<SEC-DOCUMENT>0001193125-13-332857.txt : 20130913
<SEC-HEADER>0001193125-13-332857.hdr.sgml : 20130913
<ACCEPTANCE-DATETIME>20130813170204
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-13-332857
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20130813

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PREFORMED LINE PRODUCTS CO
		CENTRAL INDEX KEY:			0000080035
		STANDARD INDUSTRIAL CLASSIFICATION:	WATER, SEWER, PIPELINE, COMM AND POWER LINE CONSTRUCTION [1623]
		IRS NUMBER:				340676895
		STATE OF INCORPORATION:			OH
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		P.O. BOX 91129
		CITY:			CLEVELAND
		STATE:			OH
		ZIP:			44101
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">August&nbsp;7, 2013 </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Division of Corporation Finance </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">U.S. Securities and Exchange Commission </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">100 F Street, NE </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Washington, DC20549
</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Attention: John Cash </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Re:</B></FONT></TD>
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<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Preformed Line Products Company</B></FONT></TD></TR>
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<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Form 10-K for the year ended December&nbsp;31, 2012</B></FONT></TD></TR>
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<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Filed March&nbsp;15, 2013</B></FONT></TD></TR>
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<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Definitive Proxy Statement on Schedule 14A</B></FONT></TD></TR>
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<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Filed March&nbsp;15, 2013</B></FONT></TD></TR>
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<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>File No. 0-31164</B></FONT></TD></TR>
</TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Dear Mr.&nbsp;Cash: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Preformed Line Products Company (the &#147;<U>Company</U>&#148;) has set forth below its responses to the comments of the staff (the &#147;<U>Staff</U>&#148;) of the Securities and Exchange Commission
(the &#147;<U>Commission</U>&#148;) in its letter dated July&nbsp;24, 2013 with respect to the above referenced filings. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">The Staff&#146;s
comments are set forth in bold below, followed by the Company&#146;s responses. Capitalized terms used but not defined herein have the meanings specified in the Definitive Proxy Statement on Schedule 14A filed by the Company on March&nbsp;15, 2013
(the &#147;<U>Proxy Statement</U>&#148;). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Definitive Proxy Statement on Schedule 14A</U> </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Consultant, page 11</U> </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>1.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>We note your disclosure on page 11 that the compensation committee relies upon various independent surveys and that for 2012, the compensation
committee utilized the &#147;Mercer&#146;s annual compensation level survey&#148; and compared against compensation paid to executives in a &#147;Peer Group.&#148; Please tell us how your analysis of the peer group contributes to your compensation
considerations and clarify if you engage in benchmarking total compensation or elements thereof. If you do not benchmark, please elaborate on the reasons you decided to pay your officers compensation that is &#147;near the 50<FONT
STYLE="font-family:Times New Roman" SIZE="1"><SUP STYLE="vertical-align:baseline; position:relative; bottom:.8ex">th</SUP></FONT><FONT STYLE="font-family:Times New Roman" SIZE="2"> percentile&#148; with respect to &#147;base salary alone&#148; and
&#147;at or above the 60</FONT><FONT STYLE="font-family:Times New Roman" SIZE="1"><SUP STYLE="vertical-align:baseline; position:relative; bottom:.8ex">th</SUP></FONT><FONT STYLE="font-family:Times New Roman" SIZE="2"> percentile&#148; for
&#147;total cash compensation.&#148; Further, please tell us the reason for any deviation from the median total cash compensation in the peer group. Please provide this disclosure in future filings and tell us how you intend to comply.
</FONT></B></FONT></P></TD></TR></TABLE>

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Division of Corporation Finance </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Securities and Exchange Commission </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">August 7, 2013 </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"> Page
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 </FONT></P> <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">The Compensation
Committee reviews compensation surveys primarily to gain perspective on how the Company&#146;s executive compensation levels compare to other similarly-sized companies so that it can assess whether the Company&#146;s pay levels are generally
competitive and represent a reward for strong performance. The Company does not engage in specific benchmarking when setting total compensation amounts, but it plays a strong role in determining base salaries. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px;padding-bottom:0px; "><FONT STYLE="font-family:Times New Roman" SIZE="2">As discussed in the Proxy Statement under &#147;Compensation Discussion and Analysis &#150; Compensation Program &#150; Compensation
Elements - Base Salaries,&#148; the Company&#146;s goal in setting base salaries is to establish a level that is sufficient to attract and retain talented executives and it believes that, to be competitive, it is important that it maintain a level
that is near the midpoint of base salaries for comparable company executives. However, in setting actual salary levels for each executive, the Compensation Committee may set levels that vary from the midpoint, based on individual performance and
experience. Thus, while the Company looks to the peer surveys to determine where it stands relative to the
50</FONT><FONT STYLE="font-family:Times New Roman" SIZE="1"><SUP STYLE="vertical-align:baseline; position:relative; bottom:.8ex">th</SUP></FONT><FONT STYLE="font-family:Times New Roman" SIZE="2"> percentile for competitive purposes, it does not
necessarily seek to establish base salaries at that level if the executive&#146;s individual circumstances merit a higher or lower salary level. After evaluating these factors for the current executive officer group, the Compensation Committee
determined that salary levels that were near, but above, the 50</FONT><FONT STYLE="font-family:Times New Roman" SIZE="1"><SUP STYLE="vertical-align:baseline; position:relative; bottom:.8ex">th</SUP></FONT><FONT
STYLE="font-family:Times New Roman" SIZE="2"> percentile, were appropriate for 2012 due the record sales and operating income levels achieved by the Company in 2011 and 2010. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px;padding-bottom:0px; "><FONT STYLE="font-family:Times New Roman" SIZE="2">With respect to total compensation, a significant portion is tied to Company performance and this can cause a greater variation
relative to amounts paid by comparable companies with different performance results. As a result, the Compensation Committee does not seek to set the Company&#146;s compensation levels at any specific percentile. Instead, the Compensation Committee
considers total compensation levels paid by other companies to make sure the Company&#146;s pay is competitive, and to assess whether its payout levels for strong performance represent an incentive to achieve such performance. For example, the
Company had very strong results for 2012 and its executives received maximum payouts under performance based awards, which resulted in pay levels at or above the 60</FONT><FONT STYLE="font-family:Times New Roman" SIZE="1"><SUP
STYLE="vertical-align:baseline; position:relative; bottom:.8ex">th</SUP></FONT><FONT STYLE="font-family:Times New Roman" SIZE="2"> percentile. This comparison allows the Compensation Committee to confirm that the Company&#146;s pay levels provide an
incentive to achieve strong performance by reflecting higher than average pay. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">The Company will elaborate on its use of survey data in
setting compensation amounts in future filings, including providing a more detailed explanation of how it used comparative compensation information and how that comparison affected compensation decisions similar to the foregoing discussion.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Annual Cash Incentive Awards, page 12</U> </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>2.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>In future filings, please provide examples of what the compensation committee would consider as &#147;transformational events&#148; that may give rise to the
Committee&#146;s ability to exercise discretion and make adjustments to cash incentive awards. <U>See</U> Item&nbsp;402(b)(2)(v)-(ix)&nbsp;of Regulation S-K. </B></FONT></TD></TR></TABLE>

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Division of Corporation Finance </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Securities and Exchange Commission </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">August 7, 2013 </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"> Page
 3
 </FONT></P> <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Examples of what
the Compensation Committee would consider to be &#147;transformational events&#148; that may give rise to the Committee&#146;s ability to exercise discretion and make adjustments to cash incentive awards include a significant disruption to the
economy, major governmental action that significantly impacts the Company&#146;s business or its major customers&#146; businesses, severe natural disaster, currency fluctuations beyond the control of the Company and illness or death of the
executive. The Company will provide these examples in future filings if the Compensation Committee&#146;s has such discretion with respect to compensation disclosed in such filings. </FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>3.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>In future filings, please disclose the company&#146;s performance as compared to the measure that you use to determine the amount of cash incentive paid. For
example, for 2012, you should disclose what the company&#146;s return on shareholders&#146; equity was, so that investors can see how performance on that measure supported the amount of cash incentive paid for 2012. In your supplemental response,
please show us what your disclosure would have looked like in response to this comment. </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">The Company will disclose in future
filings the Company&#146;s actual performance as it relates to the performance objectives used to determine the amount of cash incentive paid. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">If this disclosure had been included in the Proxy Statement, the disclosure would have consisted of the following sentence, included at the end of the
&#147;Annual Cash Incentive Award&#148; paragraph under &#147;Compensation Discussion and Analysis &#150; Compensation Program &#150; Compensation Elements,&#148; footnote (2)&nbsp;to the Summary Compensation Table and footnote (1)&nbsp;to the
Grants of Plan-Based Awards table: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#147;The Company&#146;s pretax return on shareholders&#146; equity for 2012 exceeded 15%, which resulted
in the maximum payout under the awards.&#148; </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>4.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>We note that in your Summary Compensation Table and Grants of Plan-Based Awards Table, you discuss the &#147;potential payout&#148; under the Annual Non-Equity
Incentive Plan. We assume that the annual cash incentive awards you discuss on page 12 are made pursuant to this plan, but please clarify this in your future disclosures. Please tell us supplementally why you have shown &#147;potential payouts&#148;
instead of actual payouts of cash incentive awards. If the awards are made based upon the company&#146;s performance over several years or if there are vesting or similar provisions, please disclose this in future filings, and show us in your
supplemental response what your disclosure would have looked like in response to this comment for 2012. </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">The payouts
disclosed in the Summary Compensation Table and Grants of Plan-Based Awards Table were the actual payouts and were made pursuant to the Annual Non-Equity Incentive Plan discussed on page 12. The reference to &#147;potential&#148; was erroneously
included, since the actual payments to the executive officers previously followed the timing of the proxy statement disclosure; however, for 2012 these amounts had been fully earned and paid as of December&nbsp;31, 2012. The Company will eliminate
the reference to &#147;potential&#148; in future filings and clarify that this was the amount actually earned under the Annual Non-Equity Incentive Plan. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Division of Corporation Finance </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Securities and Exchange Commission </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">August 7, 2013 </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"> Page
 4
 </FONT></P> <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">If this disclosure
had been included in the Proxy Statement, the disclosure would have consisted of the following, in lieu of footnote (2)&nbsp;to the Summary Compensation Table and footnote (1)&nbsp;to the Grants of Plan-Based Awards table: </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#147;Reflects the dollar amount of the payout under the Company&#146;s Annual Non-equity Incentive Plan based on a sliding scale of the Company&#146;s
return on shareholders&#146; equity, ranging from 4% (for the threshold payout) to 15% (for the maximum payout), with target payout at 10.4%. The percentage achieved within this range determined the dollar amount of the award based on a percentage
of salary, which is a maximum of 100% for Robert G. Ruhlman and 85% for the other NEOs, in each case, subject to the Compensation Committee&#146;s discretion as to the final payout amount. The Company&#146;s return on shareholders&#146; equity for
2012 exceeded 15%, which resulted in the maximum payout under the awards.&#148; </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>5.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>In future filings, please elaborate on how you will determine the amount of performance-based restricted shares that will become vested over each of the next three
years for each Officer. For example, please discuss the amount of shares that will become vested if only the threshold performance levels are reached, versus the maximum. Please also clarify whether the thresholds for growth in pretax income and
sales growth must both be met, and how you will determine the number of shares that will vest if the threshold or maximum is reached for only one of the measures. Please also clarify whether the thresholds are 5% and 3% for growth in pretax income
and sales, respectively, for each of the three years, or for all of the three years. In your supplemental response, please show us what your disclosure would have looked like for 2012. </B></FONT></TD></TR></TABLE>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">The Company will elaborate in future filings on how it will determine the amount of performance-based restricted shares that will become vested over each
of the next three years for each Officer. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">If this disclosure had been included in the Proxy Statement, the disclosure would have consisted of
the following: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">in lieu of the last two sentences of the second paragraph of the &#147;Long-term Equity Grants&#148; section under &#147;Compensation Discussion and
Analysis &#150; Compensation Program &#150; Compensation Elements&#148;: </FONT></P></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#147;For the performance-based
shares, the number of restricted shares in which the participant becomes vested will depend upon the specific level of growth in pretax income and sales growth measured over the three-year performance period ending December&nbsp;31, 2014, with
thresholds of 5% and 3% respectively, and maximum of 10% of both. The threshold payout is at 25% of the maximum number of performance-based shares if both measures are achieved, the target is at 50% if both 7% growth in pre-tax income and 5% growth
in sales are achieved, and the maximum is at 100% of the numbers of shares subject to the award if 10% growth in each measure is achieved at the end of the three-year period. If only one of the two measures is achieved at any of these levels, the
vesting percentage is weighted to provide for some additional vesting for achieving the higher measure. Dividends declared on restricted shares are accrued as cash dividends. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Division of Corporation Finance </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Securities and Exchange Commission </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">August 7, 2013 </FONT></P>
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 </FONT></P> <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">in lieu of footnote (2)&nbsp;to the Grants of Plan-Based Awards table: </FONT></P></TD></TR></TABLE>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#147;(2) Reflects the number of performance-based restricted share awards granted during 2012 pursuant to the LTIP. The awards vest over
a three-year performance period ending December&nbsp;31, 2014 based on the Company&#146;s level of performance. The number of restricted shares in which the participant becomes vested will depend upon the specific level of performance of growth in
pretax income and sales growth over the three-year performance period, with thresholds of 5% and 3% respectively, and maximum of 10% of both. The threshold payout is at 25% of the maximum number of performance-based shares if both measures are
achieved, the target is at 50% if both 7% growth in pre-tax income and 5% growth in sales are achieved, and the maximum is at 100% of the numbers of shares subject to the award if 10% growth in each measure is achieved at the end of the three-year
period. If only one of the two measures is achieved at any of these levels, the vesting percentage is weighted to provide for some additional vesting for achieving the higher measure. </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">*&nbsp;&nbsp;*&nbsp;&nbsp;* </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">The Company hereby acknowledges that: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">the Company is responsible for the adequacy and accuracy of the disclosure in the filing; </FONT></P></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">Staff comments or changes to disclosure in response to Staff comments do not foreclose the Commission from taking any action with respect to the
filing; and </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">the Company may not assert Staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of
the United States. </FONT></P></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Please feel free to contact the undersigned at (440)&nbsp;473-9249 with any questions.
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sincerely,</FONT></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT STYLE="font-family:Times New Roman" SIZE="2">/s/ Eric R. Graef</FONT></P></TD></TR>
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eric R. Graef</FONT></TD></TR>
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chief Financial Officer</FONT></TD></TR>
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