Document:

<PAGE>   1
                                                                    Exhibit 4(s)

                               AMENDMENT AGREEMENT

     THIS SECOND AMENDMENT AGREEMENT is entered into as of March 7, 2000 among
ZEMEX CORPORATION, a corporation established under the federal laws of Canada
(the "Company"),  ZEMEX U.S. CORPORATION, a corporation established under the
laws of Delaware (the "US Borrower") (the Company and the US Borrower called
the "Borrowers"), the several financial institutions from time to time parties
to the Credit Agreement (collectively, the "Banks"; individually a "Bank"),
Bank of America Canada as Agent for the Canadian Banks, Bank of America, N.A.
as agent for the US Banks, and Bank of America Canada as Arranger.

WHEREAS, the parties entered into a credit agreement dated as of May 21, 1999
(the "Credit Agreement") whereby the Banks provided certain credit facilities
to the Company and the US Borrower for working capital, short term liquidity
and general corporate purposes, including permitted Acquisitions;

AND WHEREAS, the parties have entered into a First Amendment to the Credit
Agreement dated as of September 24, 1999;

AND WHEREAS, the parties have agreed to make additional amendments to the
Credit Agreement, specifically, as required to incorporate a bridge loan
facility in favour of the US Borrower,  and the parties are entering into this
Second Amendment Agreement to amend the Credit Agreement accordingly;

NOW THEREFORE, in consideration of the mutual agreements, provisions and
covenants contained herein, the parties agree as follows:

1.   All capitalized terms used herein and not otherwise defined shall have
     the same meaning as those ascribed thereto in the Credit Agreement (as
     amended by the First Amendment

<PAGE>   2

                                      -2-

     Agreement).

2.   The definition of "APPLICABLE MARGIN" is deleted and substituted with the
     following:

<TABLE>
<CAPTION>
                         LIBOR (EXCLUDING BRIDGE                   LIBOR LOANS
LEVERAGE                 LOANS),  B/A RATE        PRIME AND        FOR BRIDGE
RATIO                    LOANS AND L/CS           BASE RATE LOANS  LOANS ONLY
--------                 -----------------------  ---------------  -----------
<S>                      <C>                      <C>              <C>
UNDER 2.75                   1.25%                     .25%           1.625%

FROM AND INCLUDING 2.75
TO LESS THAN 3.00            1.375%                    .375%          1.75%

3.00 OR MORE                 1.50%                     .50%           1.875%
</TABLE>

3.   The following definitions are added to the Credit Agreement:

     "BRIDGE LOAN COMMITMENT" HAS THE MEANING SPECIFIED IN SECTION 2.01(D);

     "BRIDGE LOAN FACILITY" MEANS THE TERM CREDIT FACILITY TO BE MADE
     AVAILABLE TO THE US BORROWER BY THE BRIDGE LOAN LENDER UNDER SECTION 2.20
     HEREOF;

     "BRIDGE LOAN LENDER" MEANS BOFA;

     "BRIDGE LOAN" MEANS A US BORROWING MADE PURSUANT TO SECTION 2.20 HEREOF;

     "BRIDGE LOAN REPAYMENT DATE" HAS THE MEANING SPECIFIED IN SECTION 2.20
     HEREOF.

     "NET PROCEEDS" MEANS, AS TO ANY DISPOSITION, PROCEEDS IN CASH,
     CHEQUES, OR OTHER CASH EQUIVALENT FINANCIAL INSTRUMENTS AS AND WHEN
     RECEIVED BY EITHER BORROWER OR A SUBSIDIARY, NET OF:

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     (A)  THE DIRECT COSTS RELATING TO SUCH DISPOSITION EXCLUDING
          AMOUNTS PAYABLE TO A BORROWER OR ANY AFFILIATE OF SUCH BORROWER,

     (B)  ANY INCOME, SALE, USE OR OTHER TRANSACTION, TAXES PAID OR
          PAYABLE BY THE BORROWER OR SUBSIDIARY AS A DIRECT RESULT THEREOF.

4.   The definition of "Commitment" is deleted and substituted with the
     following:

          "COMMITMENT", AS TO EACH BANK, IS THE AMOUNT SET FORTH
          IN SCHEDULE 2.01 OPPOSITE EACH BANK'S NAME AND SHALL
          INCLUDE THE BRIDGE LOAN COMMITMENT.

5.   The definition of "Credit" is deleted and substituted with the
     following:

          "CREDIT" MEANS THE REVOLVING CREDIT FACILITY OF UP TO
          $20,000,000 (OR THE CANADIAN DOLLAR EQUIVALENT) ESTABLISHED
          BY THE BANKS IN FAVOUR OF THE BORROWERS, AND SPECIFICALLY
          EXCLUDES THE BRIDGE LOAN FACILITY.

6.   The definition of "Majority Banks" is deleted and substituted with the
     following:

          "MAJORITY BANKS" MEANS AT ANY TIME AT LEAST TWO BANKS THEN
          HAVING AT LEAST 100% OF THE COMMITMENTS, OR IN THE EVENT
          ONLY ONE BANK HAS COMMITMENTS, SUCH BANK."

7.   The definition of "Loan" is amended by the addition of ", BRIDGE LOAN"
     following the phrase "Swingline Loan" in lines 2 - 3 thereof.

8.   The definition of "Pro Rata Share" is amended by the addition of the
     following sentence at the end of such definition:

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          "IN THE CASE OF THE BRIDGE LOAN FACILITY, THE BRIDGE LOAN LENDER'S PRO
          RATA SHARE OF THE BRIDGE LOAN COMMITMENT IS 100%."

9.   Section 2.01(a) is amended by the addition of ", PREPAY UNDER SECTION
     2.21 " following the phrase "prepay under Section 2.07" in the last
     sentence thereof.

10.  Section 2.01(b) is amended by the addition of ", PREPAY UNDER SECTION
     2.21 " following the phrase "prepay under Section 2.07 " in the last
     sentence thereof.

11.  Section 2.01(c) is amended by the addition of the following sentence at
     the end thereof:

          "ONLY THE BRIDGE LOAN LENDER SHALL MAKE BRIDGE LOANS TO THE
          US BORROWER."

12.  Section 2.01 is further amended by addition of the following:

     "(D) THE BRIDGE LOAN LENDER AGREES, ON THE TERMS AND CONDITIONS SET
          FORTH HEREIN, TO MAKE A SINGLE LOAN TO THE US BORROWER (THE "BRIDGE
          LOAN") IN AN AMOUNT NOT TO EXCEED $50,000,000 (THE "BRIDGE LOAN
          COMMITMENT"). AMOUNTS BORROWED AS A BRIDGE LOAN MAY NOT BE REBORROWED.

13.  Section 2.05(a) is amended by the addition of "OR A BRIDGE LOAN"
     following the phrase "a Swingline Loan" in line 1 thereof.

14.  Section 2.06 is amended by the addition of the following:

     "(G) THE PROVISIONS OF THIS SECTION 2.06 PERMITTING CONVERSION OF US LOANS

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                                      - 5 -

          SHALL NOT APPLY IN THE CASE OF THE BRIDGE LOAN."

15.  Section 2.08 is amended by the addition of "(EXCLUDING THE BRIDGE LOAN)"
     following the phrase "amount of US Loans outstanding" in line 3 thereof.

16.  Section 2.10(b) is amended by the deletion of the third sentence thereof
     and substitution of the following:

          "INTEREST SHALL ALSO BE PAID ON THE DATE OF ANY PREPAYMENT
          OF LOANS, INCLUDING ANY PAYMENT UNDER SECTION 2.07 OR 2.21,
          FOR THE PORTION OF THE LOANS SO PREPAID AND UPON PAYMENT
          (INCLUDING PREPAYMENT) IN FULL THEREOF AND, DURING THE
          EXISTENCE OF ANY EVENT OF DEFAULT, INTEREST SHALL BE PAID ON
          DEMAND OF THE APPLICABLE AGENT AT THE REQUEST OR WITH THE
          CONSENT OF THE MAJORITY BANKS."

17.  Section 2.11(b) is amended by the addition of "(EXCLUDING THE BRIDGE LOAN
     COMMITMENT)" following the phrase "of the Total Commitments" in the first
     sentence thereof.

18.  Section 2.17(a) is amended by the addition of the following:

     "(VII) NO REALLOCATION REQUEST MAY BE MADE IN RESPECT OF THE BRIDGE
            LOAN."

19.  The following section is added to the Agreement as a new section 2.20.

"2.20 BRIDGE LOAN FACILITY

     (A)  THE BRIDGE LOAN LENDER SHALL MAKE A ONE TIME BRIDGE LOAN TO
          THE US BORROWER BY WAY OF LIBOR LOANS IN AN AMOUNT NOT TO EXCEED
          $50,000,000.  THE PROCEEDS FROM THE BRIDGE LOAN SHALL BE APPLIED BY
          THE US BORROWER TO THE REPAYMENT OF

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          THE SENIOR SECURED NOTES.  THE BRIDGE LOAN SHALL BE MADE UPON THE
          US BORROWER'S IRREVOCABLE WRITTEN NOTICE DELIVERED TO THE US AGENT
          SPECIFYING: (I) THE AMOUNT OF THE BRIDGE LOAN; (II) THE REQUESTED
          BORROWING DATE, WHICH SHALL BE A BUSINESS DAY; AND (III) THE
          DURATION OF THE INITIAL LIBOR PERIOD.

     (B)  SUBJECT TO (D) BELOW, THE US BORROWER SHALL REPAY IN FULL THE
          BRIDGE LOAN AND ALL ACCRUED INTEREST ON OCTOBER 31, 2000 (THE
          "BRIDGE LOAN REPAYMENT DATE").

     (C)  REPAYMENT OR PREPAYMENT (INCLUDING PURSUANT TO SECTION 2.21)
          OF ALL OR ANY PART OF THE BRIDGE LOAN SHALL PERMANENTLY REDUCE THE
          BRIDGE LOAN FACILITY.

     (D)  IF AT ANY TIME THE OUTSTANDING AMOUNT OF THE LOANS IS LESS
          THAN $10,000,000, THE US BORROWER SHALL IMMEDIATELY REPAY THE FULL
          AMOUNT OUTSTANDING OF THE BRIDGE LOAN. SUCH REPAYMENT MAY BE MADE
          BY WAY OF CANADIAN LOANS OR US LOANS."

20.       The following Section is added to the Agreement as a new Section 2.21:

    "2.21 MANDATORY PREPAYMENT

          (A)  IF THE COMPANY OR THE US BORROWER OR ANY SUBSIDIARY SHALL AT ANY
               TIME OR FROM TIME TO TIME MAKE A DISPOSITION, THEN (I) THE
               COMPANY OR THE US BORROWER, AS THE CASE MAY BE, SHALL PROMPTLY
               NOTIFY THE CANADIAN AGENT OF SUCH PROPOSED DISPOSITION (INCLUDING
               THE AMOUNT OF ESTIMATED NET PROCEEDS TO BE RECEIVED BY THE
               COMPANY, US BORROWER OR SUBSIDIARY IN RESPECT THEREOF) AND (II)
               PROMPTLY UPON RECEIPT BY THE COMPANY, US BORROWER OR SUBSIDIARY
               OF THE NET PROCEEDS OF SUCH DISPOSITION, THE COMPANY OR THE US
               BORROWER AS THE CASE MAY BE, SHALL REPAY LOANS (EXCLUDING L/C
               LOANS) IN AN AGGREGATE AMOUNT EQUAL TO 100% OF THE AMOUNT OF SUCH
               NET PROCEEDS. IN NO EVENT SHALL THE DATE FOR PAYMENT OF THE NET
               PROCEEDS BY THE COMPANY OR THE US BORROWER TO THE APPLICABLE

<PAGE>   7

                                      - 7 -

               AGENT (THE "NET PROCEEDS PAYMENT DATE") BE LATER THAN TWO
               BUSINESS DAYS FOLLOWING RECEIPT BY THE COMPANY, US BORROWER
               OR SUBSIDIARY, AS THE CASE MAY BE, OF THE NET PROCEEDS OF
               SUCH DISPOSITION.  AT LEAST TWO BUSINESS DAYS PRIOR TO THE
               NET PROCEEDS PAYMENT DATE, THE COMPANY OR THE US BORROWER, AS
               THE CASE MAY BE, SHALL PROVIDE THE APPLICABLE AGENT WITH AN
               IRREVOCABLE NOTICE OF PREPAYMENT, IDENTIFYING THE NET
               PROCEEDS PAYMENT DATE AND A DETAILED CALCULATION OF NET
               PROCEEDS FROM THE SUBJECT DISPOSITION. WHEN SUCH NOTICE IS
               GIVEN BY THE COMPANY OR THE US BORROWER, THE COMPANY OR THE
               US BORROWER, AS THE CASE MAY BE, SHALL MAKE SUCH PREPAYMENT
               ON THE NET PROCEEDS PAYMENT DATE, TOGETHER WITH ACCRUED
               INTEREST TO SUCH DATE ON THE AMOUNT PREPAID.

          (B)  THE COMPANY OR THE US BORROWER, AS THE CASE MAY BE, SHALL ALSO
               PAY TO BANKS ANY AMOUNTS PAYABLE PURSUANT TO SECTION 4.04 AS A
               RESULT OF A PREPAYMENT PURSUANT TO THIS SECTION 2.21.

          (C)  UPON RECEIPT BY AN AGENT OR AGENTS OF A NOTICE OF
               PREPAYMENT PURSUANT TO SECTION 2.21(A) ABOVE, THE AGENTS SHALL
               CALCULATE THE TOTAL OUTSTANDING AMOUNTS OF EACH CANADIAN LOAN
               (EXCLUDING L/C LOANS), US LOANS (EXCLUDING L/C LOANS AND BRIDGE
               LOANS) AND BRIDGE LOANS. THE TOTAL AMOUNT OF SUCH CANADIAN LOANS
               AND US LOANS ARE CALLED THE "REVOLVING LOANS". THE AGENT(S) SHALL
               APPLY THE NET PROCEEDS FROM A DISPOSITION RATABLY AGAINST THE
               REVOLVING LOANS AND THE BRIDGE LOAN. SPECIFICALLY, APPLICATION OF
               THE NET PROCEEDS SHALL BE DETERMINED OR CALCULATED IN PROPORTION
               TO WHICH THE REVOLVING LOANS AND THE BRIDGE LOAN EACH BEAR TO THE
               TOTAL AMOUNT OF ALL LOANS OUTSTANDING (EXCLUDING L/C LOANS).
               DISBURSEMENT OF PAYMENTS BY THE APPLICABLE AGENT TO EACH
               APPLICABLE BANK SHALL BE MADE ON THE NET PROCEEDS PAYMENT DATE
               (OR OTHERWISE IN ACCORDANCE WITH SECTION 2.13) IN AMOUNTS EQUAL
               TO EACH BANK'S PRO RATA

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                                      - 8 -

               SHARE, BUT APPLIED IN THE FOLLOWING PRIORITIES:

               (I)  IN THE CASE OF REVOLVING LOANS FIRST
                    TO PRIME RATE LOANS AND BASE RATE LOANS, AND SECOND TO
                    B/A EQUIVALENT LOANS AND LIBOR LOANS;

               (II) IN THE CASE OF THE BRIDGE LOAN, FIRST
                    TO THE LIBOR LOANS."

21.  Section 4.04 (d) is amended by the addition of "OR SECTION 2.21"
     following the phrase "Section 2.07" in line 1 thereof.

22.  The following Section is added to the Agreement as a new Section 5.03:

     5.03 CONDITIONS TO BRIDGE LOAN BORROWINGS.

          IN ADDITION TO THE PROVISIONS OF SECTION 5.01 AND 5.02, THE OBLIGATION
          OF THE BRIDGE LOAN LENDER TO MAKE THE BRIDGE LOAN IS SUBJECT TO THE
          SATISFACTION OF THE FOLLOWING CONDITIONS PRECEDENT ON OR BEFORE THE
          EFFECTIVE DATE OF THE INITIAL BRIDGE LOAN:

          (A)  PREPAYMENT AMOUNT.  EVIDENCE OF THE ARRANGEMENTS FOR
               PREPAYMENT OF THE SENIOR SECURED NOTES ON TERMS SATISFACTORY TO
               THE AGENTS.

          (B)  CONFIRMATION OF EXISTING GUARANTEES.  EACH GUARANTOR SHALL
               CONFIRM IN WRITING TO THE BANKS, THE AGENTS AND THE BRIDGE LOAN
               LENDER THAT THE GUARANTEE GRANTED BY EACH RESPECTIVE GUARANTOR
               DATED MAY 21, 1999 REMAINS IN FULL FORCE AND EFFECT AND APPLY TO
               THE CREDIT AGREEMENT AS AMENDED;

<PAGE>   9

                                      - 9 -

          (C)  SECURITY CONFIRMATION.  WRITTEN CONFIRMATION FROM THE
               BORROWERS AND EACH GUARANTOR THAT THE EXISTING SECURITY DOCUMENTS
               GRANTED PURSUANT TO THE CREDIT AGREEMENT REMAIN IN FULL FORCE AND
               EFFECT AND APPLY TO THE CREDIT AGREEMENT, AS AMENDED.

          (D)  LEGAL OPINIONS.  (I) AN OPINION OF STIKEMAN, ELLIOTT,
               COUNSEL TO THE COMPANY AND ADDRESSED TO THE AGENTS AND THE BANKS,
               IN FORM SATISFACTORY TO THE AGENTS, THE BANKS AND THEIR COUNSEL;
               AND (II) AN OPINION OF HOGAN & HARTSON, COUNSEL TO THE US
               BORROWER AND ADDRESSED TO THE AGENTS AND THE BANKS, IN FORM
               SATISFACTORY TO THE AGENTS, THE BANKS AND THEIR COUNSEL.

23.  Section 8.24 is amended by the deletion of the first sentence thereof and
     substitution therefor with the following:

          "NEITHER BORROWER SHALL USE OR PERMIT TO BE USED ANY
          PART OF THE CREDIT, THE BRIDGE LOAN OR ANY LOAN
          PROCEEDS FOR THE DIRECT OR INDIRECT ACQUISITION OF AN
          EXCLUDED SUBSIDIARY."

24.  Section 9.01 is amended by the addition of the following paragraph:

          (N) DISPOSITIONS.  THE COMPANY OR THE US BORROWER
          FAILS TO SUBMIT THE NET PROCEEDS FROM ANY DISPOSITION
          TO THE BANKS IN REPAYMENT OF THE LOANS.

25.  Section 11.08 is amended by additions of the following:

     (F)    IN EACH INSTANCE WHERE A DECISION IS REQUIRED TO BE MADE BY THE
MAJORITY BANKS UNDER THIS AGREEMENT, EACH BANK SHALL ACT IN GOOD FAITH AND USE
ITS BEST EFFORTS TO REACH

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AGREEMENT WITH THE OTHER BANKS WITHIN FIVE BUSINESS DAYS, OR, IN THE CASE OF
ACTION OR DECISION REQUIRED PURSUANT TO SECTION 9.02, WITHIN 48 HOURS. IN THE
EVENT THAT THE BANKS ARE UNABLE TO REACH AGREEMENT WITHIN SUCH TIME PERIODS,
THE CHASE MANHATTAN BANK ("CHASE") SHALL BE DEEMED TO HAVE ASSIGNED ITS
COMMITMENTS AND ALL OTHER RIGHTS AND OBLIGATIONS OF CHASE HEREUNDER TO BofA,
AND BofA SHALL BE DEEMED TO HAVE ACCEPTED AND ACQUIRED ALL SUCH COMMITMENTS,
RIGHTS AND OBLIGATIONS FROM CHASE. THE COMPANY AND THE AGENTS WILL BE DEEMED
TO HAVE CONSENTED TO SUCH ASSIGNMENT. THE PARTIES SHALL EFFECT SUCH
ASSIGNMENT IN COMPLIANCE WITH THE PROVISIONS OF THIS SECTION 11, INCLUDING
DELIVERY OF AN ASSIGNMENT AND ACCEPTANCE.

26.  Schedule 2.01 is replaced with the following:

                                  SCHEDULE 2.01

                      BANK COMMITMENTS AND PRO RATA SHARES

<TABLE>
<CAPTION>
CANADIAN BANKS            COMMITMENT   PRO RATA SHARE
------------------------  -----------  --------------
<S>                       <C>          <C>
BANK OF AMERICA CANADA    $2,000,000         10%

US BANKS
------------------------
BANK OF AMERICA, NA       $9,000,000          45%
THE CHASE MANHATTAN BANK   9,000,000          45%
                          -----------
                 TOTAL    $20,000,000

BRIDGE LOAN LENDER
------------------------
BANK OF AMERICA, NA       $50,000,000         100%
</TABLE>

27.  For greater clarification and certainty, the parties agree that any
     obligation to make the Bridge Loan is only that of the Bridge Loan Lender
     and the other Banks are under no obligation to participate directly or by
     way of risk participation in any Bridge Loan.

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28.  The parties confirm the terms and conditions of the Credit Agreement as
     amended by the terms of the First Amendment Agreement and as amended by
     this Second Amendment Agreement.

29.  This Second Amendment Agreement may be referred to as being dated March
     7, 2000, notwithstanding the actual date of execution.

30.  This Second Amendment Agreement may be executed in any number of separate
     counterparts, each of which, when so executed shall be deemed an original
     and all said counterparts taken together shall be deemed to constitute one
     and the same instrument.

31.  The representations and warranties in Article VI of the Credit Agreement
     remain true and correct with the same effect as if made on and as of the
     date of this Second Amendment Agreement.

[The remainder of this page is intentionally left blank.]

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                                     - 12 -

IN WITNESS WHEREOF the parties have executed this Agreement on March 7, 2000.

                                          ZEMEX CORPORATION, AS COMPANY

                                          By:___________________________________

                                          Title:________________________________

                                          ZEMEX U.S. CORPORATION,
                                          AS US BORROWER

                                          By:___________________________________

                                          Title:________________________________

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                                     - 13 -

                                          BANK OF AMERICA CANADA,
                                          AS CANADIAN AGENT AND AS A BANK

                                          By:___________________________________

                                          Title:________________________________

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                                     -14-

                                         BANK OF AMERICA N.A.
                                         AS US AGENT

                                         By:____________________________________

                                         Title:_________________________________

<PAGE>   15

                                     - 15 -

                                          BANK OF AMERICA N.A.
                                          AS A BANK

                                          By:___________________________________

                                          Title:________________________________

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                                     - 16 -

                                          BANK OF AMERICA N.A.
                                          AS BRIDGE LOAN LENDER

                                          By:___________________________________

                                          Title:________________________________

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                                     - 17 -

                                          THE CHASE MANHATTAN BANK
                                          AS A BANK

                                          By:___________________________________

                                          Title:________________________________<PAGE>   1
                                                                   Exhibit 10(l)

THIS AGREEMENT made as of the 1st day of October, 1999.

B E T W E E N:

                        ZEMEX CORPORATION (hereinafter called the
                        "Corporation")

                        - and -

                        RICHARD L. LISTER (hereinafter called the "Executive")

WITNESSES THAT:

WHEREAS the Executive is presently employed by the Corporation;

AND WHEREAS the Corporation and the Executive are desirous of having certain
rights and benefits in the event that the Executive is dismissed or the
Executive elects to terminate his employment relationship with the Corporation
in the manner set out herein;

AND WHEREAS the Corporation wishes to retain the benefit of the Executive's
employment with the Corporation and to ensure that the Executive is able to
carry out his responsibilities with the Corporation free from any distractions
associated with any change in the ownership of the Corporation or its assets;

NOW THEREFORE in consideration of the premises and the mutual covenants and
agreements hereinafter contained, and for other good and valuable consideration
(the receipt and sufficiency of which is hereby acknowledged by the parties
hereto), it is agreed by and between the parties hereto as follows:

SECTION 1     DEFINITIONS:  Terms used in this Agreement but not otherwise
defined herein have the meanings set forth below:

      (a)  "BENEFIT PLANS" means any stock option or stock purchase plan,
           employee loan, insurance, long-term disability, medical, dental and
           other executive and employee benefit plans, including any pension or
           similar plans, perquisites and privileges, such as club dues,
           automobile expenses and similar items, as may be provided at the time
           to the Executive by the Corporation;

      (b)  "CHANGE IN CONTROL" means a transaction or series of transactions
           whereby directly or indirectly:

            (i)  any person or combination of persons (other than
                 any combination of Dundee Bancorp Inc. or any affiliate
                 thereof and Richard L. Lister or a corporation controlled by
                 any one or more of such persons) acting jointly or in concert
                 obtains a sufficient number of securities of the Corporation
                 to affect materially the control of the Corporation; or

<PAGE>   2

                                      - 2 -

            (ii) the Corporation shall consolidate or merge with or into,
                 amalgamate with, or enter into a statutory arrangement with,
                 any other person (other than a subsidiary of the Corporation)
                 or any other person (other than a subsidiary of the
                 Corporation) shall consolidate or merge with or into, or
                 amalgamate with or enter into a statutory arrangement with, the
                 Corporation, and, in connection therewith, all or part of the
                 outstanding voting shares shall be changed in any way,
                 reclassified or converted into, exchanged or otherwise acquired
                 for shares or other securities of the Corporation or any other
                 person or for cash or any other property; or

           (iii) the Corporation shall be liquidated or dissolved or shall sell
                 or otherwise transfer, including by way of the grant of a
                 leasehold interest (or one or more of its subsidiaries shall
                 sell or otherwise transfer, including by way of the grant of a
                 leasehold interest) property or assets (A) aggregating more
                 than 50% of the consolidated assets (measured by either book
                 value or fair market value) of the Corporation and its
                 subsidiaries as at the end of the most recently completed
                 financial year of the Corporation or (B) which during the most
                 recently completed financial year of the Corporation generated,
                 or during the then current financial year of the Corporation
                 are expected to generate, more than 50% of the consolidated
                 operating income or cash flow of the Corporation and its
                 subsidiaries, to any other person or persons (other than the
                 Corporation or one or more of its subsidiaries); or

            (iv) the Corporation shall issue shares of common stock from the
                 treasury of the Corporation in a sufficient number to affect
                 materially the control of the Corporation; or

            (v)  the Incumbent Directors cease to represent a
                 majority of the members of the Board of Directors of the
                 Corporation;

            for the purposes of Sections 1(b)(i) and (iv), a person or
            combination of persons acting jointly or in concert and beneficially
            owning shares or other securities in excess of the number which,
            directly or following conversion thereof, would entitle the holders
            thereof to cast 20% or more of the votes attaching to all shares of
            the Corporation which may be cast to elect directors of the
            Corporation, shall be deemed to be in a position to affect
            materially the control of the Corporation;

      (c)  "EXPIRY DATE" means 24 months after a Change in Control
           occurs; and

      (d)  "INCUMBENT DIRECTORS" means the members of the Board of Directors
           holding office at the date of this Agreement and any additional
           Directors appointed by or with the consent of the Incumbent
           Directors.

SECTION 2     RIGHTS UPON OCCURRENCE OF CHANGE IN CONTROL:  If a Change in
Control occurs, the Executive shall be entitled to elect to terminate his
employment with the Corporation unilaterally and to receive a

<PAGE>   3

                                      - 3 -

payment from the Corporation in an amount equal to the aggregate of (a) 300% of
his current annual base salary applicable at the date of a notice of election to
terminate given to the Corporation by such Executive pursuant to Section 3 plus
(b) 300% of the average of the annual bonus, if any, payable to him and (c) 300%
of the deemed interest benefit ascribed to the Executive for tax purposes on his
interest-free share purchase loans with the Corporation, in the case of (b) and
(c) being in respect of each of the three fiscal years of the Corporation ended
immediately prior to the date of a notice of election to terminate given to the
Corporation by such Executive pursuant to Section 3

SECTION 3     TERMINATION RIGHTS CONDITIONAL: All termination rights of the
Executive provided for in Section 2 are conditional upon the Executive electing
to exercise such rights by notice given to the Corporation on or before the
Expiry Date and are exercisable only if the Executive does not resign from his
employment with the Corporation (other than at the request of the Corporation)
and does not actively seek alternative employment, in each case for at least
three months following the date of the Change of Control.

SECTION 4     RIGHTS UPON DISMISSAL WITHOUT CAUSE: The Executive shall be
entitled to a payment by the Corporation of an amount calculated as provided for
in Section 2 (except that his annual base salary as referred to in Section 2(a)
shall be that applicable immediately prior to the date of his dismissal) if the
Executive is dismissed from his employment with the Corporation without cause
after a Change in Control and on or before the Expiry Date. The Corporation
shall not dismiss the Executive for any reason unless such dismissal is
specifically approved by the Board of Directors of the Corporation. Likewise,
the Corporation shall have the right to dismiss the Executive from his
employment with the Corporation without cause after a Change in Control and on
or before the Expiry Date, subject to paying the Executive the amount calculated
as provided for in Section 2.

SECTION 5     PAYMENTS UNDER THIS AGREEMENT: Any payment to be made by the
Corporation pursuant to the terms of this Agreement shall be made by the
Corporation in cash in a lump sum within five business days of the giving of
notice by the Executive pursuant to Section 3, or within five business days of
the dismissal from the Executive's employment as referred to in Section 4, as
the case may be. Any payment to be made under Section 2 or 4 shall be
calculated, in the case of Section 2, at the date of giving notice pursuant to
Section 3 and, in the case of Section 4, at the date of dismissal.
Notwithstanding the foregoing provisions of this Section 5, at the option of the
Executive a payment, or any part thereof as shall be specified by the Executive,
to be made to the Executive shall be deferred to such date or dates as shall be
designated in writing by the Executive. Any payment so deferred shall bear
simple interest at the rate of 6% per annum calculated from the date payment of
the amount otherwise should have been made until the date of payment in full.
The Corporation shall list the items making up a payment calculated as provided
for in Section 2 and shall support the calculation of such amount.

SECTION 6     PAYMENTS IN LIEU OF ALL OTHER DAMAGE CLAIMS ETC.: All payments
provided for herein shall be in lieu of all other notice or damage claims as
regards dismissal or termination of the Executive's employment with the
Corporation or any subsidiary of the Corporation after a Change in Control and
on or before the Expiry Date. The arrangements provided for herein shall not be
considered in any judicial determination of appropriate damages at common law
for dismissal without cause, other than as provided for in this Agreement. At
the request of either party, the parties shall exchange mutual signed releases
of liability conforming to the substantive provisions of this Agreement.

<PAGE>   4

                                      - 4 -

SECTION 7     AGREEMENT SUPPLEMENTAL: This Agreement shall be supplemental to
any other contract of employment or otherwise, whether written or oral, that
exists between the Corporation or any subsidiary of the Corporation and the
Executive, except insofar as any such contract relates to the termination of the
employment relationship between the Corporation or any subsidiary of the
Corporation and the Executive, in which case this Agreement shall supersede the
termination provisions of any such other contract of employment or otherwise
including, without limitation, the termination agreement between the Executive
and a predecessor of the Corporation dated October 1, 1998.

SECTION 8     BENEFIT PLANS: In the event that the Executive is entitled to a
payment pursuant to Section 2 or 4, the Executive shall be entitled to have all
Benefit Plans as constituted at the date of the giving of notice by the
Executive pursuant to Section 3, or the dismissal from the Executive's
employment, as the case may be, continued for a period of 36 months after the
date of the giving of notice by the Executive pursuant to Section 3, or the
dismissal from the Executive's employment, as the case may be, or for any longer
period available under any Benefit Plans when coverage is provided from a source
other than the Corporation. Notwithstanding the foregoing provisions of this
Section 8, at the option of the Executive the cost to the Corporation of such
Benefit Plans, or any part of the benefits under any such Benefit Plans as shall
be specified by the Executive, shall be converted to a lump sum amount and shall
be paid to the Executive immediately or shall be deferred to such date or dates
as shall be designated in writing by the Executive. Any payment so deferred
shall bear simple interest at the rate of 6% per annum calculated from the date
payment of the amount otherwise should have been made until the date of payment
in full.

SECTION 9     STOCK OPTION AND STOCK PURCHASE PLANS: If the Executive is
entitled to a payment pursuant to Section 2 or 4, the term during which any
stock option granted to the Executive by the Corporation or any subsidiary of
the Corporation may be exercised shall be extended to the later of the expiry
date of the option or 12 months after the date of the giving of notice by the
Executive pursuant to Section 3, or the dismissal from the Executive's
employment as referred to in Section 4, as the case may be; provided that the
maximum term of any such option shall not exceed six years from the date of
grant of the option or such longer period as shall be permitted under the terms
of the Corporation's stock option plan. In addition, in such event any
provisions of the stock option or the stock purchase plan restricting the number
of shares which may be purchased before a particular date shall be waived and
the options shall be fully vested immediately. If the Executive is entitled to a
payment pursuant to Section 2 or 4, all shares owned by the Executive and held
in any stock purchase plan shall immediately be released to the Executive,
subject to the Executive making any payments required under the plan. The terms
of any stock option plan, stock purchase plan or agreement therefor shall be
deemed amended to reflect the provisions of this Section 9.

SECTION 10     DESIGNATION OF BENEFICIARY: If the Executive dies prior to
satisfaction of all of the Corporation's obligations under this Agreement, any
remaining amounts payable to the Executive by the Corporation shall be paid to
the person or persons (a "Beneficiary") previously designated by the Executive
to the Corporation for such purposes. Any such designation of a Beneficiary
shall be made in writing, signed by the Executive and dated and filed with the
Secretary of the Corporation. In the event that no such designation is made, all
such remaining amounts shall be paid by the Corporation to the Estate of the
Executive. If the Executive has exercised the option pursuant to Section 5 or 8
to defer a payment, or any part thereof, to be made to or for the benefit of the
Executive, the Beneficiary or the Executor of the Estate,

<PAGE>   5

                                      - 5 -

as the case may be, shall have the further option to require payment in full of
any such remaining amounts to the Beneficiary or the Executor, as the case may
be, by giving notice to that effect to the Corporation.

SECTION 11    ASSIGNMENT AND ASSUMPTION: This Agreement automatically shall be
assigned by the Corporation to any successor corporation of the Corporation and
shall be binding upon such successor corporation. For the purposes of this
Section 11, "successor corporation" shall include any person referred to in
Subsection 1(b)(ii) or (iii). The Corporation shall ensure that the successor
corporation shall continue the provisions of this Agreement as if it were the
original party in place of the Corporation; provided however that the
Corporation shall not thereby be relieved of any obligation to the Executive
pursuant to this Agreement. In the event of a transaction or series of
transactions as described in Subsection 1(b)(ii) or (iii), appropriate
arrangements shall be made by the Corporation for the successor corporation to
honour this Agreement as if the Executive had exercised his maximum rights
hereunder as of the effective date of such transaction.

SECTION 12    FURTHER ASSURANCES: Each of the parties hereto agrees to do and
execute or cause to be made, done or executed all such further and other things,
acts, deeds, documents, assignments and assurances as may be necessary or
reasonably required to carry out the intent and purpose of this Agreement fully
and effectually. Without limiting the generality of the foregoing, the
Corporation shall take all reasonable steps in order to structure the payment or
payments provided for in this Agreement in the manner most advantageous to the
Executive with respect to the provisions of the Income Tax Act (Canada), the
Internal Revenue Code (United States of America) or any similar legislation in
place in any other jurisdiction of the Executive's residence.

SECTION 13    REVIEW OF AGREEMENT: In the event of a threatened or pending
Change in Control of the Corporation, and following an actual Change in Control
of the Corporation, the Corporation in either case shall enter into a review of
the terms of this Agreement and shall implement any amendments hereto which are
agreed to by both parties.

SECTION 14   OUTPLACEMENT SERVICES: If the Executive is entitled to receive a
payment pursuant to Section 2 or 4, the Corporation shall pay the reasonable
costs (to a maximum of 10% of the annual base salary of the Executive as used
for the calculation of such payment) of the services for the Executive of a
suitable outplacement counselling service selected by the Corporation.
Notwithstanding the foregoing provisions of this Section 15, at the option of
the Executive the cost to the Corporation of such outplacement services shall be
converted to a lump sum amount and shall be paid to the Executive immediately.

SECTION 15    GENDER:  Whenever the context of this Agreement so requires or
permits, the masculine gender includes the feminine gender.

SECTION 16    NOTICE: Any notice, election or designation to be made by the
Executive pursuant to this Agreement shall be in writing and shall be hand
delivered to the Corporation at the following address:

<PAGE>   6

                                      - 6 -

     Zemex Corporation
     Canada Trust Tower, BCE Place
     161 Bay Street, Suite 3750
     Toronto, Ontario
     M5J 2S1
     Telephone: (416) 365-8080
     Fax: (416) 365-8094

            Attention: Chairman of the Board

SECTION 17    TERM: This Agreement shall commence as of the date first above
written and shall terminate on December 31, 2004 unless extended with the mutual
agreement of the parties hereto and approved by the Board of Directors of the
Corporation; provided that if a Change of Control occurs on or before December
31, 2004 the term of this Agreement automatically shall be extended to the
Expiry Date.

SECTION 18    GOVERNING LAW: This Agreement shall be governed by and construed
in accordance with the laws of the Province of Ontario. The parties agree to
attorn to the jurisdiction of, and to submit any dispute arising out of this
Agreement to the Courts of the Province of Ontario.

IN WITNESS WHEREOF the parties hereto have caused this agreement to be executed
as of the date first above written.

                                             ZEMEX CORPORATION

                                             per:                    c/s
                                                  ------------------
                                                  Paul A. Carroll
                                                  Director

SIGNED, SEALED & DELIVERED  )
in the presence of          )
                            )
                            )
                            )
                            )
                            )                                        l/s
--------------------------                        ------------------
Witness                     )                     Richard L. Lister
                            )

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