Document:

Employment Agreement (Richard Heyse)

 Exhibit 10.29 
  
 

 
 Innophos, Inc. 
 259 Prospect Plains Road • Building G 
 P.O. Box 8000 • Cranbury. NJ 08512-8000

 Telephone: (609) 495-2495 
 Fax: (609) 860-0350 
  
 2/24/05 
  
 Mr. Richard Heyse 
 1016 Stagshaw Lane 
 Kingsport, TN 37660 
  
 Dear Richard: 
  
 It is my pleasure to offer you the position of Chief Financial Officer of Innophos, Inc. (the “Company”) reporting to me in my
capacity as Chief Executive Officer. Your related work experience and the results of your interviews have confirmed to us that you will be a valuable addition to the Innophos organization. 
  
 You will commence employment on April 06, 2005. During your first month of employment you
will receive a signing bonus of $55,000. Your monthly salary will be $19,166.67 while you are so employed, Your salary will be subject to annual review and may be increased based upon your performance in the prior year. You will be eligible for 4
weeks vacation to be used according to company policy. You will also be eligible to receive an annual bonus payment based on the audited performance of the business and your own personal contributions. Your target bonus will be 50% of your annual
base salary. Your bonus will be calculated in a manner similar to all senior executives at the Company. For calendar year 2005, 70% of your target bonus (the “EBITDA Bonus”) will be based on the Company’s calendar year EBITDA (the
“2005 EBITDA”) and 30% will be discretionary. You will receive 100% of your EBITDA Bonus upon achieving 100% of the annual budgeted EBITDA goal. There will be a minimum threshold level of EBITDA below which you will receive no EBITDA
Bonus. You will receive incrementally higher bonus amounts if the Company exceeds the budgeted EBITDA goals. Although the EBITDA bonus plan is subject to change, the current plan will pay you approximately 150% of your EBITDA Bonus if the 2005
EBITDA is 105% of the budgeted EBITDA goal, and approximately 200% of your EBITDA Bonus if the 2005 EBITDA is 110% of the budgeted EBITDA goal. Your calendar year 2005 bonus, calculated as described above, will be reduced by $55,000. All salary and
bonus payments, if any, will be subject to applicable tax withholdings. For calendar year 2005 only, you will have a minimum bonus payout of $55,000. 
  
 In addition to a base salary and bonus payments, you will be entitled to participate in the executive management option plan. Under the pending option plan (which
reflects the recent debt offering), the management option pool is equal to 11.6% (1160 Bps) of the outstanding shares of the Company, on a fully diluted basis. You will receive options equal to 0.986% (98.6bps) of the outstanding shares of the
Company, on a fully diluted basis. The options will vest 20% per year over 5 years. 

 Effective your first day of full time employment, Innophos will also offer you health and welfare benefits and an
opportunity to participate in the Innophos 401(k) savings plan. Please note that under the Innophos health and welfare program certain employee contributions may be required. Please also note that Innophos matches employee contributions to their
401(k) plan up to a threshold. 
  
 In the event that your employment is terminated
by Innophos without “Cause”, (including a decision by the Company, on or prior to the Start Date, not to employ you as provided herein) Innophos will provide you with severance equal to your base salary and the lesser of your target bonus
or your actual bonus payout from the previous year, provided that if such termination occurs within the first year of your employment, your severance will be equal to your base salary and your target bonus. The severance payment will be made in 12
equal monthly installments, each subject to applicable tax withholdings. As a condition to receiving each severance payment, you will be required to sign our standard form of release and comply with a non-compete and confidentiality agreement, which
will remain in effect for 12 months after your termination. If your employment is terminated by you or by Innophos for “Cause”, you will not be entitled to any severance payments. 
  
 For purposes of your employment arrangements, “Cause” means any of the following:
(i) you commit and are charged with a felony, are convicted of (or plead guilty or nolo contendere to) any other crime involving moral turpitude, or commit any other act or omission involving dishonesty, breach of fiduciary duty, or fraud with
respect to the Company or any of its Subsidiaries, (ii) conduct by yourself causing the Company or any of its Subsidiaries substantial public disgrace, substantial public disrepute or substantial economic harm, (iii) your failure to perform duties
consistent with your position as the Chief Financial Officer of the Company and its Subsidiaries (or any other position to which the Board may appoint you) as directed in writing by the CEO or Board (a “Clause (iii) Event”), (iv)
misappropriation by you of one or more of the Company’s or its Subsidiaries’ assets or business opportunities, (v) material breach by you of any confidentiality, non-compete, non-solicitation agreement with the Company or any of its
Subsidiaries or any arrangement dealing with the ownership or protection of the Company’s and its Subsidiaries’ proprietary rights or (vi) any material breach of this or any employment agreement between the Company or its Subsidiaries and
yourself or any material breach of any executive stock agreement evidencing the purchase and sale of Common Stock or the grant of Options by the Company to such Participant.); provided that to the extent a Clause (iii) Event is curable, you shall
have 10 business days to cure such event or breach from the date on which the CEO or Board delivers written notice to you reasonably identifying such event or breach; and provided, further, that, during any five (5) year period, you shall be
entitled to cure only one (1) Clause (iii) Event pursuant to the preceding proviso. 
  
 Innophos will provide you with a relocation allowance of $4,600 and cover reimbursable expenses to facilitate your move and transition from your current location to the Cranbury NJ area. I have attached a document outlining the relocation
arrangements we have discussed. In addition, so long as your family remains in your current residence, Innophos will reimburse you for your out-of-pocket cost of purchasing 1 round trip coach class airline ticket every 2 weeks for purposes of
visiting your family; provided that this reimbursement allowance will cease on the six-month anniversary of your employment even if your family remains in your current residence. 
  
 Please remember that this full time offer is contingent upon your passing an approved physical examination and reference check. Please note
that the physical examination includes a substance screening to ensure that you are able to fulfill the physical requirements of the job. 
  

 This offer of employment will remain open until 5:00 p.m. (EST) on February 25th, 2005. You may accept this offer by
signing in the space below and faxing back to me (please call first to ensure confidentiality). Upon acceptance of this offer, please contact me for instructions on how to schedule your physical and to discuss information pertinent to your first day
of employment. Finally, you will need to sign the Policies on Ethical Business Conduct Agreement, which discusses your obligations with regard to anti-trust law, patents, inventions, and the company’s proprietary confidential information. This
form along with other pertinent information regarding your employment will be provided to you during your benefit orientation meeting to be held sometime after your first day of employment. If accepted by you, this offer letter represents the entire
agreement of the parties and supersedes all prior agreements and understandings relating to the subject matter hereof. 
  
 Richard, I sincerely believe that you will find Innophos, Inc. to be a challenging and rewarding employer. On behalf of Innophos, Inc., we look forward to your joining
the new organization. If I can be of assistance in the meantime, please let me know. 
  

	
	Sincerely,
	
	 /s/ Randy Gress

	Randy Gress
	Chief Executive Officer

  

	cc:	Blair Hendrix 

 Steve Zide 
  

			
	Accepted:	 	 /s/ Richard Heyse

			
		
	 Date:
	 	2/24/05Deferred Compensation Agreement, dated as of August 13, 2004 (Randolph Gress)

 Exhibit 10.30 
  
 Execution Copy 
  
 DEFERRED COMPENSATION AGREEMENT 
  
 This DEFERRED COMPENSATION AGREEMENT (this “Agreement”) is made and entered into as of August 13, 2004, by and among Randolph Gress (the
“Executive”), and Innophos, Inc., a Delaware corporation (the “Company”). Any capitalized terms used herein and not otherwise defined shall have the meaning assigned to them in Section 4 hereof. 
  
 WHEREAS, the Company has entered into the Agreement of Purchase and Sale
dated as of June 10, 2004 (as amended, the “Purchase Agreement”), pursuant to which the Company and certain of its subsidiaries will acquire certain assets and subsidiaries of Rhodia, S.A., Rhodia Inc. (“Rhodia”),
Rhodia Canada Inc., Rhodia de Mexico S.A. de C.V., Rhodia Overseas Ltd, Rhodia and Consumer Specialties Limited that are related to the production and sale of phosphates products in North America; and 
  
 WHEREAS, the Company has agreed to assume Rhodia’s obligations to pay a
portion of such bonuses to Executive, and Executive and the Company wish to defer the payment of such portion of such bonuses on the terms and subject to the conditions set forth herein. 
  
 NOW THEREFORE, in consideration for the employment of Executive by the Company or its subsidiaries on and after the date
hereof and other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  
 1. Deferred Compensation Benefit. Subject to the provisions in paragraphs 2 and 3 hereof, as of the date nine years after the date hereof (the
“Deferred Date”), the Company will pay Executive (or his beneficiary in the event of his death) a lump sum (the “Benefit Amount”) equal to (i) the Bonus Amount plus (ii) an interest factor equal to the
applicable mid-term federal rate on the date hereof, compounding annually, from the date hereof until payment hereunder, such Benefit amount to be paid regardless of whether Executive is employed by the Company as of such date. 
  
 2. Sale of the Company, Initial Public Offering or Death or Total
Permanent Disability. If at such time that Executive is employed by Holdings or any of its Subsidiaries: (i) there is a consummation of a Sale of the Company or an Initial Public Offering or (ii) Executive dies or becomes totally and permanently
disabled (certified to the satisfaction of the Company), then the Benefit Amount otherwise payable under Section 1 above shall become immediately due and payable in a lump sum as of the date of the consummation of a Sale of the Company or Initial
Public Offering or Executive’s death or total disability. 
  
 3. Termination of Employment. If prior to the Deferred Date Executive ceases to be employed by the Company for any reason, then the Benefit Amount otherwise payable under Section 1 above shall become due and payable on the
Termination Date. 
  
 4. Definitions. 
  
 “Board” means the Board of Directors of the
Company. 

 “Bonus Amount” shall equal $151,868.50. 
  
 “Holdings” means Innophos Holdings, Inc., a
Delaware corporation and the sole stockholder of the Company. 
  
 “Independent Third Party” means any person who, immediately prior to the contemplated transaction, does not own in excess of 5% of the Company’s Common Stock on a fully-diluted basis, who is not
controlling, controlled by or under common control with any such 5% owner of the Company’s Common Stock and who is not the spouse or descendent (by birth or adoption) of any such 5% owner of the Company’s Common Stock. 
  
 “Initial Public Offering” means an initial
public offering of Holdings’ or the Company’s common equity securities pursuant to the Securities Act following which the Company’s common equity securities are registered pursuant to Section 12 of the Securities Exchange Act of 1934,
as amended from time to time. 
  
 “Person” means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization, a governmental entity or any
department, agency or political subdivision thereof or any other entity or organization. 
  
 “Public Sale” means any sale pursuant to a registered public offering under the Securities Act or any sale to the public
pursuant to Rule 144 promulgated under the Securities Act effected through a broker, dealer or market maker. 
  
 “Sale of the Company” means (x) a liquidation of Holdings or the Company pursuant to which all of its assets (after
payment of liabilities) are distributed to the holders of its equity securities, or (y) a sale of Holdings or the Company (or any successor thereto), including in one transaction or a series of related transactions to an Independent Third Party or
group of Independent Third Parties, pursuant to which such party or parties acquire, directly or indirectly, through one or more intermediaries, (i) equity securities of Holdings constituting a majority of the outstanding voting capital stock of
Holdings (whether by merger, consolidation, sale or transfer of Holdings’ outstanding capital stock) or (ii) all or substantially all of the assets of Holdings and its Subsidiaries on a consolidated basis. 
  
 “Securities Act” means the Securities Act
of 1933, as amended from time to time. 
  
 “Subsidiary” means, with respect to any Person, any corporation, partnership, limited liability company, association or other business entity of which (i) if a corporation, a majority of the total voting power of shares of
stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a
combination thereof, or (ii) if a partnership, limited liability company, association or other business entity, a majority of the partnership or other similar ownership interest thereof is at the time owned or controlled, directly or indirectly, by
that Person or one or more Subsidiaries of that Person or a 

  

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combination thereof. For purposes hereof, a Person or Persons shall be deemed to have a majority ownership interest in a partnership, limited liability
company, association or other business entity if such Person or Persons shall be allocated a majority of partnership, limited liability company, association or other business entity gains or losses or shall be or control the managing director,
managing member, manager or a general partner of such partnership, limited liability company, association or other business entity. 
  
 “Termination Date” means the date that Executive ceases to be employed by Holdings or any of its Subsidiaries for any
reason. 
  
 5. Administration of this Deferred Compensation
Arrangement. The deferred compensation arrangement set forth under this Agreement shall be administered by the Company. The Company’s duties and authority under this arrangement shall include (i) the interpretation of the provisions of this
Agreement, (ii) the adoption of any rules and regulations which may become necessary or advisable in the operation of this arrangement, (iii) the making of such determinations as may be permitted or required pursuant to this arrangement, and (iv)
the taking of such other actions as may be required for the proper administration of this arrangement in accordance with its terms. 
  
 6. Action by Company. Any action required or permitted by the Company under this Agreement shall be by resolution of the Board or by a duly
authorized committee of the Board, or by a person or persons authorized by resolution of the Board or such committee. 
  
 7. Amendment. This Agreement may not be canceled, changed, modified, or amended orally, and no cancellation, change, modification or amendment
hereof shall be effective or binding unless in a written instrument signed by the Company and Executive. A provision of this Agreement may be waived only by a written instrument signed by the party against whom or which enforcement of such waiver is
sought. 
  
 8. No Waiver. The failure at any time of the
Company or Executive to require the performance by the other of any provision of this Agreement shall in no way affect the full right of such party to require such performance at any time thereafter, nor shall the waiver by the Company or Executive
of any breach of any provision of this Agreement be taken or held to constitute a waiver of any succeeding breach of such or any other provision of this Agreement. 
  
 9. Withholding for Taxes. Notwithstanding anything contained in this Agreement to the contrary, the Company shall
withhold from any distribution made pursuant to this Agreement such amount or amounts as may be required for purposes of the Company complying with the tax withholding provisions of the Internal Revenue Code of 1986, as amended, or any state tax act
for purposes of paying any income, estate, inheritance or other tax attributable to any amounts distributable under this Agreement. 
  
 10. Miscellaneous. The payment to Executive or Executive’s estate, in the event of death, shall be made from the general assets of the
Company. No person shall have any interest in any such assets by virtue of the provisions of this Agreement. The Company’s 

  

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obligation under this Agreement shall be an unfunded and unsecured promise to pay money in the future. Executive’s right to receive the payment from the
Company under this Agreement shall be no greater than the right of any unsecured general creditor of the Company, and Executive shall not have nor acquire any legal or equitable right, interest or claim in or to any property or assets of the
Company. Executive shall not have any power or right to transfer, assign or otherwise encumber any portion of the amount payable hereunder, and any attempt to do so shall be null and void. 
  
 11. Assignment. This Agreement is binding on and for the benefit of
the Company and Executive and their respective successors, heirs, executors, administrators, and other legal representatives. Neither this Agreement nor any right or obligation hereunder may be sold, transferred, assigned, or pledged by the Company
or by Executive without the prior written consent of the other parties hereto. 
  
 12. Interpretation and Severability. In the event any provision of this Agreement, or any portion thereof, is determined by any or court of competent jurisdiction to be unenforceable or void, the remaining
provisions of this Agreement shall nevertheless be binding upon the Company and Executive with the same effect as though the void provision or portion thereof had never been set forth therein. 
  
 13. No Conflict. The Executive represents and warrants that Executive
is not subject to any agreement, order, judgment or decree of any kind which would prevent Executive from entering into this Agreement. 
  
 14. Employment Relationship. This Agreement shall not in any way affect the right and power of the Company to dismiss or otherwise terminate the
employment or change the terms of the employment or amount of compensation of Executive at any time for any reason with or without cause or in accordance with any applicable employment contract. 
  
 15. Governing Law. This Agreement shall be governed by and
construed in accordance with the substantive laws of the State of New York without giving effect to any rules, principles or provisions of choice of law or conflict of laws.  
  
 16. Execution. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument. 
  
 17. Headings. The headings contained in this Agreement are for reference purposes only, and shall not affect the meaning or interpretation of this Agreement. 
  
 18. Arbitration. All disputes and controversies arising under or in connection with this Agreement shall be settled
by arbitration conducted in accordance with the arbitration procedures described in this Section 18. Except as otherwise provided in the JAMS’ Comprehensive Arbitration Rules and Procedures as in effect from time to time (the “JAMS
Rules”), the arbitration procedures described in this Section 18 and any Final Arbitration Award (as defined below) will be governed by, and will be enforceable pursuant to, the Uniform Arbitration Act as in effect in the State of New York
from time to time. Arbitral proceeding initiated hereunder shall take place in New York, NY or another place agreeable to the parties to 

  

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the dispute, before a single arbitrator who is agreeable to such parties. If the parties are unable to agree on an arbitrator within a reasonable period of
time, an arbitrator shall be selected in accordance with the JAMS Rules. The arbitration (including discovery) will be conducted under the JAMS Rules, as the same may be modified by any written agreement between the parties to the dispute. The
arbitrator will conduct the arbitration in a manner so that the final result, determination, finding, judgment or award determined by the arbitrator (the “Final Arbitration Award”) is made or rendered as soon as practicable, and the
parties to the dispute will use reasonable efforts to cause a Final Arbitration Award to occur within ninety (90) days after the arbitrator is selected. Any Final Arbitration Award will be final and binding upon the Company and Executive, and there
will be no appeal from or reexamination of any Final Arbitration Award, except in the case of fraud or perjury or misconduct by the arbitrator prejudicing the rights of any party to the dispute or to correct manifest clerical errors. A Final
Arbitration Award may be enforced in any state or federal court having jurisdiction over the subject matter of the dispute. Each of the Company and Executive shall bear and be solely responsible for all costs and expenses (including fees and
disbursements of counsel) incurred by such party in connection with any arbitration conducted hereunder, and the costs and expenses of the arbitrator shall be borne 50% by the Company and 50% by Executive. 
  
 *  *  *  *  * 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this Deferred Compensation Agreement to be
executed as of the date first written above. 
  

			
	INNOPHOS, INC.
		
	 By:
	 	 /s/ Mark Feuerbach

			
	 Name:
	 	 Mark Feuerbach

	 Its:
	 	 Chief Financial Officer

			
	
	 /s/ Randolph Gress

	 Randolph Gress

  

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