Document:

Exhibit 4.2

 

Exhibit 4.2

RIGHT OF FIRST REFUSAL AGREEMENT

     RIGHT OF FIRST REFUSAL AGREEMENT, dated as of March    , 2004, by and among
(i) Trans-Industries, Inc., a Delaware corporation (the “Company”), (ii) the
investors who are purchasing shares of Series B Convertible Preferred Stock,
par value $1.00 per share (the “Series B Preferred Stock”), of the Company
pursuant to a Series B Convertible Preferred Stock and Warrant Purchase
Agreement, dated as of the date hereof (the “Purchase Agreement”), and (iii)
Dale Coenen and Duncan Miller (individually, a “Stockholder” and collectively,
the “Stockholders”).

     WHEREAS, it is a condition to the consummation of the transactions
contemplated by the Purchase Agreement that the parties enter into this
Agreement.

     NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein and the investment by the Investors under the Purchase
Agreement and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

ARTICLE 1

DEFINED TERMS

Section 1.1. Defined Terms.

          Capitalized terms used herein, and not otherwise defined herein, will have
the following meanings.

          1.1.1 An “Affiliate” of a specified Person means any other Person which,
directly or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with such specified Person. For
purposes of this definition, (a) “control” of any Person means possession,
directly or indirectly, of the power to direct or cause the direction of the
management and policies of such Person, whether through the ownership of voting
securities, by contract, or otherwise and (b) an individual will be deemed to
“control” (i) such individual’s spouse, natural or adopted children or
grandchildren or (ii) a trust for the benefit of any one or more of such
individual, such individual’s spouse, natural or adopted children or
grandchildren.

          1.1.2 “Agreement” means this Right of First Refusal Agreement, as the same
may be amended, restated, supplemented or otherwise modified from time to time.

          1.1.3 “Common Stock” means the Company’s common stock, par value $.10 per
share.

          1.1.4 “Company” means Trans-Industries, Inc., a Delaware corporation, and
its successors.

          1.1.5 “Company Option” is defined in Section 2.3.1.

 

 

          1.1.6 “Exercising Investor” is defined in Section 2.2.2.

          1.1.7 “Investor” means Harry E. Figgie, Jr., trustee under the Trust
Agreement dated July 15, 1976, as modified, and his Affiliates and successors.

          1.1.8 “Investors’ Option” has the meaning set forth in Section 2.2.1.

          1.1.9 “Offered Securities” is defined in Section 2.1.

          1.1.10 “Permitted Transfer” means a Transfer of any capital stock of the
Company in a transaction to which Article 2 does not apply by reason of Section
2.7.

          1.1.11 “Person” means an individual, a corporation, a limited liability
company, an association, a joint-stock company, a business trust or other
similar organization, a partnership, a joint venture, a trust, an
unincorporated organization, a government or any agency, instrumentality or
political subdivision of a government.

          1.1.12 “Purchase Offer” means a bona fide written offer, or a series of
two or more related bona fide written offers, from a Person or Persons, to
purchase one or more shares of capital stock of the Company for consideration
consisting solely of cash or its equivalent, evidence of indebtedness, readily
marketable securities, or a combination thereof; provided, however, that a
Purchase Offer shall not include any Transfer which is a Permitted Transfer
under Section 2.7.

          1.1.13 “Remaining Securities” is defined in Section 2.3.1.

          1.1.14 “Rule 144” means Rule 144 promulgated under the Securities Act of
1933, as amended, as such Rule may be amended from time to time.

          1.1.15 “Security” and “Securities” are defined in Section 2.1.

          1.1.16 “Selling Stockholder” is defined in Section 2.1.

          1.1.17 “Stockholder” means, at any time, (i) a Person who is now or later
becomes, pursuant to the terms hereof, a party to this Agreement as a
“Stockholder,” and (ii) any executor, administrator, guardian, custodian,
trustee, receiver, or other legal representative of a Person described in the
foregoing clause who obtains legal or beneficial ownership of any shares of
capital stock of the Company or the power to transfer or vote the same in the
event of such a Person’s death, disability or other incapacity.

          1.1.18 To “Transfer” means to sell, give, assign, pledge, bequeath,
exchange, dispose of, hypothecate, or otherwise transfer whether by
testamentary disposition, survivorship arrangement or otherwise, encumber in
any respect, or grant any interest in (whether voluntarily or involuntarily or
by operation of law and whether with or without consideration), and
specifically includes all transfers upon divorce, in bankruptcy or by way of
execution, seizure, or sale by legal process.

          1.1.19 “Transfer Notice” is defined in Section 2.1.

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ARTICLE 2

RIGHTS OF FIRST REFUSAL

Section 2.1 In General; Transfer Notice.

          2.1.1 In General; Transfer Notice. A Stockholder shall have no right to
Transfer all or any part of its shares of capital stock of the Company
(individually, a “Security” and collectively, the “Securities”) except pursuant
to (i) a Permitted Transfer, or (ii) a Purchase Offer consummated in compliance
with the provisions of this Article 2. If any Stockholder desires to Transfer
any Security other than pursuant to a Permitted Transfer then such Stockholder
(the “Selling Stockholder”) shall give a notice to each Investor and the
Company (the “Transfer Notice”) setting forth (a) the number and type of the
Securities proposed to be Transferred (the “Offered Securities”), (b) the
identity of the proposed transferee (if known), (c) the price at which and the
terms (including payment terms) upon which such Securities are proposed to be
Transferred and a summary of the other material terms of the proposed sale, and
(d) a representation by the Selling Stockholder to the effect that the Selling
Stockholder either (i) has received from such proposed transferee a Purchase
Offer with respect to the Offered Securities at the price and upon the terms
disclosed in the Transfer Notice, (ii) intends to sell the Offered Securities
pursuant to, and in compliance with, the terms and conditions of Rule 144, or
(iii) intends to sell the Offered Securities in sales on the open market, and
in the case of (ii) or (iii) at no less than the price per share set forth in
the Transfer Notice. The giving of a Transfer Notice shall constitute an offer
by the Selling Stockholder to the Investors and the Company to sell the Offered
Securities to such party or parties in accordance with the terms and conditions
in this Article 2, and such offer shall remain open and irrevocable for the
applicable period or periods set forth in this Article 2.

          2.1.2 Shareholder Approval. Notwithstanding anything herein to the
contrary, the Investors will not have any rights under, and no Offered
Securities will be subject to, the Investors’ Option unless and until the
shareholders of the Company approve the Purchase Agreement and the other
Transaction Documents (as defined in the Purchase Agreement, including this
Agreement) for purposes of complying with NASD listing standards (“Shareholder
Approval”).

          2.1.3 Coenen Lockup. Notwithstanding anything herein to the contrary, Mr.
Coenen will not transfer, or attempt to transfer, any Securities under a
Purchase Offer under the terms of this Agreement until the earlier of (i)
August    , 2004, and (ii) the date on which the Company receives Shareholder
Approval (and only then, in compliance with the terms and conditions of this
Agreement).

Section 2.2 Option of Investors.

          2.2.1 Conditions Giving Rise to Option. When the Transfer Notice is given
to the Investors, the Investors shall have the right and option, but not the
obligation, to purchase all or any portion of the Offered Securities (an
“Investors’ Option”).

          2.2.2 Exercise of Investors’ Option. Each Investor desiring to exercise
the Investors’ Option (an “Exercising Investor”) shall give a notice to that
effect to the Company and

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the Selling Stockholder within 30 days after the Transfer Notice is first
given, setting forth in such notice the number of Offered Securities which such
Exercising Investor desires to purchase pursuant to such Investors’ Option. If
the notices from the Exercising Investors indicate a desire to purchase, in the
aggregate, more than the number of Offered Securities, then, unless the
Exercising Investors unanimously agree among themselves as to a different
allocation, each Exercising Investor shall purchase that number of Offered
Securities (up to the number indicated in its notice of exercise) which bears
the same ratio to the total number of Offered Securities as the number of
shares of Common Stock then owned by such Exercising Investor on an
as-converted basis bears to the total number of shares of Common Stock then
owned by all Exercising Investors on an as-converted basis. The provisions of
the preceding sentence shall be successively reapplied as necessary (excluding
Exercising Investors who have been allocated the total number of Offered
Securities which they requested in their respective notices) until all of the
Offered Securities have been allocated among the Exercising Investors. If the
Investors desire to purchase some but not all Offered Securities, then the
Investors’ right to purchase any of such Offered Securities shall be contingent
upon the exercise of the Company Option with respect to all Remaining
Securities as provided in Section 2.3.

          2.2.3 Consummation of Purchase. If the Exercising Investors exercise the
Investors’ Option in accordance with Section 2.2.2 with respect to all of the
Offered Securities, a purchase and sale agreement shall be deemed to have been
created between the Exercising Investors, as purchaser, and the Selling
Stockholder, as seller, providing for the purchase and sale of all such Offered
Securities at the price and upon the terms (including payment terms) set forth
in the Transfer Notice; provided, however, that the terms contained in Section
2.4 shall apply to any purchase and sale of Securities pursuant to the
Investors’ Option and shall supersede any inconsistent terms contained in any
Transfer Notice. Such purchase and sale shall be consummated at the principal
executive office of the Company not later than 60 days after the Transfer
Notice is first given, or at such other place or time as the Company and
Exercising Investors holding in the aggregate shares representing a majority of
all Common Stock then held by all Exercising Investors on an as-converted basis
may agree. If such purchase and sale transaction is not consummated within
such period, such Offered Securities shall nevertheless remain subject to the
provisions of this Agreement and the continuing obligation of such parties to
consummate such transaction until it is consummated, and may not otherwise be
Transferred.

Section 2.3 Company Option

          2.3.1 Conditions Giving Rise to Company Option. If, with respect to any
proposed Transfer of Securities which gives rise to an Investors’ Option, the
Exercising Investors do not exercise the Investors’ Option in accordance with
Section 2.2.2 with respect to all Offered Securities, the Company shall have
the right and option, but not the obligation, to purchase in the aggregate all,
but not fewer than all, of the Offered Securities which the Exercising
Investors shall not so have elected to purchase (the “Remaining Securities”),
at the price and upon the terms (including payment terms) set forth in the
Transfer Notice (the “Company Option”); provided, however, that the terms
contained in Section 2.4 shall apply to any purchase and sale of Securities
pursuant to the Company Option and shall supersede any inconsistent terms
contained in any Transfer Notice.

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          2.3.2 Exercise of Company Option. If the Company desires to exercise the
Company Option, it shall give a notice to that effect to each Exercising
Investor and the Selling Stockholder within 60 days after the Transfer Notice
is first given, setting forth in such notice the number of Offered Securities
which Company desires to purchase pursuant to the Company Option.

          2.3.3 Consummation of Purchase. If, within the respective time periods
set forth in Sections 2.2.2 and 2.3.2, the Company and/or one or more
Exercising Investors individually or collectively give notice of a desire to
purchase all, but not fewer than all, of the Offered Securities, then a
purchase and sale agreement shall be deemed to have been created among the
Company and/or such Exercising Investors, as the case may be, as purchasers,
and the Selling Stockholder, as seller, providing for the purchase and sale of
the Offered Securities at the price and upon the terms (including payment
terms) set forth in the Transfer Notice; provided, however, that the terms
contained in Section 2.4 shall apply to any purchase and sale of Securities
pursuant to the Company Option or the Investors’ Option and shall supersede any
inconsistent terms contained in any Transfer Notice. Each such purchase and
sale shall be consummated at the principal executive office of the Company on
the later of (a) a mutually satisfactory business day not later than 90 days
after the Transfer Notice is first given or (b) the fifth business day
following the receipt of all required regulatory approvals, if any applicable
to such transaction, or at such other place or time as the purchaser(s) holding
in the aggregate shares representing a majority of all Common Stock then held
by all such purchasers on an as-converted basis and the Selling Stockholder may
agree. If any such purchase and sale transaction is not consummated within
such period, such Offered Securities shall nevertheless remain subject to the
provisions of this Agreement and the continuing obligation of the parties
thereto to consummate such transaction until it is consummated, and may not
otherwise be Transferred.

Section 2.4 Exception for Certain Transfers of Securities.

          Notwithstanding anything herein to the contrary, the time periods for the
Investors to exercise the Investors’ Option and the time period for the Company
to exercise the Company Option shall be five (5) days and ten (10) days,
respectively, after the Transfer Notice is first given in connection with the
Transfer by a Stockholder of any Securities under a Purchase Offer, for up to
25,000 shares of the Company’s Common Stock during each calendar quarter,
provided that any such Transfer shall be pursuant to, and in compliance with,
the terms and conditions of Rule 144 at no less than the price per share set
forth in the Transfer Notice

Section 2.5 Deliveries.

          Any Person transferring any Securities pursuant to this Article 2 to the
Company or any Exercising Investor shall do so by delivering to such transferee
(i) all certificates or other instruments representing the Securities to be
transferred, which shall be duly endorsed (or accompanied by an irrevocable
stock power or other instrument of assignment and transfer, duly executed) and
otherwise in proper form for Transfer, and (ii) the transferor’s written
representations and warranties to such transferee, which shall survive the
consummation of such Transfer and continue to be binding thereafter, to the
effect that such Transfer is not wrongful in any respect as against any Person
and that such transferor owns such Securities free and clear of

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any and all liens, claims, charges, encumbrances or other restrictions of any
nature, other than any restrictions arising under this Agreement, or under the
Company’s Certificate of Incorporation.

Section 2.6 Transfer Upon Lapse or Waiver of Options.

          2.6.1 If the Company Option and the Investors’ Option are not exercised in
accordance with the provisions of this Article 2 with respect to all of the
Offered Securities, then at the expiration of the period or periods provided
for such exercise(s) herein (or at such earlier time as the Company and all
Investors may notify the Selling Stockholder that it or they do not intend, in
the aggregate, to purchase all of the Offered Securities), the Selling
Stockholder shall be entitled for a period of 30 days (but not thereafter
without first having again complied with the provisions of this Article 2) to
Transfer the Offered Securities, but only to the proposed transferee identified
in the Transfer Notice (if known), and only at a price not less than the
purchase price, and upon terms not more favorable to such transferee, in the
aggregate, than the price and terms set forth in the Transfer Notice. Upon any
transfer of any of the Offered Securities pursuant to this Section 2.5, the
Offered Securities so transferred shall cease to be subject to the terms of
this Agreement.

          2.6.2 Notwithstanding anything contained herein to the contrary, if the
Purchase Offer is proposed to be made pursuant to an underwritten public
offering, and if the Company Option and the Investors’ Option are not exercised
in accordance with the provisions of this Article 2 with respect to all of the
Offered Securities, then: (A) the period of time during which the Selling
Stockholder is entitled to Transfer the Offered Securities pursuant to Section
2.6.1 shall be 60 days; (B) the Company shall select, subject to the reasonable
approval of the Investors, the underwriter for such public offering; and (C) no
shareholder or affiliated group of shareholders acquiring Offered Securities in
such underwritten public offering will, as a result of such acquisition, own
beneficially greater than 2% of the total number of shares of Common Stock of
the Company outstanding upon the consummation of such public offering; and,
such underwriter shall so certify to the Company immediately prior to the
closing of such public offering.

Section 2.7 Certain Transfers Not Subject to Rights of First Refusal.

          Any other provision of this Agreement notwithstanding, the provisions of
Article 2 shall not apply to any Transfer of Securities by any Stockholder to:

               (a) a Person who immediately after such Transfer is an Affiliate of such
transferring Stockholder;

               (b) in the case of a transferring Stockholder who is a natural person, to
such Stockholder’s spouse, natural or adopted children or grandchildren or a
trust for the exclusive benefit of any one or more of such Stockholder, such
Stockholder’s spouse, natural or adopted children or grandchildren, or by any
such trust to any of such beneficiaries thereof;

               (c) the Company;

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               (d) in the case of a transferring Stockholder which is not a natural
person, to any Person designated by the transferring Stockholder if such
Stockholder’s continued ownership of such Securities would be unlawful because
of any legal requirement applicable to such Stockholder; or

               (e) in the case of a transferring Stockholder which is an investment fund
or other institutional investor, to a Person purchasing a beneficial interest
solely in the economic rights pertaining to such Securities;

provided, however, that in the case of any Transfer described above, the
transferee of such Securities, if not already a party to this Agreement and
bound as a “Stockholder” hereunder, shall have become a party to this Agreement
and bound as a “Stockholder” hereunder by executing and delivering to the
Company a counterpart signature page hereof.

ARTICLE 3

MISCELLANEOUS

Section 3.1 Consequence of Transfer.

          Upon any Transfer of any Securities pursuant to Section 2.6, the
Securities so transferred and the transferee thereof shall be bound by and
subject to all of the provisions, restrictions and obligations set forth in
this Agreement. As a condition precedent to the effectiveness of such Transfer
and the issuance of any certificate or other instrument representing such
transferred Securities, such transferee shall agree to become bound by this
Agreement as a “Stockholder” hereunder by executing and delivering to the
Company a counterpart hereof. Any new certificate or other instrument
evidencing such Securities issued to such transferee shall bear the following
legends or legends substantially similar thereto until such time as the
Securities are no longer subject to the provisions hereof.

THE SHARES REPRESENTED HEREBY ARE SUBJECT TO AND ARE TRANSFERABLE
ONLY AFTER COMPLIANCE WITH THE PROVISIONS OF A RIGHT OF FIRST
REFUSAL AGREEMENT AMONG THE COMPANY, AND THE “STOCKHOLDERS” AND
“INVESTORS” (AS DEFINED THEREIN) PARTY THERETO, AS AMENDED,
RESTATED, SUPPLEMENTED OR OTHERWISE MODIFIED FROM TIME TO TIME
(THE “ROFR AGREEMENT”). THE COMPANY WILL MAIL A COPY OF THE ROFR
AGREEMENT TO A STOCKHOLDER WITHOUT CHARGE UPON WRITTEN REQUEST.

Section 3.2 Duration of Agreement.

          The rights and obligations of the Company, each Stockholder and Investor
under this Agreement shall terminate on the earliest to occur of the following:
(a) immediately upon the date the Investors cease to hold at least 10% of the
Company’s outstanding Common Stock (treating the Investors, for the purpose of
such calculation, as the holders of the number of shares of Common Stock which
would be issuable to them upon conversion, exercise or exchange of all
Securities (including but not limited to the Series B Preferred Stock) held by
the Investors that

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are then convertible, exercisable or exchangeable into or for (whether directly
or indirectly) shares of Common Stock), or (b) immediately prior to a
transaction constituting a deemed liquidation or dissolution of the Company
under Section 4 of the terms of the Series B Preferred Stock as set forth in
the Company’s Certificate of Incorporation.

Section 3.3 Notices.

     All notices, consents and other communications required or permitted to be
given or delivered under this Agreement shall be in writing and shall be given
or delivered as follows, or to such other address for a party as such party may
specify in a written notice given to each other party in accordance with this
Section:

     If to the Company, to:

	 	 	Trans-Industries, Inc.

2637 South Adams Road

Rochester Hills, MI 48309

Attention: Chief Executive Officer

Facsimile No.: (248) 852-1211

If to a Stockholder or an Investor, to such Stockholder or Investor at the
address specified for such Stockholder or Investor in the Purchase Agreement or
in the Company’s record of stockholders.

Notices so addressed and sent by registered or certified mail with first-class
postage prepaid and return receipt requested, or by a national overnight air
courier service, shall be deemed to have been given three business days and one
business day, respectively, after the date of registration or documented
acceptance by the national overnight air courier service, as the case may be,
and in the case of facsimile transmission, upon confirmation of receipt of such
transmission. Otherwise, notices shall be deemed to have been given when
actually received.

Section 3.4 Successors and Assigns.

          This Agreement shall be binding upon and shall inure to the benefit of the
parties hereto and their respective successors, assigns, heirs and personal
representatives, but only to the extent provided herein, provided, however,
than an Investor may assign any and all of its rights and obligations hereunder
to any Persons to whom such Investor Transfers any of its Securities.

Section 3.5 Equitable Relief.

          The parties agree that it is impossible to determine the monetary damages
which would accrue to the Company or any party or its personal representative
by reason of the failure of any party or the Company to perform any of its
obligations under this Agreement requiring the performance of an act other than
the payment of money only. The Company and each party shall be entitled to
enforce its rights under this Agreement specifically and to exercise all other
rights existing in its favor. The parties hereto agree and acknowledge that
money damages may not be an adequate remedy for any breach of the provisions of
this Agreement and that each party may in its sole discretion apply to any
court of law or equity of competent jurisdiction for specific

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performance and/or injunctive relief (without posting a bond or other
security) in order to enforce or prevent any violation of the provisions of
this Agreement. In the event of a breach or threatened breach by a party of
any of the provisions of this Agreement, the other parties hereto shall be
entitled to an injunction restraining such party from any such breach. The
availability of such remedies shall not prohibit such other parties from
pursuing any other remedies for such breach or threatened breach, including the
recovery of damages from such breaching party.

Section 3.6 Entire Agreement.

          This Agreement, the Transaction Documents (as defined in the Purchase
Agreement) and the other writings referenced herein constitute the exclusive
statement of the agreement of the Company and the other parties hereto
concerning the subject matter hereof and supersede all other agreements, oral
or written, among or between any of them concerning such subject matter. All
negotiations among or between any of the Company and the other parties hereto
concerning the subject matter of this Agreement are superseded by this
Agreement and the Transaction Documents, including any that may have been
expressed in any term sheet, letter of intent or other similar document, and
there are no representations, promises, understandings or agreements, oral or
written, in relation thereto among or between any of them other than those
incorporated herein.

Section 3.7 Waiver and Amendment.

          No waiver of any provision of this Agreement shall be effective unless
made in a written instrument which specifically references this Agreement and
which is duly signed by or on behalf of the party against whom such waiver is
sought to be enforced. Except as expressly provided herein, the failure of the
Company or any other party hereto to enforce at any time, or for any period of
time, any provision of this Agreement shall not be construed as a waiver of any
provision or of the right of any such Person to enforce each and every
provision of this Agreement. Neither this Agreement nor any provision hereof
can be modified, amended, changed, discharged or terminated except by an
instrument in writing, signed by the Stockholders of at least a majority of the
shares of capital stock then subject to this Agreement held by such
Stockholders, based upon voting power and calculated on an as-if-converted
basis, together with the consent of the Investors holding at least a majority
of the outstanding shares of Common Stock then held by all Investors on an
as-converted-basis.

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Section 3.8 Governing Law; Consent to Jurisdiction and Venue; Waiver of Jury
Trial.

          This Agreement shall be governed by and construed in accordance with the
laws of the State of Ohio, without giving effect to principles of conflicts of
law. Each party hereto irrevocably and unconditionally agrees that any action,
suit or proceeding at law or in equity which in any way arises out of or
relates to this Agreement (a “Litigation”) may be brought in the any state or
federal court of competent jurisdiction located in the State of Ohio, and all
objections to personal jurisdiction and venue in any action, suit or proceeding
so commenced are hereby expressly waived by all parties hereto. Each of the
parties irrevocably and unconditionally waives, to the fullest extent permitted
by applicable law, any and all rights to trial by jury in connection with any
Litigation arising out of or relating to this Agreement or the transactions
contemplated hereby.

Section 3.9 Severability.

          Whenever possible, each provision of this Agreement shall be interpreted
in such manner as to be effective, valid and enforceable as against all parties
hereto, but if any provision of this Agreement is held to be invalid or
unenforceable in any respect or as to any Person, such invalidity or
unenforceability shall not render invalid or unenforceable any other provision
of this Agreement as to any Person. In the event that pursuant to any
regulatory authority or regulation, the Company is required to make any
revisions or modifications to any provision of this Agreement or any of the
other related documents, the parties agree to enter into good faith
negotiations and make revisions or modifications, to the extent possible, that
are in compliance with such regulation or the rules of such regulatory
authority, and which are designed to accomplish the purposes of such provision
to be revised or modified.

Section 3.10 Headings.

          The Article and Section headings contained in this Agreement are intended
solely for convenience of reference and shall not be considered in interpreting
this Agreement.

Section 3.11 Gender; Inclusion.

          Whenever the context requires in this Agreement, the masculine gender
includes the feminine or neuter and the neuter gender includes the masculine or
feminine. In every place where they are used in this Agreement, the words
“include” and “including” are intended and shall be construed to mean “include,
without limitation” and “including, without limitation”, respectively, unless a
different intent is expressly stated in the context.

Section 3.12 Counterparts.

          This Agreement may be executed in multiple counterparts, each of which
shall be deemed an original, and all of which together shall constitute one and
the same instrument. This Agreement may be executed and delivered by
facsimile, and may be executed and delivered with separate signature pages as
though all parties had executed and delivered the same signature page. Any
Person to whom Securities are Transferred pursuant to the terms of Section 2.6
hereof may execute a counterpart of this Agreement and become a party hereto
and any such person shall be deemed a Stockholder hereunder.

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Section 3.13 Time Periods.

          Unless otherwise expressly stated in the context, any action required
hereunder to be taken within a certain number of days shall be taken within
that number of calendar days; provided, however, that if the last day for
taking such action falls on a Saturday, Sunday, or a holiday observed by the
Company at its principal executive office, the period during which such action
may be taken shall be automatically extended to the next business day.

Section 3.14 No Inconsistent Agreements; Further Assurances.

          Neither the Company nor any other party hereto shall take any action or
enter into any agreement which is inconsistent with the rights of any party
hereunder or otherwise conflicts with the provisions hereof. At any time or
from time to time after the date hereof, the parties agree to cooperate with
each other, and at the request of any other party, to execute and deliver any
further instruments or documents and to take all such further action as the
other party may reasonably request in order to evidence or effectuate the
consummation of the transactions contemplated hereby and to otherwise carry out
the intent of the parties hereunder.

Section 3.15 Additional Securities.

          In the event of any issuance of any voting Securities hereafter to any
Stockholder (including, without limitation, in connection with any stock split,
stock dividend, recapitalization, reorganization, or the like), such Securities
shall become subject to this Agreement and shall be endorsed with the legend
set forth herein.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

[SIGNATURE PAGE IMMEDIATELY FOLLOWING]

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          IN WITNESS WHEREOF, the parties hereto have caused this Right of First
Refusal Agreement to be executed as of the date first above written.

	 	 	 	 	 
	 	 	COMPANY
	 
	 	 	 	 
	 	 	TRANS-INDUSTRIES, INC.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

	

	 	Its:	 	 
	

	 	 	 	

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          IN WITNESS WHEREOF, the parties hereto have caused this Right of First
Refusal Agreement to be executed as of the date first above written.

	 	 	 
	

	 	INVESTORS
	 
	 	 
	

	 	

Harry E. Figgie, Jr., trustee under the Trust
Agreement dated July 15, 1976, as modified

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          IN WITNESS WHEREOF, the parties hereto have caused this Right of First
Refusal Agreement to be executed as of the date first above written.

	 	 	 
	

	 	STOCKHOLDERS
	 
	 	 
	

	 	

Dale Coenen
	 
	 	 
	

	 	

Duncan Miller

14Exhibit 4.3

 

Exhibit 4.3

SHARE PURCHASE AGREEMENT

     This Share Purchase Agreement (this “Agreement”) is entered into at
Cleveland, Ohio, on this 10th day of December, 2003, by and between Duncan
Miller, an individual (“Seller”), and Clark-Reliance Corporation, a Delaware
corporation (“Purchaser”).

BACKGROUND:

     A. Seller is the beneficial owner of shares of Common Stock, par value
$0.10 per share, of Trans-Industries, Inc., a Delaware corporation (the
“Company”).

     B. Purchaser desires to purchase from Seller, and Seller desires to sell
to Purchaser, all of such shares upon and subject to the terms and conditions
contained in this Agreement.

     Now, therefore, in consideration of their mutual covenants and agreements
contained in this Agreement, Purchaser and Seller hereby agree as follows:

     1. Purchase and Sale of Shares. Subject to the terms and conditions
contained in this Agreement, at the Closing (as hereinafter defined), Seller
shall sell, assign, transfer and deliver to Purchaser, and Purchaser shall
purchase from Seller, free and clear of any liens, claims, encumbrances or
restrictions of any nature whatsoever, Seller’s entire right, title and
interest in and to each and every share of Common Stock, $0.10 par value, of
the Company which is owned beneficially or of record by Seller as of the
commencement of business on the date of this Agreement (each, a “Share,” and
collectively, the “Shares”).

     2. Purchase Price. The purchase price of each Share hereunder shall be Two
Dollars and Fifty Cents ($2.50). The aggregate purchase price for all of the
Shares hereunder (the “Purchase Price”) shall be an amount equal to $2.50
multiplied by the total number of Shares.

     3. Escrow. Purchaser shall select a national banking association or trust
company, reasonably acceptable to Seller, to serve as escrow agent under this
Agreement (the “Escrow Agent”). Within 10 days after the date of this
Agreement, Purchaser and Seller shall negotiate, execute and deliver a written
agreement with the Escrow Agent (the “Escrow Agreement”) pursuant to which the
Escrow Agent shall accept, hold and disburse the Purchase Price and the Shares
in accordance with the terms and conditions of this Agreement and such
additional, reasonable and customary terms and conditions of escrow, not
inconsistent with this Agreement, as shall be mutually acceptable to Purchaser,
Seller and the Escrow Agent and set forth in the Escrow Agreement. Promptly
upon the execution and delivery of the Escrow Agreement by Purchaser, Seller
and the Escrow Agent on the date thereof, (i) Seller shall deliver to the
Escrow Agent, to be deposited with and held by the Escrow Agent in accordance
therewith and herewith, the certificate or certificates representing all of the
Shares (collectively, the “Certificates”), each duly endorsed by Seller in
blank, or accompanied by one or more stock powers in a form acceptable to
Purchaser and executed by Seller in blank (collectively, the “Assignment
Instruments”), with all signatures guaranteed and otherwise in proper form for
transfer of the Shares to Purchaser or upon Purchaser’s order, and (ii)
Purchaser shall deliver to the Escrow Agent, to be deposited with and held by
the Escrow Agent in accordance therewith and herewith,

-1-

 

an amount equal to the Purchase Price. Unless and until title to the Shares is
transferred to Purchaser at the Closing, Seller shall retain ownership of the
Shares and all incidents thereof, including the right to vote the Shares and
the right to receive any and all dividends or distributions that may be paid
upon the Shares prior to the Closing. If the Closing occurs, any interest or
other earnings on the Purchase Price which accrue thereon prior to the Closing
while the same is held by the Escrow Agent shall be paid to Seller, and if the
Closing does not occur, any interest or other earnings which accrue thereon
prior to the Closing while the same is held by the Escrow Agent shall be paid
to Purchaser. The fees and expenses of the Escrow Agent for its services
pursuant to the Escrow Agreement shall be borne and paid equally by Purchaser
and Seller.

     4. Closing. The consummation of the purchase and sale of the Shares
hereunder and the other transactions contemplated by this Agreement (the
“Closing”) shall take place at the offices of Calfee, Halter & Griswold LLP,
counsel to Purchaser, at 800 Superior Avenue, Suite 1400, Cleveland, Ohio
44114, or at such other place as to which Purchaser and Seller may agree in
writing, at 10:00 a.m., Eastern Standard Time, on the third business day
following the satisfaction of all of the conditions precedent set forth in
Section 5, or on such other date as to which Purchaser and Seller may agree in
writing (the “Closing Date”). Subject to the satisfaction or waiver by
Purchaser of the conditions precedent set forth in Section 5, at the Closing,
Purchaser, Seller and the Escrow Agent shall effect the transfers and
deliveries described below in this Section 4.

               (a) Deliveries by Escrow Agent on Behalf of Seller. At the Closing, the
Escrow Agent, on behalf of Seller, shall deliver to Purchaser all of the
Certificates and all Assignment Instruments, each in proper form for transfer
to Purchaser or Purchaser’s designee or designees of all of the Shares in
accordance with this Agreement.

               (b) Deliveries by Seller. At the Closing, Seller shall deliver to
Purchaser and the Escrow Agent the certificate described in Section 5(a)(viii),
duly executed by Seller.

               (c) Deliveries by Escrow Agent on Behalf of Purchaser. At the Closing,
the Escrow Agent, on behalf of Purchaser, shall pay and deliver to Seller the
Purchase Price, and all interest or other earnings accrued thereon while the
same is held in escrow, by means of a wire-transfer of immediately available
funds to an account which Seller shall designate to the Escrow Agent in writing
at least two business days prior to the Closing Date.

     5. Conditions Precedent.

               (a) Conditions to Purchaser’s Obligations. Any other provision of this
Agreement notwithstanding, the obligation of Purchaser to purchase the Shares
and otherwise to perform this Agreement at the Closing shall be subject to the
satisfaction, at or before the Closing, of all of the following conditions
precedent described below in this Section 5(a):

               (i) Authorizations, Etc. This Agreement shall have been duly
approved by the board of directors of Purchaser. In addition, any and
all filings, authorizations, approvals or consents which may be required
to be made by Seller or the Company with, or obtained by Seller or the
Company from, any governmental agency or

-2-

 

authority or any other person not a party to this Agreement in order
for the Closing to occur in accordance with the terms of this Agreement
shall have been duly made or obtained, and Seller shall have delivered to
Purchaser evidence thereof satisfactory to Purchaser.

               (ii) No Actions. There shall be no suit, action, investigation or
proceeding pending or proposed to be commenced by or before any court,
agency or other governmental authority of any jurisdiction by which it is
sought to restrain, delay, prohibit, invalidate, set aside or impose any
conditions upon the Closing in whole or in part.

               (iii) Preferred Stock Investment. Not later than January 30, 2004,
Mr. Harry E. Figgie, Jr. or his spouse or issue, or one or more other
persons directly or indirectly controlled by Mr. Figgie or his spouse or
issue (collectively, together with Mr. Figgie, the “Figgie Affiliates”),
shall have consummated the purchase from the Company of shares of a
series of convertible preferred stock of the Company to be authorized
after the date of this Agreement (the “New Preferred Stock”) for an
aggregate purchase price of not less than $2,000,000 (the “Preferred
Stock Purchase”).

               (iv) Approval of Company’s Board. This Agreement and the
acquisition of the Shares by the Purchaser or the Purchaser’s designee or
designees hereunder, and the Preferred Stock Purchase and the agreement
or agreements pursuant to which the Figgie Affiliates purchase the New
Preferred Stock from the Company, shall have been duly approved by the
board of directors of the Company in accordance with, and expressly for
purposes of, Section 203(a)(1) of the General Corporation Law of the
State of Delaware, and Seller shall have delivered to Purchaser a
certificate of the secretary of the Company, in a form satisfactory to
Purchaser, to the effect that such approvals have occurred and remain in
full force and effect.

               (v) Escrow Agreement. Purchaser shall have received the Escrow
Agreement, duly executed by Seller and the Escrow Agent, and the Escrow
Agent shall have received the Certificates and Assignment Instruments in
accordance with Section 3.

               (vi) Closing Deliveries. Purchaser shall have received the
Certificates and Assignment Instruments in accordance with Section 4(a),
and each other document, instrument or agreement required by this
Agreement to be delivered to Purchaser at or before the Closing.

               (vii) Representations, Warranties and Covenants of Seller. All of
the representations and warranties of Seller set forth in this Agreement
shall have been true and correct on the date of this Agreement and shall
be true and correct in all respects at and as of the Closing as though
made by Seller at the Closing, and Seller shall have performed all of the
obligations required by this Agreement to have been performed at or
before the Closing by Seller.

-3-

 

               (viii) Closing Certificate. Seller shall have delivered to
Purchaser and the Escrow Agent a certificate in a form satisfactory to
Purchaser, duly executed by Seller, to the effect that the conditions set
forth in Section 5(a)(vii) are satisfied.

               (b) Conditions to Seller’s Obligations. Any other provision of this
Agreement notwithstanding, the obligation of Seller to sell the Shares and
otherwise to perform this Agreement at the Closing shall be subject to the
satisfaction, at or before the Closing, of all of the following conditions
precedent described below in this Section 5(b):

               (i) Authorizations, Etc. This Agreement shall have been duly
approved by the board of directors of Purchaser. In addition, any and
all filings, authorizations, approvals or consents which may be required
to be made by Purchaser with, or obtained by Purchaser from, any
governmental agency or authority or any other person not a party to this
Agreement in order for the Closing to occur in accordance with the terms
of this Agreement shall have been duly made or obtained, and Purchaser
shall have delivered to Seller evidence thereof satisfactory to Seller.

               (ii) No Actions. There shall be no suit, action, investigation or
proceeding pending or proposed to be commenced by or before any court,
agency or other governmental authority of any jurisdiction by which it is
sought to restrain, delay, prohibit, invalidate, set aside or impose any
conditions upon the Closing in whole or in part.

               (iii) Preferred Stock Investment. Not later than January 30, 2004,
one or more of the Figgie Affiliates shall have consummated the Preferred
Stock Purchase.

               (iv) Approval of Company’s Board. This Agreement and the
acquisition of the Shares by the Purchaser or the Purchaser’s designee or
designees hereunder, and the Preferred Stock Purchase and the agreement
or agreements pursuant to which the Figgie Affiliates purchase the New
Preferred Stock from the Company, shall have been duly approved by the
board of directors of the Company in accordance with, and expressly for
purposes of, Section 203(a)(1) of the General Corporation Law of the
State of Delaware.

               (v) Escrow Agreement. Seller shall have received the Escrow
Agreement, duly executed by Purchaser and the Escrow Agent, and the
Escrow Agent shall have received the Purchase Price in accordance with
Section 3.

               (vi) Closing Deliveries. Seller shall have received the Purchase
Price in accordance with Section 4(c).

     6. Satisfaction of Closing Conditions. Subject to the terms and
conditions of this Agreement, Seller and Purchaser will each use commercially
reasonable efforts to bring about the satisfaction of the conditions set forth
in Section 5 and cause the consummation of the transactions contemplated by
this Agreement; provided, however, that no party shall be obligated to waive
any condition or right of such party arising under this Agreement or otherwise;
and provided, further, that none of the Figgie Affiliates nor Purchaser shall
be obligated to consummate or continue to negotiate toward the consummation of
the Preferred Stock Purchase.

-4-

 

     7. Representations and Warranties of Seller. Seller hereby represents and
warrants to Purchaser as set forth below in this Section 7. Such
representations and warranties shall survive the Closing and continue to be
binding upon Seller and his successors and assigns thereafter.

               (a) Authority and Capacity. Seller possesses all requisite legal right,
power, authority and capacity to execute, deliver and perform this Agreement
and sell the Shares pursuant to this Agreement.

               (b) Number of Shares. The total number of shares of Common Stock, $0.10
par value, of the Company owned either beneficially or of record by Seller as
of the commencement of business on the date of this Agreement is not less than
495,938 and is not greater than 515,000.

               (c) Ownership of Shares. Seller owns all of the Shares free and clear of
all liens, charges, encumbrances, restrictions or adverse claims of any nature
whatsoever (collectively, “Liens”), and upon delivery of the Certificates and
Assignment Instruments to Purchaser at the Closing, Purchaser or Purchaser’s
designee or designees, as the case may be, will acquire good and marketable
title to all of the Shares free and clear of any and all Liens.

               (d) Execution, Delivery and Enforceability. This Agreement has been, and
the Escrow Agreement and each other document, instrument or agreement to be
executed and delivered by Seller in connection herewith will upon such delivery
be, duly executed and delivered by Seller and constitutes, or will upon such
delivery constitute, the legal, valid and binding obligation of Seller,
enforceable in accordance with its terms.

               (e) No Conflicts. Seller is not required to submit any notice, report or
other filing with any governmental authority in connection with Seller’s
execution, delivery or performance of this Agreement or any other document,
instrument or agreement to be executed and delivered by Seller in connection
herewith. Seller’s execution, delivery and performance of this Agreement and
the Escrow Agreement will not violate any federal, state, local or foreign law,
statute, ordinance, rule, regulation, order or common law by which Seller is
bound or any agreement to which Seller is a party, and, to the knowledge of
Seller, no consent, approval or authorization of any governmental authority or
any other person is required to be obtained by Seller in connection with
Seller’s execution, delivery and performance of this Agreement or any other
document, instrument or agreement to be executed and delivered by Seller in
connection herewith.

               (f) No Brokerage. No Person is or will become entitled, by reason of any
agreement or arrangement entered into or made by or on behalf of Seller, to
receive any commission, brokerage, finder’s fee or other similar compensation
in connection with the consummation of the transactions contemplated by this
Agreement.

-5-

 

     8. Termination. This Agreement may be terminated:

               (a) by mutual written agreement of Purchaser and Seller at any time, in
which event a copy of such written instrument shall be promptly delivered to
the Escrow Agent; or

               (b) by either Purchaser or Seller, upon delivery of written notice of such
termination to the other party and to the Escrow Agent, if the Closing shall
not have occurred (other than because of a failure by the party seeking to
terminate this Agreement to comply with such party’s obligations pursuant to
this Agreement) on or before January 30, 2004, or such other date as Seller and
Purchaser may agree in writing.

               If this Agreement is terminated pursuant to the foregoing clause 8(a),
then all provisions of this Agreement except Sections 10, 11 and 12 shall
thereupon become void without any liability on the part of either party hereto
to the other party hereto. If this Agreement is terminated other than pursuant
to the foregoing clause 8(a), such termination will not affect any right or
remedy which accrued hereunder or under any applicable law prior to or on
account of such termination, and the provisions of this Agreement shall survive
such termination to the extent required so that the terminating party may
enforce all rights and remedies available to such party hereunder or under
applicable law in respect of such termination and so that any party responsible
for any breach or nonperformance of his or its obligations hereunder prior to
termination shall remain liable for the consequences thereof. Upon any
termination of this Agreement prior to the Closing, the Escrow Agent shall
forthwith deliver all Certificates and Assignment Instruments to Seller, and
the Purchase Price and all interest or other earnings thereon to Purchaser.

     9. Further Assurances. On or after the Closing Date, upon request by
Purchaser and without additional consideration, Seller will promptly execute,
deliver and acknowledge any and all such additional documents and instruments,
and at Purchaser’s expense will promptly do and perform all such additional
acts and things, in addition to those expressly provided for herein, that may
be reasonably necessary or appropriate to effect or give evidence to the
provisions of this Agreement and the consummation of the transactions
contemplated hereby.

     10. Expenses. Purchaser shall pay all fees and expenses incident to the
transactions contemplated by this Agreement which are incurred by Purchaser or
its representatives, and Seller shall pay all fees and expenses incident to the
transactions contemplated by this Agreement which are incurred by Seller or his
representatives.

     11. Confidentiality. Unless and until the Closing occurs, Purchaser and
Seller shall at all times hold the fact of the existence of this Agreement and
the Escrow Agreement and the terms hereof and thereof in strict confidence and
will not directly or indirectly disclose either such agreement or its terms to
any person, except only (a) disclosure to the Escrow Agent, to the Company, or
to such party’s legal counsel, accountants or financial advisors having a need
to know such information for purposes consistent herewith, provided that any
such recipient shall be informed of the requirements of this Section 11 and
agree for the benefit of the parties hereto to treat such information in
accordance herewith as though such recipient were a party hereto, (b) such
disclosure as may, in the opinion of counsel to such party, be required by
applicable law or regulation or valid legal process, or (c) disclosure in any
action brought in a court of law to

-6-

 

enforce, interpret or declare the rights or obligations of any person under
this Agreement or the Escrow Agreement. In the event any party is sought to be
compelled by law, regulation or legal process to disclose this Agreement or the
Escrow Agreement or the terms hereof or thereof, such party shall notify each
other party hereto promptly and as far in advance of such potential disclosure
as possible, and shall cooperate with each other party hereto in any lawful
efforts which such other party may make to prevent or limit such disclosure or
obtain an appropriate protective order concerning such disclosure.

     12. Miscellaneous Provisions.

               (a) Notices. All notices, demands, consents or other communications that
are given or made hereunder shall be in writing and shall be given or made to a
party hereto by physical delivery, by registered or certified U.S. mail with
first-class postage prepaid and return receipt requested, or by Federal Express
or another nationally recognized overnight courier service, to such party at
his or its address set forth below, or such other address as shall have been
specified by like notice by such party:

	 	 	 	 	 
	

	 	If to Seller, to:
	 	Duncan Miller

2637 South Adams Road

Rochester Hills, Michigan 48309
	 
	 	 	 	 
	

	 	If to Purchaser, to:
	 	Clark-Reliance Corporation

Attention: Harry E. Figgie, Jr., Chairman

16633 Foltz Industrial Parkway

Strongsville, Ohio 44149

               Each such notice, demand, consent or other communication so addressed
shall be effective upon receipt in the case of physical delivery or delivery by
overnight courier, and shall be deemed effective three business days after
deposit in the U.S. mails in the case of mailing, or upon actual receipt, if
earlier.

               (b) Counterparts; Signature Pages. This Agreement may be executed and
delivered in multiple counterparts, each of which will be deemed an original,
and all of which together will constitute one and the same instrument. This
Agreement may be executed and delivered by facsimile and with separate
signatures pages with the same effect as though all parties had executed and
delivered the same original signature page.

               (c) Entire Agreement. This Agreement constitutes the exclusive statement
of the agreement between the parties concerning the subject matter hereof, and
supersedes all other agreements, oral or written, between the parties
concerning such subject matter. All negotiations among the parties hereto are
superseded by this Agreement, and there are no representations, warranties,
promises, understandings or agreements, oral or written, in relation to the
subject matter hereof between the parties other than those expressly set forth
herein.

               (d) Amendments; Waivers. No amendment or modification of this Agreement
or any provision hereof, including the provisions of this sentence, will be
effective or enforceable as against a party hereto unless made in a written
instrument which specifically references this

-7-

 

Agreement and which is signed by the party against whom enforcement of such
amendment or modification is sought.

               (e) Binding Effect. This Agreement, when executed and delivered by both
parties hereto, will be binding upon and will inure to the benefit of each of
the parties and their respective successors, legal representatives and assigns.

               (f) Third Parties. No provision of this Agreement is intended or may be
construed to confer on any person, other than the parties hereto and their
respective successors and assigns, any rights hereunder.

               (g) Interpretation. In each place where it is used in this Agreement, the
word “including” is intended and shall be construed to mean “including but not
limited to”. The section and paragraph headings in this Agreement are intended
only for convenience of reference and shall be disregarded in interpreting the
provisions of this Agreement. Whenever the context requires in this Agreement,
the masculine gender includes the feminine or neuter, the neuter gender
includes the masculine or feminine, the singular number includes the plural,
and the plural number includes the singular.

               (h) Governing Law. This Agreement and the rights and obligations of the
parties hereunder will be governed by and construed in accordance with the laws
of the State of Ohio applicable to contracts made and to be performed entirely
within Ohio and without regard to the conflicts-of-laws provisions thereof.

     IN WITNESS WHEREOF, and intending to be legally bound, Purchaser and
Seller have executed and delivered this Agreement as of the date first written
above.

	 	 	 	 	 
	 	 	

DUNCAN MILLER(“Seller”)
	 
	 	 	 	 
	 	 	CLARK-RELIANCE CORPORATION
	

	 	 	 	(“Purchaser”)
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

Harry E. Figgie, Jr., Chairman

-8-

 

AMENDMENT NO. 1

TO

SHARE PURCHASE AGREEMENT

     Amendment No. 1, dated as of the    day of January, 2004 (the
“Amendment”), to the Share Purchase Agreement, dated the 10th day of December,
2003 (the “Original Agreement”), by and between Duncan Miller, an individual
(“Seller”), and Clark-Reliance Corporation, a Delaware corporation
(“Purchaser”).

BACKGROUND:

     A. Seller and Purchaser mutually desire to amend certain provisions of the
Original Agreement on the terms and conditions contained herein.

     B. Capitalized terms not otherwise defined herein shall have the meanings
given to them in the Original Agreement.

     Now, therefore, in consideration of their mutual covenants and agreements
contained in this Amendment, Purchaser and Seller hereby agree as follows:

     1. Amendments.

               (a) The reference to “January 30, 2004” in Section 5(a)(iii) of the
Original Agreement is hereby deleted and replaced in its entirety with “March
31, 2004”.

               (b) The reference to “January 30, 2004” in Section 5(b)(iii) of the
Original Agreement is hereby deleted and replaced in its entirety with “March
31, 2004”.

               (c) The reference to “January 30, 2004” in Section 8(b) of the Original
Agreement is hereby deleted and replaced in its entirety with “March 31, 2004”.

     2. Miscellaneous Provisions.

               (a) Effect of Amendment. Except as specifically provided in Section 1
hereof, the Original Agreement is hereby ratified, confirmed and approved in
all respects.

               (b) Counterparts; Signature Pages. This Amendment may be executed and
delivered in multiple counterparts, each of which will be deemed an original,
and all of which together will constitute one and the same instrument. This
Amendment may be executed and delivered by facsimile and with separate
signatures pages with the same effect as though all parties had executed and
delivered the same original signature page.

               (c) Governing Law. This Amendment and the rights and obligations of the
parties hereunder will be governed by and construed in accordance with the laws
of the State of Ohio applicable to contracts made and to be performed entirely
within Ohio and without regard to the conflicts-of-laws provisions thereof.

-9-

 

     IN WITNESS WHEREOF, and intending to be legally bound, Purchaser and
Seller have executed and delivered this Amendment as of the date first written
above.

	 	 	 	 	 
	 	 	

DUNCAN MILLER (“Seller”)
	 
	 	 	 	 
	 	 	CLARK-RELIANCE CORPORATION
	

	 	 	 	(“Purchaser”)
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

Harry E. Figgie, Jr., Chairman

-10-

 

AMENDMENT NO. 2

TO

SHARE PURCHASE AGREEMENT

     Amendment No. 2, dated as of the    day of February, 2004 (the
“Amendment”), to the Share Purchase Agreement, dated the 10th day of December,
2003, as previously amended by Amendment No. 1 dated January 30, 2004 (as so
amended, the “Original Agreement”), by and between Duncan Miller, an individual
(“Seller”), and Clark-Reliance Corporation, a Delaware corporation
(“Purchaser”).

BACKGROUND:

     A. Seller and Purchaser mutually desire to further amend certain
provisions of the Original Agreement on the terms and conditions contained
herein.

     B. Capitalized terms not otherwise defined herein shall have the meanings
given to them in the Original Agreement.

     Now, therefore, in consideration of their mutual covenants and agreements
contained in this Amendment, Purchaser and Seller hereby agree as follows:

     1. Amendments.

               (a) Section 5(a)(iii) of the Original Agreement is hereby deleted and
replaced in its entirety with:

     “(iii) Preferred Stock Investment. Not later than February 1, 2005,
Mr. Harry E. Figgie, Jr. or his spouse or issue, or one or more other
persons directly or indirectly controlled by Mr. Figgie or his spouse or
issue (collectively, together with Mr. Figgie, the “Figgie Affiliates”),
shall have: (A) consummated the purchase from the Company of shares of a
new series of convertible preferred stock of the Company (the “New
Preferred Stock”) for an aggregate purchase price of not less than
$1,500,000 (the “Preferred Stock Purchase”); and (B) exercised the option
granted at the time of the Preferred Stock Purchase to purchase from the
Company shares of New Preferred Stock for an aggregate purchase price of
not less than $500,000 (the “Preferred Stock Purchase Option”).

               (b) Section 5(a)(iv) of the Original Agreement is hereby deleted and
replaced in its entirety with:

     “(iv) Approval of Company’s Board and Shareholders. This Agreement
and the acquisition of the Shares by the Purchaser or the Purchaser’s
designee or designees hereunder, and the Preferred Stock Purchase, the
Preferred Stock Purchase Option, and the agreement or agreements pursuant
to which the Figgie Affiliates purchase the New Preferred Stock from the
Company, shall have been duly approved: (A) by the board of directors of
the Company in accordance with, and expressly for purposes of, Section
203(a)(1) of the General Corporation Law of the State of Delaware; and
(B) by the

-11-

 

shareholders of the Company so as to comply with NASD listing standards
applicable to the Company, and Seller shall have delivered to Purchaser a
certificate of the secretary of the Company, in a form satisfactory to
Purchaser, to the effect that such approvals have occurred and remain in
full force and effect.”

               (c) The reference to “March 31, 2004” in Section 5(b)(iii) of the Original
Agreement is hereby deleted and replaced in its entirety with “February 1,
2005”.

               (d) Section 5(b)(iv) of the Original Agreement is hereby deleted and
replaced in its entirety with:

     “(v) Approval of Company’s Board and Shareholders. This Agreement
and the acquisition of the Shares by the Purchaser or the Purchaser’s
designee or designees hereunder, and the Preferred Stock Purchase, the
Preferred Stock Purchase Option, and the agreement or agreements pursuant
to which the Figgie Affiliates purchase the New Preferred Stock from the
Company, shall have been duly approved: (A) by the board of directors of
the Company in accordance with, and expressly for purposes of, Section
203(a)(1) of the General Corporation Law of the State of Delaware; and
(B) by the shareholders of the Company so as to comply with NASD listing
standards applicable to the Company.”

               (e) The reference to “March 31, 2004” in Section 8(b) of the Original
Agreement is hereby deleted and replaced in its entirety with “February 1,
2005”.

     2. Miscellaneous Provisions.

               (a) Effect of Amendment. Except as specifically provided in Section 1
hereof, the Original Agreement is hereby ratified, confirmed and approved in
all respects.

               (b) Counterparts; Signature Pages. This Amendment may be executed and
delivered in multiple counterparts, each of which will be deemed an original,
and all of which together will constitute one and the same instrument. This
Amendment may be executed and delivered by facsimile and with separate
signatures pages with the same effect as though all parties had executed and
delivered the same original signature page.

               (c) Governing Law. This Amendment and the rights and obligations of the
parties hereunder will be governed by and construed in accordance with the laws
of the State of Ohio applicable to contracts made and to be performed entirely
within Ohio and without regard to the conflicts-of-laws provisions thereof.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

[SIGNATURE PAGE IMMEDIATELY FOLLOWING]

-12-

 

     IN WITNESS WHEREOF, and intending to be legally bound, Purchaser and
Seller have executed and delivered this Amendment No. 2 as of the date first
written above.

	 	 	 	 	 
	 	 	

DUNCAN MILLER                                (“Seller”)
	 
	 	 	 	 
	 	 	CLARK-RELIANCE CORPORATION
	

	 	 	 	(“Purchaser”)
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

Harry E. Figgie, Jr., Chairman

-13-

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