02) James R. Henderson 03) Warren G. Lichtenstein 04) David A. Lorber 05) Merrill A. McPeak 06) James H. Perry 07) Scott J. Seymour 08) Martin Turchin Please sign exactly as your name(s) appear(s) hereon. When signing as attorney, executor, administrator, or other fiduciary, please give full title as such. Joint owners should each sign personally. All holders must sign. If a corporation or partnership, please sign in full corporate or partnership name by authorized officer. For Against Abstain For All Withhold All For All Except 1. Election of Directors Nominees:
Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting:The Proxy Statement and Annual Report are available at www.proxyvote.com. M65023-Z62124 Please fold and detach card at perforation before mailing GENCORP INC. ANNUAL MEETING OF SHAREHOLDERS-MARCH 20, 2014 THIS INSTRUCTION CARD IS SOLICITED BY FIDELITY MANAGEMENT TRUST COMPANY ON BEHALF OF THE GENCORP INC. BOARD OF DIRECTORS As a participant in the GenCorp Retirement Savings Plan, you have the right to instruct Fidelity Management Trust Company, as trustee for the plan, to vote the shares of GenCorp attributable to your plan account as you have directed at the Annual Meeting of Shareholders to be held on March 20, 2014. Your voting instructions will be tabulated confidentially. Only Fidelity will have access to your individual voting instructions. Unless otherwise required by law, the shares attributable to your plan account will be voted as directed; if no direction is made, if the card is not signed, or if the card is not received by March 17, 2014, the shares attributable to your plan account will be voted in the same proportion as shares for which the trustee has received voting instructions. PLEASE SIGN AND DATE ON THE REVERSE SIDE
1 1 12345678 12345678 12345678 12345678 12345678 12345678 12345678 12345678 000000000000 NAME THE COMPANY NAME INC. - COMMON 123,456,789,012.12345 THE COMPANY NAME INC. - CLASS A 123,456,789,012.12345 THE COMPANY NAME INC. - CLASS B 123,456,789,012.12345 THE COMPANY NAME INC. - CLASS C 123,456,789,012.12345 THE COMPANY NAME INC. - CLASS D 123,456,789,012.12345 THE COMPANY NAME INC. - CLASS E 123,456,789,012.12345 THE COMPANY NAME INC. - CLASS F 123,456,789,012.12345 THE COMPANY NAME INC. - 401 K 123,456,789,012.12345 x 02 0000000000 JOB # 1 OF 2 1 OF 2 PAGE SHARES CUSIP # SEQUENCE # THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED. KEEP THIS PORTION FOR YOUR RECORDS DETACH AND RETURN THIS PORTION ONLY TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS: Signature [PLEASE SIGN WITHIN BOX] Date Signature (Joint Owners) Date CONTROL # SHARES To withhold authority to vote for any individual nominee(s), mark “For All Except” and write the number(s) of the nominee(s) on the line below. 0 0 0 0 0 0 0 0 0 0 0 0 0000190502_1 R1.0.0.51160 For Withhold For All All All Except The Board of Directors recommends you vote FOR the following: 1. Election of Directors Nominees 01 Thomas A. Corcoran 02 James R. Henderson 03 Warren G. Lichtenstein 04 David A. Lorber 05 Merrill A. McPeak 06 James H. Perry 07 Scott J. Seymour 08 Martin Turchin GENCORP INC. REBECCA A. BAUER P.O. BOX 537012 SACRAMENTO, CA 95853-7012 Investor Address Line 1 Investor Address Line 2 Investor Address Line 3 Investor Address Line 4 Investor Address Line 5 John Sample 1234 ANYWHERE STREET ANY CITY, ON A1A 1A1 VOTE BY INTERNET - www.proxyvote.com Use the Internet to transmit your voting instructions and for electronic delivery of information up until 11:59 P.M. Eastern Time the day before the cut-off date or meeting date. Have your proxy card in hand when you access the web site and follow the instructions to obtain your records and to create an electronic voting instruction form. ELECTRONIC DELIVERY OF FUTURE PROXY MATERIALS If you would like to reduce the costs incurred by our company in mailing proxy materials, you can consent to receiving all future proxy statements, proxy cards and annual reports electronically via e-mail or the Internet. To sign up for electronic delivery, please follow the instructions above to vote using the Internet and, when prompted, indicate that you agree to receive or access proxy materials electronically in future years. VOTE BY PHONE - 1-800-690-6903 Use any touch-tone telephone to transmit your voting instructions up until 11:59 P.M. Eastern Time the day before the cut-off date or meeting date. Have your proxy card in hand when you call and then follow the instructions. VOTE BY MAIL Mark, sign and date your proxy card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717. The Board of Directors recommends you vote FOR proposals 2, 3 and 4. For Against Abstain 2 To consider and approve the reincorporation of the company from the State of Ohio to the State of Delaware. 3 To consider and approve an advisory resolution to approve executive compensation. 4 To ratify the appointment of PricewaterhouseCoopers LLP, an independent registered public accounting firm, as independent auditors of the company for the fiscal year ending November 30, 2014. NOTE: To consider and act on such other business as may properly be brought before the meeting or any adjournments or postponements thereof. Please sign exactly as your name(s) appear(s) hereon. When signing as attorney, executor, administrator, or other fiduciary, please give full title as such. Joint owners should each sign personally. All holders must sign. If a corporation or partnership, please sign in full corporate or partnership name, by authorized officer.
0000190502_2 R1.0.0.51160 Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting: The Notice & Proxy Statement, Annual Report 10-K Wrap is/are available at www.proxyvote.com . GENCORP INC. PROXY FOR HOLDERS OF COMMON STOCK SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS The undersigned hereby appoints Kathleen E. Redd and Christopher C. Cambria, and each of them, his or her proxy, with the power of substitution, to vote all shares of Common Stock of GenCorp which the undersigned is entitled to vote at the annual meeting of shareholders to be held at the Omni Berkshire Place, 21 East 52nd Street, New York, New York on March 20, 2014 at 9:00 a.m. local time, and at any adjournments or postponements thereof, and appoints the proxyholders to vote as directed below and in accordance with their sole judgment on matters incident to the conduct of the meeting and on such other matters as may properly come before the meeting. THE SHARES REPRESENTED BY THIS PROXY WILL BE VOTED AS DIRECTED BY THE SHAREHOLDER. IF NO CONTRARY DIRECTION IS GIVEN WHEN THE DULY EXECUTED PROXY IS RETURNED, SUCH SHARES WILL BE VOTED FOR ALL OF THE BOARD’S NOMINEES IN PROPOSAL 1; FOR PROPOSALS 2, 3 AND 4, AND IN ACCORDANCE WITH THE PROXYHOLDERS’ SOLE JUDGMENT ON MATTERS INCIDENT TO THE CONDUCT OF THE MEETING AND ON SUCH OTHER MATTERS AS MAY PROPERLY COME BEFORE THE MEETING. Continued and to be signed on reverse side