Document:

exv4wxcy

 

Exhibit 4(c)

AMENDMENT NO. 2 TO RIGHTS AGREEMENT

     THIS AMENDMENT NO. 2 TO RIGHTS AGREEMENT (this “Amendment”), dated as of February 20, 2007, is
by and between Peerless Mfg. Co., a Texas corporation (the “Company”), and Mellon Investor Services
LLC, formerly ChaseMellon Shareholder Services, L.L.C. (the “Rights Agent”), at the direction of
the Company.

     WHEREAS, the Company and the Rights Agent entered into a Rights Agreement dated as of May 22,
1997 (as amended on August 23, 2001, the “Rights Agreement”);

     WHEREAS, Section 27 of the Rights Agreement permits the amendment of the Rights Agreement
prior to the Distribution Date without the approval of any holders of Rights in order to cure any
ambiguity, to correct or supplement any provision contained in the Rights Agreement that may be
defective or inconsistent with any other provisions in the Rights Agreement, or to make any other
provisions in regard to matters or questions arising under the Rights Agreement that the Company
and the Rights Agent may deem necessary or desirable and that will be consistent with, and for the
purpose of fulfilling, the objectives of the Board of Directors in adopting the Rights Agreement;

     WHEREAS, the Board of Directors of the Company has resolved and determined that this Amendment
is desirable and consistent with, and for the purpose of fulfilling, the objectives of the Board of
Directors in connection with the original adoption of the Rights Agreement; and

     WHEREAS, pursuant to a resolution duly adopted on February 19, 2007, the Board of Directors of
the Company has authorized and adopted this Amendment;

     NOW, THEREFORE, the Rights Agreement is hereby amended as follows:

1. AMENDMENT TO SECTION 1(b).

Section 1(b) of the Rights Agreement is hereby amended and restated in its entirety as
follows:

     “(b) “Acquiring Person” means any Person that, together with all Affiliates and
Associates of such Person, is the Beneficial Owner of 20% or more of the shares of
Common Stock then outstanding, but does not include (i) the Company; (ii) any
Subsidiary of the Company; (iii) any employee benefit plan of the Company or of any
Subsidiary of the Company; (iv) any Person organized, appointed or established by
the Company for or pursuant to the terms of any such plan; (v) any person that
becomes an Acquiring Person pursuant to a Permitted Transaction; (vi) any
Institutional Investor; (vii) any Person that has become an Acquiring Person
inadvertently and, within five Business Days of being requested by the Company to
advise it regarding the same, certifies to the Company that such Person acquired
beneficial ownership of shares of Common Stock in excess of 19.9% inadvertently or
without knowledge of the terms of the Rights and such certification is accepted as
true by a Requisite Majority acting in good faith, and such Person divests as
promptly as practicable a sufficient amount of Common

 

 

Stock so that such Person no longer holds in excess of 19.9% of the Common Stock
then outstanding; and (viii) any Person that becomes an Acquiring Person solely as a
result of a reduction in the number of outstanding shares of Common Stock in a
transaction that is approved by a Requisite Majority, provided that such Person will
immediately be an Acquiring Person in the event such Person thereafter acquires any
additional shares of Common Stock (other than as a result of a stock split or stock
dividend) while the Beneficial Owner of 20% or more of the shares of Common Stock
then outstanding.”

2. AMENDMENT TO SECTION 1(i).

Section 1(i) is hereby amended and restated in its entirety as follows:

     “(i) “Institutional Investor” means a Person who is required to file, and has
filed, a Schedule 13G with the Securities and Exchange Commission pursuant to Rule
13d-1 of the General Rules and Regulations under the Exchange Act with respect to
its holdings of shares of the Company’s Common Stock, so long as (i) such Person is
principally engaged in the business of managing investment funds for unaffiliated
securities investors and, as part of such Person’s duties as agent for fully managed
accounts, holds or exercises voting and/or dispositive power over shares of the
Company’s Common Stock, (ii) such Person acquires Beneficial Ownership of shares of
the Company’s Common Stock pursuant to trading activities undertaken in the ordinary
course of such Person’s business and not with the purpose nor the effect, either
alone or in concert with any other Person or Persons, of exercising the power to
direct or cause the direction of the management and policies of the Company or of
otherwise changing or influencing the control of the Company, nor in connection with
or as a participant in any transaction having such purpose or effect, including any
transaction subject to Rule 13d-3(b) of the General Rules and Regulations under the
Exchange Act, and (iii) if such Person is a Person included in Rule 13d-1(b)(1)(ii)
of the General Rules and Regulations under the Exchange Act, such Person is not
required to, has not and does not, file a Schedule 13D with respect to the
securities of the Company.”

3. AMENDMENT TO EXHIBITS.

Exhibits A and B to the Rights Agreement shall be deemed amended in a manner consistent with
this Amendment.

4. NO OTHER AMENDMENTS.

The Rights Agreement shall not otherwise be supplemented or amended by virtue of this
Amendment, but shall remain in full force and effect.

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5. GOVERNING LAW.

This Amendment will be deemed to be a contract made under the laws of the State of Texas and
for all purposes will be governed by and construed in accordance with the laws of such State
applicable to contracts made and to be performed entirely within such State.

6. EFFECTIVENESS.

This Amendment shall be effective as of the date of this Amendment, and all references to
the Rights Agreement shall, from and after such time, be deemed to be references to the
Rights Agreement as amended hereby.

7. CERTIFICATION.

The undersigned officer of the Company certifies by execution hereof that this Amendment is
in compliance with the terms of Section 27 of the Rights Agreement.

8. INTERPRETATION.

Descriptive headings of the several Sections of this Amendment are inserted for convenience
only and will not control or affect the meaning or construction of any of the provisions of
this Amendment. References in this Amendment to Sections and Exhibits are references to the
Sections of and Exhibits to the Rights Agreement unless the context requires otherwise. In
this Amendment, the word “or” is not exclusive.

9. MISCELLANEOUS.

Capitalized terms used but not defined herein have the meanings ascribed thereto in the
Rights Agreement. This Amendment may be executed in any number of counterparts, each of
such counterparts shall for all purposes be deemed to be an original, and all such
counterparts shall together constitute but one and the same instrument. If any term,
provision, covenant or restriction of this Amendment is held by a court of competent
jurisdiction or other authority to be invalid, illegal or unenforceable, the remainder of
the terms, provisions, covenants and restrictions of this Amendment shall remain in full
force and effect and shall in no way be affected, impaired or invalidated.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

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     IN WITNESS WHEREOF, the parties hereto have caused their respective duly authorized
representatives to execute this Amendment on the date and year first above written.

	 	 	 	 	 
	 	PEERLESS MFG. CO.

 	 
	 	By:  	/s/ Henry G. Schopfer, III
 	 
	 	 	Name:  	Henry G. Schopfer, III 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	MELLON INVESTOR SERVICES LLC, 

formerly ChaseMellon Shareholder 

Services, L.L.C.

 	 
	 	By:  	/s/ David M. Cary
 	 
	 	 	Name:  	David M. Cary 	 
	 	 	Title:  	Vice Presidentexv10w1

 

Exhibit 10.1

AMENDED AND RESTATED SHAREHOLDER AGREEMENT

     This Amended and Restated Shareholder Agreement dated February 16, 2007 (this “Agreement”), is
by and between GenCorp Inc., an Ohio corporation (the “Company”), and Steel Partners II, L.P., a
Delaware limited partnership (“Steel”), for itself and its Affiliates (collectively,
“Shareholder”).

RECITALS

     A. The Company and Shareholder are parties to that certain Shareholder Agreement dated
February 15, 2005 which provided for, among other things, a representative of Shareholder to be
present at all meetings of the Company’s Board of Directors until February 15, 2007 (the “Original
Agreement”).

     B. The Company and Shareholder desire to amend and restate the Original Agreement to, among
other things, extend the Shareholder’s Board observer rights in light of additional corporate
governance changes effected by the Company.

     C. As of the date of this Agreement, Shareholder Beneficially Owns 4,489,002 shares (the
“Owned Shares”) of Common Stock, par value $0.10 per share, of the Company (the “Common Shares”).

     NOW, THEREFORE, in consideration of the covenants herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and
Shareholder hereby agree as follows:

SECTION 1. DEFINITIONS

     1.1 Certain Definitions. In addition to any other terms defined in this Agreement,
for purposes of this Agreement, the following terms have the following meanings when used herein
with the initial capital letters:

          (a) “Affiliate” has the meaning ascribed thereto in Rule 12b-2 under the Exchange Act.

          (b) “Associate” has the meaning ascribed thereto in Rule 12b-2 under the Exchange Act.

          (c) “Beneficial Owner” and “Beneficially Own” are defined in accordance with the term
“beneficial ownership” as defined in Rule 13d-3 under the Exchange Act, and a Person will also be
deemed to be the Beneficial Owner of, and to Beneficially Own, Common Shares that such Person or
any Affiliate of such Person has the right to acquire (whether such right is exercisable
immediately or only after the passage of time) pursuant to any agreement, arrangement or
understanding or upon the exercise of conversion rights, exchange rights, warrants, options or
otherwise.

          (d) “Board” means the Directors of the Company in their capacity as such.

 

 

          (e) “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations thereunder.

          (f) “Holding Period” means the period beginning on the date of this Agreement and ending on
February 16, 2008.

          (g) “Holding Period Meeting” means any meeting of the shareholders of the Company at which
directors are to be elected that is held during the Holding Period.

          (h) “Observer” means Warren G. Lichtenstein or Jack L. Howard or if either Messrs.
Lichtenstein or Howard ceases to serve as an Observer or to be affiliated with the general partner
of Steel (the “Steel GP”) for any reason, any senior executive of the Steel GP designated by
Shareholder and reasonably acceptable to the Company after consultation with the Nominating
Committee.

          (i) “Person” has the meaning given to such term in Section 3(a)(9) of the Exchange Act, as
supplemented by the rules and regulations thereunder.

          (j) “2007 Annual Meeting” means the annual meeting of the Company’s shareholders to be held
during the 2007 calendar year.

          (k) “2008 Annual Meeting” means the annual meeting of the Company’s shareholders to be held
during the 2008 calendar year.

SECTION 2. OBSERVER RIGHTS; GOVERNANCE; VOTING

     2.1 Observer. (a) During the Holding Period, the Observer will (1) receive copies of
all notices and written information furnished to the Board at substantially the same time they are
so furnished, (2) be permitted to be present at all meetings of the Board (whether by phone or in
person), subject to the Chairman of the Board’s (the “Chairman”) right to exclude the Observer from
being present at any executive session of the Board, any session in which the chief executive
officer is excused and at any session during which matters that the Chairman determines in good
faith that Shareholder has an interest that is in addition to or different from the interests of
the Company’s shareholders generally, and (3) be reimbursed for all out-of-pocket expenses incurred
in attending any such meeting on the same basis as the Directors of the Company, but not be
entitled to Directors’ fees or other compensation in connection therewith.

          (b) Shareholder (1) acknowledges that the U.S. securities laws prohibit any person who has
access to material nonpublic information from trading while in possession of such information or
providing that information to others in certain circumstances, and agrees to comply with these
requirements, and (2) will maintain in strict confidence all nonpublic information it receives
whether by virtue of this Section 2.1 or otherwise; provided, however, that
nothing in this clause (2) will prohibit Shareholder from disclosing any such information to its
attorneys, accountants or financial or other advisors in connection with its assessment of its
investment in the

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Company. Shareholder will cause all such Persons to maintain the confidentiality of
information as if they were direct parties hereto and be responsible for any failure by any such
Person to do so.

     2.2 Voting. At any Holding Period Meeting (including at the 2007 Annual Meeting, but
not the 2008 Annual Meeting), Shareholder shall take such action as may be required so that all
Common Shares Beneficially Owned by Shareholder as of the record date for such meeting are voted
for the election of the slate of nominees for election to the Board selected by a majority of the
directors. On all other matters, Shareholder may vote in its sole discretion as it determines.

     2.3 Quorum. A representative or representatives of Shareholder will be present, in
person or by proxy, at any meeting of shareholders of the Company during the Holding Period so that
all Common Shares Beneficially Owned by Shareholder may be counted for the purpose of determining
the existence of a quorum at such meeting.

SECTION 3. AGREEMENTS REGARDING VOTING AND SECURITIES

     During the Holding Period, other than in connection with the 2008 Annual Meeting:

     3.1 Proxy Solicitations. Subject to Section 3.4, Shareholder shall not (and
shall not encourage or assist any other Person to), directly or indirectly, solicit proxies or
initiate, propose or become a “participant” in a “solicitation” (as such terms are defined in
Regulation 14A under the Exchange Act) in any “election contest” with respect to the Company’s
directors (regardless of whether it involves the election or removal of directors of the Company).

     3.2 Group Participation. Subject to Section 3.4, Shareholder shall not (and
shall not assist or encourage any other Person to) form, join or in any way participate in a group
(within the meaning of Section 13(d)(3) of the Exchange Act) with respect to any securities of the
Company with respect to any matter covered in Section 3.1 hereof.

     3.3 Shareholder Meetings. Subject to Section 3.4, Shareholder shall not,
directly or indirectly, (or assist or encourage any other Person to,) call or seek to call any
special meeting of the Shareholders of the Company for the purpose of the election or of the
removal of directors of the Company.

     3.4 Permitted Activity. Nothing contained in this Agreement shall limit Shareholder
from taking any of the actions otherwise prohibited in Section 3.1 of this Agreement in
connection with any meeting of shareholders of the Company, other than the election of directors at
a Holding Period Meeting, including, without limitation, submitting business proposals, requesting
a shareholder list and related information, or taking any other action related to the solicitation
of proxies or written consents or making any public filings or announcements in furtherance
thereof. For the avoidance of doubt, nothing in this Agreement prohibits Shareholder from
nominating directors to be voted on at a shareholders meeting of the Company that is to be held
after the

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expiration of the Holding Period. The Company agrees that the 2008 Annual Meeting will be
held no earlier than end of the Holding Period.

     3.5 Other Requirements. For the avoidance of doubt, the covenants in this Agreement,
including without limitation this Section 3, are not intended to be and will not be
interpreted as being an approval by the Board of any acquisition of stock by Steel Partners or its
Affiliates for purposes of any provision of Ohio law.

SECTION 4. REPRESENTATIONS AND WARRANTIES OF THE COMPANY

     The Company represents and warrants to Shareholder as follows:

     4.1 Corporate Existence of, and Due Authorization and Execution by, the Company. The
Company is a corporation duly organized, validly existing and in good standing under the laws of
the State of Ohio, with full corporate power and authority to execute and deliver this Agreement,
to perform its obligations hereunder, and to consummate the transactions contemplated hereby. This
Agreement and the consummation of the transactions contemplated hereby have been duly authorized by
all necessary corporate action of the Company. This Agreement has been duly executed and delivered
by the Company and constitutes a legal, valid and binding obligation of the Company, enforceable
against the Company in accordance with its terms.

     4.2 No Conflicts. The execution and delivery of this Agreement and the consummation
of the transactions contemplated hereby do not conflict with, or result in any violation of or
default under, any provision of the Amended Articles of Incorporation or Amended Code of
Regulations of the Company.

SECTION 5. REPRESENTATIONS AND WARRANTIES OF SHAREHOLDER

     Shareholder represents and warrants to the Company as follows:

     5.1 Existence of, and Due Authorization and Execution by, Shareholder. Shareholder is
a limited partnership duly organized, validly existing, and in good standing under the laws of the
State of Delaware, with full power and authority to execute and deliver this Agreement, to perform
its obligations hereunder, and to consummate the transactions contemplated hereby. This Agreement
and the consummation of the transactions contemplated hereby have been duly authorized by all
necessary action of Shareholder. This Agreement has been duly executed and delivered by
Shareholder and constitutes a legal, valid and binding obligation of Shareholder, enforceable
against Shareholder in accordance with its terms.

     5.2 No Conflicts. The execution and delivery of this Agreement and the consummation
of the transactions contemplated hereby do not conflict with, or result in any violation of or
default under, any provision of any partnership agreement or other constituent documents of
Shareholder or of any agreement or instrument binding upon Shareholder.

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     5.3 Beneficial Ownership of Common Shares. As of the date of this Agreement, (a)
Shareholder Beneficially Owns the Owned Shares and no other securities of the Company, and (b) to
the actual knowledge of Shareholder, no Affiliate of Shareholder Beneficially Owns any securities
of the Company other than the Owned Shares.

SECTION 6. MISCELLANEOUS

     6.1 Specific Enforcement. The parties acknowledge that the Company would be
irreparably damaged in the event any provision of this Agreement were not performed in accordance
with its specific terms or were otherwise breached. It is accordingly agreed that the Company will
be entitled to an injunction or injunctions to prevent breaches of this Agreement and to
specifically enforce this Agreement and the terms and provisions thereof in any action instituted
in any court of the United States or any state thereof having subject matter jurisdiction, in
addition to any other remedy to which the Company may be entitled, at law or in equity.

     6.2 Modification; Waiver. (a) This Agreement may be modified in any manner and at any
time by written instrument executed by the parties and (b) any of the terms, covenants and
conditions of this Agreement may be waived at any time by the party entitled to the benefit of such
term, covenant or condition.

     6.3 Notices. All notices, requests, demands, claims, and other communications
hereunder will be in writing and will be delivered by electronic mail or facsimile transmission:

	 	(a)	 	if to the Company, to:

GenCorp Inc.

Highway 50 and Aerojet Road

Rancho Cordova, California 95670

Facsimile: (916) 351-8665

Attention: Mark A. Whitney, Senior Vice President, General

Counsel and Secretary

Email: mark.whitney@gencorp.com

with a copy to:

Kirkland & Ellis LLP

153 East 53rd Street

New York, NY 10022-4675

Facsimile: (212) 446-4900

Attention: Stephen Fraidin, Esq.

Email: sfraidin@kirkland.com

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if to Shareholder, to:

Steel Partners II, L.P.

590 Madison Avenue

32nd Floor

New York, New York 10022

Facsimile: (212) 520-2321

Attention: Warren G. Lichtenstein

Email: warren@steelpartners.com

with a copy to:

Olshan Grundman Frome Rosenzweig & Wolosky LLP

Park Avenue Tower

65 East 55th Street

New York, New York 10022

Facsimile: (212) 451-2222

Attention: Steven Wolosky, Esq.

Email: swolosky@olshanlaw.com

	 	(b)	 	or, in each case, at such other address or to such other Person as may be specified in
writing to the other party.

     6.4 Parties in Interest; Assignment. This Agreement and all the provisions hereof are
binding upon and will inure to the benefit of the parties and their respective successors and
permitted assigns, but neither this Agreement nor any of the rights, interests and obligations
hereunder may be assigned or delegated by either party without the prior written consent of the
other party. Nothing in this Agreement, whether expressed or implied, may be construed to give any
Person other than the parties any legal or equitable right, remedy or claim under or in respect of
this Agreement.

     6.5 Counterparts. This Agreement may be executed in one or more counterparts, all of
which will constitute one and the same instrument.

     6.6 Headings; References. The section headings of this Agreement are for convenience
of reference only and will not be deemed to alter or affect the meaning or interpretation of any
provisions hereof. Unless otherwise specified, references to “Sections” are to Sections of this
Agreement.

     6.7 Governing Law, Etc. This Agreement is governed by and construed in accordance
with the internal laws of the State of New York applicable to contracts made and to be performed
therein, without regard to the conflict of laws principles. Each party submits to exclusive
jurisdiction and venue of federal or state courts in New York, New York and agrees not to institute
litigation in any other forums in respect of the interpretation or enforcement of this Agreement
(except for proceedings to obtain enforcement of an order of a New York, New York federal or state
court).

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     6.8 Severability. If one or more of the provisions of this Agreement are held by a
court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the
provisions of this Agreement will remain in full force and effect.

     6.9 No Press Release. During the Holding Period, Shareholder shall not issue or cause
the publication of any press release or other public announcement with respect to this Agreement
without the prior written consent of the Company; provided, however, that
Shareholder may file an amendment to its Schedule 13D or other filing required by applicable
securities law or the rules of any stock exchange disclosing the terms of this Agreement and
including the Agreement as an exhibit thereto without the prior written consent of the Company.

     6.10 Survival. The provisions of Section 2.1(b) will survive the termination
of this Agreement and/or the expiration of the Holding Period.

     6.11 Expenses. All expenses incurred by or on behalf of the parties hereto,
including, without limitation, all fees and expenses of agents, representatives, and counsel
employed by the parties hereto in connection with the preparation of this Agreement, shall be borne
solely by the party who shall have incurred such expenses, and the other party shall have no
liability in respect thereof.

     6.12 Original Agreement. The Original Agreement is null and void and superseded and
replaced in its entirety by this Agreement.

[Signatures on following page]

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IN WITNESS WHEREOF, each party has caused its respective duly authorized representative to execute
this Amended and Restated Shareholder Agreement as of the date first above written.

	 	 	 	 	 	 	 
	 	 	GENCORP INC.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Mark A. Whitney	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Its:
	 	Senior Vice President, Law	 	 
	 
	 	 	 	 	 	 
	 	 	STEEL PARTNERS II, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Steel Partners, L.L.C., its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Warren G. Lichtenstein	 	 
	 

	 	 	 	 	 	 
	 	 	Warren G. Lichtenstein, Managing Member

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