- 4 - 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.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011