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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
OF
THE SECURITIES EXCHANGE ACT OF 1934
November 14, 2024
Date of Report (Date of earliest event reported)
QUAKER CHEMICAL CORPORATION
(Exact name of registrant as specified in its
charter)
Commission File Number 001-12019
| Pennsylvania |
23-0993790 |
(State or other jurisdiction of
incorporation) |
(I.R.S. Employer
Identification No.) |
901 E. Hector Street
Conshohocken, Pennsylvania 19428
(Address of principal executive offices)
(Zip Code)
(610) 832-4000
(Registrant’s telephone number, including
area code)
Not Applicable
(Former name or former address, if changed since
last report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| |
¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class |
|
Trading Symbol(s) |
|
Name of each exchange on which registered |
| Common Stock, $1 par value |
|
KWR |
|
New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth
company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange
Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant
has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant
to Section 13(a) of the Exchange Act. ¨
INFORMATION TO BE INCLUDED IN THE REPORT
Item 5.02. Departure of Directors or Certain
Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On November 14, 2024, the
Board of Directors (the “Board”) of Quaker Chemical Corporation (the “Company”), appointed Joseph A. Berquist,
age 53, the Company’s Chief Commercial Officer, to serve as Chief Executive Officer and President, effective November 18,
2024. Mr. Berquist was also appointed to the Board as a Class I director, to serve until the 2026 annual meeting of shareholders.
Mr. Berquist joined the Company
in 1997 and served as the Company’s Chief Commercial Officer since 2023. Prior to that role, he served in strategic and commercial
leadership positions of increasing responsibility and global reach at the Company, including Executive Vice President, Chief Strategy
Officer, and Managing Director, Global Specialty Businesses from September 2021 until December 2022; Interim Managing Director of EMEA
from August 2022 through December 2022; Senior Vice President, Global Specialty Businesses and Chief Strategy Officer from August 2019
to September 2021; Vice President and Managing Director – North America from April 2010 until July 2019. Prior to that time, Mr.
Berquist held other key roles and increased responsibilities across the Company’s commercial sales organization and steel, metalworking
and fluid power businesses.
The Company and Mr. Berquist
entered into an employment agreement (the “Employment Agreement”) on November 18, 2024, which provides that his base salary
will be $800,000 per annum and that he will be eligible to participate in the Company’s Annual Incentive Plan with a target award
percentage of 100% of his base salary for 2025, with the actual amount awarded dependent upon the Company’s financial results and
other objectives to be determined. Mr. Berquist will continue to participate in the Company’s 2024 Long-Term Performance Incentive
Plan, which includes a mix of time-based restricted stock units and performance stock units, such mix to be determined by the Compensation
and Human Resources Committee of the Board, with his grant having a target level value of $2,300,000. The Employment Agreement further
provides that he will be entitled to medical, dental, and other benefits as are made generally available by the Company to its full-time
U.S. employees and financial wellbeing benefits available to members of the executive leadership team.
If Mr. Berquist is terminated
by the Company for any reason other than “Cause” or his death or “Disability” (as such terms are defined in his
Employment Agreement), he will be paid eighteen months’ severance equal to his then annual base salary and bonus at target, paid
in bi-weekly installments commencing on the Payment Date (as such term is defined in his Employment Agreement), subject to his executing
a customary release of claims. The definitions of “Cause” and “Disability” generally follow the definitions provided
in the employment agreements of other Company executive officers, which form is described in the Company’s proxy statement filed
with the SEC on March 28, 2024. Under his Employment Agreement, Mr. Berquist is subject to certain non-disclosure, non-competition and
non-solicitation covenants similar to those of other Company executive officers.
In addition, on November 18,
2024, the Company and Mr. Berquist entered into a Change in Control Agreement (the “Change in Control Agreement”), substantially
in the form entered into with other Company executive officers, which form is described in the Company’s proxy statement filed with
the SEC on March 28, 2024. Under the Change in Control Agreement, Mr. Berquist is entitled, if terminated (other than for disability, death,
by us for “cause,” or by the executive officer other than for “good reason”) within two years following a change
in control, to severance in an amount equal to two times the sum of highest annualized base salary plus an amount equal to the average
of the total annual amounts paid to Mr. Berquist under all applicable annual incentive compensation plans during the applicable three
calendar-year period described in the Change in Control Agreement, excluding from the average any year in which no amounts were paid.
In general, this three-year period would be expected to be the year of termination and the prior two years (if Mr. Berquist has received
a bonus in the year of his termination of employment) or, otherwise, the three calendar years prior to the year of his termination of
employment.
Additionally, effective as
of November 18, 2024, Andrew E. Tometich no longer serves as the Company’s Chief Executive Officer and President or as a member
of the Board. Mr. Tometich’s departure is not related to any disagreement between him and
the Company. Mr. Tometich’s separation from the Company is an involuntary termination without cause for purposes of all plan
benefits and contractual entitlements, including his employment agreement dated September 2, 2021 (the “Tometich Employment Agreement”).
In connection with the termination,
subject to executing a customary release of claims, Mr. Tometich will be entitled to receive (1) the severance payments and benefits set
forth in the Tometich Employment Agreement; and (2) an incentive award payout as permitted by the Company’s annual incentive plan,
prorated to reflect his actual term of service. The foregoing summaries of the Employment Agreement and the Change in Control Agreement
do not purport to be a complete description of all of the terms and conditions of the documents, and are qualified in their entirety by
reference to the full text of the respective documents, which are filed as exhibits to this Current Report on Form 8-K.
A
copy of the press release announcing the appointment of Mr. Berquist and Mr. Tometich’s departure, as further described in Item
5.02 above, is attached as Exhibit 99.1 to this Current Report on Form 8-K. Exhibit 99.1 shall not be deemed “filed” for purposes
of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated
by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by
specific reference in such filing.
| Item 9.01 |
Financial Statements and Exhibits. |
The
following exhibits are included as part of this Current Report on Form 8-K:
* Management contract, compensatory plan or arrangement
SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| |
QUAKER CHEMICAL CORPORATION |
| |
|
|
| Date: November 20, 2024 |
By: |
/s/ Robert T. Traub |
| |
|
Robert T. Traub |
| |
|
Senior Vice President, General Counsel and Corporate Secretary |
Exhibit 10.1
EMPLOYMENT
AGREEMENT
November
18, 2024
| |
Joseph
A. Berquist
XXXXXX
|
The
parties to this Employment Agreement (“Agreement”) are Joseph A. Berquist (“You” or the “Executive”)
and Quaker Chemical Corporation, d/b/a Quaker Houghton, a Pennsylvania corporation (“Quaker Houghton” or the “Company”).
You
are hereby appointed as the Company’s Chief Executive Officer and President effective November 18, 2024.
NOW
THEREFORE in consideration of the mutual promises and covenants herein contained and intending to be legally bound hereby the parties
hereto agree as follows:
Quaker
Houghton agrees to employ you and you agree to serve as Quaker Houghton’s Chief Executive Officer and President. You shall perform
all duties consistent with such position as well as any other duties that are assigned to you from time to time by Quaker Houghton’s
Board of Directors. You agree that during the term of your employment with Quaker Houghton to devote your knowledge, skill, and working
time solely and exclusively to the business and interests of Quaker Houghton and its subsidiaries.
Your
base salary will be determined from time to time by the Quaker Houghton Board of Directors. In addition, you will be entitled to participate,
to the extent eligible, in any of Quaker Houghton’s annual and long-term incentive plans, retirement savings plan (401k plan),
and will be entitled to vacations, paid holidays, and medical, dental, and other benefits as are made generally available by Quaker Houghton
to its full-time U.S. employees. During your employment with Quaker Houghton, your salary will not be reduced by Quaker Houghton without
your prior written consent. Your initial compensation and benefits are outlined on Addendum 1, which is attached hereto and made a part
hereof.
Your
employment with Quaker Houghton may be terminated on ninety (90) days' written notice by either party, with or without cause or reason
whatsoever. Within ninety (90) days after termination of your employment, you will be given an accounting of all monies due you. Notwithstanding
the foregoing, Quaker Houghton has the right to terminate your employment upon less than ninety (90) days’ notice for Cause (as
defined below).
| 4. | Covenant Not to Disclose. |
(a)
As Chief Executive Officer, you acknowledge that the identity of Quaker Houghton's (and any of Quaker Houghton's affiliates’) customers,
the requirements of such customers, pricing and payment terms quoted and charged to such customers, the identity of Quaker Houghton's
suppliers and terms of supply (and the suppliers and related terms of supply of any of Quaker Houghton's customers for which chemical
and other management services are being provided), information concerning the method and conduct of Quaker Houghton's (and any affiliate’s)
business such as formulae, formulation information, application technology, manufacturing information, marketing information, strategic
and marketing plans, financial information, financial statements (audited and unaudited), budgets, corporate practices and procedures,
research and development efforts, and laboratory test methods and all of Quaker Houghton's (and its affiliates’) manuals, documents,
notes, letters, records, and computer programs are Quaker Houghton's confidential information ("Confidential Information")
and are Quaker Houghton’s (and/or any of its affiliates’, as the case may be) sole and exclusive property. You agree that
at no time during or following your employment with Quaker Houghton will you appropriate for your own use, divulge or pass on, directly
or through any other individual or entity or to any third party, any Quaker Houghton Confidential Information. Upon termination of your
employment with Quaker Houghton and prior to final payment of all monies due to you under Section 2 or at any other time upon Quaker
Houghton's request, you agree to surrender immediately to Quaker Houghton any and all materials in your possession or control which include
or contain any Quaker Houghton Confidential Information.
(b)
You acknowledge that, by this Section 4(b), you have been notified in accordance with the Defend Trade Secrets Act that, notwithstanding
the foregoing:
(i)
You will not be held criminally or civilly liable under any federal or state trade secret law or this Agreement for the disclosure of
Confidential Information that: (A) you make (1) in confidence to a federal, state, or local government official, either directly or indirectly,
or to your attorney; and (2) solely for the purpose of reporting or investigating a suspected violation of law; or (B) you make in a
complaint or other document that is filed under seal in a lawsuit or other proceeding.
(ii)
If you file a lawsuit for retaliation by Quaker Houghton for reporting a suspected violation of law, you may disclose Confidential Information
to your attorney and use the Confidential Information in the court proceeding if you: (A) file any document containing Confidential Information
under seal and (B) do not disclose Confidential Information, except pursuant to court order.
(c)
Additionally, Quaker Houghton confirms that nothing in this Agreement is intended to or shall prevent, impede or interfere with your
right, without prior notice to Quaker Houghton, to provide information to the government, participate in any government investigations,
file a court or administrative complaint, testify in proceedings regarding Quaker Houghton’s past or future conduct, or engage
in any future activities protected under any statute administered by any government agency.
| 5. | Covenant
Not to Compete |
In
consideration of your position of Chief Executive Officer for Quaker Houghton and the training and Confidential Information you are to
receive from Quaker Houghton, you agree that during your employment with Quaker Houghton and for a period of eighteen (18) months thereafter,
regardless of the reason for your termination, you will not:
(a)
directly or indirectly, together or separately or with any third party, whether as an employee, individual proprietor, partner, stockholder,
officer, director, or investor, or in a joint venture or any other capacity whatsoever, actively engage in business or assist anyone
or any firm in business as a manufacturer, seller, or distributor of specialty chemical products which are the same, like, similar to,
or which compete with Quaker Houghton’s (or any of its affiliates’) products or services; and
(b)
directly or indirectly recruit, solicit or encourage any Quaker Houghton (or any of its affiliates’) employee or otherwise induce
such employee to leave Quaker Houghton’s (or any of its affiliates’) employ, or to become an employee or otherwise be associated
with you or any firm, corporation, business, or other entity with which you are or may become associated; and
(c)
solicit or induce any of Quaker Houghton's suppliers of products and/or services (or a supplier of products and/or services of a customer
who is being provided or solicited for the provision of chemical management or other services by Quaker Houghton) to terminate or alter
its contractual relationship with Quaker Houghton (and/or any such customer).
The
parties consider these restrictions reasonable, including the period of time during which the restrictions are effective. However, if
any restriction or the period of time specified should be found to be unreasonable in any court proceeding, then such restriction shall
be modified or the period of time shall be shortened as is found to be reasonable so that the foregoing covenant not to compete may be
enforced. You agree that in the event of a breach or threatened breach by you of the provisions of the restrictive covenants contained
in Section 4 or in this Section 5, Quaker Houghton will suffer irreparable harm, and monetary damages may not be an adequate remedy.
Therefore, if any breach occurs, or is threatened, in addition to all other remedies available to Quaker Houghton, at law or in equity,
Quaker Houghton shall be entitled as a matter of right to specific performance of the covenants contained herein by way of temporary
or permanent injunctive relief. In the event of any breach of the restrictive covenant contained in this Section 5, the term of the restrictive
covenant shall be extended by a period of time equal to that period beginning on the date such violation commenced and ending when the
activities constituting such violation cease.
| 6. | Contractual Restrictions |
You
represent and warrant to Quaker Houghton that: (a) there are no restrictions, agreements, or understandings to which you are a party
that would prevent or make unlawful your employment with Quaker Houghton and (b) your employment by Quaker Houghton shall not constitute
a breach of any contract, agreement, or understanding, oral or written, to which you are a party or by which you are bound. You further
represent that you will not use any trade secret, proprietary or otherwise confidential information belonging to a prior employer or
other third party in connection with your employment with Quaker Houghton.
All
improvements, modifications, formulations, processes, discoveries or inventions ("Inventions"), whether or not patentable,
which were originated, conceived or developed by you solely or jointly with others (a) during your working hours or at Quaker Houghton’s
expense or at Quaker Houghton's premises or at a customer’s premises or (b) during your employment with Quaker Houghton and additionally
for a period of one year thereafter, and which relate to (i) Quaker Houghton’s business or (ii) any research, products, processes,
devices, or machines under actual or anticipated development or investigation by Quaker Houghton at the earlier of (i) that time or (ii)
as the date of termination of employment, shall be Quaker Houghton’s sole property. You shall promptly disclose to Quaker Houghton
all Inventions that you conceive or become aware of at any time during your employment with Quaker Houghton and shall keep complete,
accurate, and authentic notes, data and records of all Inventions and of all work done by you solely or jointly with others, in the manner
directed by Quaker Houghton. You hereby transfer and assign to Quaker Houghton all of your right, title, and interest in and to any and
all Inventions which may be conceived or developed by you solely or jointly with others during your employment with Quaker Houghton.
You shall assist Quaker Houghton in applying, obtaining, and enforcing any United States Letters Patent and Foreign Letters Patent on
any such Inventions and to take such other actions as may be necessary or desirable to protect Quaker Houghton's interests therein. Upon
request, you shall execute any and all applications, assignments, or other documents that Quaker Houghton deems necessary and desirable
for such purposes. You have attached hereto a list of unpatented inventions that you have made or conceived prior to your employment
with Quaker Houghton, and it is agreed that those inventions shall be excluded from the terms of this Agreement.
(a)
Either party may terminate this Agreement per the terms of Section 3 hereof and Quaker Houghton, in its sole discretion, may terminate
your employment at any time for Cause (as defined herein). If you incur a Separation from Service (as defined below) by decision and
action of Quaker Houghton for any reason other than Cause or death Quaker Houghton agrees to:
(i)
Provide you with reasonable outplacement assistance, either by providing the services in-kind, or by reimbursing reasonable expenses
actually incurred by you in connection with your Separation from Service. The outplacement services must be provided during the one-year
period following your Separation from Service. If any expenses are to be reimbursed, you must request the reimbursement within eighteen
months of your Separation from Service and reimbursement will be made within 30 days of the receipt of your request; and
(ii)
Pay you a severance consisting of 18 months of salary and bonus at target paid biweekly over such eighteen months commencing on the Payment
Date (as defined below) and continuing on Quaker Houghton's normal payroll dates thereafter; provided you sign a Release within 7 days
of the later of the date you receive the Release or your Separation from Service. Continuation of all medical and dental coverage’s
will also be available for 18 months at a level equal to the coverage provided before your Separation from Service.
(b)
If the Executive dies during the Term of Employment, the Company shall not thereafter be obligated to make any further payments under
this Agreement except for amounts accrued as of the date of the Executive’s death, and except that the Company shall pay a death
benefit equal to 100% of base salary in effect on the day before your death and 50% of base salary in each of the four years thereafter.
“Beneficiary” shall mean the person designated by the Executive to receive benefits under this Agreement in a writing filed
by the Executive with the Company’s human resources department before the Executive’s death or, if the Executive fails to
designate a beneficiary or the designated beneficiary predeceases the Executive, the Executive’s Beneficiary shall be his surviving
spouse or, if the Executive has no surviving spouse, his estate.
“Separation
from Service” means your separation from service with Quaker Houghton and its affiliates within the meaning of Treas. Reg.
§1.409A-1(h) or any successor thereto.
“Cause”
means your employment with Quaker Houghton has been terminated by reason of (i) your willful and material breach of this Agreement
(after having received notice thereof and a reasonable opportunity to cure or correct) or the Company’s policies, (ii) dishonesty,
fraud, willful malfeasance, gross negligence, or other gross misconduct, in each case relating to the performance of your duties hereunder
which is materially injurious to Quaker Houghton, or (iii) conviction of or plea of guilty or nolo contendere to a felony.
“Payment
Date” means (x) the first pay date following the end of the applicable release revocation period; provided, however that in
the event the applicable release revocation period spans two calendar years, the payments shall commence in the second calendar year
and (y) if you are a specified employee (as defined in Treas. Reg. §1.409A-1(i)) as of the date of your Separation from Service,
and the severance described in this Agreement is deferred compensation subject to section 409A of the Code (“Section 409A”),
the first business day of the seventh month following the month in which your Separation from Service occurs. If the Payment Date is
described in clause (y), the amount paid on the Payment Date shall include all monthly installments that would have been paid earlier
had clause (y) not been applicable, plus interest at the Wall Street Journal Prime Rate published in the Wall Street Journal on the date
of your Separation from Service (or the previous business day if such day is not a business day), for the period from the date payment
would have been made had clause (y) not been applicable through the date payment is made.
“Release”
means a release (in a form satisfactory to Quaker Houghton) of any and all claims against Quaker Houghton and all related parties
with respect to all matters arising out of your employment with Quaker Houghton, or the termination thereof (other than for claims for
any entitlements under the terms of this Agreement or any plans or programs of Quaker Houghton under which you have accrued a benefit)
and including your resignation from all positions as an officer or director of Quaker Houghton and all of its subsidiaries, that Quaker
Houghton will provide to you no later than ten days after your Separation from Service. If a release is not provided to you within this
time period, the severance shall be paid even if you do not sign a release.
Although
the Company makes no guarantee with respect to the tax treatment of benefits provided under this Plan and shall not be responsible in
any event with regard to non-compliance with Section 409A, to the fullest extent applicable, severance payment or benefits payable under
this Agreement are intended to be exempt from the definition of “nonqualified deferred compensation” under Section 409A in
accordance with one or more of the exemptions available under Section 409A, including the short-term deferral exception in Treas. Reg.§1.409A-1(b)(4)
and the separation pay exception in Treas. Reg. §1.409A-1(b)(9)(iii), and this Agreement shall be so interpreted and administered
to the maximum extent. To the extent that any payment or benefit under this Plan is or becomes subject to Section 409A, this Agreement
shall be interpreted and administered to the maximum extent possible to comply with Section 409A.
For
purposes of Section 409A, the right to receive payments in the form of installment payments shall be treated as a right to receive a
series of separate payments and, accordingly, each installment payment shall at all times be considered a separate and distinct payment.
Notwithstanding
any other provision of this Agreement to the contrary, to the extent that any reimbursement of expenses constitutes “deferred compensation”
under Section 409A, such reimbursement shall be provided no later than December 31 of the year following the year in which the expense
was incurred. The amount of expenses reimbursed in one year shall not affect the amount eligible for reimbursement in any subsequent
year. The amount of any in-kind benefits provided in one year shall not affect the amount of in-kind benefits provided in any other year.
Whenever a payment under this Agreement may be paid within a specified period, the actual date of payment within the specified period
shall be within the sole discretion of the Company.
In
the event that a payment, other than a reimbursement, could be made in either of two different calendar years, it shall be paid in the
later calendar year. If payment under this Agreement is to be made within a designated period which does not begin and end within one
calendar year, the Executive does not have a right to designate the taxable year of the payment.
Quaker
Houghton shall defend you and hold you harmless to the fullest extent permitted by applicable law in connection with any claim, action,
suit, investigation or proceeding arising out of or relating to performance by you of services for, or actions of you as a director,
officer, or employee of Quaker Houghton or any parent, subsidiary or affiliate of Quaker Houghton, or of any other person or enterprise
at Quaker Houghton’s request. Expenses incurred by you in defending such a claim, action, suit or investigation or criminal proceeding
shall be paid by Quaker Houghton in advance of the final disposition thereof upon the receipt by the Company of an undertaking by or
on your behalf to repay said amounts unless it shall ultimately be determined that you are entitled to be indemnified hereunder; provided,
however, that this shall not apply to a nonderivative action commenced by Quaker Houghton against you.
| 11. | Compensation Recoupment Policy |
Executive
acknowledges Executive’s right to receive or retain any severance or other benefit under this Agreement shall be subject to recoupment
or “clawback” policy adopted by the Company.
The
provisions of this Agreement shall be construed in accordance with the laws of the Commonwealth of Pennsylvania without reference to
principles of conflicts of laws.
This
Agreement and the Change in Control Agreement to which you are a party, constitute the entire integrated agreement concerning the subjects
covered herein. In case any provision of this Agreement shall be invalid, illegal, or otherwise unenforceable, the validity, legality,
and enforceability of the remaining provisions shall not thereby be affected or impaired. You may not assign any of your rights or obligations
under this Agreement without Quaker Houghton’s prior written consent. Quaker Houghton may assign this Agreement in its discretion,
including to any affiliate or upon a sale of assets or equity, merger or other corporate transaction; provided that Quaker Houghton obtains
the assignee’s written commitment to honor the terms and conditions contained herein. This Agreement shall be governed by, and
construed in accordance with, the laws of the Commonwealth of Pennsylvania without regard to any conflict of laws. This Agreement shall
be binding upon you, your heirs, executors, and administrators and shall inure to the benefit of Quaker Houghton as well as its successors
and assigns. In the event of any overlap in the restrictions contained herein, including Sections 4 and/or 5 above, with similar restrictions
contained in any other agreement, such restrictions shall be read together so as to provide the broadest restriction possible.
IN
WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written.
| WITNESS: |
|
QUAKER
CHEMICAL CORPORATION
DBA
QUAKER HOUGHTON |
| |
|
|
| /s/ Amy O'Neill |
|
/s/ Robert T. Traub |
| |
|
|
| WITNESS: |
|
JOSEPH
A. BERQUIST |
| |
|
|
|
|
/s/ Joseph A. Berquist |
ADDENDUM
1
| Base
Salary: |
Your
salary will be payable on a bi-weekly basis with an annualized salary of $800,000. You will be eligible for your next salary increase
in 2026.
|
Annual
and Long-
Term
Bonuses: |
For
your position, you are eligible to participate in the Annual Incentive Plan (“AIP”) with a target award percentage for
2025 year of 100% of your base salary, dependent upon Quaker Houghton’s financial results and personal objectives to be determined.
You
will be eligible to participate in the 2025-2027 Long-Term Incentive Plan (“LTIP”). Your award for the 2025-2027 performance
period includes a mix of time-based restricted stock and target performance stock units (PSU’s), such mix to be determined
by the Company’s Compensation and Human Resources Committee. The value, at a target level, is $2,300,000.
All
incentive compensation awards are made at the Company’s discretion, are subject to change, and require the approval of the
Company’s Compensation and Human Resources Committee.
|
| Financial
Planning: |
You will
be eligible to be reimbursed for up to $8,000 per calendar year for expenses incurred for financial planning and/or tax preparation.
|
| Benefits: |
Quaker
Houghton offers a Flexible Benefits Program that is subject to change. This gives you the opportunity to choose from a variety of
options creating a customized benefits package. The following benefits are currently part of the program. In each of these areas,
you are offered a range of options so you may choose the ones that make the most sense for your personal situation.
· Medical
· Dental
· Life
& AD&D Insurance
· Long-term
Disability
· Health
Care and Dependent Care Flexible Spending Accounts (FSAs)
· Retirement
Savings Plan (401K)
· The
Company is reviewing a non-qualified deferred compensation (excess) plan, which if adopted will be part of your overall benefits
package
|
| Vacation
/ Holidays: |
You will
be eligible for 32 PTO days per calendar year while you are working in the U.S. You will begin to accrue an additional 5 days of
PTO per calendar year when you meet the next service level as defined in the plan. In addition, you will be eligible to be paid for
regional holidays. Unused vacation days will not roll over from year to year, unless applicable law requires otherwise.
|
Exhibit 10.2
CHANGE IN CONTROL AGREEMENT
THIS AGREEMENT, dated
November 18, 2024 between QUAKER CHEMICAL CORPORATION, d/b/a QUAKER HOUGHTON, a Pennsylvania corporation (the
“Company”) and Joseph A. Berquist (the “Manager”).
W I T N E S S E T H T H A T
WHEREAS, the Board of Directors of the Company
has determined that it is in the best interests of the Company and its shareholders that the Company and its subsidiaries be able to attract,
retain, and motivate highly qualified management personnel and, in particular, that they be assured of continuity of management in the
event of any actual or threatened change in control of the Company; and
WHEREAS, the Board of Directors of the Company
believes that the execution by the Company of change in control agreements with certain management personnel, including the Manager, is
an important factor in achieving this desired end;
NOW, THEREFORE, IN CONSIDERATION of the mutual
obligations and agreements contained herein and intending to be legally bound hereby, the Manager and the Company agree that the Change
in Control Agreement is amended and restated, as follows:
1. Term
of Agreement.
This Agreement shall become effective on your start
date with the Company (the “Effective Date”), and shall continue in effect through December 31, 2024, provided, however,
that the term of this Agreement shall automatically be extended for successive one-year periods thereafter, unless, not later than eighteen
(18) months preceding the calendar year for which the term would otherwise automatically extend, the Company shall have given written
notice to the Manager of intention not to extend this Agreement for an additional year, in which event this Agreement shall continue in
effect until December 31 of the calendar year immediately preceding the calendar year for which the term would have otherwise automatically
extended. Notwithstanding any such notice not to extend, if a Change in Control (as defined in Section 2) occurs during the original
or extended term of this Agreement, this Agreement shall remain in effect after a Change in Control until all obligations of the parties
hereto under this Agreement shall have been satisfied.
2. Change
in Control.
As used in this Agreement, a “Change in Control”
of the Company shall be deemed to have occurred if:
(a) Any
person (a “Person”), as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”) (other than (i) the Company and/or its wholly owned subsidiaries; (ii) any ESOP or
other employee benefit plan of the Company and any trustee or other fiduciary in such capacity holding securities under such plan; (iii) any
corporation owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership
of stock of the Company; or (iv) any other Person who, within the one year prior to the event which would otherwise be a Change in
Control, is an executive officer of the Company or any group of Persons of which he voluntarily is a part), is or becomes the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing
30% or more of the combined voting power of the Company’s then outstanding securities or such lesser percentage of voting power,
but not less than 15%, as determined by the members of the Board of Directors of the Company who are independent directors (as defined
in the New York Stock Exchange, Inc. Listed Company Manual);
(b) During
any two-year period after the Effective Date, Directors of the Company in office at the beginning of such period plus any new Director
(other than a Director designated by a Person who has entered into an agreement with the Company to effect a transaction within the purview
of subsections (a) or (c)) whose election by the Board of Directors of the Company or whose nomination for election by the Company’s
shareholders was approved by a vote of at least two-thirds of the Directors then still in office who either were Directors at the beginning
of the period or whose election or nomination for election was previously so approved shall cease for any reason to constitute at least
a majority of the Board;
(c) The
consummation of (i) any consolidation or merger of the Company in which the Company is not the continuing or surviving corporation
or pursuant to which the Company’s voting common shares (the “Common Shares”) would be converted into cash, securities,
and/or other property, other than a merger of the Company in which holders of Common Shares immediately prior to the merger have the same
proportionate ownership of voting shares of the surviving corporation immediately after the merger as they had in the Common Shares immediately
before; or (ii) any sale, lease, exchange, or other transfer (in one transaction or a series of related transactions) of all or substantially
all the assets or earning power of the Company; or
(d) The
Company’s shareholders or the Company’s Board of Directors shall approve the liquidation or dissolution of the Company.
3. Entitlement
to Change in Control Benefits; Certain Definitions.
The Manager shall be entitled to the benefits provided
in this Agreement in the event the Manager has a Separation from Service under the circumstances described in (a) below (a “Covered
Termination”), provided the Manager executes and does not revoke a Release (as defined below), if any, provided by the Company.
(a) A
Covered Termination shall have occurred in the event the Manager’s employment with the Company or its affiliates is terminated within
two (2) years following a Change in Control by:
| (i) | The Company or its affiliates without Cause (as defined below); or |
| (ii) | Resignation of the Manager for Good Reason (as defined below). |
The Manager shall have no rights to any payments
or benefits under this Agreement in the event the Manager’s employment with the Company and its affiliates is terminated (i) as
a result of death or Disability (as defined below), or (ii) by the Company or its affiliates for Cause. In the event the Manager’s
employment is terminated for any reason prior to a Change in Control, the Manager shall have no rights to any payments or benefits under
this Agreement and, after any such termination, this Agreement shall be of no further force or effect.
“Cause” shall mean (i) the
Manager’s willful and material breach of the employment agreement, if any, between the Manager and the Company (after having received
notice thereof and a reasonable opportunity to cure or correct), (ii) dishonesty, fraud, willful malfeasance, gross negligence, or
other gross misconduct, in each case relating to the performance of the Manager’s employment with the Company or its affiliates
which is materially injurious to the Company, or (iii) conviction of or plea of guilty to a felony, such Cause to be determined,
in each case, by a resolution approved by at least two-thirds of the Directors of the Company after having afforded the Manager a reasonable
opportunity to appear before the Board of Directors of the Company and present his position.
“Code” shall mean the Internal
Revenue Code of 1986, as amended, together with any applicable regulations thereunder.
“Disability” shall mean covered
total and permanent disability as defined in the long-term disability plan maintained by the Company for employees generally or, if the
Company does not maintain such a plan, the long-term disability plan most recently maintained by the Company for employees generally.
“Good Reason” shall mean any
of the following actions without the Manager’s consent, other than due to the Manager’s death or Disability: (i) any
reduction in the Manager’s base salary from that provided immediately before the Covered Termination or, if higher, immediately
before the Change in Control; (ii) any reduction in the Manager’s bonus opportunity (including cash and noncash incentives)
or increase in the goals or standards required to accrue that opportunity, as compared to the opportunity and goals or standards in effect
immediately before the Change in Control; (iii) a material adverse change in the nature or scope of the Manager’s authorities,
powers, functions, or duties from those in effect immediately before the Change in Control; (iv) a reduction in the Manager’s
benefits from those provided immediately before the Change in Control, disregarding any reduction under a plan or program covering employees
generally that applies to all employees covered by the plan or program; or (v) the Manager being required to accept a primary employment
location which is more than twenty-five (25) miles from the location at which he primarily was employed during the ninety (90) day period
prior to a Change in Control.
“Payment Date” shall mean the
60th day after the Manager’s Separation from Service, subject to Section 9.
“Release” shall mean a release
(in a form satisfactory to the Company) of any and all claims against the Company and all related parties with respect to all matters
arising out of the Manager’s employment by the Company and its affiliates, or the termination thereof (other than claims for any
entitlements under the terms of this Agreement, under any employment agreement between the Manager and the Company, or under any plans
or programs of the Company under which the Manager has accrued a benefit) that the Company provides to the Manager no later than three
days after the date of the Manager’s Covered Termination. Notwithstanding any provision of this Agreement to the contrary, if the
Company provides a Release to the Manager, the Manager shall not be entitled to any payments or benefits under this Agreement unless the
Manager executes the Release within 45 days of the later of the date he receives the Release or the date of his Covered Termination, and
the Manager does not revoke the Release.
“Separation from Service” shall
mean the Manager’s separation from service with the Company and its affiliates within the meaning of Treas. Reg. §1.409A-1(h) or
any successor thereto.
“Specified Employee” shall mean
the Manager if he is a specified employee as defined in Section 409A of the Code as of the date of his Separation from Service.
4. Severance
Allowance.
(a) Amount
of Severance Allowance. In the event of a Covered Termination, the Company shall pay or cause to be paid to the Manager in cash a
severance allowance (the “Severance Allowance”) equal to two (2) times the sum of the amounts determined in accordance
with the following paragraphs (i) and (ii):
| (i) | An amount equivalent to the highest annualized base salary which the Manager was entitled to receive from the Company and its subsidiaries
at any time during his employment prior to the Covered Termination; and |
| (ii) | An amount equal to the average of the aggregate annual amounts paid to the Manager in the Applicable Three-Year Period under all applicable
annual incentive compensation plans maintained by the Company and its affiliates (other than compensation relating to relocation expense;
the grant, exercise, or settlement of stock options, restricted stock or performance incentive units or the sale or other disposition
of shares received upon exercise or settlement of such awards); provided, however, that (x) in determining the average amount paid
under the annual incentive plan during the Applicable Three-Year Period there shall be excluded any year in which no amounts were paid
to the Manager under that plan; and (y) there shall be excluded from such calculation any amounts paid to the Manager under any such
incentive compensation plan as a result of the acceleration of such payments under such plan due to termination of the plan, a Change
in Control, or a similar occurrence. The Applicable Three-Year Period shall be (A) if the Manager has received an annual incentive
compensation plan payment in the calendar year of his Covered Termination, the calendar year in which such Covered Termination occurs
and the two preceding calendar years, or (B) in any other case, the three calendar years preceding the calendar year in which the
Manager’s Covered Termination occurs; provided, however, that the Applicable Three-Year Period shall be determined by substituting
“Change In Control” for “Covered Termination” if such substitution results in a higher amount under this subsection
(ii). |
In no event shall any retention bonus or change in control or success
fee be taken into account when determining the amount of the Severance Allowance hereunder.
(b) Payment
of Severance Allowance. The Severance Allowance shall be paid to the Manager in a lump sum on the Payment Date if the applicable Change
in Control is also a change in control event as defined in Treas. Reg. §1.409A-3(i)(5) (or any successor thereto). In any other
case, the Severance Allowance shall be paid in eighteen monthly installments commencing on the Payment Date, each of which is equal to
one eighteenth (1/18th) of the amount of the Severance Allowance determined under Section 4(a), which are treated as a right to a
series of separate payments for purposes of Section 409A of the Code.
5. Outplacement
and Welfare Benefits.
(a) Outplacement.
Subject to Section 6, for a period of one year following a Covered Termination of the Manager, the Company shall make or cause to
be made available to the Manager, at its expense, outplacement counseling and other outplacement services comparable to those available
for the Company’s senior managers prior to the Change in Control.
(b) Welfare
Benefits. Subject to Section 6, for a period eighteen months following a Covered Termination of the Manager, the Manager and
the Manager’s dependents shall be entitled to participate in the Company’s life, medical, and dental insurance plans at the
Company’s expense, in accordance with the terms of such plans at the time of such Covered Termination as if the Manager were still
employed by the Company or its affiliates under this Agreement. If, however, life, medical, or dental insurance benefits are not paid
or provided under any such plan to the Manager or his dependents because the Manager is no longer an employee of the Company or its subsidiaries,
the Company itself shall, to the extent necessary, pay or otherwise provide for such benefits to the Manager and his dependents.
6. Effect
of Other Employment.
In the event the Manager becomes employed (as defined
below) during the period with respect to which benefits are continuing pursuant to Section 5: (a) the Manager shall notify the
Company not later than the day such employment commences; and (b) the benefits provided for in Section 5 shall terminate as
of the date of such employment. For the purposes of this Section 6, the Manager shall be deemed to have become “employed”
by another entity or person only if the Manager becomes essentially a full-time employee of a person or an entity (not more than 30% of
which is owned by the Manager and/or members of his family); and the Manager’s “family” shall mean his parents, his
siblings and their spouses, his children and their spouses, and the Manager’s spouse and his parents and siblings. Nothing herein
shall relieve the Company of its obligations for compensation or benefits accrued up to the time of termination provided for herein.
7. Other
Payments and Benefits.
On the Payment Date, the Company shall pay or cause
to be paid to the Manager the aggregate of: (a) the Manager’s earned but unpaid base salary through the Covered Termination
at the rate in effect on the date of the Covered Termination, or if higher, at the rate in effect at any time during the 90-day period
preceding the Change in Control; (b) any unpaid bonus or annual incentive payable to the Manager in respect of the calendar year
ending prior to the Covered Termination; (c) the pro rata portion of any and all unpaid bonuses and annual incentive awards for the
calendar year in which the Covered Termination occurs, said pro rata portion to be calculated on the fractional portion (the numerator
of said fraction being the number of days between January 1 and the date of the Covered Termination, and the denominator of which
is 365) of the target bonuses or annual incentive awards for such calendar year; and (d) the pro rata portion of any and all awards
under the Company’s long term incentive plan for the performance period(s) in which the Covered Termination occurs, said pro
rata portion to be calculated on the fractional portion (the numerator of said fraction being the number of days between the first day
of the applicable performance period and the date of the Covered Termination, and the denominator of which is the total number of days
in the applicable performance period) of the amount of the award which would have been payable had (i) the Covered Termination not
occurred, and (ii) the target level of performance been achieved for the applicable performance period. The Manager shall be entitled
to receive any other payments or benefits that the Manager is entitled to pursuant to the express terms of any compensation or benefit
plan or arrangement of the Company or any of its affiliates; provided that: (x) the Severance Allowance (i) shall be in lieu
of any severance payments to which the Manager might otherwise be entitled under the terms of any severance pay plan, policy, or arrangement
maintained by the Company or the employment agreement, if any, between the Manager and the Company, and (ii) shall be credited against
any severance payments to which the Manager may be entitled by statute; (y) any annual incentive described in subsection (b) or
(c) shall decrease (or shall be decreased by), but not below zero, the amount of the annual incentive payable (or paid) with respect
to the same calendar year under the Company’s annual incentive plan (currently the 2023 Annual Incentive Plan); and (z) any
amount described in subsection (d) shall decrease (or shall be decreased by), but not below zero, the amount of the analogous performance
award payable (or paid) with respect to the same performance period(s) under the Company’s long term incentive plan(s) (currently
the 2016 Long-Term Performance Incentive Plan).
8. Death
After Covered Termination.
In the event the Manager dies after a Covered Termination
occurs, (a) any payments due to the Manager under Section 4 and the first sentence of Section 7 and not paid prior to the
Manager’s death shall be made to the person or persons who may be designated by the Manager in writing or, in the event he fails
to so designate, to the Manager’s personal representatives, and (b) the Manager’s spouse and dependents shall be eligible
for the welfare benefits described in Section 5(b). Payments pursuant to subsection (a) shall be made on the later of (i) the
date payment would have been made to the Manager without regard to Section 9, or (ii) the date of the Manager’s death.
9. Certain
Section 409A Rules.
(a) Specified
Employee. Notwithstanding any provision of this Agreement to the contrary, if the Manager is a Specified Employee, any payment or
benefit under this Agreement that constitutes deferred compensation subject to Section 409A of the Code and for which the payment
event is Separation from Service shall not be made or provided before the date that is six months after the date of the Manager’s
Separation from Service. Any payment or benefit that is delayed pursuant to this Section 9 shall be made or provided on the first
business day of the seventh month following the month in which the Manager’s Separation from Service occurs. With respect to any
cash payment delayed pursuant to this Section 9, the first payment shall include interest, at the Wall Street Journal Prime Rate
published in the Wall Street Journal on the date of the Manager’s Covered Termination (or the previous business day if such date
is not a business day), for the period from the date the payment would have been made but for this Section 9 through the date payment
is made. The provisions of this Section 9 shall apply only to the extent required to avoid the Manager’s incurrence of any
additional tax or interest under Section 409A of the Code.
(b) Reimbursement
and In-Kind Benefits. Notwithstanding any provision of this Agreement to the contrary, with respect to in-kind benefits provided or
expenses eligible for reimbursement under this Agreement which are subject to Section 409A of the Code, (i) the benefits provided
or the amount of expenses eligible for reimbursement during any calendar year shall not affect the benefits provided or expenses eligible
for reimbursement in any other calendar year, except as otherwise provided in Treas. Reg. §1.409A-3(i)(1)(iv)(B), and (ii) the
reimbursement of an eligible expense shall be made as soon as practicable after the Manager requests such reimbursement (subject to Section 9(a)),
but not later than the December 31 following the calendar year in which the expense was incurred.
(c) Interpretation
and Construction. This Agreement is intended to comply with Section 409A of the Code and shall be administered, interpreted,
and construed in accordance therewith to avoid the imposition of additional tax under Section 409A of the Code.
10. Confidentiality
and Noncompetition.
(a) Confidential
Information. The Manager acknowledges that information concerning the method and conduct of the Company’s (and any affiliate’s)
business, including, without limitation, strategic and marketing plans, budgets, corporate practices and procedures, financial statements,
customer and supplier information, formulae, formulation information, application technology, manufacturing information, and laboratory
test methods and all of the Company’s (and any affiliate’s) manuals, documents, notes, letters, records, and computer programs
(“Proprietary Business Information”), are the sole and exclusive property of the Company (and/or the Company’s affiliates,
as the case may be) and are likely to constitute, contain or reveal trade secrets (“Trade Secrets”) of the Company (and/or
the Company’s affiliate’s, as the case may be). The term “Trade Secrets” as used herein does not include Proprietary
Business Information that is known or becomes known to the public through no act or failure to act on the part of the Manager, or which
can be clearly shown by written records to have been known by the Manager prior to the commencement of his employment with the Company.
| (i) | The Manager agrees that at no time during or following his employment with the Company will he use, divulge, or pass on, directly
or through any other individual or entity, any Trade Secrets. |
| (ii) | Upon termination of the Manager’s employment with the Company regardless of the reason for the termination of the Manager’s
employment hereunder, or at any other time upon the Company’s request, the Manager agrees to forthwith surrender to the Company
any and all materials in his possession or control which constitute or contain any Proprietary Business Information. |
(b) Noncompetition.
The Manager agrees that during his employment and for a period of one (1) year thereafter, regardless of the reason for the termination
of the Manager’s employment, he will not:
| (i) | directly or indirectly, together or separately or with any third party, whether as an individual proprietor, partner, stockholder,
officer, director, joint venturer, investor, or in any other capacity whatsoever actively engage in business or assist anyone or any firm
in business as a manufacturer, seller, or distributor of specialty chemical products or chemical management services which are the same,
like, similar to, or which compete with the products and services offered by the Company (or any of its affiliates); |
| (ii) | directly or indirectly recruit, solicit, or encourage any employee of the Company (or any of its affiliates) or otherwise induce such
employee to leave the employ of the Company (or any of its affiliates) or to become an employee or otherwise be associated with his or
any firm, corporation, business, or other entity with which he is or may become associated; or |
| (iii) | solicit, directly or indirectly, for himself or as agent or employee of any person, partnership, corporation, or other entity (other
than for the Company), any then or former customer, supplier, or client of the Company with the intent of actively engaging in business
which would cause competitive harm to the Company (or any of its affiliates). |
(c) Severability.
The Manager acknowledges and agrees that all of the foregoing restrictions are reasonable as to the period of time and scope. However,
if any paragraph, sentence, clause, or other provision is held invalid or unenforceable by a court of competent and relevant jurisdiction,
such provision shall be deemed to be modified in a manner consistent with the intent of such original provision so as to make it valid
and enforceable, and this Agreement and the application of such provision to persons and circumstances other than those with respect to
which it would be invalid or unenforceable shall not be affected thereby.
(d) Remedies.
The Manager agrees and recognizes that in the event of a breach or threatened breach of the provisions of the restrictive covenants contained
in this Section 10, the Company may suffer irreparable harm, and monetary damages may not be an adequate remedy. Therefore, if any
breach occurs or is threatened, the Company shall be entitled to seek equitable remedies, including injunctive relief in any court of
applicable jurisdiction notwithstanding the provisions of Section 12. In the event of any breach of the restrictive covenant contained
in this Section 10, the term of the restrictive covenant specified herein shall be extended by a period of time equal to that period
beginning on the date such violation commenced and ending when the activities constituting such violation cease. Furthermore, if a court
or arbitration panel determines that the Manager has breached any of the provisions of this Section 10, the Company’s obligations
to pay amounts and continue the benefits under this Agreement to the Manager (and his dependents) shall immediately terminate.
11. Set-Off
Mitigation.
Except as provided in Section 6, the Company’s
obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected
by any set-off, counterclaim, recoupment, defense, or other claim, right, or action which the Company may have against the Manager or
others. In no event shall the Manager be obligated to seek other employment or take any other action by way of mitigation of the amounts
payable to the Manager under any of the provisions of this Agreement.
12. Arbitration:
Costs and Expenses of Enforcement.
(a) Arbitration.
Except as otherwise provided in Sections 10(d) and 13, any controversy or claim arising out of or relating to this Agreement or the
breach thereof which cannot promptly be resolved by the parties shall be promptly submitted to and settled exclusively by arbitration
in the City of Philadelphia, Pennsylvania, in accordance with the laws of the Commonwealth of Pennsylvania by three arbitrators, one of
whom shall be appointed by the Company, one by the Manager, and the third of whom shall be appointed by the first two arbitrators. The
arbitration shall be conducted in accordance with the rules of the American Arbitration Association, except with respect to the selection
of arbitrators which shall be as provided in this Section 12. Judgment upon the award rendered by the arbitrators may be entered
in any court having jurisdiction thereof.
(b) Costs
and Expenses. In the event that it shall be necessary or desirable for the Manager to retain legal counsel and/or incur other costs
and expenses in connection with the enforcement of any and all of his rights under this Agreement at any time during his lifetime, the
Company shall pay (or the Manager shall be entitled to recover from the Company, as the case may be) his reasonable attorneys’ fees
and costs and expenses in connection with the enforcement of his said rights (including those incurred in or related to any arbitration
proceedings provided for in subsection (a) and the enforcement of any arbitration award in court), regardless of the final outcome.
13. Limitation
on Payment Obligation.
(a) Definitions.
For purposes of this Section 13, all terms capitalized but not otherwise defined herein shall have the meanings as set forth in Section 280G
of the Code. In addition:
| (i) | the term “Parachute Payment” shall mean a payment described in Section 280G(b)(2)(A) or Section 280G(b)(2)(B) of
the Code (including, but not limited to, any stock option rights, stock grants, and other cash and noncash compensation amounts that are
treated as payments under either such section) and not excluded under Section 280G(b)(4)(A) or Section 280G(b)(6) of
the Code; |
| (ii) | the term “Reasonable Compensation” shall mean reasonable compensation for prior personal services as defined in Section 280G(b)(4)(B) of
the Code and subject to the requirement that any such reasonable compensation must be established by clear and convincing evidence; and |
| (iii) | the portion of the “Base Amount” and the amount of “Reasonable Compensation” allocable to any “Parachute
Payment” shall be determined in accordance with Section 280G(b)(3) and (4) of the Code. |
(b) Limitation.
Notwithstanding any other provision of this Agreement, Parachute Payments to be made to or for the benefit of the Manager but for this
subsection (b), whether pursuant to this Agreement or otherwise, shall be reduced if and to the extent necessary so that the aggregate
Present Value of all such Parachute Payments shall be at least one dollar ($1.00) less than the greater of (i) three times the Manager’s
Base Amount and (ii) the aggregate Reasonable Compensation allocable to such Parachute Payments. Any reduction in Parachute Payments
caused by reason of this subsection (b) shall be applied in the manner least economically detrimental to the Manager. In the event
reduction of two or more types of payments would be economically equivalent, the reduction shall be applied pro-rata to such types of
payments.
This subsection (b) shall be interpreted and
applied to limit the amounts otherwise payable to the Manager under this Agreement or otherwise only to the extent required to avoid any
material risk of the imposition of excise taxes on the Manager under Section 4999 of the Code or the disallowance of a deduction
to the Company under Section 280G(a) of the Code. In the making of any such interpretation and application, the Manager shall
be presumed to be a disqualified individual for purposes of applying the limitations set forth in this subsection (b) without regard
to whether or not the Manager meets the definition of disqualified individual set forth in Section 280G(c) of the Code. In the
event that the Manager and the Company are unable to agree as to the application of this subsection (b), the Company’s independent
auditors shall select independent tax counsel to determine the amount of such limits. Such selection of tax counsel shall be subject to
the Manager’s consent, provided that the Manager shall not unreasonably withhold his consent. The determination of such tax counsel
under this Section 13 shall be final and binding upon the Manager and the Company.
(c) Illegal
Payments. Notwithstanding any other provision of this Agreement, no payment shall be made hereunder to or for the benefit of the Manager
if and to the extent that such payments are determined to be illegal.
14. Notices.
Any notices, requests, demands, and other communications
provided for by this Agreement shall be sufficient if in writing, and if hand delivered or if sent by registered or certified mail, if
to the Manager, at the last address he had filed in writing with the Company or if to the Company, at its principal executive offices.
Notices, requests, etc. shall be effective when actually received by the addressee or at such address.
15. Withholding.
Notwithstanding any provision of this Agreement
to the contrary, the Company may, to the extent required by law, withhold applicable Federal, state, and local income and other taxes
from any payments due to the Manager hereunder.
16. Assignment
and Benefit.
(a) This
Agreement is personal to the Manager and shall not be assignable by the Manager, by operation of law, or otherwise without the prior written
consent of the Company otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and
be enforceable by the Manager’s heirs and legal representatives.
(b) This
Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns, including, without limitation,
any subsidiary of the Company to which the Company may assign any of its rights hereunder; provided, however, that no assignment of this
Agreement by the Company, by operation of law, or otherwise shall relieve it of its obligations hereunder except an assignment of this
Agreement to, and its assumption by, a successor pursuant to subsection (c).
(c) The
Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation, operation of law, or otherwise) to
all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform it if no such succession had taken place, but, irrespective
of any such assignment or assumption, this Agreement shall inure to the benefit of and be binding upon such a successor. As used in this
Agreement, “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid.
17. Governing
Law.
The provisions of this Agreement shall be construed
in accordance with the laws of the Commonwealth of Pennsylvania without reference to principles of conflicts of laws.
18. Entire
Agreement; Amendment.
(a) Except
for the change in control provisions set forth in the Company’s annual incentive plan and long-term incentive plans, this Agreement
represents the entire agreement and understanding of the parties with respect to the subject matter hereof. The Manager understands and
acknowledges that the Company’s severance plan, annual incentive plan and long-term incentive plans are hereby amended with respect
to the Manager to avoid duplication of benefits, as provided in Section 7.
(b) The
Company reserves the right to unilaterally amend this Agreement without the consent of the Manager to the extent the Compensation/Management
Development Committee of the Company’s Board of Directors (in its sole discretion) determines is necessary or appropriate to avoid
the additional tax under Section 409A(a)(1)(B) of the Code; otherwise, this Agreement may not be altered or amended except by
an agreement in writing executed by the Company and the Manager.
19. No
Waiver.
The failure to insist upon strict compliance with
any provision of this Agreement by any party shall not be deemed to be a waiver of any future noncompliance with such provision or of
noncompliance with any other provision.
20. Severability.
In the event that any provision or portion of this
Agreement shall be determined to be invalid or unenforceable for any reason, the remaining provisions of this Agreement shall be unaffected
thereby and shall remain in full force and effect.
21. Indemnification.
The Company shall defend and hold the Manager harmless
to the fullest extent permitted by applicable law in connection with any claim, action, suit, investigation or proceeding arising out
of or relating to performance by the Manager of services for, or action of the Manager as a director, officer or employee of the Company
or any parent, subsidiary or affiliate of the Company, or of any other person or enterprise at the Company’s request. Expenses incurred
by the Manager in defending such a claim, action, suit or investigation or criminal proceeding shall be paid by the Company in advance
of the final disposition thereof upon the receipt by the Company of an undertaking by or on behalf of the Manager to repay said amount
unless it shall ultimately be determined that the Manager is entitled to be indemnified hereunder; provided, however, that this shall
not apply to a nonderivative action commenced by the Company against the Manager.
IN WITNESS WHEREOF, the Manager has hereunto set
his hand and, pursuant to the authorization from its Board of Directors, the Company has caused these presents to be executed in its name
and on its behalf and attested by its Secretary or Assistant Secretary, all as of the day and year first above written.
| |
JOSEPH A. BERQUIST |
| |
/s/ Joseph A. Berquist |
| |
|
| |
QUAKER CHEMICAL CORPORATION DBA QUAKER
HOUGHTON |
| |
|
| |
By: |
/s/ Robert T. Traub |
| |
|
| |
Title: |
Senior Vice President, General Counsel and Corporate Secretary |
Exhibit 99.1
 |
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Investor
Contact:
Jeffrey Schnell
Vice President, Investor Relations
investor@quakerhoughton.com
T.+1.610.832.4087 |
Media
Contact:
Melissa McClain
Communications Director
media@quakerhoughton.com
T. +1.610.832.7809 |
For Release: Immediate
Quaker Houghton
Appoints Joseph Berquist as CEO and President
CONSHOHOCKEN,
PA (November 18, 2024) /PRNewswire/ – Quaker Houghton ("the Company"; NYSE: KWR) announced today that its Board of
Directors has appointed Joseph Berquist as Chief Executive Officer and President, and a member of the Board of Directors, effective immediately.
Mr. Berquist, who succeeds Andy Tometich as Chief Executive Officer and President, most recently served as Executive Vice President and
Chief Commercial Officer for Quaker Houghton.
Michael F. Barry,
Chairman of the Board of Directors of Quaker Houghton commented, “I want to thank Andy for his three years of leadership at Quaker
Houghton. His outside perspective and experiences were valuable to help position the Company for future growth. The Board’s
plan since my retirement has been, ultimately, to have a CEO with detailed working knowledge and experience with our specific industry,
customers, and products. That detailed familiarity with the business will help drive shareholder value as we grow through organic market
share gains as well as acquisitions.”
Mr. Barry continued,
“Joe has demonstrated exceptional leadership at Quaker Houghton throughout his career. Having personally worked with Joe for more
than 25 years, I know him to be a highly regarded leader with an indisputable knowledge and passion for this industry, our customers,
and our people. His vision and proven track record in delivering above-market growth for Quaker Houghton is precisely what is needed
as the Company enters this next chapter."
"I am honored
to have the confidence of our Board of Directors to lead this organization at such an exciting time for Quaker Houghton”, Mr. Berquist
said. “I look forward to continuing to work alongside my remarkable colleagues to enhance Quaker Houghton’s position as the
trusted global leader in industrial process fluids and services. We have a strong foundation and proven business model with an opportunity
to add scale, strengthen our culture, and deliver long-term sustainable value to our customers and our shareholders."
Since joining Quaker
Houghton in 1997, Mr. Berquist has been instrumental in the execution of the Company’s growth. In 2008, he was promoted to the
Company’s executive leadership team as Managing Director North America, where he drove several consecutive years of revenue and
profitability improvement. Mr. Berquist successfully co-led the integration planning of the 2019 Quaker Houghton combination, a transaction
that nearly doubled the Company’s size, and generated synergies in excess of $80M. During his tenure, he has been involved in executing
24 of the Company’s acquisitions. In 2019, Mr. Berquist assumed the role of Chief Strategy Officer, where he led the organization’s
strategy development. In 2023, Mr. Berquist was appointed to the newly created position of Executive Vice President, Chief Commercial
Officer with commercial responsibility over all Quaker Houghton’s global businesses.
About Quaker
Houghton
Quaker Houghton
is the global leader in industrial process fluids. With a presence around the world, including operations in over 25 countries, our customers
include thousands of the world’s most advanced and specialized steel, aluminum, automotive, aerospace, offshore, container, mining,
and metalworking companies. Our high-performing, innovative and sustainable solutions are backed by best-in-class technology, deep process
knowledge and customized services. With approximately 4,400 employees, including chemists, engineers and industry experts, we partner
with our customers to improve their operations so they can run even more efficiently, even more effectively, whatever comes next. Quaker
Houghton is headquartered in Conshohocken, Pennsylvania, located near Philadelphia in the United States. Visit quakerhoughton.com to
learn more.
Forward-Looking
Statements
This press release
contains “forward-looking statements” that fall under the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995 and the Securities Act of 1933, as amended. These statements can be identified by the fact that they do not relate strictly
to historical or current facts. These forward-looking statements include statements with respect to our beliefs, plans, objectives, goals,
expectations, anticipations, intentions, financial condition, results of operations, future performance, and business, and statements
that include the words “may,” “could,” “should,” “would,” “believe,” “expect,”
“anticipate,” “estimate,” “intend,” “outlook, “target”, “possible”,
“potential”, “plan” or similar expressions. We have based these forward-looking statements on assumptions, projections
and expectations about future events that we believe are reasonable based on currently available information. Our forward-looking statements
are subject to risks, uncertainties and assumptions about the Company and its operations that are subject to change based on various
important factors, some of which are beyond our control and could cause our actual results to differ materially from expected and historical
results. Therefore, we caution you not to place undue reliance on our forward-looking statements. For more information regarding these
risks and uncertainties as well as certain additional risks that we face, refer to the Risk Factors section, which appears in Item 1A
of our Annual Report on Form 10-K for the year ended December 31, 2023, and in subsequent reports filed from time to time with the Securities
and Exchange Commission. We do not intend to, and we disclaim any duty or obligation to, update or revise any forward-looking statements
to reflect new information or future events or for any other reason. This discussion is provided as permitted by the Private Securities
Litigation Reform Act of 1995.
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