Exhibit 10.27


                              EMPLOYMENT AGREEMENT


         THIS EMPLOYMENT  AGREEMENT (this "Agreement") is made as of the 1st day
of April, 1998, by and between SPURLOCK INDUSTRIES, INC., a Virginia corporation
("SII"),  SPURLOCK ADHESIVES,  INC., a Virginia corporation ("SAI"), the mailing
address for both of which is 209 West Main Street, P.O. Box 8, Waverly, Virginia
23890 (together hereafter referred to as "Employer"),  and PHILLIP S. SUMPTER, a
Virginia  resident  ("Employee"),  currently  residing at 33296 Shingleton Road,
Waverly, Virginia 23890.

                                   AGREEMENT:

         In  consideration  of  the  mutual  agreements  contained  herein,  the
sufficiency  and  adequacy  of which  are  acknowledged,  the  parties  agree as
follows:

         1.     Employment.  Employer  hereby  employs  Employee,  and  Employee
hereby  accepts  employment by Employer,  as the Chairman of the Board and Chief
Executive  Officer of  Employer.  As Chairman  of the Board and Chief  Executive
Officer,  Employee  will  faithfully  perform such duties as may  reasonably  be
assigned  to him by the  Board  of  Directors  of  Employer  from  time to time.
Employee  will  devote  his best  efforts  and  substantially  all of his  time,
knowledge  and ability to advance the business of Employer,  and will not engage
in any conduct that  reasonably  may be expected to have any adverse effect upon
Employer.

         2.     Compensation.   During   the  term  of   Employee's   employment
hereunder,  Employee shall receive as full compensation for all duties performed
by him on Employer's behalf:

                A.     Base Compensation. An annual salary of one hundred ninety
thousand dollars ($190,000) payable in equal installments not less than monthly,
subject to any annual adjustments as may be made by Employer from time to time.

                B.     Bonuses.  Employer and Employee agree that Employee shall
be eligible for  additional  compensation  in the form of bonuses based upon the
value of  Employee's  work  contributions  to Employer  and the  performance  of
Employer in the marketplace - in the event Employer  establishes a bonus plan or
program.

                C.     Stock Options.  Employee shall be entitled to participate
in and shall receive the benefit of any existing  stock option plans of Employee
or of any stock option plans  created  during the term of this  Agreement  which
benefit other executive employees.

                D.     Company Vehicle.  Employer shall provide to Employee,  as
additional  compensation,  a suitable vehicle for Employee's use. Employer shall
solely  be  responsible  for any  and all  costs  associated  with  maintaining,
insuring and registering said vehicle.


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                E.     Retirement.  Employee shall be entitled to participate in
and shall receive the benefit of any existing group retirement plans of Employer
or of any  retirement  plans  created  during the term of this  Agreement  which
benefit other executive employees generally.

                F.     Fringe  Benefits.  Employer  shall procure  comprehensive
health and dental  insurance for Employee and  Employee's  spouse and disability
insurance for Employee under one or more policies of insurance comparable to the
best existing policies by which Employer insures its other executive employees.

                G.     Vacation and Holidays. Employee shall be entitled to four
(4) weeks of paid annual vacation.  Employee may accrue vacation, in whole or in
part,  from year to year.  Employee shall also receive such holidays as Employer
provides its other executive employees.

         3.     Term. This Agreement shall last for an initial term of three (3)
years commencing on April 1, 1998 and ending on March 31, 2001, at which time it
shall  automatically  renew for  successive  one (1) year periods  unless sooner
terminated in accordance  with the  provisions  hereof or either party gives the
other written  notice of its election not to renew the Agreement at least ninety
(90) days before any renewal date.

         4.     Termination. This Agreement may be terminated as follows:

                A.     By Employer  Without  Cause.  The Board of  Directors  of
Employer may  terminate  Employee's  employment  at any time  without  Cause (as
defined herein) before a Change in Control (as defined in Section 5 below) or at
any time 240 days after a Change in  Control,  upon not less than  fifteen  (15)
days advance  written notice.  In such event,  Employee shall be paid the salary
set forth in subsection 2A through the earlier of the last date of the remaining
term of this Agreement,  the date of his death, or the date eighteen (18) months
after the termination of his employment.

                B.     By Employer  With Cause.  The Board of  Directors  of the
Employer may, by  resolution,  terminate the  employment of Employee at any time
with Cause; provided,  however,  Employee shall be entitled to fifteen (15) days
advance written notice before any such proposed resolution may be acted upon and
Employee shall further be entitled to attend any such Board of Directors meeting
and to hear and  respond to any and all  evidence  which the Board of  Directors
considers before adopting any such  resolution.  For purposes of this Section 4,
"Cause" shall be defined as:

                       (i)    Gross  incompetence,   gross  negligence,  willful
                misconduct  in office,  breach of a material  fiduciary  duty or
                commission of any fraud or serious  dishonest act  detrimentally
                affecting   Employer  in  Employer's   business   relations  (as
                reasonably determined by the Board of Directors;

                       (ii)   Willful  and  knowing  violation  of  any  statute
                governing either  Employer's  business or Employee's  conduct as
                Employer's   employee  or   conviction



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<PAGE>

                of a felony crime or  commission  of an act of  embezzlement  or
                fraud against Employer (as reasonably determined by the Board of
                Directors);

                       (iii)  Employee's   mental   or   physical    disablement
                resulting in  Employee's  inability to fulfill the terms of this
                Agreement (as reasonably determined by the Board of Directors);

                       (iv)   Any material breach by Employee of a material term
                of this Agreement;

                       (v)    The  entry  of a  decree  or  order  by a court of
                competent  jurisdiction  (a)  judging  Employer  as  bankrupt or
                insolvent,  (b) approving as properly  filed a petition  seeking
                reorganization,  arrangement, adjustment or composition of or in
                respect of Employer under any  applicable  law, (c) appointing a
                receiver, liquidator,  assignee, trustee, sequestrator (or other
                similar official of Employer), or (d) ordering the winding up or
                liquidation of the affairs of Employer; or

                       (vi)   The death of Employee.

In the event of termination with Cause, Employee shall be entitled to no further
compensation or benefits under this Agreement.

                C.     By Employee  Without Good Reason.  Employee may terminate
his employment without Good Reason, as hereafter defined. If Employee terminates
his  employment  without  Good  Reason,  he  shall  be  entitled  to no  further
compensation  or  benefits  under  this  Agreement[,  and,  in  the  event  such
termination is during the initial term of this  Agreement,  he shall forfeit any
right to exercise  any  unexpired  incentive  stock option  awarded  during such
term].

                D.     By Employee With Good Reason.  Employee may terminate his
employment  with  Employee at any time with Good Reason.  In the event  Employee
terminates his employment  with Good Reason,  he shall be paid his salary as set
forth in subsection 2A through the earlier of the last day of the remaining term
of this  Agreement,  the date of his death,  or the  expiration  of twelve  (12)
months  from the date of the  termination  of his  employment.  He shall  not be
required  to render any  further  services  to  Employer.  For  purposes of this
Section 4, "Good Reason" is defined as:

                       (i)    The   assignment  to  Employee  by  the  Board  of
                Directors of duties materially inconsistent with and inferior to
                the position,  duties,  responsibilities and status of the Chief
                Executive  Officer of Employer,  except in  connection  with the
                termination of his employment for Cause; or

                       (ii)   Any  material  breach by Employer of any  material
                term of this  Agreement,  which is not remedied  within  fifteen
                (15)  days of  written  notice  to the  Board  of  Directors  by
                Employee.


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<PAGE>

         5.     Change in Control.

                A.     Definition - Change in Control. "Change in Control" means
consummation prior to March 31, 2001 of:

                       (i)    A reorganization,  merger,  consolidation or other
                event,  with respect to which the  individuals  and entities who
                were the  respective  beneficial  owners of the common stock and
                voting   securities   of   SII   immediately   prior   to   such
                reorganization,  merger or consolidation do not,  following such
                reorganization,  merger  or  consolidation,   beneficially  own,
                directly or indirectly, more than 50% of, respectively, the then
                outstanding shares of common stock and the combined voting power
                of the  then  outstanding  voting  securities  entitled  to vote
                generally in the election of  directors,  as the case may be, of
                Employer   resulting   from  such   reorganization,   merger  or
                consolidation;

                       (ii)   A complete liquidation or dissolution of Employer;
                or

                       (iii)  A  change  in  the  composition  of the  Board  of
                Directors of SII such that the  individuals  who, as of the date
                hereof,  constitute  the Board of Directors of SII (the Board of
                Directors as of such date  hereinafter  being referred to as the
                "Incumbent Board") cease for any reason to constitute at least a
                majority  of the  Board of  Directors;  provided,  however,  for
                purposes  of this  Section,  that any  individual  who becomes a
                member of the Board of Directors  subsequent  to the date hereof
                whose  election,  or  nomination  for election by the  Company's
                shareholders,  was  approved by a vote of at least a majority of
                those  individuals who are members of the Board of Directors and
                who are also  members  of the  Incumbent  Board (or deemed to be
                such  pursuant to this  proviso)  shall be  considered as though
                such  individual  were a member  of the  Incumbent  Board;  but,
                provided   further  that  any  such  individual   whose  initial
                assumption  of office  occurs as a result of either an actual or
                threatened  election  contest  (as such  terms  are used in Rule
                14A-11  of  Regulation  14A  promulgated  under  the  Securities
                Exchange Act of 1934) or other actual threats of solicitation of
                proxies or consents  by or on behalf of a person  other than the
                Board of Directors shall not be so considered as a member of the
                Incumbent Board.

                B.     Definition  - Total  Compensation.  "Total  Compensation"
means Employee's W-2 compensation for federal tax purposes, health care benefits
and automobile allowance, if any, for the calendar year immediately preceding or
coinciding with a Change of Control.

                C.     Employment  Termination  Option.  In event of a Change in
Control of Employer,  Employee shall,  during the period between 60 and 240 days
after the Change in Control  event,  have the option to terminate his employment
with Employer by delivering  written  notice of his election to so terminate his
employment  hereunder.  Such  termination  shall be considered  for all purposes
under this  Agreement  as a  termination  with Good  Reason  provided, 



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however, Employee shall be entitled to receive a lump sum payment in cash within
thirty (30) days of the date of  termination of employment of an amount equal to
one and one half times Total Compensation.

                D.     No Excess Parachute Payments.  It is the intention of the
parties  that  payments to be made to the  Employee  pursuant to this  Agreement
shall not constitute  "excess parachute  payments" within the meaning of Section
280G of the Internal Revenue Code of 1986, as amended and any regulations issued
thereunder. If the Employer or independent accountant serving as auditor for the
Employer,  as the case may be, on the date of the Change of  Control  determines
that some or all of the payments scheduled under this Agreement,  as well as any
other  payments  determined to be  contingent on a Control of Control,  would be
non-deductible by the Employer under Section 280G, then payments scheduled under
this Agreement  shall be reduced to the maximum amount which may be paid without
causing  such   payments  to  be   non-deductible,   less  $1.  In  making  such
determination,  the Employer or the Employer's  accountant may rely upon interim
or proposed regulations interpreting Section 280G. Employee, at his own expense,
may obtain an independent determination.  If a difference of opinion exists with
respect to whether there are excess parachute  payments,  then a further opinion
may be requested  by Employer and  Employee,  selecting  an  accountant  that is
acceptable to both. The  determination by the jointly selected  accountant shall
be binding on both parties.

         6.     Rights to Work Product.  Employee agrees that Employer will have
an exclusive right to all products,  ideas, inventions,  or other works that are
conceived,  developed, improved or supplemented by Employee during the period of
his employment  with Employer,  whether during or outside of Employee's  working
hours,  which  are  within  the  scope  of, or  related  to,  any of  Employer's
activities or  operations,  or any of  Employee's  duties,  responsibilities  or
activities as an employee.  Employee agrees to take at Employer's  expense,  but
without  additional  remuneration  to him (except as  Employer  may, in its sole
discretion,  grant),  any action  required  by  Employer  to patent,  copyright,
license or otherwise  protect  Employer's rights and interests in such products,
ideas, inventions or other work.

         7.     Trade Secrets and Confidential  Information.  During the term of
this  Agreement,  Employee will continue to have access to various trade secrets
and  confidential  information  of  Employer.  Employee  acknowledges  that such
confidential  information  and trade secrets are owned and shall  continue to be
owned solely by  Employer.  During the term of his  employment  and for five (5)
years  after  such  employment  terminates,  Employee  agrees  not to  use  such
information  for any purpose  whatsoever or to divulge such  information  to any
person  other than  Employer or persons to whom  Employer  has given its written
consent  unless  Employee is compelled to disclose it by  governmental  or legal
process or by any provision of law or court order. In the event that Employee is
compelled to divulge  such  information  as described in the previous  sentence,
Employee  shall give  Employer at least five (5) days  written  notice  prior to
divulging the information, unless such notification is prohibited by law.

         8.     Documents.  Under no  circumstances  shall Employee  remove from
Employer's  office with  intention to retain any of Employer's  books,  records,
documents,  or  customer  lists,  or any copies of such  documents,  without the
written  permission  of  Employer;  nor shall  Employee



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<PAGE>

make any copies of such books, records, documents, or customer lists for use and
retention  outside of  Employer's  office except as  specifically  authorized in
writing by Employer.

         9.     Non-Competition. Employee agrees that during his employment with
Employer and for as long as he is receiving  compensation  under this Agreement,
he will not  directly  or  indirectly,  either  as  principal,  agent,  manager,
employee,  partner,  shareholder,  director,  officer,  consultant or otherwise,
become  associated  with,  employed  by, or  otherwise  interested  in,  whether
financially or in any other capacity,  any business operation directly competing
with Employer in any state east of the Mississippi River. This restriction shall
not preclude  Employee  from  becoming the holder of any publicly  traded stock,
provided  Employee  does not  acquire a stock  interest in excess of one percent
(1%).

         10.    Non-solicitation.  Employee  agrees  that for a period of twelve
(12) months after his employment has terminated for any reason without the prior
written  consent  of the  Board  of  Directors  of  Employer,  or for so long as
Employee is receiving compensation from Employer, whichever period is longer:

                A.     Employee  will not,  directly or  indirectly,  solicit or
sell any of the  products or services  sold by Employer to any person,  company,
firm, or corporation  or entity who is or was a customer of Employer  within two
(2) years prior to the termination of Employee's employment;

                B.     Employee  will not solicit  such  customers  on behalf of
himself or any other person, firm, company, or corporation; and

                C.     Employee  will not,  directly  or  indirectly,  employ or
solicit the  employment of any person  employed by Employer  within one (1) year
prior to such employment or  solicitation.  Further,  Employee shall not induce,
solicit or advise any other person or business,  or encourage or  contribute  to
the efforts of any other person or business, to employ or solicit the employment
of any person  employed by Employer within one (1) year prior to such employment
or solicitation.

         11.    Ability to Earn Livelihood.  Employee  acknowledges  that (i) in
the event his employment  with Employer  terminates  for any reason,  he will be
able to earn a livelihood without violating the foregoing restrictions; and (ii)
that his ability to earn a livelihood  without  violating such restrictions is a
material condition to his employment with Employer.

         12.    Remedies.   Employee   acknowledges  that  (i)  compliance  with
Sections 7, 8, 9, and 10 is necessary  to protect the business and  good-will of
Employer  and  (ii) a breach  of any of  those  sections  will  irreparably  and
continually  damage  Employer,  for which  money  damages  may not be  adequate.
Therefore, the parties agree that in the event of such breach, Employer may seek
any and all legal or equitable  relief available to it,  specifically  including
but not limited to injunctive  relief,  without the  necessity of bond,  and may
hold  Employee  liable  for all  damages,  including  actual  and  consequential
damages,  costs and expenses,  as well as legal costs and reasonable  attorneys'
fees incurred by Employer as a result of such breach.


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<PAGE>

         13.    Duration of Injunction. If Employee violates any of the terms of
Sections 7, 8, 9, or 10 and Employer consequently seeks injunctive relief from a
court,  such  injunctive  relief may be  applied  prospectively  to include  the
duration  of  the  covenant   unexpired  at  the  time  of  the  first   breach,
notwithstanding  that the  covenant  may have  otherwise  expired  at the time a
lawsuit is filed and/or at the time relief is granted.

         14.    Judicial Modification;  Severability. The parties have attempted
to limit  Employee's  right to compete  only to the extent  necessary to protect
Employer  from  unfair  competition.   The  parties  recognize,   however,  that
reasonable people may differ in making such a determination.  Consequently,  the
parties  hereby  agree that,  if the scope or  enforceability  of a  restrictive
covenant  set forth in Section 7, 8, 9 or 10 is in any way disputed at any time,
a court or  other  trier  of fact  may  modify  and  reform  such  provision  to
substitute such other terms as are reasonable to protect  Employer's  legitimate
business  interests.  If any  provision,  paragraph,  or  subparagraph  of  this
Agreement  is adjudged by any court to be void or  unenforceable  in whole or in
part, such  adjudication  shall not affect the validity of the remainder of this
Agreement,  including any other  provision,  paragraph,  or  subparagraph.  Each
provision, paragraph, and subparagraph of this Agreement is separable from every
other provision,  paragraph,  and  subparagraph,  and constitutes a separate and
distinct covenant.

         15.    Waiver of Rights. If in one or more instances either party fails
to insist that the other party performs any of the terms of this Agreement, such
failure shall not be construed as waiver by such party of any past,  present, or
future right granted under this  Agreement and the  obligations  of both parties
under this Agreement shall continue in full force and effect.

         16.    Survival.  The obligations contained in Sections 7, 8, 9, and 10
shall  survive the  termination  of  Employee's  employment.  In  addition,  the
termination  of employment  shall not affect any of the rights or obligations of
either party arising prior to or at the time of the  termination  of employment,
or which may arise by any event causing the termination of employment.

         17.    Successors. This Agreement shall be binding upon and shall inure
to the benefit of Employee,  and, to the extent  applicable,  Employee's  heirs,
assigns,  executors,  and  personal  representative,   and  upon  Employer,  its
successors and assigns, including without limitation,  any person,  partnership,
corporation  or any other  entity that may acquire all or  substantially  all of
Employer's  assets  and  business,  or  with  or  into  which  Employer  may  be
consolidated or merged.

         18.    Complete Understanding.  This Agreement constitutes the complete
understanding  between the parties regarding terms and conditions of employment,
all prior representations or agreements having been superseded.

         19.    Modification.  No  alteration  or  modification  of  any  of the
provisions of this Agreement shall be valid unless made in writing and signed by
both parties.


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         20.    Headings.  The  headings  of  sections  and  paragraphs  of this
Agreement  are for  convenience  and  identification  only  and do not  limit or
construe the contents of such sections and paragraphs.

         21.    Governing Law. This  Agreement  shall be subject to and governed
by the laws of the Commonwealth of Virginia. The parties agree that any cause of
action  arising  from the terms of this  Agreement  shall be brought only in the
Circuit  Court of the City of Richmond,  Virginia.  The parties  agree that such
court shall be the exclusive and sole venue for the adjudication of any disputes
hereunder.

         22.    Counterparts.  This  Agreement  may be  executed  in two or more
counterparts,  each of which shall be deemed an original  but all of which shall
constitute one and the same instrument.

         IN WITNESS  WHEREOF,  the  parties  have caused  this  Agreement  to be
executed in their names as of the date first written above.

                                    SPURLOCK INDUSTRIES, INC.


                                    By: /s/ Kirk J. Passopulo
                                        ---------------------------------
                                        Name: Kirk J. Passopulo
                                              ---------------------------
                                        Office: Secretary
                                                -------------------------

                                    SPURLOCK ADHESIVES, INC.


                                    By: /s/ Kirk J. Passopulo
                                        ---------------------------------
                                        Name: Kirk J. Passopulo
                                              ---------------------------
                                        Office: Secretary
                                                -------------------------

                                    EMPLOYEE

                                    /s/ Phillip S. Sumpter
                                    -------------------------------------
                                    Phillip S. Sumpter




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