Document:

exhibit101

 

 

 

 

 
1 
EXHIBIT 10.1 
 
MEMORANDUM OF EMPLOYMENT 
 
April 19, 2021 
Shane W. 
Hostetter 
[ Redacted ] 
 
 
The  parties 
to  this 
Memorandum  of 
Employment  (“Agreement”) 
are 
Shane  W. 
Hostetter 
and 
Quaker  Chemical 
Corporation
, a Pennsylvania corporation, doing business as Quaker Houghton 
(“Quaker Houghton” or the “Company”). 
 
You 
are appointed Quaker Houghton’s 
Senior Vice President 
and Chief Financial Officer 
effective as of the 
date listed above 
and Quaker Houghton wishes to enter into this Agreement 
containing certain covenants in connection with this appointment. 
 
 
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: 
 
1.
 
Duties 
Quaker Houghton 
agrees to 
employ you 
and you 
agree to 
serve as 
Quaker Houghton’s 
Senior 
Vice President 
and Chief 
Financial Officer, 
located at our Conshohocken, PA 
facility. 
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 
Chief Executive Officer. 
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. Any 
and all prior 
employment or other 
agreements, with the 
exception of the 
April 
19, 2021 Change of Control agreement, are hereby terminated 
and have no further legal effect. 
 
2.           Compensation
 
 
Your 
base salary will be 
determined from time to 
time by the Compensation 
and Human Resources Committee 
of the Board 
of Directors, in 
consultation with the 
Chief Executive Officer. 
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 paid time 
off, paid 
holidays, and 
medical, dental, and 
other benefits as 
are made 
generally available 
by Quaker 
Houghton to 
its full-time U.S. 
employees. 

3.           Term 
of Employment
. 
Your 
employment with 
Quaker Houghton 
may be 
terminated on 
thirty (30) 
days' written 
notice by 
either party, 
with or 
without cause or reason whatsoever. 
Within thirty (30) 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 
thirty (30) days’ notice for Cause (as defined below). 
 
4.           Covenant 
Not to Disclose
 
a.           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 
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. 

 

 

 

 
2 
(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 new position with 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 one (1) 
year 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 
.             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 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 reasonab 
le 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. 
 
7.           Inventions
 
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. 

 

 

 

 
3 
 
8.
 
Termination
 
 
Quaker Houghton, in its sole 
discretion, may terminate your 
employment at any time and 
for any reason, including 
Cause (as 
defined herein). 
If you incur a 
Separation from Service 
by decision and 
action of Quaker Houghton 
for any reason 
other than Cause, 
death, or Disability (as defined below), Quaker Houghton 
agrees to: 
 
a.           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 your 
request. 
 
b.           Pay 
you one 
year's severance 
in twenty 
-four semi-monthly 
installments commencing 
on the 
Payment Date 
and 
continuing on 
Quaker Houghton's 
normal semi-monthly 
payroll dates 
each month 
thereafter, each 
of which 
is equal 
to your 
semi-
monthly base salary 
at the time 
of your Separation 
from Service, provided 
you sign a 
Release within 45 
days of the 
later of the 
date 
you receive 
the Release 
or your 
Separation from 
Service. Continuation 
of medical 
and dental 
coverage’s will 
be consistent 
with 
current Quaker Houghton severance program in place 
at the time of termination. 
“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 hav 
ing 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 hereun 
der 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 60th 
day after 
your Separation 
from Service 
or (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 subsection (b) 
is 
deferred compensation subject 
to section 409A of 
the Code, 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) that Quaker Houghton 
provides 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. 
“Disability”
 
means  total  and  permanent 
disability  as  defined 
in  the  long-term  disability 
plan  maintained  by 
Quaker 
Houghton for employees 
generally or, 
if Quaker Houghton 
does not maintain 
such a plan, the 
long-term disability plan 
most recently 
maintained by Quaker Houghton for employees generally. 
9.           Indemnification. 
 
The Company 
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 
action of you, 
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 
you in 
defending such 
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 
you to 
repay said 
amount 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 the 
Company against 
you. 
 
10.         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. 
 

 

 

 

 

 

 
4 
11.         Miscellaneous 
 
This Agreement and 
any 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/ Robert T. Traub 
/s/ Michael F. Barry 
 

 

Michael F. Barry 
WITNESS: 
/s/ Victoria K. Gehris 
/s/ Shane W. 
Hostetter 
 

 

Shane W. 
Hostetter 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
5 
 
 
 
 
 
 
 
 
 
Shane W. Hostetter 
ADDENDUM 1 
 
Base Salary: 
Your 
salary will be 
payable on a 
bi-weekly basis at 
an annualized rate 
of $390,000. 

You 
will be eligible for your next salary increase in 2022. 
Annual and Long- 
Term Bonuses: 
For  your  position,  you  are 
eligible  to  participate  in 
the  Annual  Incentive  Plan 
(“AIP”) with target 
and double target 
award percentages 
for 2021 under 
the AIP of 
60%  and 
120%,  respectively, 
of  your 
base  salary, 
dependent  upon 
Quaker 
Houghton’s financial 
results and other objectives to be determined. 
You 
were eligible to 
participate in the 2021 
-2023 Long Term 
Incentive Plan (LTIP) 
at a 
target level 
award of 
$103,000. 
In consideration 
of accepting 
your new 
role, 
you award will be increased by $200,000 for a total target 
level award opportunity of 
$303,000. 
Your 
award for the 2021 
-2023 performance period 
includes an even 
mix 
of time-based restricted stock, stock options, and target 
performance stock units. 

All  incentive  compensation 
awards  are  made 
at  the  Company’s 
discretion,  are 
subject to change, and require the approval of the Compensation 
Committee. 
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) 
PTO/Holidays: 
You 
will be 
eligible for 
the amount 
of PTO 
days per 
calendar year 
based on 
your 
tenure with 
Quaker Houghton 
per the 
Company’s PTO 
Plan. 
In addition, 
you will 
continue to be 
eligible to be 
paid for regional 
holidays. 
Unused PTO days 
will not 
roll over from 
year to year 
(other than a 
maximum of 5 
days in 2021 
as previously 
announced by the Company).exhibit103

 

 
1 
EXHIBIT 10.3 
 
 
 
 
 
 
March 22, 2021 
 
David Will 
Quaker Houghton 
 
Dear David: 
 
Congratulations! 
I am pleased to 
offer you this 
promotion with Quaker 
Houghton as VP, 
Global Controller. 
Your 
tentative start date 
for this 
position is 
April 19, 
2021.
 

We believe 
you can 
make significant 
contributions in 
this role 
and will 
find this 
opportunity 
exciting and rewarding. 
Please review the details of the offer below. 

 
Salary 
Your 
new annualized salary 
is $260,000 and 
is inclusive of 
your 2020 merit 
increase and is 
effective on April 
19
, 
2021. 
You 
will be 
eligible for your next merit increase in April 2022, reflective of 
performance year 2021. 
 
Annual Incentive Plan 

You 
will be eligible to participate in our 2021 Annual Incentive Plan 
(AIP), with an annual bonus target of 30% of 
your base salary. 
 
Long Term 
Incentive Plan 
You 
will be eligible to 
participate in our 2021 
Long Term 
Incentive Plan (LTIP) 
at a level valued at 
$70,000 which is inclusive 
of the 
$47,000 grant you 
received on March 
15
th
. 
The $23,000 value 
in the difference 
will be reflected 
in an additional 
grant on your 
start 
date of April 19, 2021. 
As a reminder, the grant will consist of Restricted 
Stock (60%) and Performance Stock Units (40%). 

 
The terms and conditions of your employment 
as they existed remain in effect, except 
as specifically set forth above and in restrictions 
from what you signed previously. 
Quaker Houghton reserves the right to modify 
your job title, duties and compensation, as well as all 
company rules, practices and other terms of employment. 
 
We are 
excited about this 
opportunity for 
you David and 
look forward to 
you accepting this 
role with Quaker 
Houghton. 
After your 
review of this offer, 
please sign below to confirm your acceptance and return 
to me with a copy to Rob Traub and Kym 
Johnson. 
 
Sincerely, 
 

/s/ Shane Hostetter 
Shane Hostetter 
VP, 
Finance and Chief Accounting Officer 
 
Employee Offer Acceptance 
I accept the terms and conditions outlined above: 
 
 
/s/ David Will 
4/7/2021 

David Will 
Date

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