UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended
October 31, 2010
Commission File Number 0-27022
OPTICAL CABLE CORPORATION
(Exact name of the registrant as specified in its charter)
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Virginia
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54-1237042
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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5290 Concourse Drive, Roanoke, VA
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24019
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(Address of principal executive offices)
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(Zip Code)
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(540)
265-0690
(Registrants telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act:
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Title of Each Class
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Name of Each Exchange on Which Registered
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Common Stock, no par value
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Nasdaq Global Market
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Indicate by check mark if the
registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities
Act. Yes
¨
No
x
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934. Yes
¨
No
x
Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for the past 90
days. (1) Yes
x
No
¨
(2)
Yes
x
No
¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to
Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such
files).
¨
Yes
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No NA
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (Section 229.405 of this chapter) is not contained
herein, and will not be contained, to the best of registrants knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.
¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer,
a non-accelerated filer or a smaller reporting company. See definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Act.
Large accelerated
filer
¨
Accelerated filer
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Non-accelerated filer
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Smaller reporting company
x
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of
1934). Yes
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No
x
The aggregate market value of the registrants Common Stock, no par value, held by non-affiliates of the registrant (without admitting any person whose shares are not included in determining such
value is an affiliate) as of April 30, 2010, the last business day of the Companys most recent second quarter was $18,273,477 based upon the closing price of these shares as reported by the Nasdaq Global Market on April 30, 2010.
As of January 14, 2011, the Company had outstanding 6,242,899 common shares.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the Companys Annual Report filed as exhibit 13.1 to this report on Form 10-K are incorporated by reference in Part II of this Form 10-K
Report: Corporate Information, Managements Discussion and Analysis of Financial Condition and Results of Operations, Consolidated Financial Statements, Notes to Consolidated Financial Statements,
and Report of Independent Registered Public Accounting Firm. In addition, portions of the Companys Proxy Statement for the 2011 Annual Meeting of Shareholders are incorporated by reference in Part III of this Form 10-K Report:
Election of Directors, Beneficial Ownership of Securities, Compensation of Executive Officers, Compensation of Directors, Compliance with Section 16(a) of the Securities Exchange Act of
1934, Code of Ethics, Executive Compensation, Beneficial Ownership of Securities, Equity Compensation Plans Information, Certain Relationships and Related Transactions,
Independent Registered Public Accounting Firm, and Audit Committee Pre-approval of Audit and Permissible Non-audit Services of Independent Registered Public Accounting Firm.
OPTICAL CABLE CORPORATION
FORM 10-K
TABLE OF CONTENTS
2
PART I
Item 1. BUSINESS
Overview
Optical Cable Corporation was incorporated in the Commonwealth of Virginia in 1983. We are headquartered at 5290 Concourse Drive, Roanoke, Virginia 24019
and our telephone number is (540) 265-0690. Optical Cable Corporation, together with our wholly owned subsidiary, Applied Optical Systems, Inc. (AOS), has offices, manufacturing and warehouse facilities located in each of Roanoke,
Virginia, near Asheville, North Carolina and near Dallas, Texas.
Optical Cable Corporation (or OCC
®
) is a leading manufacturer of a broad range of fiber optic and copper data communications cabling and
connectivity solutions primarily for the enterprise market, offering an integrated suite of high quality, warranted products which operate as a system solution or seamlessly integrate with other providers offerings. OCCs product
offerings include designs for uses ranging from commercial, enterprise network, datacenter, residential and campus installations to customized products for specialty applications and harsh environments, including military, industrial, mining and
broadcast applications. OCC products include fiber optic and copper cabling, fiber optic and copper connectors, specialty fiber optic and copper connectors, fiber optic and copper patch cords, racks, cabinets, datacom enclosures, patch panels, face
plates, multi-media boxes, and other cable and connectivity management accessories, and are designed to meet the most demanding needs of end-users, delivering a high degree of reliability and outstanding performance characteristics.
OCC
®
is internationally recognized for pioneering the design and production of fiber optic cables for the most demanding military field applications, as well as of fiber optic cables suitable for both indoor and outdoor use, and creating a broad
product offering built on the evolution of these fundamental technologies. OCC
®
also is internationally
recognized for its role in establishing copper connectivity data communications standards, through its innovative and patented technologies.
OCC primarily manufactures its high quality fiber optic cables at its ISO 9001:2008 registered and MIL-STD-790F certified facility located in Roanoke,
Virginia, its high quality commercial connectivity products at its ISO 9001:2008 registered facility located near Asheville, North Carolina, and its high quality military and harsh environment connectivity products and systems at its ISO 9001:2008
registered and MIL-STD-790F certified facility located near Dallas, Texas.
Acquisitions
On May 30, 2008, Optical Cable Corporation acquired Superior Modular Products Incorporated, doing business as SMP Data Communications (SMP Data
Communications). On October 31, 2009, we legally merged SMP Data Communications with and into Optical Cable Corporation, and SMP Data Communications ceased to exist as a separate entity. Our Asheville facility develops copper and fiber
passive connectivity hardware components for use in the enterprise market, including a broad range of commercial and residential applications and is the reason OCC is internationally recognized for its role in establishing copper connectivity data
communications standards, through its innovative and patented technologies. The products manufactured at our facility near Asheville, North Carolina are marketed and sold under the names Optical Cable Corporation and OCC by our integrated sales
team.
On October 31, 2009, Optical Cable Corporation acquired AOS. Founded in 2003, AOS is a wholly owned subsidiary of Optical Cable
Corporation that designs, develops and manufactures a broad range of specialty fiber optic connectors and connectivity solutions primarily for use in military and other harsh environment applications. OCC markets and sells the products manufactured
at our facility near Dallas, Texas under the names Optical Cable Corporation and OCC by our integrated sales team.
3
OCCs product offerings as expanded by the acquisitions of SMP Data Communications and AOS are
exceptionally complementary and are used together by customers and end-users as part of integrated cabling and connectivity systems.
In
August 2008, Optical Cable Corporation acquired 70% of the authorized membership interests of Centric Solutions LLC (Centric Solutions). Centric Solutions is a start-up business founded in 2008 to provide turnkey cabling and connectivity
solutions for the datacenter market. Centric Solutions operates and goes to market separately from Optical Cable Corporation, however, in some cases, Centric Solutions may include products supplied by Optical Cable Corporation in its product
offering.
Optical Cable Corporation, OCC
®
, Superior Modular Products, SMP Data Communications, Applied Optical Systems, and associated logos are trademarks of Optical Cable Corporation.
Products
Optical Cable Corporation and its subsidiaries (collectively, the Company or OCC
®
) is a leading manufacturer of a broad range of fiber optic and copper data communication cabling and
connectivity solutions primarily for the enterprise market, offering an integrated suite of high quality, warranted products which operate as a system solution or seamlessly integrate with other providers offerings. OCCs product
offerings include designs for uses ranging from commercial, enterprise network, datacenter, residential and campus installations to customized products for specialty applications and harsh environments, including military, industrial, mining and
broadcast applications. OCC products include fiber optic and copper cabling, fiber optic and copper connectors, specialty fiber optic and copper connectors, fiber optic and copper patch cords, racks, cabinets, datacom enclosures, patch panels, face
plates, multi-media boxes, and other cable and connectivity management accessories, and are designed to meet the most demanding needs of end-users, delivering a high degree of reliability and outstanding performance characteristics.
Our fiber optic and copper cabling and connectivity products and solutions (predominantly passive, rather than active systems) are used for transmission
of data, video and voice communications over various distances.
Fiber Optic Cable Products
We design, manufacture, market and sell a broad array of top-tier fiber optic cables that provide high bandwidth transmission of data, video and voice
communications over short- to moderate-distances.
OCC is internationally recognized for pioneering the design and production of fiber optic
cables for the most demanding military field applications, as well as fiber optic cables suitable for both indoor and outdoor use, and for creating a broad product offering built on the evolution of these fundamental technologies.
Our product line is diverse and versatile, in keeping with evolving application needs of customers within our markets. Our tight-buffered fiber optic
cables address the needs of the enterprise market in particular, and to a lesser extent the access market. We believe that we offer the most comprehensive tight-buffered fiber optic cable product offering for the enterprise market.
Our fiber optic cable product offering includes designs for uses ranging from commercial, enterprise network, datacenter, residential and campus
installations to customized products for specialty applications and harsh environments, including military, industrial, mining and broadcast applications.
We produce fiber optic cables for specialized installations, including various hybrid and composite cables and cables with specialty fibers. We can armor fiber optic cables for further protection in
certain installations. We offer cables suitable for underground or overhead installations. For overhead installations, we offer several self-supporting fiber optic cables as well as aerial messenger cables which feature self-supporting messengered
construction. We have fiber optic cables available in several flammability ratings.
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We offer various hybrid and composite fiber optic cables combining different types of optical fiber and/or copper wires, with copper wires being used as power feeds or to facilitate the
transition from copper wire to optical fiber-based systems without further installation of fiber optic cables. Our composite cables include a line of security cables which combine copper power feeds with optical fiber in the cables making them
particularly well suited for surveillance cameras and other specialty applications. We also offer specialty fiber optic cables, such as for use in military ground tactical, industrial (including tray cables), mining, deployable broadcast, oil and
gas, festoon, pierside and high density datacenter applications. Our product offering further includes fiber optic cables complying with or certified to various standards for specialty applications, such as: U.S. Department of Defense
MIL-PRF-85045/8A and U.K. Ministry of Defence Def-Stan 60-1, Part 3 qualifications for military ground tactical fiber optic cable; Det Norske Veritas (DNV) type approval certificate for marine shipboard and offshore platform applications; U.S. Mine
Safety and Health Administration (MSHA) approval for use in mines; and American Bureau of Shipping (ABS) type approved cables. We also offer our customers a variety of customized constructions to meet their specific communication needs.
Further information regarding OCCs fiber optic cable products is available on the Internet at www.occfiber.com.
Copper Datacom Cable Products
We market
and sell a wide range of high quality copper datacom cables, including unshielded twisted pair (UTP) and shielded twisted pair (ScTP and FTP constructions), in Category 5e, Category 6 and Category 6a performance ratings, in riser and plenum
configurations, and in various colors.
Further information regarding OCCs copper datacom cable products is available on the Internet at
www.occfiber.com.
Fiber Optic and Copper Enterprise Connectivity Products
We design, manufacture, market and sell innovative top-tier fiber optic and copper connectivity components for use in a broad range of commercial, military, harsh environment and residential applications.
We are internationally recognized for our role in establishing copper connectivity data communication standards, through our innovative and patented technologies.
The following summarizes the major types of fiber optic and copper passive enterprise connectivity products and their attributes; however, we produce many other types of connectivity products as well:
Fiber Optic Enterprise Connectivity Products
. Our fiber optic enterprise connectivity products provide a wide range of
fiber distribution solutions for the equipment room, the telecommunication closet, the datacenter and the workstation. Our product offering includes wall mount enclosures, rack mount enclosures, pre-terminated enclosures, patch panels, connectors,
splice trays, fiber optic jumpers, plug and play cassette modules, pre-terminated fiber optic cable assemblies, adapters, and accessories.
Copper Enterprise Connectivity Products.
Our copper enterprise connectivity products offer customers a complete line of copper connectivity components necessary for the equipment room, the
telecommunications closet, the datacenter and the workstation. Our products include: category compliant plugs and jacks (including products with patented circuit board technology and products in a standard keystone or proprietary bezel
configuration), patch cords, faceplates, surface mounted boxes, distribution and multimedia boxes, patch panels, cable assemblies, cable organizers, and other wiring products. Our product offering includes: products compliant with Category 6a, 6 and
5e standards, shielded and unshielded products, and products suitable for certain telco applications. Our product offering also includes patented technologies with unique features, such as our keyed Limited Axcess connectors.
5
Rack Solutions
. We offer a complete array of high-performance network, data storage
and telecommunications management systems for commercial and residential use. Our rack solutions product line includes data cabinets, wall-mount enclosures, horizontal and vertical cable management systems and open frame relay racks. These products
meet the demands of all network segments including LAN, WAN, Metro co-location, POPs and Gateways. Our products serve the equipment, cross-connect and termination needs for copper, fiber optic and coaxial multi-media applications.
Residential Systems
. Our offering includes the Home Axcess product line, a comprehensive line of high-quality wiring products
comprised of various enclosures, modules and modular outlets designed for single dwelling and multiple dwelling residential use. By utilizing our products, customers obtain a convenient method for networking, customizing and distributing all of the
electronic services in the home including voice, data, video, audio and security, all managed from one central location.
Further information
regarding OCCs enterprise connectivity products is available on the Internet at www.occfiber.com.
Applied Interconnect Systems
Products
We design, manufacture, market and sell specialty fiber optic connectors and connectivity components, certain ruggedized copper
datacom connectors, and related systems and solutions for the military and harsh environment applications. For deployable applications, we manufacture a full range of tactical fiber optic connectors that conform to U.S. Department of Defense
standards, such as MIL-C-83522, MIL-DTL-83526, NAVSEA 7379171, NAVSEA 7379172 products. For fixed fiber optic or applications requiring optical fiber and copper connections in the same connector, we manufacture the F-Link family of connector
products. We fabricate a wide variety of simplex, duplex and multi-channel fiber optic assemblies for applications as varied as mining, oil & gas, broadcast, industrial and military. Our product offering includes deployable reel systems and
ruggedized RJ-45 connectors.
Further information regarding OCCs applied interconnect systems products is available on the Internet at
www.occfiber.com.
Distribution Methods of Products and Services
Our products are sold to major distributors, regional distributors, various smaller distributors, original equipment manufacturers, value-added resellers, and, in certain cases, end-users. Generally, our
products are purchased from our customers by contractors, system integrators and end-users.
Competitive Business Conditions, Positions
in the Industry and Methods of Competition
The market for fiber optic cables and data communication connectivity products for the
enterprise market and other short- to moderate-distance markets are highly competitive. Our fiber optic cable product lines compete with products of large, integrated fiber optic cable manufacturers such as Corning Cabling Systems, OFS, and Draka
Comteq, as well as with other large fiber optic cable manufacturers such as General Cable, Belden, Nexans (doing business as Berk-Tek), CommScope and others. Our fiber optic and copper connectivity product lines compete with products of large fiber
optic and copper connectivity manufacturers such as CommScope, Corning Cabling Systems, OFS, Ortronics/Legrand, Panduit, Belden and others. Our military and harsh environment connectivity product lines compete with products of Amphenol Corporation,
Delphi and Stran Technologies.
Some of our competitors are more established, benefit from greater market recognition and have much greater
financial, research and development, production and marketing resources than we do. Competition could increase if new companies enter the market or if existing competitors expand their product lines.
6
Compliance with Environmental Laws
We are not aware of any material violations at our facilities of any local, state or federal environmental laws. We have not incurred any material expenditures related to environmental compliance during
our 2010 fiscal year. We believe that we have materially complied with all applicable environmental regulations.
Research and
Development Activities
Research and development costs totaled $1.0 million, $1.2 million and $528,000 for the fiscal years ended
October 31, 2010, 2009, and 2008, respectively. Our research and development costs related to work performed in connection with our enterprise connectivity product lines. The product development work with respect to our fiber optic cable
products and our applied interconnect systems products is generally performed in response to customer product development requests and is characterized as engineering expense allocated to costs of goods sold and selling, general and administrative
expenses, rather than characterized as research and development costs.
Customers
We have a global customer base, selling in over 50 countries in fiscal year 2010. The following is a partial list of representative types of end-users of
our fiber optic cables and copper and fiber optic connectivity products:
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Commercial Institutions. Businesses located in offices, retail space, and medical facilities, to name a few, are installing or improving networks to
distribute increasing volumes of data. These businesses often use high performance local area networks (LANs) or datacenters.
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Government Agencies. Government agencies tend to have large buildings or complexes, many people, and the need to access and process large quantities of
data. Like commercial institutions, these routinely include high performance LANs or datacenters. Security also may be desired, making our cabling and connectivity solutions a logical choice.
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Industrial and Manufacturing Facilities. Industrial and manufacturing facilities typically have a more severe environment (often with heavy electrical
equipment) than other types of businesses. Fiber optic cable and connectivity in these environments offers immunity to electrical noise, ruggedness, high information carrying capacity and greater distance capability. Such facilities also have need
for our copper cabling and connectivity products. Our products are installed in automotive assembly plants, steel plants, chemical and drug facilities, petrochemical facilities and petroleum refineries, mines and other similar environments.
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Cable Assembly Houses. Cable assembly houses typically manufacture cable assemblies, which are short lengths of cable pre-terminated with connectors.
Supporting virtually all segments of the market, these manufacturers consume large quantities of cables and connectivity products. Products sold to customers in this market sometimes may be privately labeled.
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Military. Our core fiber optic cable technologies enable us to develop and efficiently produce fiber optic cables for military tactical applications
that survive extreme mechanical and environmental conditions. We are certified by both the United States Department of Defense (U.S. DoD) and the United Kingdom Ministry of Defence as a qualified supplier of ground tactical fiber optic
cable. Both our Roanoke and Dallas manufacturing facilities have also been certified by the U.S. DoD as MIL-STD-790F facilities, one of the most respected certifications in the defense industry. We also hold contracts with the U.S. DoD to supply
tactical fiber optic cable assemblies, which we sell as fiber optic cables connectorized with qualified military connectors on military reels ready for deployment.
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Educational Institutions. Colleges, universities, high schools and grade schools are installing and improving their networks for higher data
transmission speeds, as well as using datacommunications solutions to support interactive learning systems.
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Original Equipment Manufacturers. We private label a number of our copper connectivity products for other major manufacturers of copper connectivity,
including major competitors. Additionally, we license and cross-license a number of our patents with other major manufacturers of copper connectivity.
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Our extensive technology base and versatile manufacturing processes enable us to respond to diverse customer needs.
Employees
As of October 31, 2010, we employed a total of 333 persons
(excluding independent sales representatives and firms and employees of Centric Solutions). None of our employees is represented by a labor union. We have experienced no work stoppages and we continue to take steps we believe appropriate to ensure
our employee relations are good.
Item 1A.
RISK FACTORS
Not required for a smaller reporting company as defined in Rule 12b-2 promulgated under the Securities Exchange Act of 1934, as amended.
Certain risk factors that may adversely affect the Company, the Companys future results of operations and future financial condition,
and future market valuation of the Company are mentioned under Forward Looking Information included in Managements Discussion and Analysis of Financial Condition and Results of Operations in the Companys Annual Report for the
fiscal year ended October 31, 2010 (filed as Exhibit 13.1 to this report on Form 10-K), in our Quarterly Reports on Form 10-Q, and in our press releases. Such disclosures do not purport to fully comply with the requirements set forth in
Item 1A. of the Annual Report on Form 10-K.
Item 1B.
UNRESOLVED STAFF COMMENTS
None.
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Item 2.
PROPERTIES
We own our facility located in Roanoke County, Virginia, and the land on which our Roanoke facility is located. Our Roanoke facility houses our corporate
headquarters, our fiber optic cable manufacturing, our fiber optic cable product development function and our fiber optic cable warehouse. Our Roanoke facility is situated on approximately 23 acres of land near the Roanoke, Virginia airport and
major trucking company facilities. Our Roanoke facility building is approximately 146,000 square feet.
We own our facility near Asheville,
North Carolina (in Swannanoa, North Carolina) and the land on which our Asheville facility is located. Our Asheville facility houses administrative offices, our enterprise connectivity manufacturing, our enterprise connectivity product development
function and our enterprise connectivity warehouse. Our Asheville facility is situated on approximately 13 acres of land located east of Asheville, North Carolina. The Asheville facility includes two buildings totaling approximately 64,000 square
feet.
We lease our facility near Dallas, Texas (in Plano, Texas). Our Dallas facility houses administrative offices, our applied interconnect
systems manufacturing and testing operations and warehouse space. Our Dallas facility is located in an industrial complex of suites with expansion options available. The space leased is approximately 21,000 square feet.
We believe that we are currently operating at approximately 50% of our production equipment capacity on average at our manufacturing facilities.
Additional personnel would need to be hired and trained, and additional warehousing space may be needed to utilize our excess production
equipment capacity at all of our facilities. We can provide no assurance as to the time required to complete the process of hiring and training personnel or our ability to secure additional warehousing space, necessary to utilize our excess
capacity.
Centric Solutions leases a facility near Dallas, Texas (in Coppell, Texas). This Coppell facility houses administrative offices,
manufacturing operations and warehouse space. The space leased is approximately 23,000 square feet.
Item 3.
LEGAL PROCEEDINGS
AOS, our wholly owned subsidiary effective October 31, 2009, is the defendant in a patent
infringement lawsuit brought by Amphenol Fiber Systems International (AFSI) in the U.S. District Court for the Eastern District of Texas, Marshall Division, styled Fiber Systems International, Inc. v. Applied Optical Systems, Inc., Civil
Action No. 2:06-cv-473. AFSIs Complaint claimed that specific multi-channel tactical fiber optic connector assemblies that AOS manufactures and sells, directly or indirectly, primarily to the United States Government, infringed certain of
the plaintiffs patent rights.
On November 19, 2009, a jury unanimously determined that one of the AOS fiber optic connector
designs that was the subject of the suit does not infringe on AFSIs U.S. Patent No. 6,305,849. In an earlier U.S. District Court ruling, the two other AOS fiber optic connector designs that were at issue in the suit were found not to infringe
on the patent as a matter of law. The U.S. District Court previously had granted judgment as a matter of law to AFSI on AOSs counterclaims for fraud, negligent misrepresentation, and unfair competition. The U.S. District Court also granted
partial summary judgment to AFSI on AOSs antitrust counterclaims. AOSs remaining counterclaim of inequitable conduct was tried to the Court on April 8, 2010. By opinion and order issued July 7, 2010, the U.S. District Court
found that AFSI did not commit inequitable conduct and that AFSIs U.S. Patent No. 6,305,849 was not unenforceable.
The U.S.
District Court, on motion of AFSI, had previously entered a preliminary injunction enjoining AOS from making sales of the accused products. However, the preliminary injunction specifically excludes products sold to the U.S. Government or sold for
ultimate delivery to the U.S. Government. On August 3, 2010, the U.S. District Court entered an order dissolving the preliminary injunction. AOS has moved to execute on the $250,000 injunction bond which AFSI was required to post in order to
obtain the preliminary injunction. The U.S. District Court has not yet ruled on this motion.
9
On August 3, 2010, the U.S. District Court also entered a final judgment in favor of AOS on the patent
infringement claims, stating defendant AOS did not infringe claim 31 of the 849 patent and plaintiff AFSI takes nothing by way of its patent infringement claims. It also awarded judgment to AFSI on all of AOSs
counterclaims.
AFSI has filed various post-judgment motions asking the U.S. District Court to vacate, alter or amend its judgment, including
a motion for judgment as a matter of law or, alternatively, for a new trial. The U.S. District Court has not yet ruled on these motions. In the event the U.S. District Court denies AFSIs post-judgment motions, it is anticipated that AFSI will
pursue an appeal. In the event AFSI were to pursue such an appeal, it could seek reversal of the U.S. District Courts judgment and request that the appellate court remand the case for a new trial and/or request that the appellate court enter
judgment in its favor on the issue of infringement and remand the case for trial only on the issue of damages. In the event of an appeal by AFSI, AOS may also appeal the U.S. District Courts rulings and/or decisions on AOSs
counterclaims.
In the event either the U.S. District Court or the appellate court were to order a new trial, the evidence adduced at the
first trial indicated that AFSIs claimed damages were no more than $160,000 based on certain pretrial rulings by the U.S. District Court. The amount of damages sought in a retrial could potentially be higher. Additionally, in the event a new
trial were ordered, a finding of infringement could result in entry of a permanent injunction that would preclude AOS from selling the infringing products.
We do not believe this matter will have a material adverse effect on our financial position, results of operations or liquidity.
From time to time, we are involved in other various claims, legal actions and regulatory reviews arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these
matters will not have a material adverse effect on our financial position, results of operations or liquidity.
Item
4. (
REMOVED AND RESERVED)
PART II
Item 5.
MARKET FOR REGISTRANTS COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
The information pertaining to shareholders beneficially owning more than five percent of the Companys common stock and the security ownership of management, which is set forth under the caption
Beneficial Ownership of Securities in the Proxy Statement for the 2011 Annual Meeting of Shareholders of the Company, is incorporated herein by reference.
10
Issuer Purchases of Equity Securities
The following table summarizes the Companys purchases of its common stock for the three months ended October 31, 2010:
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Period
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Total number
of shares
purchased (1)
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Average
price paid
per
share (2)
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Total number of
shares purchased as
part of publicly
announced plans
or
programs
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Maximum number of
shares that may yet be
purchased under the
plan or
programs (1)
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August 1, 2010 - August 31, 2010
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22,461
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$
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3.00
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22,461
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226,125
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September 1, 2010 - September 30, 2010
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18,700
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$
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2.95
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18,700
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207,425
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October 1, 2010 - October 31, 2010
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24,400
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$
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2.97
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24,400
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183,025
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(1)
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On October 16, 2009, the Companys Board of Directors approved a plan to purchase and retire up to 325,848 shares of the Companys common stock, or
approximately 5% of the shares then outstanding. At the time the plan was approved, the Company anticipated that the purchases would be made over a 12- to 24-month period unless the entire number of shares expected to be purchased under the plan is
sooner acquired. For the three-month period ended October 31, 2010, the Company repurchased and retired 65,561 shares of its outstanding common stock. The repurchase, including brokerage and legal fees, for the three-month period ended
October 31, 2010 totaled approximately $195,000.
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(2)
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The average price paid per share set forth above includes the purchase price paid for the shares, and brokerage and legal fees paid by the Company. The average purchase
price per share (excluding brokerage and legal fees) paid by the Company for the three months ended October 31, 2010 was $2.96.
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The information contained under the caption Corporate Information of our Annual Report for the fiscal year ended October 31, 2010, filed as Exhibit 13.1 to this report on Form 10-K, is
incorporated herein by reference.
Item 6.
SELECTED FINANCIAL DATA
Not required for a smaller reporting company as defined in Rule 12b-2 promulgated under the Securities Exchange Act of 1934, as amended.
Item 7.
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The information contained under the caption Managements Discussion and Analysis of Financial Condition and Results of
Operations of our Annual Report for the fiscal year ended October 31, 2010, filed as Exhibit 13.1 to this report on Form 10-K, is incorporated herein by reference.
Item 7A.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We do not engage in transactions in derivative financial instruments or derivative commodity instruments. As of October 31, 2010, our financial instruments were not exposed to significant market risk
due to interest rate risk, foreign currency exchange risk, commodity price risk or equity price risk.
Item 8.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The information contained under the captions Consolidated
Financial Statements, Notes to Consolidated Financial Statements, and Report of Independent Registered Public Accounting Firm of our Annual Report for the fiscal year ended October 31, 2010, filed as Exhibit 13.1
to this report on Form 10-K, is incorporated herein by reference.
11
Item 9.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
None.
Item 9A.
CONTROLS AND PROCEDURES
Disclosure Controls and Procedures.
The Company maintains disclosure controls and
procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)) that are designed to be effective in providing reasonable assurance that information required to be
disclosed in reports under the Exchange Act are recorded, processed and summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission (the SEC), and that such information is
accumulated and communicated to management to allow for timely decisions regarding required disclosure.
In designing and evaluating
disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to
apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and
instances of fraud, if any, will be detected. These inherent limitations include the realities that judgments in decision making can be faulty and that breakdowns can occur because of simple error or mistake. The design of any system of controls is
based, in part, upon certain assumptions about the likelihood of future events and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.
As of October 31, 2010, the Company completed an evaluation, under the supervision and with the participation of management, including the chief
executive officer and the chief financial officer (principal accounting officer and principal financial officer), of the effectiveness of the design and operation of our disclosure controls and procedures. Based upon that evaluation, the chief
executive officer and chief financial officer concluded that the Companys disclosure controls and procedures were effective as of October 31, 2010.
Managements Annual Report on Internal Control Over Financial Reporting.
Management
of the Company is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) or 15d-15(f) under the Exchange Act). Internal control over financial reporting is a process designed to
provide reasonable assurance regarding the reliability of financial reporting and the preparation and fair presentation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of
America and include those policies and procedures that: (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (ii) provide
reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with
authorizations of our management and directors of the Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Companys assets that could have a
material effect on the financial statements.
Because of the inherent limitations, internal control over financial reporting may not prevent
or detect misstatements. Accordingly, even effective internal control over financial reporting can provide only reasonable assurance with respect to financial statement preparation. Further, the evaluation of the effectiveness of internal control
over financial reporting was made as of a specific date, and continued effectiveness in future periods is subject to the risks that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies
and procedures may decline.
Management conducted an evaluation of the design and effectiveness of the Companys system of internal
control over financial reporting as of October 31, 2010, based on the framework set forth in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on its
evaluation, management concluded that, as of October 31, 2010, the Companys internal control over financial reporting was effective.
12
Changes in Internal Control Over Financial Reporting.
There were no changes in the Companys internal controls over financial reporting during the fourth fiscal quarter of the fiscal year covered by this
report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Item 9B.
OTHER INFORMATION
None.
PART III
Item 10.
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
For information with respect to the Directors of the registrant, see Election of Directors, Directors, and Executive Officers in the Proxy Statement for the 2011 Annual
Meeting of Shareholders of the Company, which information is incorporated herein by reference.
For information with respect to the executive
officers of the registrant, see Executive Officers in the Proxy Statement for the 2011 Annual Meeting of Shareholders of the Company, which information is incorporated herein by reference.
The information with respect to compliance with Section 16(a) of the Securities Exchange Act of 1934, which is set forth under the caption
Compliance with Section 16(a) of the Securities Exchange Act of 1934 in the Proxy Statement for the 2011 Annual Meeting of Shareholders of the Company, is incorporated herein by reference.
The information concerning the Companys code of ethics that applies to the Companys principal executive officer and the Companys senior
financial officers required by this Item is incorporated by reference to the Companys Proxy Statement under the heading Code of Ethics.
Item 11.
EXECUTIVE COMPENSATION
The information set forth
under the captions Executive Compensation, and Director Compensation in the Proxy Statement for the 2011 Annual Meeting of Shareholders of the Company is incorporated herein by reference.
13
Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
AND RELATED STOCKHOLDER MATTERS
Equity Compensation Plan Information
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|
|
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|
|
|
|
|
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|
|
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Plan Category
|
|
(a) Number of securities to be
issued upon exercise
of
outstanding options, warrants
and rights(1)
|
|
|
(b) Weighted-average
exercise price of
outstanding options,
warrants, and
rights
|
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|
(c) Number of securities remaining
available for future
issuance under equity
compensation plans (excluding securities
reflected in column (a))
|
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Equity compensation plans approved by security holders:
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|
|
|
|
|
|
|
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|
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|
|
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|
|
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1996 Stock Incentive Plan
|
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163,454
|
|
|
|
shares
|
|
|
|
$ 7.63
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|
|
|
|
|
|
shares
|
|
2005 Stock Incentive Plan
|
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458,036
|
|
|
|
shares
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$
|
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|
|
153,644
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|
|
shares
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2004 Non-employee Directors Stock Plan
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shares
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$
|
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140,836
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shares
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Total for approved plans
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621,490
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shares
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$ 2.01
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294,480
|
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shares
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Non-employee Directors equity compensation not pursuant to a plan approved by security holders
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3,123
|
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shares
|
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$ 7.12
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|
shares
|
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|
|
|
|
|
|
|
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|
|
|
|
|
|
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Total for all plans
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624,613
|
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|
shares
|
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|
|
$ 2.03
|
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294,480
|
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shares
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(1)
|
Includes restricted shares that are issued and outstanding, but have not yet vested and are subject to forfeiture.
|
The term shares in the table above means our common shares.
During 2002 our Board of Directors approved grants of stock options to non-employee members of the Board to purchase a total of 3,123 shares of our common stock at an exercise price of $7.12 per share,
the closing price at the date of the grant. These grants were not submitted to a vote of the shareholders. These grants were made to non-employee members of the Board of Directors who had not served as an executive officer during the past year as
partial compensation for service by non-employee directors. Non-employee members of the Board of Directors abstained from the vote approving the grants. These options vested monthly over one year. The per share estimated fair value of stock options
granted to these outside members of the Board of Directors was $6.87 on the date of grant using the Black-Scholes option-pricing model with the following assumptions: no expected cash dividend yield, risk-free interest rate of 5.34%, expected
volatility of 133.6% and an expected life of 9 years.
The information concerning stock ownership by directors, executive officers and
shareholders beneficially owning more than five percent of the Companys common stock, which is set forth under the caption Beneficial Ownership of Securities in the Proxy Statement for the 2011 Annual Meeting of Shareholders of the
Company, is incorporated herein by reference.
The information concerning securities authorized for issuance under equity compensation plans
required by this Item, pursuant to Item 201(d) of Regulation S-K, is incorporated by reference to the Companys Proxy Statement under the heading Equity Compensation Plans Information.
14
Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
INDEPENDENCE
The information with respect to certain transactions with management of the Company, which is set forth under the caption
Certain Relationships and Related Transactions in the Proxy Statement for the 2011 Annual Meeting of Shareholders of the Company, is incorporated herein by reference.
Item 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
The
information with respect to certain principal accountant fees and services, which is set forth under the caption Independent Registered Public Accounting Firm in the Proxy Statement for the 2011 Annual Meeting of Shareholders of the
Company, is incorporated herein by reference.
The information concerning pre-approval policies for audit and non-audit services required by
this Item is incorporated by reference to the Companys Proxy Statement under the heading Audit Committee Pre-Approval of Audit and Permissible Non-Audit Services of Independent Registered Public Accounting Firm.
15
PART IV
Item 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.
(a) List of documents filed as part of this report:
|
1.
|
Financial statements: The Companys consolidated financial statements and related information are hereby incorporated by reference to pages 22 to 50 of the
Companys Annual Report filed as Exhibit 13.1 to this Form 10-K.
|
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2.
|
Financial statement schedules: All schedules are omitted, as the required information is inapplicable or the information is presented in the consolidated financial
statements or related notes thereto.
|
|
3.
|
Exhibits to this Form 10-K pursuant to Item 601 of Regulation S-K are as follows:
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|
|
Exhibit No.
|
|
Description
|
|
|
2.1
|
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Agreement and Plan of Merger dated May 30, 2008 by and among Optical Cable Corporation, Aurora Merger Corporation, Preformed Line Products Company and Superior Modular Products
Incorporated (incorporated herein by reference to Exhibit 2.1 to the Companys Current Report on Form 8-K filed June 2, 2008).
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3.1
|
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Articles of Amendment filed November 5, 2001 to the Amended and Restated Articles of Incorporation, as amended through November 5, 2001 (incorporated herein by reference
to Exhibit 1 to the Companys Form 8-A filed with the Commission on November 5, 2001).
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3.2
|
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Bylaws of Optical Cable Corporation, as amended (incorporated herein by reference to Exhibit 3.2 to the Companys Quarterly Report on Form 10-Q for the third quarter ended
July 31, 2004 (file number 0-27022)).
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3.3
|
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Amended and Restated Bylaws of Optical Cable Corporation (incorporated herein by reference to Exhibit 3.1 to the Companys Current Report on Form 8-K filed October 21,
2010).
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4.1
|
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Form of certificate representing Common Stock (incorporated herein by reference to Exhibit 4.1 to the Companys Quarterly Report on Form 10-Q for the third quarter ended
July 31, 2004 (file number 0-27022)).
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4.2
|
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Rights Agreement dated as of November 2, 2001 (incorporated herein by reference to Exhibit 4 to the Companys Form 8-A filed with the Commission on November 5,
2001).
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4.3
|
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Form of certificate representing preferred share purchase right (incorporated herein by reference to Exhibit 5 to the Companys Form 8-A filed with the Commission on
November 5, 2001).
|
16
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|
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4.4
|
|
Credit Agreement dated May 30, 2008 by and between Optical Cable Corporation and Superior Modular Products Incorporated as borrowers and Valley Bank as lender in the amount of
$17,000,000 consisting of a Revolver in the amount of $6,000,000; Term Loan A in the amount of $2,240,000; Term Loan B in the amount of $6,500,000; and a Capital Acquisitions Term Loan in the amount of $2,260,000 (incorporated herein by reference to
Exhibit 4.16 of the Companys Annual Report on Form 10-K for the period ended October 31, 2008).
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4.5
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Credit Line Deed of Trust dated May 30, 2008 between Optical Cable Corporation as Grantor, LeClairRyan as Trustee and Valley Bank as Beneficiary (incorporated herein by
reference to Exhibit 4.17 of the Companys Annual Report on Form 10-K for the period ended October 31, 2008).
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4.6
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Deed of Trust, Security Agreement and Fixtures Filing dated May 30, 2008 by and between Superior Modular Products Incorporated as Grantor, LeClairRyan as Trustee and Valley
Bank as Beneficiary (incorporated herein by reference to Exhibit 4.18 of the Companys Annual Report on Form 10-K for the period ended October 31, 2008).
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4.7
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Security Agreement dated May 30, 2008 between Optical Cable Corporation and Superior Modular Products Incorporated and Valley Bank (incorporated herein by reference to Exhibit
4.19 of the Companys Annual Report on Form 10-K for the period ended October 31, 2008).
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4.8
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Revolving Loan Note in the amount of $6,000,000 by Optical Cable Corporation and Superior Modular Products Incorporated dated May 30, 2008 (incorporated herein by reference to
Exhibit 4.20 of the Companys Annual Report on Form 10-K for the period ended October 31, 2008).
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4.9
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Term Loan A Note in the amount of $2,240,000 by Optical Cable Corporation and Superior Modular Products Incorporated dated May 30, 2008 (incorporated herein by reference to
Exhibit 4.21 of the Companys Annual Report on Form 10-K for the period ended October 31, 2008).
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4.10
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Term Loan B Note in the amount of $6,500,000 by Optical Cable Corporation and Superior Modular Products Incorporated dated May 30, 2008 (incorporated herein by reference to
Exhibit 4.22 of the Companys Annual Report on Form 10-K for the period ended October 31, 2008).
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4.11
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Capital Acquisitions Term Note in the amount of $2,260,000 by Optical Cable Corporation and Superior Modular Products Incorporated dated May 30, 2008 (incorporated herein by
reference to Exhibit 4.23 of the Companys Annual Report on Form 10-K for the period ended October 31, 2008).
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4.12
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First Loan Modification Agreement dated February 28, 2010 by and between Optical Cable Corporation and Valley Bank (incorporated herein by reference to Exhibit 4.1 to the
Companys Current Report on Form 8-K filed February 22, 2010).
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4.13
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Second Loan Modification Agreement dated April 30, 2010 by and between Optical Cable Corporation, for itself and as successor by merger to Superior Modular Products
Incorporated, and Valley Bank
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17
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(incorporated herein by reference to Exhibit 4.13 to the Companys Quarterly Report on Form 10-Q for the quarterly period ended April 30, 2010).
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4.14
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Addendum A to Commercial Note dated April 30, 2010 by and between Optical Cable Corporation and SunTrust Bank (incorporated herein by reference to Exhibit 4.14 to the
Companys Quarterly Report on Form 10-Q for the quarterly period ended April 30, 2010).
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4.15
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Commercial Note dated April 30, 2010 by and between Optical Cable Corporation and SunTrust Bank in the principal amount of $6,000,000 (incorporated herein by reference to
Exhibit 4.15 to the Companys Quarterly Report on Form 10-Q for the quarterly period ended April 30, 2010).
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4.16
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Security Agreement dated April 30, 2010 by Optical Cable Corporation in favor of SunTrust Bank (incorporated herein by reference to Exhibit 4.16 to the Companys Quarterly
Report on Form 10-Q for the quarterly period ended April 30, 2010).
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4.17
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Agreement to Commercial Note dated April 30, 2010 by and between Optical Cable Corporation and SunTrust Bank (incorporated herein by reference to Exhibit 4.17 to the
Companys Quarterly Report on Form 10-Q for the quarterly period ended April 30, 2010).
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4.18
|
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Amendment No. 1 to the Rights Agreement dated as of November 2, 2001 (incorporated by reference to Exhibit 4.1 to the Companys Current Report on Form 8-K dated
October 21, 2010).
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10.1*
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Employment Agreement by and between Optical Cable Corporation and Neil D. Wilkin, Jr. effective November 1, 2002 (incorporated by reference to Exhibit 10.1 to our Amended
Quarterly Report on Form 10-Q/A for the quarterly period ended January 31, 2003 (file number 0-27022)).
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10.2*
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Employment Agreement dated December 10, 2004 by and between Optical Cable Corporation and Tracy G. Smith (incorporated by reference herein to Exhibit 10.1 to the Companys
Current Report on Form 8-K dated January 24, 2005 (file number 0-27022)).
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10.3*
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Employment Agreement by and between Optical Cable Corporation as successor in interest to Superior Modular Products Incorporated and William R. Reynolds effective May 30, 2008
(incorporated by reference to Exhibit 10.4 to the Companys Quarterly Report on Form 10-Q for the quarterly period ended July 31, 2008 (file number 0-27022)).
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10.4*
|
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Optical Cable Corporation 1996 Stock Incentive Plan (incorporated herein by reference to Exhibit 28.1 to the Companys Registration Statement on Form S-8 No.
333-09733).
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18
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10.5*
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Optical Cable Corporation Amended 2004 Non-Employee Directors Stock Plan (incorporated herein by reference to Appendix B to the Companys definitive proxy statement on Form 14A
filed February 23, 2005).
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10.6*
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Form of December 17, 2004 restricted stock award agreement under the Optical Cable Corporation 1996 Stock Incentive Plan (incorporated herein by reference to Exhibit 10.2 of
the Companys Current Report on Form 8-K filed January 24, 2005).
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10.7*
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Form of December 17, 2004 restricted stock award agreement under the Optical Cable Corporation 1996 Stock Incentive Plan (incorporated herein by reference to Exhibit 10.3 of
the Companys Current Report on Form 8-K filed January 24, 2005).
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10.8*
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Form of award agreement under the Optical Cable Corporation Amended 2004 Non-Employee Directors Stock Plan (incorporated herein by reference to Exhibit 10.10 of the Companys
Annual Report on Form 10-K for the period ended October 31, 2004).
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10.9*
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Optical Cable Corporation 2005 Stock Incentive Plan (incorporated by reference to Appendix A to the Companys definitive proxy statement on Form 14A filed February 23,
2005).
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10.10*
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Form of time vesting award agreement under the Optical Cable Corporation 2005 Stock Incentive Plan (incorporated herein by reference to Exhibit 10.12 to the Companys Quarterly
Report on Form 10-Q for the period ended April 30, 2006).
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10.11*
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Form of stock performance vesting award agreement under the Optical Cable Corporation 2005 Stock Incentive Plan (incorporated herein by reference to Exhibit 10.13 to the
Companys Quarterly Report on Form 10-Q for the period ended April 30, 2006).
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10.12*
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Amendment No. 1 dated December 31, 2008 to Employment Agreement by and between Optical Cable Corporation and Neil D. Wilkin, Jr. effective November 1, 2002 (incorporated
herein by reference to Exhibit 10.1 of the Companys Current Report on Form 8-K filed January 6, 2009).
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10.13*
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Amendment No. 1 dated December 31, 2008 to Employment Agreement by and between Optical Cable Corporation and Tracy G. Smith effective December 10, 2004 (incorporated
herein by reference to Exhibit 10.2 of the Companys Current Report on Form 8-K filed January 6, 2009).
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19
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10.14*
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Amendment No. 1 dated December 31, 2008 to Employment Agreement by and between Optical Cable Corporation as successor in interest to Superior Module Products Incorporated and
William R. Reynolds effective May 30, 2008 (incorporated herein by reference to Exhibit 10.3 of the Companys Current Report on Form 8-K filed January 6, 2009).
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10.15*
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Form of operational performance (Company financial performance measure) vesting award agreement under the Optical Cable Corporation 2005 Stock Incentive Plan (incorporated by
reference to Exhibit 10.20 of the Companys Quarterly Report on Form 10-Q for the period ended April 30, 2009).
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10.16
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Notice of Exercise of Warrant by the Company to purchase 98,741 shares of common stock of Applied Optical Systems, Inc. dated October 30, 2009 (incorporated herein by reference
to Exhibit 10.21 of the Companys Annual Report on Form 10-K for the period ended October 31, 2009).
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10.17
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Stock Purchase Agreement dated October 31, 2009 by and among the Company, as buyer and G. Thomas Hazelton, Jr. and Daniel Roehrs as sellers (incorporated herein by reference to
Exhibit 10.22 of the Companys Annual Report on Form 10-K for the period ended October 31, 2009).
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10.18*
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Employment agreement dated October 31, 2009, between Applied Optical Systems, Inc. and G. Thomas Hazelton, Jr. (incorporated herein by reference to Exhibit 10.23 of the
Companys Annual Report on Form 10-K for the period ended October 31, 2009).
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10.19*
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Employment agreement dated October 31, 2009, between Applied Optical Systems, Inc. and Daniel Roehrs (incorporated herein by reference to Exhibit 10.24 of the Companys
Annual Report on Form 10-K for the period ended October 31, 2009).
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10.20
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Buy-Sell Agreement dated October 31, 2009, by and between G. Thomas Hazelton, Jr., as guarantor, and the Company (incorporated herein by reference to Exhibit 10.25 of the
Companys Annual Report on Form 10-K for the period ended October 31, 2009).
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10.21
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Buy-Sell Agreement dated October 31, 2009, by and between Daniel Roehrs, as guarantor, and the Company (incorporated herein by reference to Exhibit 10.26 of the Companys
Annual Report on Form 10-K for the period ended October 31, 2009).
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10.22
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Indemnification Agreement dated October 31, 2009, between the Company and Applied Optical Systems, Inc. (incorporated herein by reference to Exhibit 10.27 of the Companys
Annual Report on Form 10-K for the period ended October 31, 2009).
|
20
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10.23
|
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Supplemental Agreement dated October 31, 2009, by and among the Company, as buyer, Applied Optical Systems, Inc., George T. Hazelton Family Trust, G. Thomas Hazelton, Jr., and
Daniel Roehrs (incorporated herein by reference to Exhibit 10.28 of the Companys Annual Report on Form 10-K for the period ended October 31, 2009).
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10.24
|
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Termination Agreement dated October 31, 2009, by and among Applied Optical Systems, Inc., the Company, as lender, and G. Thomas Hazelton, Jr. and Daniel Roehrs (incorporated
herein by reference to Exhibit 10.29 of the Companys Annual Report on Form 10-K for the period ended October 31, 2009).
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10.25
|
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Warrant Exercise Agreement between the Company and Applied Optical Systems, Inc. dated October 30, 2009 (incorporated herein by reference to Exhibit 10.30 of the Companys
Annual Report on Form 10-K for the period ended October 31, 2009).
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10.26
|
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Redemption Agreement by and between Optical Cable Corporation and BB&T Capital Markets dated November 17, 2009 (incorporated herein by reference to Exhibit 10.31 of the
Companys Quarterly Report on Form 10-Q for the period ended January 31, 2010).
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11.1
|
|
Statement regarding computation of per share earnings (incorporated by reference to note 15 of the Notes to Financial Statements contained herein).
|
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|
13.1
|
|
Annual Report. FILED HEREWITH.
|
|
|
21.1
|
|
List of Subsidiaries. FILED HEREWITH.
|
|
|
23.1
|
|
Consent of Independent Registered Public Accounting Firm. FILED HEREWITH.
|
|
|
31.1
|
|
Certification of the Companys Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. FILED HEREWITH.
|
|
|
31.2
|
|
Certification of the Companys Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. FILED HEREWITH.
|
|
|
32.1
|
|
Certification of the Companys Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. FILED
HEREWITH.
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|
32.2
|
|
Certification of the Companys Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. FILED
HEREWITH.
|
*
|
Management contract or compensatory plan or agreement.
|
21
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
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OPTICAL CABLE CORPORATION
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Date: January 24, 2011
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By:
|
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/s/ N
EIL
D. W
ILKIN
,
J
R
.
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|
|
Neil D. Wilkin, Jr.
|
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Chairman of the Board of Directors,
President and Chief Executive Officer
|
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Date: January 24, 2011
|
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By:
|
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/s/ T
RACY
G.
S
MITH
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Tracy G. Smith
|
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Senior Vice President and Chief Financial Officer
|
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities indicated as of
January 21, 2011.
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Date: January 24, 2011
|
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/s/ N
EIL
D. W
ILKIN
,
J
R
.
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Neil D. Wilkin, Jr.
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Chairman of the Board of Directors,
President and Chief Executive Officer
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Date: January 24, 2011
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/s/ R
ANDALL
H.
F
RAZIER
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Randall H. Frazier
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Director
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Date: January 24, 2011
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/s/ J
OHN
M.
H
OLLAND
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John M. Holland
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Director
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Date: January 24, 2011
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/s/ C
RAIG
H.
W
EBER
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Craig H. Weber
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Director
|
22
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Date: January 24, 2011
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/s/ J
OHN
B. W
ILLIAMSON
,
III
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John B. Williamson, III
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Director
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23
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