Document:

EXHIBIT 10(c)

 

EMPLOYMENT CONTRACT

This EMPLOYMENT CONTRACT ("Agreement"), effective as of the 1st day of October, 2014 ("the Date of Employment"), is entered into by and between Trecora Resources, a Delaware corporation whose principal office is located at 1650 Hwy 6, Suite 190, Sugar Land, Texas 77478, and Peter M. Loggenberg, Ph.D. ("Loggenberg") of 902 Sprucewood Lane, Houston, Texas 77024.

W I T N E S S E T H:

WHEREAS, Trecora Resources owns and operates a chemical manufacturing business;

WHEREAS, Loggenberg and Trecora Resources wish to enter into an agreement governing the terms and conditions of his employment; and

WHEREAS, on even date herewith, Loggenberg and Trecora Resources also entered into a Severance Agreement and Covenant Not to Compete, Solicit and Disclose ("Severance Agreement"), pursuant to which Trecora Resources promised to provide Loggenberg (i) severance pay, (ii) access to proprietary, confidential, and other information, and (iii) industry specific training, in exchange for which Loggenberg covenants not to compete, solicit and disclose the confidential information to be provided thereby;

NOW, THEREFORE, for and in consideration of the premises and the mutual promises, covenants, and agreements herein contained and other good and valuable consideration, the receipt and adequacy of which are hereby forever acknowledged and confessed, the parties hereto agree as follows:

ARTICLE I

EMPLOYMENT

1.1 Trecora Resources hereby agrees to employ Loggenberg as the President of its subsidiary, Trecora Chemical, Inc. ("Company"), and Loggenberg hereby accepts such employment in accordance with the terms of this Agreement and the terms of employment applicable to regular employees of the Company. In the event of any conflict or ambiguity between the terms of this Agreement and terms of employment applicable to regular employees, the terms of this Agreement shall control.

ARTICLE II

DUTIES OF LOGGENBERG

2.1 The duties of Loggenberg shall include the performance of all duties typical of the office held by Loggenberg as described in the bylaws of the Company and such other duties and projects as may be assigned by a superior officer of the Company, if any, or the board of directors of the Company. Loggenberg will not, during the term of this Agreement, directly or indirectly engage in any other business competing directly with the Company, either as an employee, 

 

 

employer, consultant, principal, officer, director, advisor, or in any other capacity, with or without compensation, without the prior written consent of the Company. In addition to the duties described herein, Loggenberg is also authorized and directed to do the following:

2.2 provide reasonable professional direction and supervision of the personnel of Company, including providing Company with advice and assistance in the hiring, evaluation, promotion, and firing of such personnel;

2.3 assist Company in the development of policies and procedures for Company's business and keeping such business in compliance with all such policies and procedures;

2.4 do all things reasonably necessary or desirable to maintain and improve his skills as an employee;

2.5 use reasonable efforts to promote and support the interests (business and otherwise) of the Company, including, but not limited to, participating in marketing activities and efforts;

2.6 assist the Company in marketing and developing marketing plans and procedures to expand sales of the products and services of the Company's business to both existing and new customers;

2.7 take reasonable efforts to keep and maintain (or causing to be kept and maintained) appropriate records relating to the business of the Company and attending to correspondence, reports, and other record keeping requirements associated with Loggenberg's duties with the Company;

2.8 take reasonable efforts to see that the Company complies with all state, federal, and local laws, rules, and regulations applicable to the business of the Company;

2.9 comply in all respects with the rules, policies, and procedures of the Company;

2.10 abide by any reasonable schedule of hours formulated by the Company;

2.11 at the request or with the consent of the Company, attend conventions and seminars, participate in professional societies, the cost of which will be paid by Company, and do all things reasonably desirable to maintain and improve his professional skills;

2.12 cooperate with other employees and officers of the Company and the Company's parent and sister companies in all reasonable manners; and

2.13 perform in a diligent and timely manner such duties as set forth herein and such other duties as Company and Loggenberg may, from time to time, agree.

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ARTICLE III

EXCLUDED ACTIVITIES AND INTELLECTUAL PROPERTY

3.1 Any knowledge that Loggenberg possesses or develops that relates to Drilling Base Fluids, Fracking or Completions Fluids as well as any chemistry related to the dehydrogenation or oxidation of C2 and C3 molecules including but not limited to ethane, ethylene ethanol, propane, propylene and propanol, excluding wax production, will not be any part of this agreement as Company recognizes that this subject matter is not part of this agreement and Loggenberg retains the right to continue and retain business, intellectual property and all other rights regardless of the existence of this agreement. Should Company wish to use such technology or business, then a separate mutually acceptable agreement needs to be concluded between Loggenberg and the Company.

3.2 It is recognized by both parties that Loggenberg has business with SSI, Arthur Steier, SSI Schuman, or other related parties. Due to the possibility of conflicts of interest, and the need to provide the Company with his primary attention, it is agreed that Loggenberg will extricate himself from those interests within three (3) years of accepting the position with the Company.

3.3 It is recognized by both parties that Loggenberg has a relationship with Don Power and DP&PL, which company may have patented technologies, and which the Company may wish to use in the future. Both parties agree that if the Company can use the technology to its benefit, there will be a reasonable royalty or other fee structure developed to the benefit of both parties. In the case of development of future technologies, Loggenberg agrees to keep any further developments with that relationship separate from the business of the Company and his responsibilities thereto.

3.4 Loggenberg agrees to observe and comply with the reasonable rules and regulations of the Company and its business as adopted from time to time.  Loggenberg shall not engage in any business or other activity than those listed in sections 3.1-3.3 above that hinders in any way Loggenberg's ability to serve as an employee of the Company.

ARTICLE IV

COMPENSATION AND BENEFITS

4.1 Compensation During Term of Employment.

	
a.

	
Salary.  Loggenberg will be paid a base salary of THREE HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS ($350,000.00) per year, payable in installments according to the Company's regular payroll schedule.  The base salary shall be adjusted in January following each year of employment at the discretion of the board of directors, with minimum salary increase on an annual basis determined by the same formula and factors the Company and Trecora Resources use for other upper management positions.

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b.

	
Signing Bonus.  Loggenberg shall receive a bonus of THIRTY FIVE THOUSAND AND NO/100 DOLLARS ($35,000.00) payable upon signing this Agreement.

	
c.

	
Stock Grant.  Loggenberg shall receive a grant of SEVEN THOUSAND (7,000) restricted common shares of Trecora Resources upon the signing of this Agreement.

4.2 Benefits.

	
a.

	
Medical and Dental Insurance.  Company will either reimburse, if Loggenberg obtains his own coverage, or provide health insurance, dental insurance, medical and hospital treatment benefits for Loggenberg with such medical and hospital treatment program as made available to other similarly situated employees, and other type of benefits as the Company may from time to time have in effect for its other employees and their families. The Company currently covers 80% of the cost of such coverage with the employee responsible for the remainder. Alternatively, Loggenberg may purchase his own insurance, and the Company will contribute the amount it would have contributed under the Company's regular health insurance program.

	
b.

	
Pension and Profit Sharing Plans.  Loggenberg shall be entitled to participate in the 401K plan and quarterly profit sharing plan adopted by the Company for the benefit of its officers and/or regular employees.

	
c.

	
Long-Term Incentive Compensation Plans.  Loggenberg shall be entitled to participate in any long-term incentive compensation plan adopted by the Company for the benefit of officers and/or regular employees.

	
d.

	
Annual Cash Incentive Plan.  Loggenberg shall be entitled to participate in the annual cash incentive plan adopted by the Company for the benefit of officers and/or regular employees. The target Bonus for Loggenberg will be initially set at 60% for purposes of the calculation with the Maximum Bonus as % of Base Salary being set at 120% of Base Salary.

	
e.

	
Automobile.  Company will provide to Loggenberg the use of an automobile of Loggenberg's choice at a gross purchase price not to exceed $50,000.  Company agrees to replace the automobile with a new one at Loggenberg's request no more often than once every five years or 85.000 miles, whichever comes first. Company will pay all automobile operating expenses incurred by Loggenberg in the performance of Loggenberg's Company duties. Company will procure and maintain in force an automobile liability policy for the automobile with coverage, including Loggenberg, in the minimum amount of $1,000,000 combined single limit on bodily injury and property damage.

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f.

	
Expense Reimbursement.  Loggenberg shall be entitled to reimbursement for all reasonable expenses, including travel and entertainment in accordance with normal Company policy, incurred by Loggenberg in the performance of Loggenberg's duties. Loggenberg will maintain records and written receipts as required by Company policy and reasonably requested by the board of directors to substantiate such expenses.

	
g.

	
Vacation.  Loggenberg shall be entitled to 20 days of paid vacation each calendar year in accordance with normal Company policy.

	
h.

	
Holidays.  Loggenberg will be entitled paid holidays each calendar year in accordance with normal Company policy.

	
i.

	
Sick Leave.  Loggenberg shall be entitled to sick leave and emergency leave according to the regular policies and procedures of Company.

ARTICLE V

TERM AND TERMINATION

5.1 Term of Employment.  As used herein, "Term of Employment" shall mean the period commencing and effective on date of this Agreement, and continuing for an indefinite term until terminated in accordance with the provisions of this Agreement.

5.2 Termination For Good Cause.  Company may terminate this Agreement upon the first to occur of the following each of which shall constitute good cause for termination of this Agreement:

The commission of any crime by Loggenberg involving moral turpitude;

	
a.

	
Loggenberg's embezzling any funds or property of the Company or committing any other  dishonest act towards the Company;

	
b.

	
Company's determination that Loggenberg was under the influence of alcohol or illegal drugs, as defined by the Company's employee handbook, during working hours;

5.3 Termination Without Good Cause.  This Agreement may be terminated by either party without cause, by giving written notice, sixty (60) days prior to the effective date of termination. If Company terminates Loggenberg without cause, then severance payments as per the Severance Agreement entered into in addition to this Agreement will apply.

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ARTICLE VI

ADDITIONAL PROVISIONS

6.1 Additional Assurances.  The provisions of this Agreement shall be self-operative and shall not require further agreement by the parties, except as may be specifically provided to the contrary; provided, however, at the request of the Company, Loggenberg shall execute such additional instruments and take such additional acts as Company may deem necessary to effectuate this Agreement.

6.2 Legal Fees and Costs.  Each party shall pay their own legal fees and costs to enforce the terms and provisions of this Agreement.

6.3 Choice of Law and Dispute Resolution.  THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF TEXAS AND SHALL BE PERFORMABLE IN HARRIS COUNTY, TEXAS AND VENUE FOR ANY LITIGATION REGARDING THIS AGREEMENT SHALL BE IN THE STATE OR FEDERAL COURTS OF HARRIS COUNTY, TEXAS.  LOGGENBERG HEREBY ACKNOWLEDGES THAT HE AGREES TO SUBMIT ALL CLAIMS AGAINST THE COMPANY (INCLUDING BUT NOT LIMITED TO STATUTORY AND COMMON LAW EMPLOYMENT OR TORT CLAIMS, CLAIMS FOR BREACH OF THIS AGREEMENT, OR ANY OTHER CLAIMS AGAINST THE COMPANY) TO BINDING ARBITRATION WITH THE AMERICAN ARBITRATION ASSOCIATION.  LOGGENBERG HEREBY WAIVES HIS RIGHT TO A JURY TRIAL FOR ANY DISPUTE DESCRIBED HEREIN.

6.4 Benefit/Assignment.  Subject to provisions herein to the contrary, this Agreement shall inure to the benefit of, and be binding upon, the parties hereto and their respective legal representatives, successors, and assigns; provided, however, that Loggenberg may not assign this Agreement or any or all of Loggenberg's rights or obligations hereunder without the prior written consent of the Company.

6.5 Waiver of Breach.  The waiver by the Company of a breach or violation of any provision of this Agreement shall not operate as, or be construed to be, a waiver by the Company of any subsequent breach of the same or other provision hereof.

6.6 Notice.  Any notice, demand, or communication required, permitted, or desired to be given hereunder shall be deemed effectively given when personally delivered or mailed by prepaid certified mail, return receipt requested, addressed as follows:

Loggenberg:

Peter M. Loggenberg, Ph.D.

902 Sprucewood Lane

Houston, Texas 77024

Phone:   (713) 461-4580

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Company:

Trecora Resources

Attention:  Nick Carter

1650 Highway 6 South

Suite 190

Sugar Land, Texas 77478

Phone 281-980-5522

With a copy to:

Charles W. Goehringer Jr.

Germer PLLC

P. O. Box 4915

Beaumont, Texas  77704-4915

Phone:  (409) 654-6700

Fax: (409) 835-2115

or to such other address and to the attention of such other person or officer as either party may designate by like written notice.

6.7 Assignment. None.

6.8 Severability.  This Agreement is intended to be performed in accordance with, and only to the extent permitted by, all applicable laws, ordinances, rules, and regulations.  In the event any provision of this Agreement is held to be invalid, illegal, or unenforceable for any reason and in any respect, and the basis of the bargain of this Agreement is not thereby destroyed, such invalidity, illegality, or unenforceability shall not affect the remainder of this Agreement, which shall be and remain in full force and effect, enforceable in accordance with its terms.

6.9 Divisions and Headings.  The divisions of this Agreement into articles and sections and the use of captions and headings in connection therewith are solely for convenience and shall have no legal effect in construing the provisions of this Agreement.

6.10 Entire Agreement/Amendment.  This Agreement supersedes all previous contracts, and constitutes the entire agreement of whatsoever kind or nature existing between or among the parties respecting the subject matter.  No party shall be entitled to benefits other than those specified herein.  As between or among the parties, no oral statements or prior written material not specifically incorporated herein shall be of any force and effect. The parties specifically acknowledge that, in entering into and executing this Agreement, each is relying solely upon the representations and agreements contained in this Agreement and no others. All prior representations or agreements, whether written or oral, not expressly incorporated herein, are superseded and no changes in or additions to this Agreement shall be recognized unless and until made in writing and signed by all parties hereto. This Agreement may not be changed, revised or modified unless by mutual consent and in writing, signed by both parties. The section headings and title contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever required by the context, gender shall include any other gender, singular shall 

 

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include plural, and the plural shall include singular. This Agreement shall be executed in duplicate originals, each of which when executed and delivered shall constitute but one in the same instrument.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in multiple original counterparts, all as of the day and year first above written.

COMPANY: Trecora Resources

By: /s/ Nicholas Carter

      Nicholas N. Carter, President/CEO

LOGGENBERG:                            By: /s/ Peter M. Loggenberg

Peter M. Loggenberg, Ph.D.

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SEVERANCE AGREEMENT AND

COVENANT NOT TO COMPETE, SOLICIT AND DISCLOSE

This SEVERANCE AGREEMENT AND COVENANT NOT TO COMPETE, SOLICIT AND DISCLOSE ("Agreement"), effective as of the 1st day of October, 2014 ("the Effective Date"), is entered into by and between the Companies (as defined below) and Peter M. Loggenberg, Ph.D., a resident of 902 Sprucewood lane, Houston, Harris County, Texas 77024 ("Loggenberg").

RECITALS

WHEREAS, Trecora Resources, a Delaware corporation ("TREC") owns all of the capital stock of Texas Oil and Chemical Co. II, Inc., a Texas corporation ("TOCCO"), TOCCO owns all of the capital stock of South Hampton Resources, Inc., a Texas corporation ("SHR"), Trecora Chemical, Inc., a Texas corporation ("TCI"), and South Hampton Transportation, Inc., a Delaware corporation ("SHT"), and SHR owns all of the capital stock of Gulf State Pipe Line Company, Inc., a Texas corporation ("GSPL");

WHEREAS, TREC, TOCCO, SHR, SHT, TCI and GSPL are sometimes hereafter collectively referred to collectively as the "Companies";

WHEREAS, SHR owns and operates a specialty petrochemical facility near Silsbee, Texas which produces and sells high purity petrochemical solvents and other petroleum based products, including iso-pentane, normal pentane, iso-hexane and hexane which may be used in the production of polyethylene, packaging, polypropylene, expandable polystyrene, poly-iso/urethane foams and the catalyst support industry, and TCI owns and operates a specialty petrochemical facility in La Porte, Texas which produces and sells low to medium viscosity polyethylene waxes and provides toll and custom chemical processing services (the "Petrochemical Business");

WHEREAS, GSPL owns and operates numerous pipelines which service the SHR Silsbee, Texas facility (the "Pipeline Business");

WHEREAS, SHR and TCI products are sold domestically and world-wide;

WHEREAS, the Petrochemical Business and the Pipeline Business are sometimes hereinafter referred to collectively as the "Business";

WHEREAS, Loggenberg is an employee of TCI and may become an "at-will" employee of one or more of the Companies at a date in the future;

WHEREAS, Loggenberg has significant experience, contacts and knowledge within the chemicals and petrochemicals industries that will come to bear for the benefit of the Companies; and

WHEREAS, in exchange for the mutual promises herein, TREC, on behalf of the Companies, promises to provide to Loggenberg (i) severance pay unless terminated for good cause, (ii) access to proprietary, confidential, and other information as defined in this Agreement, and (iii) industry specific training, the sufficiency of which is hereby acknowledged and confessed as a part of the consideration for this Agreement.

NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and adequacy of which are hereby forever acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

ARTICLE I

ACKNOWLEDGEMENTS

	1.1	
Loggenberg recognizes and acknowledges the following:

	
a.

	
That TREC's decision to make cash severance payments to Loggenberg on dismissal or termination of employment other than for good cause ("Severance Payments") is induced primarily because of the covenants and assurances made by Loggenberg in this Agreement, and, but for this Agreement, TREC would not have agreed to make the Severance Payments;

	
b.

	
That Loggenberg is receiving substantial compensation on account of, and as consideration for, Loggenberg covenants and assurances in this Agreement; such consideration includes, but is not limited to, the Severance Payments, providing Loggenberg access to confidential and proprietary information as defined in this Article I, and providing Loggenberg industry specific training;

	
c.

	
That the Companies have devoted a considerable amount of time, effort, and expense to establishing a customer base and to hiring and training the Companies' employees and agents, that such customer base and employees and agents comprise valuable assets of the Companies, and that, as a result of the employment relationship with the Companies, Loggenberg will have access to this customer and employee and agent base;

	
d.

	
That Loggenberg's covenants and assurances are necessary to ensure the protection of the Companies' confidential and proprietary business information and the continuation of the Business;

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e.

	
That Loggenberg and the Companies carefully considered the necessity to protect the Companies against Loggenberg's or Companies violation of the covenants and assurances in this Agreement, and the nature and scope of such protection;

	
f.

	
That irreparable harm and damage will be done to the Companies or Loggenberg in the event that Loggenberg  or Company violates this Agreement;

	
g.

	
That the duration and scope applicable to the covenants and assurances described in this Agreement are fair, reasonable, and necessary, that adequate compensation has been received by Loggenberg under this Agreement for such obligations, and that these obligations will not prevent Loggenberg from earning a livelihood;

	
h.

	
That, in the event that any part of the covenants set forth in this Agreement shall be held to be invalid or unenforceable, the remaining parts thereof shall nevertheless continue to be valid and enforceable as though the invalid or enforceable parts had not been included therein.  If any court of competent jurisdiction determines, for any reason, that the restrictions in this Agreement are not reasonable or enforceable or that the consideration is inadequate, such restrictions shall be interpreted, modified, or rewritten to include as much of the duration and scope identified in this Agreement as will render such restrictions valid and enforceable; Provided that these covenants do not violate any Texas State or Federal law.

	
i.

	
That, for purposes of this Agreement, "Proprietary or Confidential Information" includes the following, without limitation: this Agreement, any and all secrets or confidential technology, proprietary information, customer lists, employee and agent information, trade secrets, business records, marketing programs and strategies, computer software, personnel information, business plans and related plans, training and instruction in the Companies' methodology or business systems, specialized requirements of the Companies' customers, memorandums, or other writings, in the possession or control of the Companies, not generally known or available to members of the general public, including any copies, worksheets, or extracts from any of the above, provided, however that "Proprietary or Confidential Information" does not include (a) information received by Loggenberg from a source other than the Companies or their advisors, provided that such source is legally in possession of the same and not under an obligation of confidentiality with respect thereto, (b) any information which Loggenberg can document was in his possession prior to his becoming an employee of TCI or SSI Chusei, Inc., a Texas corporation, and (c) information which is now or hereafter becomes generally available to the public other than as a result of a disclosure by the Companies.

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j.

	
That, for purposes of this Agreement, "Products" means low to medium viscosity polyethylene wax, as well as any other goods, materials or services that the Companies may subsequently research, develop, manufacture or market during one or more of the Companies' employment of Loggenberg.

ARTICLE II

COVENANTS

2.1 Covenant Not to Compete.  Loggenberg agrees that during Loggenberg's term of employment, and for a period of two (2) years after the expiration or termination of Loggenberg's term of employment, Loggenberg, and any related corporate entities, partnerships, or other legal entities under his direct control or influence, whether natural persons or business organizations, will not, directly or indirectly, in any manner or capacity, engage in any of the following activities:

	
a.

	
Own, manage, operate, control, participate in the management or control of, be employed by, lend Loggenberg's name to, or maintain or continue any interest whatsoever in any enterprise which conducts or will conduct business in the development, manufacture, sale or marketing of Products or compete with the Companies in any respect with business conducted by the company during the employment of Loggenberg;

	
b.

	
Request or advise any supplier, customer, or other person or entity that has or will have dealings with the Companies, to withdraw, curtail, or cancel such dealings with the Companies;

	
c.

	
Disclose to any person or entity the name of any client, customer, account, supplier, person, firm, partnership, association, corporation, or business organization, entity or enterprise that has, or has the potential to have, dealings with the Companies, except where such information is public knowledge or as required by law.

2.2 Covenant not to Solicit. Loggenberg agrees that during the Loggenberg's term of employment, and for a period of two (2) years after the expiration or termination of Loggenberg's term of employment, Loggenberg, and any related corporate entities, partnerships, or other legal entities under his direct control or influence, whether natural persons or business organizations, will not, directly or indirectly, in any manner or capacity, engage in any of the following activities:

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a.

	
Solicit clients, customers, or accounts of the Companies, or request or advise any previous or present client, customer, or account of the Companies to withdraw, curtail, or cancel such client's, customer's or account's business with the Companies;

	
b.

	
Solicit any employee, agent, or affiliate of the Companies to terminate his or her employment, agency, or affiliation with the Companies;

	
c.

	
Solicit to hire any employee, agent, or affiliate of the Companies.

2.3 Covenant not to Disclose.  Loggenberg agrees that during the Loggenberg's term of employment, and for two (2) years thereafter, Loggenberg, and any related corporate entities, partnerships, or other legal entities under his direct control or influence, whether natural persons or business organizations, will not, directly or indirectly, in any manner or capacity, engage in any of the following activities:

	
a.

	
Use any Proprietary or Confidential Information in competition with the Companies;

	
b.

	
Disclose any Proprietary or Confidential Information, or permit such information to be disclosed, to any person or entity, except where such information is public knowledge or as required by law;

	
c.

	
Take, reproduce, or retain, without prior authorization from the Companies, originals, copies, worksheets, or extractions of any Proprietary or Confidential Information as such information is, and will remain, the property of the Companies.

2.4 Covenant to Disclose and Assign.  Loggenberg agrees to promptly reduce to writing, promptly disclose to TREC, and assign to TREC, and hereby does assign to TREC, all inventions, discoveries, improvements, copyrightable material, trademarks, programs, computer software, and ideas concerning the same, capable of use in connection with the business of the Companies, which Loggenberg may make or conceive, either solely or jointly with others, during the period of employment by the Companies. Loggenberg agrees, without charge to TREC and at Loggenberg's expense, to execute, acknowledge, and deliver to TREC all such papers, including applications for patents, applications for copyright and trademark registrations, and assignments thereof, as may be necessary to comply with this covenant. Loggenberg agrees to assist TREC at all times, in every proper way, to patent or register said inventions, discoveries, improvements, copyrightable material, trademarks, programs, computer software, and ideas.

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ARTICLE III

EXCLUDED ACTIVITIES AND INTELLECTUAL PROPERTY

3.1 Any knowledge that Loggenberg possesses or develops that relates to Drilling Base Fluids, Fracking or Completions Fluids as well as any chemistry related to the dehydrogenation or oxidation of C2 and C3 molecules including but not limited to ethane, ethylene, ethanol, propane, propylene and propanol, excluding wax production, will not be any part of this agreement as Company recognizes that this subject matter is not part of this agreement and Loggenberg retains the right to continue and retain business, intellectual property and all other rights regardless of the existence of this agreement. Should Company wish to use such technology or business, then a separate mutually acceptable agreement needs to be concluded between Loggenberg and the Company.

3.2 It is recognized by both parties that Loggenberg has business with SSI, Arthur Steier, SSI Schuman, or other related parties. Due to the possibility of conflicts of interest, and the need to provide the Company with his full time attention, it is agreed that Loggenberg will extricate himself from those interests within three (3) years of accepting the position with the Companies.

3.3 It is recognized by both parties that Loggenberg has a relationship with Don Powers and DP&PL, which company may have patented technologies, and which the Company may wish to use in the future. Both parties agree that if the Company can use the technology to its benefit, there will be a reasonable royalty or other fee structure developed to the benefit of both parties. In the case of development of future technologies, Loggenberg agrees to keep any further developments with that relationship separate from the business of the Companies and his responsibilities thereto.

3.4 Loggenberg agrees to observe and comply with the reasonable rules and regulations of the Company and its business as adopted from time to time. Loggenberg shall not engage in any business or other activity than those listed above in sections 3.1-3.3 that hinders in any way Loggenberg's ability to serve as an employee of the Company.

ARTICLE IV

REMEDIES FOR VIOLATIONS

4.1 Loggenberg recognizes and acknowledges that the Loggenberg's covenants and assurances set forth in this Agreement are necessarily of a special, unique, and extraordinary nature, that Loggenberg's employment is predicated in part upon said covenants and assurances, and that the loss arising from a breach thereof cannot reasonably and adequately be determined by money damages, as such breach may cause the Companies to suffer irreparable harm.

4.2 Injunctive Relief.  In the event of any breach or threatened breach of any of Loggenberg's or the Companies covenants and assurances as set forth in this Agreement, the Companies, or anyf their successors or assigns, shall be entitled, in addition to any other remedies and or Loggenberg damages available under this agreement or applicable law, to seek injunctive relief

 

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 or other extraordinary relief to restrain the violation of such covenants and assurances by Loggenberg or the Companies or by any person or persons acting for or with Loggenberg or the Companies in any capacity.

4.3 Money Damages.  In the event of any breach or threatened breach of any of Loggenberg's covenants or assurances as set forth in this Agreement, the Companies, or any of their successors or assigns, shall be entitled, in addition to any other remedies under this Agreement or applicable law, to bring suit against Loggenberg for damages and for such other remedies. Notwithstanding the above mentioned, money damages—including legal fees and injunctive relief—shall not exceed the total severance compensation paid.

ARTICLE V

SEVERANCE

5.1 Severance Pay.  On dismissal or termination of employment other than for "good cause" (as defined below), TREC will pay a cash severance to Loggenberg in an amount equal to one year of Loggenberg's then annual base salary as reported in TREC's Form 10-K for the applicable year (excluding, however, bonuses, grants of stock and/or stock options, profit sharing, benefits, and perquisites).  The cash severance shall be payable in six (6) equal monthly installments with the first such installment being due and payable on the 10th day of the first calendar month following the month in which dismissal or termination of employment occurs, and five (5) additional monthly installments being due and payable on the 10th day of each calendar month thereafter.  Each monthly installment of the cash severance shall equal one sixth (1/6) of Loggenberg's annual base salary.

5.2 Definition of "Good Cause".  For purposes of this Agreement, "good cause" to dismiss or terminate employment means:

	
a.

	
The commission of any crime by Loggenberg involving moral turpitude;

	
b.

	
Loggenberg's embezzling any funds or property of the Companies or committing any other dishonest act towards the Companies;

	
c.

	
TREC's determination that Loggenberg was under the influence of alcohol or illegal drugs, as defined by any of the Companies' employee handbooks, during working hours.

  

ARTICLE VI

ADDITIONAL PROVISIONS

 

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6.1 Additional Assurances.  The provisions of this Agreement shall be self-operative and shall not require further agreement by the parties, except as may be specifically provided to the contrary; provided, however, at the request of TREC, Loggenberg shall execute such additional instruments and take such additional acts as TREC may deem necessary to effectuate this Agreement.

6.2 Choice of Law and Venue.  This Agreement shall be governed by the laws of the State of Texas and shall be performable in HARRIS County, Texas, and venue for any litigation regarding this Agreement shall be in the state or federal courts of HARRIS County, Texas.

6.3 Arbitration.  LOGGENBERG hereby acknowledges that he agrees to submit all claims against THE COMPANIES (including but not limited to statutory and common law employment or tort claims, claims for breach of this agreement, or any other claims against THE COMPANIES) to binding arbitration with the American Arbitration Association.  LOGGENBERG hereby waives his right to a jury trial FOR any dispute described herein.

6.4 Legal Fees and Costs.  Each party shall pay their own legal fees and costs to enforce the terms and provisions of this Agreement.

6.5 Benefit/Assignment.  Subject to provisions herein to the contrary, this Agreement shall inure to the benefit of, and be binding upon, the parties hereto and their respective legal representatives, successors, and assigns; provided, however, that Loggenberg may not assign this Agreement or any or all of Loggenberg 's rights or obligations hereunder without the prior written consent of TREC.  TREC specifically reserves the right to assign the rights and benefits accruing to TREC.

6.6 Waiver of Breach.  The waiver by the Companies of a breach or violation of any provision of this Agreement shall not operate as, or be construed to be, a waiver by the Companies of any subsequent breach of the same or other provision hereof.

6.7 Severability.  This Agreement is intended to be performed in accordance with, and only to the extent permitted by, all applicable laws, ordinances, rules, and regulations.  In the event any provision of this Agreement is held to be invalid, illegal, or unenforceable for any reason, and in any respect, and the basis of the bargain of this Agreement is not thereby destroyed, such invalidity, illegality, or unenforceability shall not affect the remainder of this Agreement, which shall be and remain in full force and effect, enforceable in accordance with its terms.

6.8 Divisions and Headings.  The use of articles, sections, captions and headings in this Agreement are solely for convenience and shall have no legal effect in construing this Agreement's provisions.

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6.9 Entire Agreement/Amendment.  This agreement contains the entire agreement and understanding by and between the Companies and Loggenberg with respect to the subject matter of this Agreement, and this Agreement supersedes all previous contracts or agreements between the parties hereto.  No representations, promises, agreements, or understandings, written or oral, that re not herein contained, shall be of any force or effect.  No change or modification hereof shall be valid or binding unless the same is in writing and signed by the party to be bound.

6.10 Notice.  Any notice, demand, or communication required, permitted, or desired to be given hereunder shall be deemed effectively given when personally delivered or mailed by prepaid certified mail, return receipt requested, addressed as below or to such other address and to the attention of such other person or officer as either party may designate by written notice:

COMPANIES

Trecora Resources

P.O. Box 1636

Silsbee, Texas 77656

ATTN:  Nicholas Carter

Phone:  (409) 385-8300/

Fax:  (409) 385-2453

LOGGENBERG

Peter M. Loggenberg, Ph.D.

Address:  902 Sprucewood Lane

Houston TX 77024

ATTN:  Dr. Peter M. Loggenberg

Phone:  (713) 461-4580

WITH A COPY TO:

Charles W. Goehringer, Jr.

Germer PLLC

P. O. Box 4915

Beaumont, Texas  77704-4915

Phone:  (409) 654-6700

Fax:  (409) 835-2115

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in multiple original counterparts, all as of the day and year first above written.

LOGGENBERG:                  By: /s/ Peter M Loggenberg

                                                     Peter M. Loggenberg, Ph.D.

COMPANIES:                  Trecora Resources,

a Delaware corporation;

Texas Oil and Chemical Co. II, Inc.,

a Texas corporation;

South Hampton Resources, Inc.,

a Texas corporation;

Trecora Chemical, Inc.;

a Texas corporation; and

Gulf State Pipe Line Company, Inc.,

a Texas corporation

By: /s/ Nicholas Carter

                  Nicholas N. Carter,

       President / CEO of

       Trecora Resources

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STATE OF TEXAS                                 §

§

COUNTY OF HARDIN                           §

This instrument was acknowledged before me on the 2nd day of October, 2014, by Peter M. Loggenberg, Ph.D.

/s/ Connie J Cook

Notary Public, State of Texas

STATE OF TEXAS                                 §

§

COUNTY OF HARDIN                           §

This instrument was acknowledged before me on the 2nd day of October, 2014, by Nicholas Carter, President and Chairman of the Board of Trecora Resources, a Delaware corporation, on behalf of said corporation and its affiliates and subsidiaries (the "Companies") as identified above.

/s/ Connie J Cook

Notary Public, State of Texas

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