VALLEY NATIONAL GASES (VLG)

 

Our businesses are managed by a small number of management and operating personnel, the loss of certain of whom could have a material adverse effect on our operations. We believe that our ability to manage our planned growth successfully will depend in large part on our continued ability to attract and retain highly skilled and qualified personnel. With the exception of our Chairman, our executive officers have changed since our initial public offering in 1997. Further changes could cause business disruption. We maintain non-compete agreements with some of our key sales management personnel, particularly those personnel at acquired locations, and have employment agreements with our President and our Chief Operating Officer that contain covenants against competition. We do not, however, have these agreements with all key personnel. In our industry, identifying, hiring and retaining new, highly skilled technical and managerial personnel is both a competitive and costly process. If we fail to retain our key employees, the expansion of our business could be inhibited, harming our competitive position, and our income and resources may decline and cause your investment in us to lose value.