Indeck Energy Services, Inc., and Subsidiaries - Page 5




                                        - 5 -                                         
          termination during the 7-year term of employment provided in the            
          Employment Agreement, and thereafter.                                       
               While the Employment Agreement provided for Mr. Polsky’s               
          employment by Indeck for 7 years until June 1, 1993, it further             
          entitled Indeck in its sole discretion to terminate Mr. Polsky’s            
          employment after 4 years in prescribed circumstances.2                      
          Specifically, under paragraph 12.c. of the Employment Agreement,            
          Indeck was entitled to terminate the agreement (with 30 days’               
          notice) if, as of the fourth anniversary of the effective date of           
          the agreement, Indeck had a negative net worth of $500,000 or               
          more, as determined from its audited statements for the 4                   
          previous fiscal years ended November 30, 1986, 1987, 1988, and              
          1989.                                                                       
               The Shareholders’ Agreement, which incorporated and cross-             
          referenced the Employment Agreement, provided that Mr. Polsky was           
          required to sell, and Indeck required to purchase, any Indeck               
          shares owned by Mr. Polsky in the event of the involuntary                  
          termination of his employment after 4 years pursuant to paragraph           
          12.c. of the Employment Agreement.  The Shareholders’ Agreement             
          further provided that the price to be paid by Indeck in these               
          circumstances was an amount equal to the greater of:  (1) 100               


               2 Under the Employment Agreement, Indeck could otherwise               
          terminate Mr. Polsky’s employment at any point during the 7-year            
          term (with 30 days’ notice) in the event he “[failed] or                    
          [refused] to faithfully or diligently perform the provisions of             
          this 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