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Change-In-Control Agreement

 

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Title:

Change-In-Control Agreement

Entities:

General Chemical Group Inc.; John M. Kehoe, Jr.

Date:

2003

Size:

Preview shows 7KB of 28KB total

Price:

$43

ID:

#227438

 

 

► Employment ► Change in Control Agreements
► Commodities ► Chemical Manufacturing

 

 

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                           CHANGE-IN-CONTROL AGREEMENT


THIS AGREEMENT (this "Agreement"), dated as of March 1, 2003, is between
John M. Kehoe, Jr., an individual ("Employee"), and The General Chemical Group
Inc., a Delaware corporation (the "Company" or "GCG").

R E C I T A L S

WHEREAS, the Company and its subsidiaries are in the business of
manufacturing, selling and distributing sodium carbonate (soda ash) and ice and
dust control products, including without limitation, calcium chloride in North
America (the "Business");

WHEREAS, the Company may in the future contemplate the sale or merger of
the Company, its key operating subsidiaries or the Business, and will require
Employee's assistance in the diligence process, the marketing and sale and the
closing of the transaction;

WHEREAS, as a result of the foregoing and because of his/her value to the
Company, the Company wishes to induce Employee, as a key employee of one of the
Company's subsidiaries, to continue its employment with the Company; and

WHEREAS, in consideration for such assistance the Company is willing to
provide to Employee the benefits described in this Agreement.

NOW, THEREFORE, in consideration of the foregoing recitals and the
covenants contained herein, Employee and the Company hereby agree as follows:

1. Definitions.

(a) A "Change-in-Control" shall be deemed to have taken place if, as
a result: (i) The Existing Shareholders cease to be the
"beneficial owners" (as defined in Rules 13d-3 and 13d-5 under
the Exchange Act, except that a person shall be deemed to have
"beneficial ownership" of all shares that any such person has the
right to acquire, whether such right is exercisable immediately
or only after the passage of time), directly or indirectly, of at
least 50% in the aggregate of the total voting power of stock of
the Company (including specifically General Chemical Industrial
Products), whether as a result of issuance of securities of the
Company, (including specifically General Chemical Industrial
Products), any merger, consolidation, liquidation or dissolution
of the Company (including specifically General Chemical
Industrial Products), any direct or indirect transfer of
securities by parent corporation or otherwise (for purposes of
this clause (i) and clause (ii) below, the Existing Shareholders
shall be deemed to beneficially own any voting stock of a
corporation (the "Specified Corporation") held by any other
corporation (the "Parent


1





{PAGE}

Corporation") so long as the Existing Shareholders beneficially
own (as so defined), directly or indirectly, at least 50% in the
aggregate, of the voting power of the voting stock of the Parent
Corporation); (ii) Any "person" (as such term is used in Section
13 (d) and 14 (d) of the Exchange Act), other than one or more of
the Existing Shareholders, is or becomes the beneficial owner (as
defined in clause (i) above), directly or indirectly, of more
than thirty-five percent (35%) of the total voting power of the
stock of the Company (including specifically General Chemical
Industrial Products); provided, however, that the Existing
Shareholders "beneficially own" (as so defined), directly or
indirectly, in the aggregate a lesser percentage of the total
voting power of stock of the Company (including specifically
General Chemical Industrial Products) than such other person and
do not have the right or ability by voting power, contract or
otherwise to elect or designate for election a majority of the
Board of Directors of the Company (including specifically General
Chemical Industrial Products) (for the purposes of this clause
(ii), such other person shall be deemed to beneficially own any
voting stock of a Specified Corporation held by a Parent
Corporation, if such other person "beneficially owns" (as so
defined), directly or indirectly, more than 35% of the voting
power of the voting stock of such Parent Corporation and the
Existing Shareholders "beneficially own" (as so defined),
directly or indirectly, in the aggregate a lesser percentage of
the voting power of the voting stock of such Parent Corporation
and do not have the right or ability by voting power, contract or
otherwise to elect or designate for election a majority of the
Board of Directors of such Parent Corporation); (iii) Any period
of two (2) consecutive years transpires and individuals who at
the beginning of such period constituted the Board of Directors
of the Company (including specifically General Chemical
Industrial Products) (together with any new directors whose
election by such Board of Directors or whose nomination for
election by the shareholders of the Company (including
specifically General Chemical Industrial Products) was approved
by a vote of 66-2/3% of the directors of the Company (including
specifically General Chemical Industrial Products) then still in
office who were either directors at the beginning of such period
or whose election or nomination for election was previously so
approved) cease for any reason to constitute a majority of the
Board of Directors of the Company (including specifically General
Chemical Industrial Products) then in office; or (iv) assets are
sold to other than an Existing Shareholder, or a company
controlled by an Existing Shareholder and the value of which
totals more than 50% of the then asset value of General Chemical
Industrial Products.

(b) "Cause" means (i) any act or acts by Employee resulting or
intended to result directly or indirectly in material gain or
personal enrichment of Employee at the expense of the Company;
(ii) Employee's indictment for

 

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