Indeck Energy Services, Inc., and Subsidiaries - Page 4




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               Mr. Polsky was hired to serve as president of the Indeck               
          Energy Services Division of Indeck Power Equipment Co. (Indeck              
          Power) in June 1985 by Indeck Power’s president, Gerald R.                  
          Forsythe.  Indeck Power’s Indeck Energy Services Division was               
          subsequently incorporated as petitioner Indeck in 1985.  Mr.                
          Polsky became its president in 1986.                                        
          Agreements Covering Employment and Purchase/Sale of Indeck Stock            
               On January 21, 1987, Mr. Polsky and Indeck executed an                 
          employment agreement (Employment Agreement) and a shareholders’             
          agreement (Shareholders’ Agreement),1 both retroactive to June 1,           
          1986.  The Employment Agreement provided that Indeck would employ           
          Mr. Polsky for 7 years; i.e., until June 1, 1993.  The Employment           
          Agreement further conferred upon Mr. Polsky salary, bonuses, and            
          additional compensation measured as a percentage of Indeck’s net            
          profits, as well as certain stock options and deferred                      
          compensation rights that entitled him to acquire up to 30 percent           
          of Indeck’s outstanding shares of common stock.  The                        
          Shareholders’ Agreement restricted the sale of any Indeck shares            
          acquired by Mr. Polsky, providing in general that Mr. Polsky was            
          required to sell, and Indeck to purchase, such shares in the                
          event that Mr. Polsky’s employment with Indeck were terminated              
          under prescribed conditions, including voluntary or involuntary             



               1 Indeck Power was also a signatory to the Shareholders’               
          Agreement.                                                                  




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Last modified: May 25, 2011