SEC Form 4 · accession 0000899243-15-003550

QUALITY DISTRIBUTION INC · QLTY

Statement of changes in beneficial ownership, as filed. Original on EDGAR ↗

Reporting owner

Randall T Strutz

Officer — Pres. of Quality Carriers, Inc

Period of report

Aug 18, 2015

Accepted (ET)

Aug 19, 2015 · 12:49 pm EDT

Rule 10b5-1 plan

unknown — predates the checkbox

Issuer CIK

0000922863

Table I — non-derivative securities

Security	Date	Code	Shares	Price	A/D	Owned after	D/I	Nature of ownership
Common Stock^F1,F2	Aug 18, 2015	D	41,022	$16.00	D	0	D

Table II — derivative securities

Security	Conv. / exercise price	Date	Code	Shares	A/D	Exercisable	Expires	Underlying	Underlying shares	D/I
Non-Qualified Stock Option (Right to Buy)^F1,F3	$9.66	Aug 18, 2015	D	12,500	D	—	Jan 21, 2021	Common Stock	12,500	D
Non-Qualified Stock Option (Right to Buy)^F1,F3	$12.82	Aug 18, 2015	D	6,900	D	—	Feb 13, 2022	Common Stock	6,900	D
Non-Qualified Stock Option (Right to Buy)^F1,F3	$13.88	Aug 18, 2015	D	20,000	D	—	Mar 28, 2022	Common Stock	20,000	D
Non-Qualified Stock Option (Right to Buy)^F1,F3	$6.48	Aug 18, 2015	D	13,000	D	—	Jan 2, 2023	Common Stock	13,000	D
Performance Restricted Stock Units^F1,F4	$0.00	Aug 18, 2015	D	39,800	D	—	Dec 31, 2016	Common Stock	39,800	D
Performance Restricted Stock Units^F1,F5	$0.00	Aug 18, 2015	D	2,675	D	—	Dec 31, 2017	Common Stock	2,675	D

Explanation of responses

F1On August 18, 2015, Gruden Acquisition, Inc. ("Parent") acquired the issuer pursuant to the Agreement and Plan of Merger by and among issuer, Parent and Gruden Merger Sub, Inc., a wholly owned subsidiary of Parent ("Merger Sub"), dated as of May 6, 2015 (the "Merger Agreement"). In accordance with the Merger Agreement, Merger Sub merged with and into the issuer (the "Merger"), with the issuer surviving the Merger as a wholly owned subsidiary of Parent. At the effective time of the Merger, each outstanding share of the issuer's common stock (including the shares of common stock relating to previously unvested restricted stock and restricted stock unit awards) was cancelled and converted into the right to receive $16.00 in cash (the "per share merger consideration"). The Merger is more fully described in the issuer's Proxy Statement filed with the SEC on July 16, 2015.
F2This amount includes (i) 10,630 shares of common stock held directly by Mr. Strutz and (ii) 30,392 shares of common stock relating to unvested restricted stock and unvested restricted stock unit awards that vested automatically upon the Merger.
F3The stock options vest ratably over four years on each anniversary of the date of grant. The Merger Agreement provided that each outstanding stock option, whether vested or unvested, be cancelled at the effective time of the Merger in exchange for the right to receive a cash payment equal to the product of (i) the total number of shares of common stock subject to the stock option as of the effective time of the Merger and (ii) the amount by which the per share merger consideration exceeds the per share exercise price of the common stock underlying the stock option.
F4These performance-based restricted stock units were scheduled to vest on December 31, 2016, subject to continued service and the achievement of certain performance goals. In accordance with the terms of the Merger Agreement, the performance-based restricted stock units were cancelled at the effective time of the Merger in exchange for the right to receive a cash amount equal to the per share merger consideration multiplied by the total number of shares of common stock subject to such performance stock award assuming vesting at the maximum level.
F5These performance-based restricted stock units were scheduled to vest on December 31, 2017, subject to continued service and the achievement of certain performance goals. In accordance with the terms of the Merger Agreement, the performance-based restricted stock units were cancelled at the effective time of the Merger in exchange for the right to receive a cash amount equal to the per share merger consideration multiplied by 25% of the total number of shares of common stock subject to such performance stock award assuming vesting at the target level.