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Exhibit 4.2

 

 

DESCRIPTION OF THE REGISTRANT'S SECURITIES

REGISTERED PURSUANT TO SECTION 12 OF THE

SECURITIES EXCHANGE ACT OF 1934

 

The following
is a general description of the common stock of Quaker Chemical Corporation  and does not purport to
be complete. For a complete description of the terms and provisions of the
common stock, refer to the Company's Amended and Restated Articles of
Incorporation and Amended and Restated Bylaws, each of which is an exhibit
incorporated by reference into the Annual Report on Form 10-K of which this
exhibit is a part. This summary is qualified in its entirety by reference to
these documents.

 

As used in this Exhibit 4.2
“the Company,” “we,” “us,” or “our” means only Quaker Chemical Corporation and
not any of its subsidiaries or associated companies.

 

Our authorized common stock
consists of 30,000,000 shares of common stock, par value $1.00 per share.

 

Voting 

 

Except as otherwise required
by law or provided in any resolution adopted by our Board of Directors (the
“Board”) with respect to any series of preferred stock, the holders of the
common stock exclusively possess all voting power. Each holder of common stock
is entitled to one vote per share on all matters requiring a vote of the
shareholders, including the election of directors. We do not have cumulative
voting rights. The presence, in person or by proxy, of the shareholders
entitled to cast a majority of the votes which all shareholders are entitled to
cast on a matter to be voted upon at a meeting of shareholders constitute a
quorum, and the acts of such quorum, at a duly organized meeting of
shareholders, constitute the acts of all the shareholders.

 

In an election of directors
that is not a contested election, each director will be elected by the vote of
the majority of the votes cast with respect to that director. The majority of
the votes cast means that the number of votes cast “for” a nominee must exceed
the number of votes cast “against” that nominee. In a contested election of
directors, the candidates receiving the highest number of votes, up to the
number of directors to be elected in such election, will be elected.
Shareholders do not have the right to vote against a nominee in a contested
election of directors.

 

Dividends

 

Subject to any preferential
rights of any outstanding series of preferred stock designated by the Board
from time to time, the holders of the common stock are entitled to dividends to
the extent permitted by law, and upon a voluntary or involuntary liquidation,
dissolution, distribution of assets on winding up of the Company are entitled
to receive pro rata all of our assets available for distribution to such
holders after distribution in full of any preferential amount to be distributed
to holders of shares of preferred stock. There are no restrictions that
currently limit the Company’s ability to pay dividends.

 

Rights and Preferences 

 

The common stock has no
preemptive or conversion rights or other subscription rights and there are no
sinking fund or redemption provisions applicable to the common stock. For a
description of the provisions of our articles of incorporation and bylaws that
could have an effect of delaying, deferring or preventing a change in control
of the Company, see the description below under the heading “Possible
Antitakeover Effect of Certain Statutory, Charter and Bylaw Provisions.”

 

The rights, preferences and
privileges of the holders of our common stock in general are subject to, and
may be adversely affected by, the rights of the holders of shares of any series
of our preferred stock that we may designate and issue in the future. The
Company currently has no preferred stock outstanding.

 

Fully Paid and Nonassessable

 

All outstanding shares of the common stock are validly
issued, fully paid and nonassessable.

 

 

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Possible Antitakeover Effect
of Certain Statutory, Charter and Bylaw Provisions 

 

Certain provisions of Pennsylvania law,
and of our articles of incorporation and bylaws, may have the effect of
delaying, deferring or discouraging another person from acquiring control of
our Company, including takeover attempts that might result in a premium over
the market price for the shares of common stock and our other securities.

 

Pennsylvania Business Corporation Law 

 

Subchapter 25F of the Pennsylvania
Business Corporation Law of 1988, as amended, or the PBCL, generally prohibits
certain business combinations of a registered corporation with an interested
shareholder (i.e., a beneficial owner of 20% or more of the voting stock) of
such corporation. A “registered corporation” generally is a Pennsylvania corporation
that, like our Company, has a class of shares registered under the Exchange
Act. The term “business combination” is broadly defined to include most merger,
consolidation and similar transactions as well as transfers of substantial
amounts of assets. Subchapter 25F places a five-year moratorium on most
business combinations between a registered corporation and an interested
shareholder or its affiliates and associates. The five-year period begins on
the date that the interested shareholder crosses the 20% threshold, known as
the “share acquisition date.” Because we have not elected to “opt out” from the
application of Subchapter 25F by means of an amendment to our articles of
incorporation or bylaws, the provisions of Subchapter 25F would apply to any
business combination involving our Company and an interested shareholder.

 

There are limited exceptions to the
five-year moratorium on business combinations with interested shareholders.
First, if either the business combination itself, or the applicable interested
shareholder’s crossing the 20% threshold, is approved by the corporation’s
board prior to the applicable interested shareholder’s share acquisition date,
such business combination, or other business combinations with that interested
shareholder, would be exempt from the application of Subchapter 25F. In
addition, business combinations approved by a majority of the votes of all
shareholders other than the interested shareholder, at a meeting held at least
three months after the interested shareholder acquires at least 80% of the
corporation’s outstanding voting stock, will likewise be exempt if, among other
tests, the other shareholders receive in the business combination an aggregate
amount of per share consideration equal to at least the highest per share price
paid by the interested shareholder over the previous five years, plus a
specified amount of interest.

 

Even following the expiration of the
five-year moratorium, a business combination with an interested shareholder
must still either be approved by a majority of the shares not held by the
interested shareholder, or provide to the other shareholders per share
compensation that meets the highest price per share test referred to above.

 

The PBCL also provides for additional
anti-takeover provisions regarding registered corporations relating to:

 

	
   

  	
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  “control transactions,” under which shareholders can require an
  interested shareholder to buy their shares for “fair value,” as defined in
  the PBCL;

  

 

	
   

  	
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  “control share acquisitions,” under which interested
  shareholders lose their voting rights until such rights are restored by,
  among other requirements, the affirmative vote of a majority of the
  “disinterested shares,” as defined in the PBCL; and

  

 

	
   

  	
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  “disgorgements,” under which interested shareholders (or persons
  that announce an intention to become an interested shareholder) can be
  required to disgorge certain profits from trading in the registered
  corporation’s stock.

  

 

Because we have specifically opted out of
these various additional PBCL provisions pursuant to bylaw amendments as provided
in the relevant sections of the PBCL, none of these provisions currently would
apply to us or to a non-negotiated attempt to acquire control of our Company,
although such an attempt would still be subject to the various requirements in
our articles of incorporation as described below. Moreover, we can reverse the
“opt out” from one or more of these provisions by means of a bylaw amendment
adopted by our Board, without shareholder approval, after which the PBCL
provisions or provisions for which we reversed the “opt out” would then apply
to an attempt to acquire control of our Company.

 

Under Section 1715 of the PBCL, our
directors are not required to regard the interests of the shareholders as being
dominant or controlling in considering our best interests. The directors may
consider, to the extent they deem appropriate, factors including:

 

	
   

  	
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  the effects of any action upon any group affected by such
  action, including our shareholders, employees, suppliers, customers and
  creditors, and communities in which we have offices or other establishments,

  

 

	
   

  	
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  our short-term and long-term interests, including benefits that
  may accrue to us from our long-term plans and the possibility that these
  interests may be best served by our continued independence,

  

 

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  the resources, intent and conduct (past, stated and potential)
  of any person seeking to acquire control of us, and

  

 

	
   

  	
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  all other pertinent factors.

  

 

Articles of Incorporation 

 

“Blank Check” Preferred
Stock.” Our Board is authorized by our articles of incorporation to
designate and issue, without shareholder approval, preferred stock with such
terms as our Board may determine. This ability to issue what is commonly
referred to as “blank check” preferred stock, or rights to acquire preferred
stock, may have the effect of delaying, deferring or preventing a change of
control of our Company or an unsolicited acquisition proposal.

 

Business Combinations with
Related Persons. Article 10 of our articles of incorporation (“article 10”)
prohibits us from engaging in a “Business Combination” with a “Related Person”
unless:

 

	
   

  	
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  our “Continuing Directors” by a two-thirds vote have expressly
  approved the Business Combination either in advance of or subsequent to the
  acquisition of outstanding shares of our voting stock that caused the Related
  Person to become a Related Person; or

  

 

	
   

  	
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  each of the following conditions is satisfied:

  

 

	
   

  	
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  the aggregate amount of the cash and the fair market value, as
  determined by two-thirds of our Continuing Directors, of the property,
  securities or other consideration to be received (including, without
  limitation, the Company common stock or other capital stock of the Company
  retained by shareholders of the Company other than Related Persons or parties
  to such Business Combination in the event of a Business Combination in which
  the Company is the surviving entity) per share of our capital stock in the
  Business Combination by holders of capital stock, other than the Related
  Person involved in the Business Combination, is not less than the “Highest
  Per Share Price” or the “Highest Equivalent Price” paid by the Related Person
  in acquiring any of its holdings of our capital stock; and

  

 

	
   

  	
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  a proxy or information statement complying with the requirements
  of the Exchange Act, and the rules and regulations thereunder (or any
  subsequent provisions replacing such Act, rules or regulations) and with the
  provisions of article 10 has been mailed to all shareholders of the Company
  at least 30 days prior to the consummation of the Business Combination
  (whether or not the proxy or information statement is required to be mailed
  pursuant to such Act or subsequent provisions).  The proxy or
  information statement contains at the front thereof, in a prominent place,
  the position of the Continuing Directors as to the advisability (or
  inadvisability) of the Business Combination and, if deemed advisable by a
  majority of the Continuing Directors, the opinion of an investment banking
  firm selected by the Continuing Directors as to the fairness of the terms of
  the Business Combination from the point of view of the holders of the
  outstanding shares of capital stock of the Company other than any Related
  Person.

  
	
    

  	 	
   

  
	 	 	 	 	 

For purposes of article 10 the
respective meanings of the following terms are as follows:

 

“Business Combination” means (i) any
merger or consolidation of the Company or a subsidiary of the Company into or
with a Related Person, in each case irrespective of which corporation or
company is the surviving entity; (ii) any sale, lease, exchange, mortgage,
pledge, transfer or other disposition to or with a Related Person (in a single
transaction or a series of related transactions) of all or a Substantial Part
of the assets of the Company (including without limitation any securities of a
subsidiary) or of a subsidiary of the Company; (iii) any sale, lease,
exchange, mortgage, pledge, transfer or other disposition to or with the
Company or to or with a subsidiary of the Company (in a single transaction or
series of related transactions) of all or a Substantial Part of the assets of a
Related Person; (iv) the issuance of any securities of the Company or of a
subsidiary of the Company to a Related Person (other than an issuance of
securities which is effected on a pro rata basis to all shareholders of the
Company); (v) any recapitalization or reclassification of securities
(including any reverse stock split) of the Company which would have the effect,
directly or indirectly, of increasing the proportionate share of the
outstanding Voting Stock of the Company owned by a Related Person;
(vi) the adoption of any plan or proposal for the liquidation or dissolution
of the Company proposed by or on behalf of a Related Person; and (vii) the
acquisition by the Company or by a subsidiary of the Company of any securities
of a Related Person.

 

“Related Person” means any individual,
corporation, partnership or other person or entity (other than any subsidiary
of the Company and other than any profit-sharing, employee stock ownership or
other employee benefit plan of the Company or a subsidiary of the Company)
which, as of the record date for the determination of shareholders entitled to
notice of and to vote on any Business Combination, or immediately prior to the consummation
of such transaction, together with its “Affiliates” and “Associates” (as
defined in Rule 12b-2 of the General Rules and Regulations under the Securities
Exchange Act of 1934 as in effect at the date of the 

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adoption
of article 10 by the shareholders of the Company (collectively and as so in
effect, the “1934 Act”)), are “Beneficial Owners” (as defined in Rule 13d-3 of
the 1934 Act) in the aggregate of ten (10%) percent or more of the
outstanding shares of Voting Stock of the Company, and any Affiliate or
Associate of any such individual, corporation, partnership or other person or
entity. Without limitation, any shares of Voting Stock of the Company that any
Related Person has the right to acquire at any time (notwithstanding that Rule
13d-3 of the 1934 Act deems such shares to be beneficially owned only if such
right may be exercised within 60 days) pursuant to any agreement, or upon
exercise of conversion rights, warrants or options, or otherwise, will be
deemed to be beneficially owned by the Related Person and to be outstanding for
purposes of the definition of the term Related Person.

 

“Substantial Part” means assets having a
fair market value, as determined by two-thirds of the Continuing Directors, of
more than twenty (20%) percent of the total consolidated assets of the
Company and its subsidiaries taken as a whole, as of the end of its most recent
fiscal year ending prior to the time the determination is being made.

 

“Voting Stock” means all outstanding
shares of capital stock of the Company entitled to vote generally in the
election of directors and each reference to a proportion of Voting Stock refers
to such proportion of the votes entitled to be cast by such shares.

 

“Continuing Director” means a director who
was a member of the board of directors of the Company at the date of the
adoption of article 10 by the shareholders of the Company, together with each
director who either (i) was a member of the Company’s board of directors
immediately prior to the time that the Related Person involved in a Business
Combination became the Beneficial Owner of ten (10%) percent of the Voting
Stock of the Company, or (ii) was designated (before his or her initial
election as director) as a Continuing Director by a majority of the then
Continuing Directors.

 

                Under article 10, a Related Person is deemed
to have acquired a share of the Voting Stock of the Company at the time the
Related Person became the Beneficial Owner thereof. With respect to the shares
owned by Affiliates, Associates or other persons whose ownership is attributed
to a Related Person under the foregoing definition of Related Person, if the
price paid by such Related Person for such shares is not determinable by the
Continuing Directors, the price so paid will be deemed to be the higher of
(i) the price paid upon the acquisition thereof by the Affiliate,
Associate or other person or (ii) the market price of the shares in
question at the time when the Related Person became the Beneficial Owner
thereof.

 

“Highest Per Share Price” and “Highest
Equivalent Price,” as used in article 10 mean the following: If there is only
one class of capital stock of the Company issued and outstanding, the Highest
Per Share Price means the highest price that can be determined to have been paid
at any time by the Related Person for any share or shares of that class of
capital stock. If there is more than one class of capital stock of the Company
issued and outstanding, the Highest Equivalent Price means with respect to each
class and series of capital stock of the Company, the amount determined by
two-thirds of the Continuing Directors, on whatever basis they believe is
appropriate, to be the highest per share price equivalent of the highest price
that can be determined to have been paid at any time by the Related Person for
any share or shares of any class or series of capital stock of the Company. In
determining the Highest Per Share Price and Highest Equivalent Price,
appropriate adjustments will be made for recapitalizations and for stock splits,
stock dividends and like distributions or transactions, and all purchases by
the Related Person will be taken into account regardless of whether the shares
were purchased before or after the Related Person became a Related Person.
Also, the Highest Per Share Price and the Highest Equivalent Price will include
any brokerage commissions, transfer taxes and soliciting dealers’ fees paid by
the Related Person with respect to the shares of capital stock of the Company
acquired by the Related Person. Article 10 provides that, in the case of any
Business Combination with a Related Person, the Continuing Directors should
determine the Highest Equivalent Price for each class and series of the capital
stock of the Company.

 

Classified Board of Directors. In
accordance with the provisions of our articles of incorporation, our Board is
divided into three classes with each class elected to serve for a three-year
term and the terms of the classes staggered so that only one class of directors
is elected each year. The fact that only one class of our Board’s directors is
elected each year could have the effect of making it more difficult for a third
party to acquire, or of discouraging a third party from attempting to acquire,
control of our Company.

 

Removal of Directors. Our
articles of incorporation provide that a director may be removed with or
without cause only by the affirmative vote of the holders of at least eighty
(80%) percent of the outstanding shares of capital stock of the Company
entitled to vote generally in the election of directors, voting together as a
single class.

 

Super Majority Vote Required
to Amend Certain Provisions of the Articles of Incorporation. The
Pennsylvania corporate law provides generally that the affirmative vote of a
majority of the votes cast by all shareholders entitled to vote is required to
amend a corporation’s articles of incorporation, unless the corporation’s
articles of incorporation require a greater percentage. Our articles of
incorporation provide that any amendment of the provisions of article 8
(relating to our Board, including the division of the Board into three
classes), article 9 (relating to special meetings of shareholders) or article
10 (relating to certain transactions with related parties, including mergers,
consolidations or sales or other dispositions of all or a substantial part of our
assets) requires an affirmative vote of 80% of the votes entitled to be cast on
the matter. The 80% shareholder vote would be in addition to any separate class
vote that might 

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in the future be required pursuant to
the terms of any series of preferred stock that might be outstanding at the
time any amendment to our articles of incorporation is submitted to
shareholders.

 

Bylaw Provisions 

 

Authority to Fill Board
Vacancies. Under our bylaws, any vacancy on our Board, however occurring,
including a vacancy resulting from an enlargement of our Board, may be filled
by vote of a majority of our directors then in office, even if less than a
quorum. The authority of the remaining members of our Board to fill vacancies
could have the effect of making it more difficult for a third party to acquire,
or of discouraging a third party from attempting to acquire, control of our
Company.

 

Calling of Special Meeting. Our
bylaws provide that special meetings of the shareholders may only be called by
the chairman of the Board, the president or the Board, or by shareholders
entitled to cast not less than four-fifths of the votes which all shareholders
are entitled to cast at the meeting. The limited ability of our shareholders to
call a special meeting of the shareholders may have the effect of making it
more difficult for a third party to acquire, or of discouraging a third party
from attempting to acquire, control of our Company.

 

Advance Notice Procedures. Our
bylaws establish an advance notice procedure for shareholder proposals to be
brought before an annual meeting of our shareholders, including proposed
nominations of persons for election to the Board. Shareholders at an annual
meeting will only be able to consider proposals or nominations specified in the
notice of meeting or brought before the meeting by or at the direction of the
chairman of the Board, the president or the Board or by a shareholder who was a
shareholder of record at the time of giving notice, entitled to vote at the
meeting, and who has given our secretary timely written notice, in proper form,
of the shareholder’s intention to bring that business before the meeting. These
provisions may have the effect of precluding the conduct of certain business at
a meeting if the proper procedures are not followed or may discourage or deter
a potential acquirer from conducting a solicitation of proxies to elect its own
slate of directors or otherwise attempting to obtain control of our Company.

 

Amendment of the Bylaws. Our
bylaws provide that our bylaws may be altered, amended or repealed by the
affirmative vote of a majority of our shareholders entitled to vote or a
majority of our directors then in office without prior notice to or approval by
our shareholders. Accordingly, our Board could take action to amend our bylaws
in a manner that could have the effect of delaying, deferring or discouraging
another party from acquiring control of the Company.

 

These and other provisions contained in
our articles of incorporation and bylaws could delay or discourage transactions
involving an actual or potential change in control of us or our management,
including transactions in which shareholders might otherwise receive a premium
for their shares over then current prices. Such provisions could also limit the
ability of shareholders to remove current management or approve transactions
that shareholders may deem to be in their best interests and could adversely
affect the price of our common stock.

 

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Exhibit 10.19

 

STRICTLY PRIVATE & CONFIDENTIAL

 

7th December 2010

Mr Adrian Steeples

Pentle House

Shenstone Hill

Berkhampstead

Hertfordshire

HP4 2PA

 

Dear Mr Steeples,

 

TERMS AND CONDITIONS OF EMPLOYMENT

The following Terms and Conditions of Employment will apply to
your employment with Quaker Chemical Limited ("the Company") as at
the date of issue.  They are given to you pursuant to the Employment Protection
(Consolidation) Act 1978.

1.             DATE OF COMMENCEMENT

1.1              
 Your period of employment commences on 1st January
2011.

 

1.2              
 Normally the first 3 months of your employment would be on a
probationary basis, but as you have been employed on a temporary basis since 1st
April 2010 this requirement is waived.

 

2.             DUTIES

2.1          You will be employed in the capacity of Industry
Business Manager - Metalworking and you will perform all acts, duties and
obligations and comply with such orders as may be designated by the Company
which are reasonably consistent with the above mentioned capacity.

2.2          You are required to comply with all the Company's
rules, regulations and policies from time to time in force.

3.             HOURS OF WORK

3.1          Your basic hours of work comprise 35 hours per week
excluding one hour for lunch to be taken at a mutually agreed time.  Normal
working hours are Monday to Friday 9.00 am to 5.00 pm. 

3.2          It will also be necessary for you to work additional
hours by way of overtime either, as and when requested to do so by the Company,
or when the proper performance of your work so requires.

3.3          You are not entitled to be paid additional
remuneration for any such overtime worked.  Time off in lieu of overtime worked
will not be permitted.

4.             PLACE OF WORK

4.1          You place of work will be your home address but you
will have use of the Company's office located at Unit 6 Brunel Way, Stroudwater
Business Park, Stonehouse, Glos. GL10 3SX, whenever necessary and you may be
required to work at any other premises which the Company currently has or may
later acquire.

5.             REMUNERATION AND EXPENSES

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5.1          Your gross
annual base salary will be a figure based on the 2010 basic salary of
£120,000.00 plus any Inflation increase that may be applied, effective as from
1st January 2011.

                In addition to your base salary you will be
entitled to participate in the Global Annual Incentive Plan, which allocates a
bonus fund, dependent on profits of the global corporation being above
predetermined levels, which are announced at the beginning of each year. Your
entitlement is up to a maximum amount of 40% of your basic salary, and is
apportioned according to months worked in any year. Further details of this
scheme will be provided to you in due course. Payments are made annually in
March following auditing of the company's yearly results which runs from
January - December.

                Salaries are payable monthly in arrears by Bank
Giro Credit Transfer on the last working day of the month.

5.2          You will be paid a monthly lump sum of £400, in lieu
of the entitlement to a company car, payable with your monthly salary and taxed
accordingly.

5.3          You will also be reimbursed for any business mileages
at 19p per mile and other reasonable expenses properly incurred by you while
performing your duties on behalf of the Company, subject to your producing
receipts in respect of such expenses, when required by the Company.

6.             HOLIDAYS

6.1          In addition to the Statutory, Bank and Public
holidays normally applicable in England, you are also entitled to 28 working
days paid holiday in each complete calendar year.

6.2          Holiday entitlement will accrue at a pro-rata rate
for each complete month of service.  If, on the termination of your employment,
you have exceeded your accrued entitlement for the relevant calendar year, this
excess will be deducted from your final payment.  If you have holiday
entitlement still owing, the Company will pay you a sum in lieu of accrued
holiday. If you have holiday entitlement still owing, the Company may, at its
sole discretion, require you to take your holiday during your notice period or
pay you a sum in lieu of accrued holiday.

6.3          You must obtain the prior approval of your manager
before booking holiday dates.  Not more than two weeks may be taken at any one
time, save at the Company's discretion.

6.4          Holiday entitlement for one calendar year must be
taken before 1 February of the following calendar year.  Failure to do so will
result in forfeiture of such accrued holiday not taken.

7.             SICKNESS

7.1          In the event of your being absent from work due to
sickness or injury, the Company will continue to pay your basic salary
(inclusive of any Statutory Sick Pay to which you may be entitled) up to the
maximum specified below.

                                Length
of Service                                Sick Pay Maximum

                                Less than
1 year                                   2 weeks

                                1 year                                                     1
month

                                2 years                                                   6
weeks

                                3 years                                                   2
months

                                4 years                                                   3
months

 

                "Sick Pay" will be based on your basic
salary less any state benefits payable to you on account of your sickness or
injury, less normal deductions for tax etc.

7.2          Irrespective of Clause 7.1 above, you will receive
Statutory Sick Pay (SSP) when you qualify for it.  This will normally be
payable where:

7.2.1                       you have
waited three "qualifying days" (i.e. any day from Monday to Friday)
in that period of incapacity from work without receiving SSP, AND 

7.2.2                       the day for
which SSP is claimed is a "qualifying day".

7.3          Where Company sick pay (under Clause 7.1) and SSP are
payable for the same day of sickness, you will receive the higher of the two
sums.

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7.4          You will in
cases of absence notify the Company on the first morning of the reason for any
absence and its anticipated duration.  If you are away sick for more than seven
consecutive days (including Saturdays and Sundays and Bank Holidays), then a
medical certificate must be produced to the Company. Thereafter medical
certificates should be submitted regularly to cover the full period of
absence.  On each occasion a medical certificate expires and you do not
anticipate you will be returning to work, you must notify the Company on the
first morning following the expiry of the medical certificate.

7.5.1         
 You are also required to complete the Company's Absence
Notification Form for all absences (regardless of duration) and submit it to
the SDO Admin.

 

8              PENSION & LIFE INSURANCE

                The Company operates a contributory occupational
pension scheme, which you would be eligible to join but you have opted to take
a monthly allowance of £820 in lieu of this benefit, payable with your normal
monthly salary and taxed accordingly.

9.             MEDICAL HEALTH

As you have already undergone a full medical examination, prior to
your temporary employment, this requirement is waived.

 10.         PRIVATE HEALTH SCHEME

The Company also provides, at its own expense, a Private Health
Scheme, which would cover only yourself, and which you would be eligible to
join following your “Probationary Period”.

11.          RETIREMENT

                The normal age of retirement is 65 years.

12.          PROTECTIVE CLOTHING

                The Company issues suitable protective clothing
free on loan for your use.  The clothing remains the property of the Company
and may not be taken off the Company's premises without permission.  It must be
returned to the Company on termination of your employment.

13.          EXCLUSIVITY OF SERVICE

13.1        You are required to devote your full time, attention
and abilities to your job duties during working hours, and to act in the best
interests of the Company at all times.

13.2        You must not, without the written consent of the
Company, be in any way directly or indirectly actively engaged or concerned in
any other business or undertaking where this is or likely to be in conflict
with the interests of the Company.

14.          GRIEVANCE PROCEDURE

                If you are unhappy about any aspect of your
employment with the Company you should raise the matter in the first instance
with your manager.  If you are still unhappy, you should take up the grievance
with the Regional HR Manager, who will then have the final decision.

15.          DISCIPLINARY RULES AND
PROCEDURE

                The Company expects and will enforce reasonable
standards of conduct and performance from its employees.  Details of the
Company's disciplinary rules and procedure can be obtained from SDO
Admin.                                                                                                                                                                                             

16.          CONFIDENTIAL INFORMATION

16.1        You shall not, except as authorised or required by
your duties hereunder, use for your own benefit or gain or reveal to any other
person(s), firm, company or other organisation whatsoever, any confidential
information belonging to the Company or any Associated Company or relating to
the affairs or dealings of the Company or any Associated Company (including but
not limited to any trade secrets, business developments, marketing plans,
financing plans, general finances, pricing structures, dealings, transactions
or affairs of the Company or any Associated Company) which may come to your
knowledge during your employment.  You shall treat the same with complete
secrecy.

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                This
restriction shall continue to apply after the termination of your employment
without limitation in time, but shall cease to apply to any information or
knowledge which may subsequently come into the public domain, other than by way
of unauthorised disclosure.

16.2        All records, documents, specifications, formulations,
lists and other papers (together with any copies or extracts thereof) made or
acquired by you in the course of your employment shall be the property of the
Company and must be returned on the termination of your employment.  The
copyright in all such records, documents and papers shall at all times belong
to the Company.

17.          RESTRICTIONS ON TERMINATION OF EMPLOYMENT

17.1        The following expressions shall have the meanings set
out below:

17.1.1     "The Territory" shall mean:

                (i)            England

                (ii)           Wales

                (iii)          Scotland

                (iv)          Northern
Ireland

                (v)           Any other country where the Company
develops, sells, supplies, manufactures, services or researches its products or
services, or where the company is intending to within 3 months following the
Termination Date of your contract to develop, sell, supply, manufacture,
service or research its products or services and in respect of which the
temporary employee has been responsible, whether alone or jointly with others,
concerned or active on behalf of the Company during any part of the twelve
months immediately preceding the Termination Date of your contract.

 

17.1.2     "The Products" shall mean products
manufactured, supplied, serviced, researched, developed, marketed or sold by
the Company as at the Termination Date with which you were materially concerned
or for which you were responsible or about which you held confidential
information at any time during the twelve months preceding the Termination
Date.

17.1.3     “The Services” shall mean services supplied,
researched, developed, marketed or sold by the Company as at the Termination
Date with which you were materially concerned or for which you were responsible
or about which you held confidential information at any time during the twelve
months preceding the Termination Date.

17.1.4     "Termination Date" shall mean the date on
which your employment terminates for whatever reason.

17.2        You will not for a period of 12 months following the
Termination Date (less any time during which the Company has exercised its
right to require you not to perform your duties or to perform only some of your
duties under clause 19.3 below) and whether on your own behalf or on behalf of
any other person, firm, company, or other organisation, and whether as an
employee, principal, agent, consultant or in any other capacity whatsoever:

17.2.1     be directly or indirectly employed, engaged, or in any
way involved, in the Territory, in competition with the Company in the
manufacture, supply, service, development, research, marketing or sale of any
product which competes with or is similar to the Products or any of them or the
supply, research, development or marketing of any service which competes with
or is similar to the Services or any of them;  or

17.2.2     be directly or indirectly engaged in any business or
employment involving or which might reasonably be expected to involve the
exploitation or use of any confidential discovery, invention or improvement or
any secret formula or other confidential information of which you acquired
knowledge in the course of your employment; or

17.2.3     directly or indirectly solicit or assist in soliciting
or accept or facilitate the acceptance of or deal with the custom or business
of any person, firm, company or other organisation who in the year immediately
preceding the Termination Date was:

                (i)            a customer
of the Company with whom you had material dealings or for whom you were
responsible on behalf of the Company;  or

                (ii)           a
prospective customer of the Company with whom you had material dealings or for whom
you were responsible on behalf of the Company;

17.2.4      
 directly or indirectly induce or solicit or entice or procure any
person who is a Company Employee to leave the Company’s or any Associated
Company’s employment, as applicable, or be personally involved to a material
extent in accepting into employment or otherwise engaging or using the services
of any person who is a Company Employee. Company Employee for 

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this purpose means any person who was employed by the
Company or any Associated Company for at least three months prior to and on the
Termination Date and with whom you had material contact or dealings in
performing your duties of employment or about whom you held confidential
information: and

 

(i)                
 who had material contact with customers or suppliers of the
Company in performing his or her duties of employment with the Company or any
Associated Company as applicable; or

(ii)              
 who was either a member of the management team of the Company or
any Associated Company as applicable; or

(iii)            
 who was a member of the Research and Development Department of the
Company or any Associated Company as applicable.

18.          COPYRIGHT, INVENTIONS AND PATENTS

18.1        You acknowledge and agree that by virtue of the nature
of your duties hereunder and the responsibilities arising you have a special
obligation to further the interests of the Company within the meaning of
Section 39 (1) (b) of the Patents Act 1977 ("the said Act").

18.2        Any invention, development, process or other matter or
work whatsoever (collectively "the inventions") made, developed or
discovered by you either alone or in concert, whilst you are employed by the
Company shall forthwith be disclosed to the Company and subject to Section 39
of the said Act shall belong to and be the absolute property of the Company or
such Associated Company as the Company may designate.

18.3        With respect to those rights in the inventions
(collectively "Employee Rights") which do not belong to the Company
pursuant to Clause 17.2, you shall at the request and cost of the Company (and
notwithstanding the termination of your employment) forthwith license to the
Company the Employee Rights and shall deliver to the Company all documents and
other materials relating to the inventions.  The Company shall pay you such
compensation for the licence as the Company shall determine in its sole discretion
subject to Section 40 of the said Act.

18.4        You shall at the request and cost of the company (and
notwithstanding the termination of your employment) sign and execute all such
documents and do all such acts as the Company may reasonably require:

18.4.1     to apply for and obtain in the sole name of the Company
(unless the Company otherwise directs) patent, registered design or other
protection of any nature whatsoever in respect of the Inventions in any country
throughout the world and, when so obtained or vested, to renew and maintain the
same;

18.4.2     to resist any objection or opposition to obtaining, and
any petitions or applications for revocation of any such patent, registered
design or other protection; and to bring any proceedings for infringement of
any such patent, registered design or other protection.

18.5        The company shall decide, in its sole discretion,
whenever to apply for patent, registered design or other protection in respect
of the inventions as a secret process in which event you shall observe the
obligations relating to the confidential information which are contained in
Clause 15 of this Agreement.

19.          DEFINITION OF "ASSOCIATED COMPANY"

                In this Agreement an "Associated
Company" includes any firm, company corporation or other organisation
which;

19.1        is directly or indirectly controlled by the Company; 
or

19.2        directly or indirectly controls the Company;  or

19.3        is directly or indirectly controlled by a third party
who also directly or indirectly controls the Company.

20.          TERMINATION OF EMPLOYMENT

20.1        Your contract of employment is terminable by yourself
or by the Company on either giving three month's written notice.

20.2        The Company reserves the right to terminate your
contact without any notice if it has reasonable grounds to believe you are
guilty of gross misconduct or gross negligence.

20.3        During the unexpired period of your fixed term
employment the Company may at its absolute discretion require you:

20.3.1      
 not to attend at your place of work or at any other premises of
the Company or its Associated Companies; or 

 

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20.3.2      
 not to undertake any or any part of your duties and/or to carry
out different duties of which you are reasonably capable and which are
consistent with your seniority in place of your normal duties; or

 

20.3.3      
 not to communicate with any customers, suppliers, employees or
officers of the Company or its Associated Companies.

 

20.4        During any such period when the Company exercise its
discretion as set out in clause 20.3 above “Garden Leave Period” the Company
will continue to pay your salary and contractual benefits excluding any bonus
entitlement relating to the Garden Leave Period and all other terms of your
employment with the Company will continue including without limitation your
obligations of good faith, fidelity, confidentiality, your fiduciary duties and
all of your express and implied obligations. Any holiday entitlement which has
accrued at the start of the Garden Leave Period and any holiday entitlement
which accrues during the Garden Leave period will be deemed to be taken during
the Garden Leave Period.

20.5        The Company may at its discretion appoint another
employee of officer to carry out some or all of your duties during any Garden
Leave period.

21.          SUBSTITUTION FOR ANY PREVIOUS AGREEMENT

                This Agreement cancels and is in substitution for
all previous letter of engagement, agreements and arrangements whether oral or
in writing relating to the subject matter hereof between the Company and
yourself, all of which shall be deemed to have been terminated by mutual
consent.

22.          PRIOR
OR CURRENT THIRD PARTY AGREEMENTS 

                You represent and warrant that the execution of
this agreement your employment hereunder and your performance of the work under
this Agreement do not violate or are not prevented or constrained in any way by
any prior or current agreement or contract that you may have with any third
party whatsoever.

Yours sincerely

/s/ Mike Flower

Mike Flower

Finance & Site Manager

Company Secretary

QUAKER CHEMICAL LTD

 

I agree with the Terms and Conditions of my Employment as set out
above or incorporated in the Company's written policies from time to time in
force.

 

Signed    :                 /s/ A. Steeples                                    

                                     Adrian Steeples

 

Date       :                 9/12/2010                                           

 

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