Document:

Exhibit 10.8

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement (“Agreement”) is entered into as of January 1, 2011, (the “Effective Date”) between Golden Growers Cooperative, a North Dakota Cooperative (“GGC”) and Mark Dillon (“Executive”).

 

WHEREAS, Executive has been employed as Executive Vice President of GGC since June 16, 1996, and both GGC and Executive wish to extend said employment.

 

WHEREAS, it is GGC’s high priority to arrive at an agreement with Executive as to the terms and conditions of Executive’s employment and to protect valuable confidential information and member and employee relationships of GGC and ProGold Limited Liability Company (“ProGold”), an entity in which GGC has a forty-nine percent (49%) ownership interest; and

 

WHEREAS, Executive agrees, in consideration of his employment with GGC and GGC’s obligations to him hereunder, to recognize and honor his obligations to GGC with regard to his employment and such confidential information and valuable relationships;

 

NOW, THEREFORE, in consideration of the mutual covenants and conditions herein described, the parties agree as follows:

 

1.                                       Term.  Subject to earlier termination as provided in paragraph 6 herein, the term of such employment shall commence on the Effective Date and shall end on December 31, 2011.  Executive’s employment will be automatically renewed for a one (1) year term on each January 1 thereafter, on the terms and conditions herein contained or any additional or modified terms mutually agreed upon in writing by the parties, unless either party does not desire such renewal and communicates written notice of nonrenewal to the other party at least 30 days prior to the renewal date.  All references to “year” in this Agreement refer to the year beginning January 1 and ending December 31.

 

2.                                       Duties.  In his position as Executive Vice President, Executive will faithfully and diligently perform his job as Executive Vice President, will perform such duties as set forth on Exhibit A hereto and such other duties as may be reasonably assigned to him from time to time by the Board of Directors of GGC (the “Board”), excluding any periods of vacation, sick, disability or other leave to which Executive is entitled, and will devote reasonable attention and time to the business and affairs of GGC and use Executive’s reasonable best efforts to execute fully his duties hereunder; and promote GGC’s best interests.  Executive represents that he will not take any action at any time while he is employed by GGC which would in any way be reasonably anticipated to conflict with GGC’s interests or objectives.  The principal place of employment and the location of Executive’s principal office and normal place of works hall be in the Fargo, North Dakota area.

 

3.                                       Compensation.  For all services rendered by Executive, GGC shall pay Executive a guaranteed partner payment of $186,051.00.  This guaranteed payment may be adjusted from time to time, at the sole discretion of the Board, based on an appraisal of Executive’s performance, changes in the Consumer Price Index as reported by the United States Government, or any other factors the Board deems relevant.

 

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4.                                       General Benefits.  Executive shall be entitled to receive benefits including:

 

·                  Medical and dental insurance with a maximum of $2,000 per-year deductible;

·                  Term life insurance up to two and one-half times his annual salary;

·                  Accidental death and disability insurance;

·                  A defined benefit pension plan equivalent to such plan as currently in place for Executive;

·                  Contributions by GGC to Executive’s 401(k) plan at the rate of four percent (4%) of Executive’s annual salary;

·                  Education assistance in the form of tuition and books for courses appropriate to performance of Executive’s responsibilities;

·                  Tax preparation service;

·                  An annual vehicle allowance of ten thousand, seven hundred ninety seven dollars ($10,797.00) to be adjusted annually beginning January 1, 2012, at the rate of increase in the Consumer Price Index as reported by the United States Government;

·                  A payment for business use of Executive’s personal vehicle at fifty-percent (50% of the business deductible rate established from time to time by the Internal Revenue Service;

·                  Reimbursement of reasonable and necessary expenses incurred in connection with performance of his duties hereunder, including meals, travel, lodging, meeting and conference registrations, and entertaining expenses incurred when entertaining GGC’s clients, affiliates, employees, directors, business associates, and others in accordance with GGC’s policies.

 

5.                                       Vacation, Sick Leave and Time Off.  Executive shall be entitled to combined vacation and sick leave of twenty-five (25) business days with pay annually while employed by GGC through December 31, 2011.  If Executive’s employment is extended beyond December 31, 2011, Executive shall be entitled to combined vacation and sick leave of thirty (30) business days with pay annually while employed by GGC thereafter.  Unused paid time off may be carried over from one year to the next at the rate of 50% of the unused days, provided, however, that Executive shall not be permitted to carry forward more than 15 days off and so may not have more than a total of 45 days off as of the beginning of any calendar year.  Executive shall also be entitled to bereavement leave up to five (5) days per occurrence for the death of a parent, spouse or child.  Any additional days absent per year from a five (5)-day work week, other than allowed in this paragraph, shall be without compensation.  Time away for attendance at conferences, seminars, meetings, workshops or training shall not be considered absences for the purpose of the Agreement.

 

6.                                       Termination.  Either Executive or GGC may terminate the employment relationship upon thirty (30) days advance written notice to the other party for any reason, except as otherwise provided in the last sentence of this paragraph.  If Executive terminates this Agreement by resigning his employment, GGC may terminate his employment at any time during the thirty (30)-day notice period, provided, however, that GGC will continue to pay Executive’s salary and fund Executive’s benefits for the duration of the thirty (30)-day notice period.  If GGC terminates Executive’s employment without Cause, GGC will pay Executive an amount equal to 115% of one (1) year of his then-current annual

 

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guaranteed partner payment as full and final payment to Executive following his execution of the release agreement described in paragraph 9 of this Agreement.

 

If GGC terminates Executive’s employment for Cause, said termination shall be effective immediately upon written notice to Executive and GGC will pay Executive one-twelfth (1/12) of his then annual salary following his termination.

 

Cause exists if Executive has (1) engaged in dishonesty, illegal or other wrongful conduct substantially detrimental to the business or reputation of GGC or ProGold; (b) violated any material provision in this Agreement or any material existing or future GGC policies; (c) willfully and continuously failed or refused to perform his duties with GGC, provided, Executive does not remedy such violation within thirty (30) days after written notice thereof is given Executive; or (d) is convicted of a felony involving any fraud, embezzlement, theft or dishonesty, or is convicted of any criminal conduct affecting GGC.

 

As a condition of receiving the payment described herein, Executive will also be required to sign a release identical to the release contained in paragraph 8 hereof and including any further legal requirements to assure its enforceability which may be effective at the time of his termination, along with his agreement to keep confidential and not disclose the circumstances of his termination or derogatory comments regarding GGC or ProGold or its owners or employees, If Executive elects not to execute this release, he will nonetheless receive an amount equal to one-twelfth of his then annual salary following his termination for any reason.

 

7.                                       Confidential Information.  Executive acknowledges that in the course of his employment by GGC, he will have access to GGC’s and ProGold’s confidential information consisting of member stock subscriptions and stock transactions, correspondence, communications and other information; procedures, methods, records and standards relating to the terms of any contracts entered into by GGC and ProGold; any information on any computer database; fiduciary information; records, data, formulae, specifications, trade secrets, developments, research activity, processes, designs, sketches and drawings; short term and long range plans; financial status, statements and information; and personal data including specifically all compensation and other personal information relating to any GGC employee.  Confidential information also includes any confidential information relating to any business of any company affiliated with GGC, which is disclosed to Executive either purposely or inadvertently in the course of his employment with GGC.  Executive agrees that such information shall be considered secret and disclosed to him in confidence.  Executive recognizes that such information is the sole property of GGC, and where appropriate, ProGold, and shall be used for the exclusive benefit of GGC or ProGold.

 

During his employment by GGC and thereafter, Executive will not directly or indirectly disclose or use any such confidential information except as required in the conduct of GGC’s business.

 

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Confidential information may be written, stored in a computer, merged with other information, or simply memorized.  Just because it is memorized, however, this does not in any way reduce its confidentiality or its proprietary nature.  While some of this confidential information may be generally public knowledge, its compilation in a form useful to GGC and ProGold and their competitors makes it unique and valuable.

 

Executive agrees that all records, files, documents, equipment, computer discs, video tapes and the like relating to GGC’s or ProGold’s business which he may prepare, use or obtain shall be and remain the sole property of GGC or ProGold and shall not be removed from GGC’s or ProGold’s premises or control without written authorization from the Board.  Executive further agrees that prior to his separation from the employ of GGC for any reason he will meet with such person as GGC may designate for a separation interview and he will deliver to the Board or its designee any and all materials in his possession relating to and within the scope of the current or projected business of GGC and ProGold, including, but not limited to, all the items listed above.

 

8.                                       Releases.  Executive hereby releases GGC, and its respective affiliates, employees, directors, shareholders, officers, agents, insurers and indemnitors from certain claims and causes of action, known or unknown, described below, which he may have against them.  This release does not include any claims which arise after Executive signs this Agreement.  The claims and causes of action which Executive is releasing hereunder include all compensation, benefit, commission and contract claims, defamation, emotional distress and other employment related tort claims except workers compensation; all claims under any federal, state or local statute, regulation or case law for discrimination claims under the Americans With Disabilities Act, the Age Discrimination in Employment Act, the Minnesota Human Rights Act and Title VII of the Civil Rights Act of 1964.  Executive has twenty-one (21) days to consider this release before he signs this Agreement and he has fifteen (15) days after he signs it to rescind this release.  If Executive rescinds his release of his claims under this paragraph, he will thereby be rescinding this Agreement in its entirety and will have no rights to any benefits hereunder.  If Executive desires to rescind his release hereunder, he must deliver written notice of rescission, by mail or in person, to the Chairman of the Board at the address on file with GGC within fifteen (15) days after he signs this Agreement.  If Executive mails his rescission to the Chairman, he shall send it by certified mail, return receipt requested.  Executive is hereby advised that he has the right to consult with his own legal counsel regarding his rights hereunder.

 

9.                                       Remedies.  Each party consents that, in the case of any violation or threatened violation of this Agreement, the other party may secure injunctive relief, without bond but upon due notice, in addition to any other relief available to it.  In the event either party is found to have violated this Agreement, said party understands and agrees that it will be liable to the other party for reasonable attorney’s fees and costs incurred in litigation to enforce this Agreement.  No waiver of any violation of this Agreement shall be implied from any failure by either party to take action under this paragraph.

 

10.                                 Severability; Governing Law; Assignment.  If for any reason a court of competent jurisdiction determines any provision of this Agreement to be unenforceable as written,

 

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the parties expressly grant the court authority to modify this provision and to enforce this provision to the maximum extent possible.  The parties further agree that this Agreement shall be governed and construed under North Dakota law, without regard to that body of law commonly known as “conflict of laws”.  Any dispute arising out of or relating to this Agreement shall be heard by a state or federal court sitting in Fargo, North Dakota, and Executive consents to the personal jurisdiction of both such courts.

 

Executive agrees that his obligations under this Agreement shall be binding on his heirs, assigns and his legal representatives and that these obligations are enforceable with respect to the affiliates, successors and assigns of GGC, any person or entity which purchases substantially all of the assets of GGC.

 

11.                                 Integration Clause.  This Agreement is being entered into substantially contemporaneously with the commencement of Executive’s employment by GGC and constitutes the complete agreement of the parties, superseding any and all prior written or oral agreements or understandings between it and between Executive.  Further amendment hereto or expansion or revision to Executive’s terms of employment must be reflected in a writing executed by the parties hereto.

 

12.                                 Survival.  The parties expressly acknowledge and agree that the provisions of this Agreement which by their express or implied terms extend beyond the termination of Executive’s employment hereunder or beyond the termination of this Agreement, shall continue in full force and effect notwithstanding the Executive’s termination of employment hereunder or the termination of this Agreement, respectively.

 

SIGNED this Twenty-Second Day of December, 2010, at Fargo, North Dakota.

 

EFFECTIVE January 1, 2011.

 

	
 
    	
/s/   Mark C. Dillon
    
	
 
    	
Mark   C. Dillon
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Golden   Growers Cooperative
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jason Medhaug
    
	
 
    	
 
    	
Jason   Medhaug
    
	
 
    	
 
    	
 
    
	
 
    	
Its:
    	
Chairperson
    

 

5Exhibit 10.36

 

Execution Version

 

FIRST AMENDMENT TO

EMPLOYMENT AGREEMENT

 

WHEREAS, NCO Group, Inc., a Pennsylvania corporation (“Old NCO”) and the undersigned (the “Employee”) entered into an employment agreement, dated as of November 15, 2006 (the “Agreement”);

 

WHEREAS, after the effective date of the Agreement, Old NCO merged with and into its parent, Collect Holdings, Inc., a Delaware corporation (the “Company”), with the Company surviving the merger (the “Merger”) and changing its name to NCO Group, Inc.;

 

WHEREAS, in connection with the Merger, the Agreement was assigned by operation of law to, and assumed by, the Company; and

 

WHEREAS, the Company and the Employee desire to amend the Agreement as set forth herein (the “Amendment”).

 

NOW THEREFORE, the Employee and the Company, intending to be legally bound, hereby amend the Agreement as follows:

 

1.                                       Section 7(a)(ii)(1)(a) of the Agreement is hereby amended and restated in its entirety to read as follows:

 

“(a)                            will continue to pay to the Employee his then current Base Salary and Target Bonus, calculated under Section 4(b) of this Agreement, for a period of twenty-four (24) months (the “Initial Severance Period”) (with such Base Salary to be paid in accordance with the Company’s payroll practices and with any such bonuses to be paid in the year following the year to which they relate); and”

 

2.                                       Section 7(a)(ii)(1)(b) of the Agreement is hereby amended and restated in its entirety to read as follows:

 

“(b)                           will (I) reimburse the Employee for his and his eligible dependents’ healthcare continuation coverage (COBRA) premiums, less the amount (the “Employee Portion”) that a full-time active employee of the Company would be required to pay for such coverage under the Company’s healthcare plans, until the earlier of the 18 month anniversary of such termination and the date on which the Employee becomes eligible for healthcare coverage under the plan of a subsequent employer that provides benefits that are substantially similar (or better) in the aggregate to the benefits provided under the Company’s healthcare plans, as agreed upon by the parties hereto in good faith, or if no such agreement can be reached, as determined in good faith by an independent third party acceptable to the parties hereto (such period, the “COBRA Period”) and (II) from the expiration of the COBRA Period until the second anniversary of the Employee’s termination of employment with the Company, reimburse the Employee for the cost of his and his eligible dependents’ healthcare coverage premiums under the healthcare plan of such subsequent employer or under private health insurance (as applicable), in either case, only to the extent that the costs of such premiums to the Employee exceed the Employee Portion (but not in an amount in excess of the amount that the Company would

 

 

be required to reimburse the Employee under clause (I) hereof if the Employee continued COBRA coverage during such period).”

 

3.                               Section 7(a)(ii)(2) of the Agreement is hereby amended and restated in its entirety to read as follows:

 

“(2)                            if the effective date of the Employee’s termination of employment is after the Initial Term but on or prior to November 15, 2012:

 

(a)                                  will pay to the Employee two times his then current Base Salary and two times his Target Bonus, calculated under Section 4(b) of this Agreement, for a period of twelve (12) months (the “Severance Period”) (with such Base Salary to be paid in accordance with the Company’s payroll practices and any such bonuses to be paid in the year following the year to which they relate); and

 

(b)                                 will provide the benefits set forth in Section 7(a)(ii)(1)(b).”

 

4.                               Sections 7(a)(ii)(3) and 7(a)(ii)(4) of the Agreement are hereby renumbered as Section 7(a)(ii)(4) and Section 7(a)(ii)(5), respectively, and the following is hereby added to the Agreement as the new Section 7(a)(ii)(3):

 

“(3)                            if the effective date of the Employee’s termination of employment is after November 15, 2012:

 

(a)                                  will continue to pay to the Employee his then current Base Salary and Target Bonus, calculated under Section 4(b) of this Agreement, during the Severance Period (with such Base Salary to be paid in accordance with the Company’s payroll practices and with any such bonuses to be paid in the year following the year to which they relate); and

 

(b)                                 will (I) reimburse the Employee for his and his eligible dependents’ healthcare continuation coverage (COBRA) premiums, less the Employee Portion, until the earlier of the 12 month anniversary of such termination and the date on which the Employee becomes eligible for healthcare coverage under the plan of a subsequent employer that provides benefits that are substantially similar (or better) in the aggregate to the benefits provided under the Company’s healthcare plans, as agreed upon by the parties hereto in good faith, or if no such agreement can be reached, as determined in good faith by an independent third party acceptable to the parties hereto (such period, the “Benefit Continuation Period”) and (II) from the expiration of the Benefit Continuation Period until the first anniversary of the Employee’s termination of employment with the Company, reimburse the Employee for the cost of his and his eligible dependents’ healthcare coverage premiums under the healthcare plan of such subsequent employer to the extent that the costs of such premiums to the Employee exceed the Employee Portion (but not in an amount in excess of the amount that the Company would be required to reimburse the Employee under clause (II) hereof if the Employee continued COBRA coverage during such period).”

 

 

5.                                       The first sentence of Section 8(b) of the Agreement is hereby amended by replacing the phrase (i) “during the Initial Term of this Agreement” with the phrase “on or prior to November 15, 2012” and (ii) “the expiration of the Initial Term” with the phrase “November 15, 2012.”

 

6.                                       A new Section 16 is hereby added to the Agreement to read as follows:

 

“16.                           409A Compliance.  This Agreement is intended to comply with Code Section 409A, to the extent applicable, and the parties hereto agree to interpret, apply and administer this Agreement in the least restrictive manner necessary to comply therewith and without resulting in any increase in the amounts owed hereunder by the Company.  All reimbursements under this Agreement will be made to the Employee as soon as practicable following submission of satisfactory evidence to the Company, but in no event later than the last day of the calendar year following the calendar year in which such expenses were incurred.  In addition, no reimbursement or in-kind benefit shall be subject to liquidation or exchange for another benefit and the amount available for reimbursement, or in-kind benefits provided, during any calendar year shall not affect the amount available for reimbursement, or in-kind benefits to be provided, in a subsequent calendar year.  The 409A Gross-Up Payment and the Gross-Up Payment shall be paid to the Employee by no later than the last day of the taxable year following the taxable year in which the Employee remits the related taxes.  Any accrued but unpaid Base Salary as of the date of the Employee’s separation from service shall be paid within 30 days after the date of such separation and any accrued but unpaid bonus shall be paid in the year following the year of termination in accordance with Section 4(b).  The provisions of this Section 16 shall survive the termination of this Agreement.”

 

7.                                       Other than as modified by this Amendment, the Agreement is ratified and affirmed in all respects and shall remain in full force and effect subject to the terms thereof.  All capitalized terms not defined herein shall have the meaning set forth in the Agreement.

 

[Signature Page Follows]

 

 

To record the adoption of this Amendment, the Board of Directors of the Company has caused an authorized member of the Board of Directors of the Company to execute this Amendment this 27th day of September, 2010.

 

	
NCO GROUP, INC.
    	
 
    	
EMPLOYEE
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ John R. Schwab
    	
 
    	
  /s/ Steve   Elliott
    
	
Name:  John R. Schwab
    	
 
    	
Steve Elliott
    
	
Title: EVP and CFO
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Dated:
    	
September 27,   2010
    	
 
    	
Dated:
    	
September 27,   2010

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