January 30, 2007 15:24 ET

Nordex Explosives Announces Receipt of Motion to Institute Proceedings Brought by Jacques Levesque

KIRKLAND LAKE, ONTARIO--(CCNMatthews - Jan. 30, 2007) -

Not for U.S. Distribution

NORDEX EXPOSIVES LTD. (TSX VENTURE:NXX) announces that this afternoon it was served with a Motion to Institute Proceedings, dated January 29, 2007, brought in the Superior Court District of Montreal by Jacques Levesque, a shareholder of the Company, The Motion is returnable before the Court in Montreal on March 6, 2007.

The Motion seeks an order from the Court to cancel and annul the Nordex Explosives Profit Sharing Plan (the "PSP") other than with respect to production employees, and an order that the 5% of benefits contemplated by the PSP for the full time production employees be retained and made available exclusively for the benefit of employees of Nordex who are actively engaged in its business activities on a full time basis.

During the fiscal year ending December 31, 2005, the Board of Directors approved a Profit Sharing Plan (the "PSP") for the employees, management and directors of the Corporation. The PSP applies to the fiscal years ending December 31, 2006 and 2007 but not beyond these years. Under the terms of the PSP, no amounts shall be paid out of the PSP to any individuals for net income before tax up to $163,530 in each of the fiscal years. If the Corporation achieves net income before tax in excess of $163,530 in either of the fiscal years, certain individuals/groups will receive a portion of the amount in excess of this amount as follows:

VP Operations 20.00% of the amount in excess of $163,500
President 13.33% of the amount in excess of $163,500
Chairman 6.67% of the amount in excess of $163,500
Employees 5.00% of the amount in excess of $163,500
shared between all employees
Directors 5.00% of the amount in excess of $163,500
shared between all directors

Under the terms of the PSP, any amounts paid out under the PSP will not be done until after the fiscal year end in which they apply.

At a meeting of the Board of Directors of the Company on January 25, 2007, the Directors approved certain modifications to the PSP for the 2007 fiscal year. A copy of the Amended Profit Sharing Plan (the "APSP") is attached hereto.

Bruce Forth, a director and secretary of the Company stated "On behalf of the Board of Directors of the Company, we believe that the claims made by Mr. Levesque in support of the Motion are unsubstantiated and the Company will be vigorously opposing these proceedings."

Forward-Looking Statements

This press release contains forward-looking statements based on current expectations. These forward-looking statements contain various risks and uncertainties which could cause actual results to differ materially from those reflected in the forward-looking statements. Risks and uncertainties about the Company's business are more fully disclosed in the disclosure materials, financial statements and MD& A filed with the securities regulatory authorities in Canada on

ABOUT NORDEX EXPLOSIVES: LES EXPLOSIFS NORDEX LTEE./NORDEX EXPLOSIVES LTD. (TSX VENTURE:NXX) is a manufacturer and distributor of explosives for the mining, quarry and road construction industries since 1970. Its manufacturing operations and distribution centre is strategically located in one of the world's largest mining regions near Kirkland Lake, Ontario.

Nordex Explosives Ltd.

Amended Profit Sharing Plan for 2007

1. Term

The Nordex Explosives Ltd. Amended Profit Sharing Plan ("APSP") is for the fiscal year ending December 31, 2007 only. The APSP replaces the previous Profit Sharing Plan in place for the fiscal year ending December 31, 2007.

2. Participants

The three groups that participate in the Plan are (1) non-executive staff, (2) directors and (3) the executive & chairman. In order to be eligible, an individual must fall into one or more of these three groups at the fiscal year end and have been in that group prior to October 1st in that same year. An individual can be eligible for both the second and third groups.

3. Profit Sharing Pool

The total Profit Sharing Pool for distribution to all participants will be equal to the lesser of either (1) 50% of Net Income Before Taxes and Before Deductions for the APSP in excess of $163,530 or (2) $400,000.

4. Profit Sharing Pool Distribution

The total Profit Sharing Pool will be distributed to the Directors, Non-Executive Staff and the Executive as follows:

Group % of Profit Sharing Pool
Non-Executive Staff 10%
Directors 10%
Executive & Chairman 80%
Total Profit Sharing Pool 100%

4.1. Non-Executive Staff Pool Distribution

Each non-executive staff participant's individual distribution will be determined by the participant's salary for the year as a percentage of total non-executive staff salaries for the year. The participants in 4.2 and 4.3 below are not eligible for this portion of the plan.

4.2. Directors Pool Distribution

The Directors' distribution of the Pool is split evenly amongst the eligible Directors. If an eligible Director was not a Director at the start of the year, then their portion will be based on their time as a director in that year.

4.3. Executive & Chairman Pool Distribution

Participants and their portion of the total Executive & Chairman Pool Distribution are:

Jim Taylor 50.00%
John Kozak 33.33%
Timothy Peterson 16.67%

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Nordex Explosives Ltd.
    Bruce Forth
    (905) 274-0102 x 25
    (905) 274-0169 (FAX)