SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Schedule 13D
(Amendment No. 23)*
Under the Securities Exchange Act of 1934
TITANIUM METALS CORPORATION
(Name of Issuer)
Common Stock, $0.01 par value per share
(Title of Class of Securities)
888339 10 8
(CUSIP Number)
STEVEN L. WATSON
THREE LINCOLN CENTRE
SUITE 1700
5430 LBJ FREEWAY
DALLAS, TEXAS 75240-2694
(972) 233-1700
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
July 15, 2005
(Date of Event which requires Filing
of this Statement)
If the filing person has previously filed a statement on Schedule 13G to
report the acquisition that is the subject of this Schedule 13D, and is filing
this schedule because of sections 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g),
check the following box. [ ]
*The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes).
(Continued on following pages)
CUSIP No. 888339 10 8
1 NAMES OF REPORTING PERSONS AND I.R.S. IDENTIFICATION NOS. OF SUCH
PERSONS (ENTITIES ONLY)
Tremont LLC
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ X ]
3 SEC USE ONLY
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
WC and AF
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
7 SOLE VOTING POWER
-0-
NUMBER OF
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 6,309,250
EACH
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH -0-
10 SHARED DISPOSITIVE POWER
6,309,250
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,309,250
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (SEE INSTRUCTIONS) [ ]
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
39.4%
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
OO
CUSIP No. 888339 10 8
1 NAMES OF REPORTING PERSONS AND I.R.S. IDENTIFICATION NOS. OF SUCH
PERSONS (ENTITIES ONLY)
Valhi, Inc.
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ X ]
3 SEC USE ONLY
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
Not applicable
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
7 SOLE VOTING POWER
-0-
NUMBER OF
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 7,023,750
EACH
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH -0-
10 SHARED DISPOSITIVE POWER
7,023,750
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
7,023,750
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (SEE INSTRUCTIONS) [ ]
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
43.8%
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
CO
CUSIP No. 888339 10 8
1 NAMES OF REPORTING PERSONS AND I.R.S. IDENTIFICATION NOS. OF SUCH
PERSONS (ENTITIES ONLY)
Valhi Group, Inc.
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ X ]
3 SEC USE ONLY
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
Not applicable
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Nevada
7 SOLE VOTING POWER
-0-
NUMBER OF
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 7,023,750
EACH
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH -0-
10 SHARED DISPOSITIVE POWER
7,023,750
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
7,023,750
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (SEE INSTRUCTIONS) [ ]
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
43.8%
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
CO
CUSIP No. 888339 10 8
1 NAMES OF REPORTING PERSONS AND I.R.S. IDENTIFICATION NOS. OF SUCH
PERSONS (ENTITIES ONLY)
National City Lines, Inc.
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ X ]
3 SEC USE ONLY
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
Not applicable
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
7 SOLE VOTING POWER
-0-
NUMBER OF
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 7,023,750
EACH
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH -0-
10 SHARED DISPOSITIVE POWER
7,023,750
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
7,023,750
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (SEE INSTRUCTIONS) [ ]
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
43.8%
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
CO
CUSIP No. 888339 10 8
1 NAMES OF REPORTING PERSONS AND I.R.S. IDENTIFICATION NOS. OF SUCH
PERSONS (ENTITIES ONLY)
NOA, Inc.
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ X ]
3 SEC USE ONLY
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
Not applicable
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Texas
7 SOLE VOTING POWER
-0-
NUMBER OF
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 7,023,750
EACH
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH -0-
10 SHARED DISPOSITIVE POWER
7,023,750
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
7,023,750
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (SEE INSTRUCTIONS) [ ]
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
43.8%
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
CO
CUSIP No. 888339 10 8
1 NAMES OF REPORTING PERSONS AND I.R.S. IDENTIFICATION NOS. OF SUCH
PERSONS (ENTITIES ONLY)
Dixie Holding Company
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ X ]
3 SEC USE ONLY
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
Not applicable
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
7 SOLE VOTING POWER
-0-
NUMBER OF
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 7,023,750
EACH
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH -0-
10 SHARED DISPOSITIVE POWER
7,023,750
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
7,023,750
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (SEE INSTRUCTIONS) [ ]
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
43.8%
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
CO
CUSIP No. 888339 10 8
1 NAMES OF REPORTING PERSONS AND I.R.S. IDENTIFICATION NOS. OF SUCH
PERSONS (ENTITIES ONLY)
Dixie Rice Agricultural Corporation, Inc.
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ X ]
3 SEC USE ONLY
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
Not applicable
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Louisiana
7 SOLE VOTING POWER
-0-
NUMBER OF
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 7,023,750
EACH
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH -0-
10 SHARED DISPOSITIVE POWER
7,023,750
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
7,023,750
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (SEE INSTRUCTIONS) [ ]
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
43.8%
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
CO
CUSIP No. 888339 10 8
1 NAMES OF REPORTING PERSONS AND I.R.S. IDENTIFICATION NOS. OF SUCH
PERSONS (ENTITIES ONLY)
Southwest Louisiana Land Company, Inc.
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ X ]
3 SEC USE ONLY
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
Not applicable
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Louisiana
7 SOLE VOTING POWER
-0-
NUMBER OF
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 7,023,750
EACH
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH -0-
10 SHARED DISPOSITIVE POWER
7,023,750
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
7,023,750
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (SEE INSTRUCTIONS) [ ]
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
43.8%
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
CO
CUSIP No. 888339 10 8
1 NAMES OF REPORTING PERSONS AND I.R.S. IDENTIFICATION NOS. OF SUCH
PERSONS (ENTITIES ONLY)
Contran Corporation
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ X ]
3 SEC USE ONLY
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
Not applicable
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
7 SOLE VOTING POWER
-0-
NUMBER OF
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 7,023,750
EACH
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH -0-
10 SHARED DISPOSITIVE POWER
7,023,750
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
7,023,750
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (SEE INSTRUCTIONS) [ ]
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
43.8%
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
CO
CUSIP No. 888339 10 8
1 NAMES OF REPORTING PERSONS AND I.R.S. IDENTIFICATION NOS. OF SUCH
PERSONS (ENTITIES ONLY)
Harold Simmons Foundation, Inc.
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ X ]
3 SEC USE ONLY
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
Not applicable
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Texas
7 SOLE VOTING POWER
-0-
NUMBER OF
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 7,023,750
EACH
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH -0-
10 SHARED DISPOSITIVE POWER
7,023,750
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
7,023,750
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (SEE INSTRUCTIONS) [ ]
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
43.8%
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
CO
CUSIP No. 888339 10 8
1 NAMES OF REPORTING PERSONS AND I.R.S. IDENTIFICATION NOS. OF SUCH
PERSONS (ENTITIES ONLY)
The Combined Master Retirement Trust
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ X ]
3 SEC USE ONLY
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
WC
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Texas
7 SOLE VOTING POWER
-0-
NUMBER OF
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 8,946,210
EACH
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH -0-
10 SHARED DISPOSITIVE POWER
8,946,210
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
8,946,210
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (SEE INSTRUCTIONS) [ ]
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
55.8%
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
EP
CUSIP No. 888339 10 8
1 NAMES OF REPORTING PERSONS AND I.R.S. IDENTIFICATION NOS. OF SUCH
PERSONS (ENTITIES ONLY)
Annette C. Simmons
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP(SEE INSTRUCTIONS)
(a) [ ]
(b) [ X ]
3 SEC USE ONLY
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
PF
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
7 SOLE VOTING POWER
-0-
NUMBER OF
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 2,731,666
EACH
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH -0-
10 SHARED DISPOSITIVE POWER
2,731,666
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,731,666
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (SEE INSTRUCTIONS) [ X ]
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
14.6%
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
CUSIP No. 888339 10 8
1 NAMES OF REPORTING PERSONS AND I.R.S. IDENTIFICATION NOS. OF SUCH
PERSONS (ENTITIES ONLY)
Harold C. Simmons
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP(SEE INSTRUCTIONS)
(a) [ ]
(b) [ X ]
3 SEC USE ONLY
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
PF and OO
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
7 SOLE VOTING POWER
221,200
NUMBER OF
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 11,677,876
EACH
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 221,200
10 SHARED DISPOSITIVE POWER
11,677,876
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
221,200
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (SEE INSTRUCTIONS) [ X ]
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.4%
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
AMENDMENT NO. 23
TO SCHEDULE 13D
This amended statement on Schedule 13D (collectively, this "Statement")
relates to the common stock, $0.01 par value per share (the "Shares"), of
Titanium Metals Corporation, a Delaware corporation (the "Company"). Items 2, 3,
4, 5 and 6 of this Statement are hereby amended as set forth below.
Item 2. Identity and Background.
Item 2(a) is amended as follows:
(a) The following entities or person are filing this Statement
(collectively, the "Reporting Persons"):
(i) Tremont LLC and The Combined Master Retirement Trust (the "CMRT")
as direct holders of Shares;
(ii) Valhi, Inc. ("Valhi") as the direct holder of Shares and shares
of the Company's 6 3/4% Series A Convertible Preferred Stock, par value
$0.01 per share (the "Series A Preferred Stock"), that are convertible into
Shares and by virtue of Valhi's direct holding of 100% of the outstanding
membership interests of Tremont LLC;
(iii) Valhi Group, Inc. ("VGI"), National City Lines, Inc.
("National"), NOA, Inc. ("NOA"), Dixie Holding Company ("Dixie Holding"),
Dixie Rice Agricultural Corporation, Inc. ("Dixie Rice"), Southwest
Louisiana Land Company, Inc. ("Southwest"), Contran Corporation ("Contran")
and the Harold Simmons Foundation, Inc. (the "Foundation") by virtue of
their direct or indirect ownership of membership interests of Tremont LLC
and shares of Valhi common stock (as described below in this Statement);
(iv) Harold C. Simmons by virtue of his positions with Contran and
certain of the other entities (as described in this Statement) and as a
direct owner of Shares; and
(v) Annette C. Simmons, Harold C. Simmons' spouse, by virtue of her
direct ownership of Shares and Series A Preferred Stock.
By signing this Statement, each Reporting Person agrees that this Statement is
filed on its, his or her behalf.
Tremont LLC, the CMRT, Valhi, Harold C. Simmons and Annette C. Simmons are
the direct holders of approximately 39.4%, 12.0%, 4.3%, 1.4% and 0.4%,
respectively, of the 15,996,870 Shares outstanding as of June 30, 2005 according
to information from the Company (the "Outstanding Shares"). Tremont LLC may be
deemed to control the Company.
Valhi also directly holds 14,700 shares of Series A Preferred Stock that
are convertible into 24,500 Shares, or approximately 0.2% of the outstanding
Shares assuming the full conversion of only the shares of Series A Preferred
Stock Valhi directly holds.
Annette C. Simmons also directly holds 1,600,000 shares of Series A
Preferred Stock that are convertible into 2,666,666 Shares, or approximately
14.3% of the outstanding Shares assuming the full conversion of only the shares
of Series A Preferred Stock she directly holds.
Valhi is the direct holder of 100% of the outstanding membership interests
of Tremont LLC and may be deemed to control Tremont LLC. VGI, National, Contran,
the Foundation, the Contran Deferred Compensation Trust No. 2 (the "CDCT No. 2")
and the CMRT are the direct holders of 79.1%, 9.3%, 2.1%, 0.9%, 0.4% and 0.1%,
respectively, of the common stock of Valhi. Together, VGI, National and Contran
may be deemed to control Valhi. National, NOA and Dixie Holding are the direct
holders of approximately 73.3%, 11.4% and 15.3%, respectively, of the
outstanding common stock of VGI. Together, National, NOA and Dixie Holding may
be deemed to control VGI. Contran and NOA are the direct holders of
approximately 85.7% and 14.3%, respectively, of the outstanding common stock of
National and together may be deemed to control National. Contran and Southwest
are the direct holders of approximately 49.9% and 50.1%, respectively, of the
outstanding common stock of NOA and together may be deemed to control NOA. Dixie
Rice is the direct holder of 100% of the outstanding common stock of Dixie
Holding and may be deemed to control Dixie Holding. Contran is the holder of
100% of the outstanding common stock of Dixie Rice and may be deemed to control
Dixie Rice. Contran is the holder of approximately 88.9% of the outstanding
common stock of Southwest and may be deemed to control Southwest.
Substantially all of Contran's outstanding voting stock is held by trusts
established for the benefit of certain children and grandchildren of Harold C.
Simmons (the "Trusts"), of which Mr. Simmons is the sole trustee, or held by Mr.
Simmons or persons or other entities related to Mr. Simmons. As sole trustee of
each of the Trusts, Mr. Simmons has the power to vote and direct the disposition
of the shares of Contran stock held by each of the Trusts. Mr. Simmons, however,
disclaims beneficial ownership of any shares of Contran stock that the Trusts
hold.
The CMRT directly holds approximately 12.0% of the Outstanding Shares and
0.1% of the outstanding shares of Valhi common stock. Valhi established the CMRT
as a trust to permit the collective investment by master trusts that maintain
assets of certain employee benefit plans Valhi and related companies adopt. Mr.
Simmons is the sole trustee of the CMRT and a member of the trust investment
committee for the CMRT. He is a participant in one or more of the employee
benefit plans that invest through the CMRT.
The Foundation directly holds approximately 0.9% of the outstanding Valhi
common stock. The Foundation is a tax-exempt foundation organized for charitable
purposes. Harold C. Simmons is the chairman of the board of the Foundation and
may be deemed to control the Foundation.
The CDCT No. 2 directly holds approximately 0.4% of the outstanding Valhi
common stock. U.S. Bank National Association serves as the trustee of the CDCT
No. 2. Contran established the CDCT No. 2 as an irrevocable "rabbi trust" to
assist Contran in meeting certain deferred compensation obligations that it owes
to Harold C. Simmons. If the CDCT No. 2 assets are insufficient to satisfy such
obligations, Contran is obligated to satisfy the balance of such obligations as
they come due. Pursuant to the terms of the CDCT No. 2, Contran (i) retains the
power to vote the shares of Valhi common stock held directly by the CDCT No. 2,
(ii) retains dispositive power over such shares and (iii) may be deemed the
indirect beneficial owner of such shares.
NL Industries, Inc. ("NL") and a subsidiary of NL directly hold 3,522,967
shares and 1,186,200 shares, respectively, of Valhi common stock. Valhi and a
subsidiary of the Company are the direct holders of approximately 83.1% and
0.5%, respectively, of the outstanding shares of NL common stock and together
may be deemed to control NL. Valhi is the sole member of Tremont LLC and may be
deemed to control Tremont LLC. Pursuant to Delaware law, Valhi treats the shares
of Valhi common stock that NL and the subsidiary of NL hold as treasury stock
for voting purposes and for the purposes of this Statement such shares are not
deemed outstanding.
Mr. Harold C. Simmons is vice chairman of the board of the Company,
chairman of the board and chief executive officer of NL and chairman of the
board of Tremont LLC, Valhi, VGI, National, NOA, Dixie Holding, Dixie Rice,
Southwest and Contran.
By virtue of the offices held, the stock ownership and his services as
trustee, all as described above, (a) Mr. Simmons may be deemed to control the
entities described above and (b) Mr. Simmons and certain of such entities may be
deemed to possess indirect beneficial ownership of Shares directly held by
certain of such other entities. Mr. and Ms. Simmons each disclaims beneficial
ownership of the Shares beneficially owned, directly or indirectly, by any of
such entities.
Annette C. Simmons is the direct holder of 65,000 Shares, 1,600,000 shares
of Series A Preferred Stock and 43,400 shares of Valhi common stock. Mr. Simmons
may be deemed to share indirect beneficial ownership of such shares. Mr. Simmons
disclaims all such beneficial ownership.
Harold C. Simmons is the direct owner of 221,200 Shares, 31,800 shares of
NL common stock (including stock options exercisable for 4,000 shares) and 3,383
shares of Valhi common stock. Other than the shares she directly holds, Ms.
Simmons disclaims beneficial ownership of all Shares that her husband may
beneficially own.
A trust of which Harold C. Simmons and Annette C. Simmons are co-trustees
and the beneficiaries of which are the grandchildren of Ms. Simmons is the
direct holder of 40,000 shares of Valhi common stock. Each of Mr. and Ms.
Simmons disclaims beneficial ownership of these shares.
Certain information concerning the directors and executive officers of the
Reporting Persons, including offices held by Mr. Simmons is set forth on
Schedule B attached hereto and incorporated herein by reference.
Item 3. Source and Amount of Funds or Other Consideration.
Item 3 is amended to add the following:
The total amount of funds (including commissions) Harold C. Simmons used to
acquire the Shares he purchased as reported in Item 5(c) was $5,051,911.50. Mr.
Simmons used his personal funds for such purchases.
The total amount of funds (including commissions) Annette C. Simmons used
to acquire the Shares she purchased as reported in Item 5(c) was $3,507,836.50.
Ms. Simmons used her personal funds for such purchases.
Item 4. Purpose of Transaction
No change to Item 4 except for the addition of the following:
Mr. and Ms. Simmons purchased the Shares reported in Item 5(c) to increase
each of their equity investments in the Company.
Depending upon their evaluation of the Company's business and prospects,
and upon future developments (including, but not limited to, performance of the
Company's securities in the market, availability of funds, alternative uses of
funds, the Reporting Persons' tax planning objectives and cash needs, stock
market and general economic conditions), any of the Reporting Persons or other
entities or persons that may be deemed to be affiliated with Contran may from
time to time purchase Company securities, and any of the Reporting Persons, or
other entities or persons that may be deemed to be affiliated with Contran may
from time to time dispose of all or a portion of Company securities held by such
entity or person, or cease buying or selling Company securities. Any such
additional purchases or sales of Company securities may be in open market or
privately negotiated transactions or otherwise.
As described under Item 2, Harold C. Simmons, through Contran, may be
deemed to control the Company.
The information included in Item 6 of this Statement is incorporated herein
by reference.
Item 5. Interest in Securities of the Issuer.
Item 5 is amended as follows:
No change except for the addition of the following:
(a) Tremont LLC, the CMRT, Valhi, Harold C. Simmons and Annette C. Simmons
are the direct holders of 6,309,250 Shares, 1,922,460 Shares, 690,000 Shares,
221,200 Shares and 65,000 Shares, respectively. Ms. Simmons and Valhi are the
direct holders of 1,600,000 and 14,700 shares of Series A Preferred Stock,
respectively, which are convertible into 2,666,666 Shares and 24,500 Shares,
respectively.
By virtue of the relationships described under Item 2 of this Statement:
(1) Valhi, VGI, National, NOA, Dixie Holding, Dixie Rice, Southwest,
Contran and the Foundation may each be deemed to be the beneficial owner of
the 6,999,250 Shares that Tremont LLC and Valhi hold directly and the
24,500 Shares Valhi may acquire upon conversion of the 14,700 shares of
Series A Preferred Stock that Valhi holds directly (in the aggregate
7,023,750 Shares, or approximately 43.8% of the outstanding Shares assuming
the full conversion of only Valhi's Series A Preferred Stock);
(2) The CMRT may be deemed to be the beneficial owner of the 8,921,710
Shares that Tremont LLC, the CMRT and Valhi hold directly and the 24,500
Shares Valhi may acquire upon conversion of the 14,700 shares of Series A
Preferred Stock that Valhi holds directly (in the aggregate 8,946,210
Shares, or approximately 55.8% of the outstanding Shares assuming the full
conversion of only Valhi's Series A Preferred Stock);
(3) Harold C. Simmons may be deemed to be the beneficial owner of the
9,207,910 Shares that Tremont LLC, the CMRT, Valhi, he and his spouse hold
directly and the 2,691,166 Shares his spouse and Valhi may acquire upon
conversion of the 1,614,700 shares of Series A Preferred Stock that his
spouse and Valhi hold directly (in the aggregate 11,899,076 Shares, or
approximately 63.7% of the outstanding Shares assuming the full conversion
of only the shares of Series A Preferred Stock his spouse and Valhi
directly hold); and
(4) Annette C. Simmons may be deemed to be the beneficial owner of the
65,000 Shares she holds directly and the 2,666,666 Shares she may acquire
upon conversion of the 1,600,000 shares of Series A Preferred Stock that
she holds directly (in the aggregate approximately 14.6% of the outstanding
Shares assuming the full conversion of only the shares of Series A
Preferred Stock she directly holds).
Mr. Simmons disclaims beneficial ownership of all Company securities that
he does not hold directly. Ms. Simmons disclaims beneficial ownership of any
Company securities that she does not hold directly.
(b) By virtue of the relationships described in Item 2:
(1) Valhi, VGI, National, NOA, Dixie Holding, Dixie Rice, Southwest,
Contran and the Foundation may each be deemed to share the power to vote
and direct the disposition of the 6,999,250 Shares that Tremont LLC and
Valhi hold directly and the 24,500 Shares Valhi may acquire upon conversion
of the 14,700 shares of Series A Preferred Stock that Valhi holds directly
(in the aggregate 7,023,750 Shares, or approximately 43.8% of the
outstanding Shares assuming the full conversion of only Valhi's Series A
Preferred Stock);
(2) The CMRT may be deemed to share the power to vote and direct the
disposition of the 8,921,710 Shares that Tremont LLC, the CMRT and Valhi
hold directly and the 24,500 Shares Valhi may acquire upon conversion of
the 14,700 shares of Series A Preferred Stock that Valhi holds directly (in
the aggregate 8,946,210 Shares, or approximately 55.8% of the outstanding
Shares assuming the full conversion of only Valhi's Series A Preferred
Stock);
(3) Harold C. Simmons may be deemed to share the power to vote and
direct the disposition of the 8,986,710 Shares that Tremont LLC, the CMRT,
Valhi and his spouse hold directly and the 2,691,166 Shares his spouse and
Valhi may acquire upon conversion of the 1,614,700 shares of Series A
Preferred Stock that his spouse and Valhi hold directly (in the aggregate
11,677,876 Shares, or approximately 62.5% of the outstanding Shares
assuming the full conversion of only the shares of Series A Preferred Stock
his spouse and Valhi directly hold);
(4) Annette C. Simmons may be deemed to share the power to vote and
direct the disposition of the 65,000 Shares she holds directly and the
2,666,666 Shares she may acquire upon conversion of the 1,600,000 shares of
Series A Preferred Stock that she holds directly (approximately 14.6% of
the outstanding Shares assuming the full conversion of only the shares of
Series A Preferred Stock she directly holds); and
(5) Harold C. Simmons may be deemed to have the sole power to vote and
direct the disposition of the 221,200 Shares (approximately 1.4% of the
outstanding Shares) he holds directly.
(c) The table below sets forth transactions in the Shares by the Reporting
Persons during the past 60 days. Harold C. and Annette C. Simmons were the
only Reporting Persons to have transactions in the Shares during the past
60 days. They executed all of such transactions, which were all purchases
of Shares, on the New York Stock Exchange.
Price Per Share ($)
Number of (exclusive of
Purchaser Date Shares commissions)
------------------------ -------- --------- -----------------
Annette C. Simmons......... 07/15/05 2,500 $51.15
Harold C. Simmons.......... 07/15/05 2,500 $51.15
Annette C. Simmons......... 07/15/05 2,500 $51.40
Harold C. Simmons.......... 07/15/05 2,500 $51.40
Annette C. Simmons......... 07/15/05 3,750 $52.50
Harold C. Simmons.......... 07/15/05 3,750 $52.50
Annette C. Simmons......... 07/15/05 2,500 $53.00
Harold C. Simmons.......... 07/15/05 2,500 $53.00
Annette C. Simmons......... 07/15/05 7,550 $53.50
Harold C. Simmons.......... 07/15/05 7,550 $53.50
Annette C. Simmons......... 07/15/05 2,400 $53.60
Harold C. Simmons.......... 07/15/05 2,400 $53.60
Annette C. Simmons......... 07/15/05 400 $53.61
Harold C. Simmons.......... 07/15/05 400 $53.61
Annette C. Simmons......... 07/15/05 50 $53.73
Harold C. Simmons.......... 07/15/05 50 $53.73
Annette C. Simmons......... 07/15/05 7,100 $53.75
Harold C. Simmons.......... 07/15/05 7,100 $53.75
Annette C. Simmons......... 07/15/05 12,500 $54.00
Harold C. Simmons.......... 07/15/05 12,500 $54.00
Annette C. Simmons......... 07/15/05 350 $54.24
Harold C. Simmons.......... 07/15/05 350 $54.24
Annette C. Simmons......... 07/15/05 500 $54.25
Harold C. Simmons.......... 07/15/05 500 $54.25
Annette C. Simmons......... 07/15/05 50 $54.47
Harold C. Simmons.......... 07/15/05 50 $54.47
Annette C. Simmons......... 07/15/05 5,000 $54.50
Harold C. Simmons.......... 07/15/05 5,000 $54.50
Annette C. Simmons......... 07/15/05 1,600 $54.75
Harold C. Simmons.......... 07/15/05 1,600 $54.75
Annette C. Simmons......... 07/15/05 50 $54.89
Harold C. Simmons.......... 07/15/05 50 $54.89
Annette C. Simmons......... 07/15/05 2,800 $54.90
Harold C. Simmons.......... 07/15/05 2,800 $54.90
Annette C. Simmons......... 07/15/05 200 $54.97
Harold C. Simmons.......... 07/15/05 200 $54.97
Annette C. Simmons......... 07/15/05 6,950 $55.00
Harold C. Simmons.......... 07/15/05 6,950 $55.00
Annette C. Simmons......... 07/15/05 2,500 $55.40
Harold C. Simmons.......... 07/15/05 2,500 $55.40
Annette C. Simmons......... 07/15/05 2,500 $55.50
Harold C. Simmons.......... 07/15/05 2,500 $55.50
Annette C. Simmons......... 07/15/05 1,250 $55.70
Harold C. Simmons.......... 07/15/05 1,250 $55.70
Harold C. Simmons.......... 07/18/05 5,000 $50.00
Harold C. Simmons.......... 07/18/05 5,000 $51.00
Harold C. Simmons.......... 07/18/05 10,000 $51.50
Harold C. Simmons.......... 07/18/05 5,000 $52.00
Harold C. Simmons.......... 07/18/05 4,500 $52.50
Harold C. Simmons.......... 07/18/05 500 $52.65
(d) Each of Tremont LLC, Annette C. Simmons, the CMRT, Valhi and Harold C.
Simmons has the right to receive and the power to direct the receipt of
dividends from, and proceeds from the sale of, the Company securities directly
held by such entity or person.
Item 6. Contracts, Arrangements, Understandings or Relationships With Respect
to Securities of the Issuer.
Item 6 is amended as follows:
The information included in Items 3 and 4 of this Statement is hereby
incorporated herein by reference.
Other than as set forth above, none of the Reporting Persons or, to the
best knowledge of such persons, any person named in Schedule B to this Statement
has any contract, arrangement, understanding or relationship (legal or
otherwise) with any person with respect to securities of the Company, including,
but not limited to, transfer or voting of any such securities, finder's fees,
joint ventures, loans or option arrangements, puts or calls, guarantees of
profits, division of profits or losses, or the giving or withholding of proxies.
Signature
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this Statement is true, complete and
correct.
Date: July 25, 2005
/s/ Harold C. Simmons
--------------------------------
Harold C. Simmons
Signing in the
capacities listed on
Schedule "A" attached
hereto and
incorporated herein by
reference.
Signature
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this Statement is true, complete and
correct.
Date: July 25, 2005
/s/ Steven L. Watson
--------------------------------
Steven L. Watson
Signing in the
capacities listed on
Schedule "A" attached
hereto and
incorporated herein by
reference.
SCHEDULE A
HAROLD C. SIMMONS, in his individual capacity, as trustee for THE COMBINED
MASTER RETIREMENT TRUST and as attorney-in-fact for ANNETTE C. SIMMONS
STEVEN L. WATSON, as president or vice president of each of:
CONTRAN CORPORATION
DIXIE HOLDING COMPANY
DIXIE RICE AGRICULTURAL CORPORATION, INC.
HAROLD SIMMONS FOUNDATION, INC.
NATIONAL CITY LINES, INC.
NOA, INC.
SOUTHWEST LOUISIANA LAND COMPANY, INC.
TREMONT LLC
VALHI GROUP, INC.
VALHI, INC.
Schedule B
Schedule B is hereby amended and restated as follows:
The names of the directors and executive officers of Contran Corporation
("Contran"), Dixie Holding Company ("Dixie Holding"), Dixie Rice Agricultural
Corporation, Inc. ("Dixie Rice"), the Harold Simmons Foundation, Inc. (the
"Foundation"), National City Lines, Inc. ("National"), NOA, Inc. ("NOA"),
Southwest Louisiana Land Company, Inc. ("Southwest"), Valhi Group, Inc. ("VGI")
and Valhi, Inc. ("Valhi") and their present principal occupations are set forth
below. Except as otherwise indicated, each such person is a citizen of the
United States of America and the business address of each such person is 5430
LBJ Freeway, Suite 1700, Dallas, Texas 75240.
Name Present Principal Occupation
------------------------- ----------------------------------------------------
Eugene K. Anderson Vice president of Contran, Dixie Holding, Dixie
Rice, National, NOA, Southwest, Tremont LLC, a
wholly owned limited liability company of Valhi,
Valhi and VGI; and treasurer of the Foundation.
Thomas E. Barry (1) Vice president for executive affairs at
Southern Methodist University and professor of
marketing in the Edwin L. Cox School of Business at
Southern Methodist University; and a director of
Valhi.
Norman S. Edelcup (2) Senior vice president business development of
Florida Savings Bancorp; mayor of Sunny Isles Beach,
Florida; director of Valhi; and trustee of the Baron
Funds, a mutual fund group.
Lisa Simmons Epstein Director and president of the Foundation.
Robert D. Graham Vice president of Contran, Dixie Holding, Dixie
Rice, National, NOA, Southwest, Titanium Metals
Corporation (the "Company"), Tremont LLC, Valhi and
VGI; and vice president, general counsel and
secretary of Kronos Worldwide, Inc. ("Kronos
Worldwide") and NL Industries, Inc. ("NL"), both
affiliates of Valhi.
J. Mark Hollingsworth Vice president and general counsel of Contran,
Dixie Holding, Dixie Rice, National, NOA, Southwest,
Tremont LLC, Valhi and VGI; general counsel of the
Foundation; general counsel of CompX International
Inc., an affiliate of Valhi ("CompX"); trust counsel
of The Combined Master Retirement Trust, a trust
Valhi formed to permit the collective investment by
trusts that maintain the assets of certain employee
benefit plans Valhi and related companies adopt (the
"CMRT"); and acting general counsel of Keystone
Consolidated Industries, Inc. ("Keystone"), an
affiliate of Contran.
Keith A. Johnson Controller of the Foundation.
William J. Lindquist Director and senior vice president of Contran, Dixie
Holding, National, NOA, Tremont LLC and VGI; senior
vice president of Dixie Rice, Southwest, Tremont LLC
and Valhi.
A. Andrew R. Louis Secretary of Contran, CompX, Dixie Holding, Dixie
Rice, National, NOA, Southwest, Tremont LLC, Valhi
and VGI and assistant secretary of the Company.
Kelly D. Luttmer Vice President and tax director of Contran, CompX,
Dixie Holding, Dixie Rice, Kronos Worldwide,
National, NL, NOA, Southwest, Tremont LLC, Valhi and
VGI.
Andrew McCollam, Jr. (3) President and director of Southwest; director of
Dixie Rice; and a private investor.
W. Hayden McIlroy (4) Private investor primarily in real estate; and a
director of Valhi and Cadco Systems, Inc., a
manufacturer of emergency alert systems.
Harold M. Mire (5) Vice president of Dixie Rice and Southwest.
Bobby D. O'Brien Vice president, chief financial officer and
director of Dixie Holding, National, NOA and VGI;
vice president and chief financial officer of
Contran, Dixie Rice, Southwest, Tremont LLC and
Valhi; and vice president of the Company.
Glenn R. Simmons Vice chairman of the board of Contran, Dixie
Holding, Dixie Rice, National, NOA, Tremont LLC,
Valhi and VGI; chairman of the board of CompX and
Keystone; director and executive vice president of
Southwest; and a director of Kronos Worldwide, NL
and the Company.
Harold C. Simmons Chairman of the board of Contran, Dixie Holding,
Dixie Rice, the Foundation, National, NOA,
Southwest, Tremont LLC, Valhi and VGI; chairman of
the board and chief executive officer of NL and
Kronos Worldwide; vice chairman of the board of the
Company; and trustee and member of the trust
investment committee of the CMRT.
Richard A. Smith (5) Vice president of Dixie Rice.
John A. St. Wrba Vice president and treasurer of the Company, Contran,
Kronos Worldwide, NL and Valhi.
Gregory M. Swalwell Vice president and controller of Contran, Dixie
Holding, National, NOA, Southwest, Tremont LLC,
Valhi and VGI; vice president, finance and chief
financial officer of Kronos Worldwide and NL; and
vice president of Dixie Rice, Southwest and the
Company.
J. Walter Tucker, Jr. (6) President, treasurer and a director of Tucker &
Branham, Inc., a mortgage banking, insurance and
real estate company; vice chairman of the board of
Keystone; a director of Valhi; and a member of the
trust investment committee of the CMRT.
Steven L. Watson Director and president of Contran, Dixie Holding,
Dixie Rice, National, NOA and VGI; director,
president and chief executive officer of Valhi;
president of Tremont LLC; director and executive
vice president of Southwest; director, vice
president and secretary of the Foundation; president
of Tremont LLC; vice chairman of Kronos Worldwide;
and a director of CompX, Keystone, NL and the
Company.
----------
(1) The principal business address for Dr. Barry is Southern Methodist
University, Perkins Administration Bldg. #224, Dallas, Texas 75275.
(2) The principal business address for Mr. Edelcup is 17395 North Bay Road,
Suite 103, Sunny Isles Beach, Florida 33160.
(3) The principal business address for Mr. McCollam is 402 Canal Street, Houma,
Louisiana 70360.
(4) The principal business address for Mr. McIlroy is 25 Highland Park Village,
Suite 100-341, Dallas, Texas 75225.
(5) The principal business address for Messrs. Mire and Smith is 600 Pasquiere
Street, Gueydan, Louisiana 70542-0010.
(6) The principal business address for Mr. Tucker is 400 E. Central Boulevard,
Orlando, Florida 32801.
SCHEDULE C
Schedule C is hereby amended and restated as follows:
Based upon ownership filings with the Securities and Exchange Commission or
upon information provided by the persons listed on Schedule B to this Statement,
such persons may be deemed to personally beneficially own shares ("Shares") of
the common stock, par value $0.01 per share, of Titanium Metals Corporation, a
Delaware corporation (the "Company"), as outlined below.
Shares Options
Name Held Held (1) Total
------------------------- ----------- ----------- -----------
Eugene K. Anderson -0- -0- -0-
Thomas E. Barry -0- -0- -0-
Norman S. Edelcup -0- -0- -0-
Lisa Simmons Epstein -0- -0- -0-
Robert D. Graham -0- -0- -0-
J. Mark Hollingsworth -0- -0- -0-
Keith A. Johnson 1,000 -0- 1,000
William J. Lindquist -0- -0- -0-
A. Andrew R. Louis -0- -0- -0-
Kelly D. Luttmer 50 -0- 50
Andrew McCollam, Jr. -0- -0- -0-
W. Hayden McIlroy (2) 500 -0- 500
Harold M. Mire -0- -0- -0-
Bobby D. O'Brien -0- -0- -0-
Glenn R. Simmons 3,000 5,000 8,000
Harold C. Simmons (3) 2,952,866 -0- 2,952,866
Richard A. Smith -0- -0- -0-
John A. St. Wrba -0- -0- -0-
Gregory M. Swalwell -0- -0- -0-
J. Walter Tucker, Jr. -0- -0- -0-
Steven L. Watson 10,750 7,500 18,250
----------
(1) Represents Shares issuable pursuant to the exercise of stock options within
60 days of the date of this Statement.
(2) Comprises 500 Shares Mr. McIlroy has the right to receive upon conversion
of 300 shares of the Company's 6 3/4% Series A Convertible Preferred Stock,
par value $0.01 per share (the "Series A Preferred Stock"), that he holds
directly.
(3) Comprises Shares Harold C. Simmons and his spouse own directly and
2,666,666 Shares his spouse is entitled to receive upon the conversion of
1,600,000 shares of Series A Preferred Stock that she holds directly.
Excludes other Shares of which Mr. Simmons may be deemed to possess
indirect beneficial ownership as described in Item 5(a) of this Statement.
Mr. Simmons disclaims beneficial ownership of all Shares.