Document:

csk10k_ex1024.htm

    Exhibit
10.24

     

    Agr
WITHOUT PREJUDICE

     

    

     

    COMPROMISE
AGREEMENT

     

    Pursuant
to section 203 of the Employment Rights Act 1996

     

    Between:

     

    
      	
              (1)

            	
              Field Group plc, whose
      registered office is at Misbourne House,
      Badminton Court, Rectory Way, Old Amersham, Bucks, HP7 0DD, (the “Company”);

            

    

     

    
      	
              (2)

            	
              Chesapeake Corporation,
      of 1021 East Cary Street, Richmond, Virginia, 23218, United States of
      America ("Chesapeake");
      and

            

    

     

    
      	
              (3)

            	
              Neil Rylance, of 5 Park
      Avenue, Shelley Park, Shelley, Huddersfield, HD8 8JG (the
      “Executive”)

            

    

     

    
      	
               
      

            	
              (together,
      the "Parties").

            

    

     

    Whereas:

     

    
      	
              (1)

            	
              The
      Executive has been employed by the Company since 3 January
      1995.

            

    

     

    
      	
              (2)

            	
              The
      Executive has been employed by the Company as Executive Vice President –
      European Packaging since 1 January 2005 and by Chesapeake as Executive
      Vice President but due to a Company reorganisation his roles will become
      redundant.

            

    

     

    
      	
              (3)

            	
              In
      order to achieve certainty and finality, it is the intention of the
      Parties in entering into this Agreement that it shall operate to terminate
      the relationship between them and, in consideration of the settlement set
      out herein, provide a full and absolute and irrevocable release by the
      Executive of all current and future claims set out in this Agreement
      whether or not he has knowledge of them, whether or not they are in the
      contemplation of the parties and whether or not they exist in fact or law,
      as at the date of this Agreement and a full and absolute and irrevocable
      release by the Company and Chesapeake of all current and future claims set
      out in this Agreement of which either the Company or Chesapeake is aware
      or should reasonably be aware as at the date of this
      Agreement.

            

    

     

    It is agreed as
follows:

     

    
      	
              1.  

            	
              Date
      of Termination of Employment

            

    

     

    The
Executive’s employment with the Company will terminate on 31 August 2007 (the
“Termination Date”) by
reason of redundancy.  Salary and benefits will be paid by the Company
in the normal way up to the Termination Date but thereafter will
cease.  During the period from the date of this Agreement until the
Termination Date the Executive shall be on garden leave in accordance with
clause 20 of his contract of employment but shall remain available to provide
the Company or any Associated Company with such assistance as it may reasonably
require on a transitional basis other than on days on which he is on holiday as
agreed with the Company.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
Executive shall be entitled to the payment or award in full under the 2005-2007
Long-Term Incentive Programme and shall be entitled to two-thirds of his award
or earnings arising under the 2006-2008 Long-Term Incentive Programme (and all
remaining awards will be forfeited immediately).  These awards may be
forfeited at the end of the full performance period based on the extent to which
any relevant targets are not satisfied.  For the avoidance of doubt,
in the event of a Change in Control before 1 February, 2009 (as defined in the
contract of employment) of Chesapeake or a sale or divestiture of the Company so
that it is no longer an Associated Company of Chesapeake, such unvested shares
under the Long-Term Incentive Programme (which have not been forfeited) shall
vest.

     

    The
Executive shall be entitled to exercise any share options until 31 December 2007
and they will then lapse.

     

    The
Executive shall be paid in lieu of 17 days unused holiday at the Termination
Date less any days holiday he takes before the Termination Date.

     

    
      	
              2.  

            	
              Definitions

            

    

     

    For the
purposes of this Agreement, “Associated Company” means a
company which is a subsidiary or a holding company of the Company, as the case
may be, or a subsidiary of that holding company, “subsidiary” and “holding
company” in this definition having the same meaning as in section 736 of the
Companies Act 1985.  References to any statute or any statutory
provision shall, unless the context otherwise requires, be construed as
including any subsequent or amended statute or any corresponding provision of
such new or amended statute.

     

    
      	
              3.  

            	
              Resignation
      from Office

            

    

     

    The
Executive hereby resigns from his offices as director of the Company and any of
its Associated Companies with immediate effect and agrees to do all things and
sign any documents necessary to effect such resignation.  Further the
Executive will take all action and sign all necessary documents to effect the
appointment of replacement/additional directors to the board of the Company and
any of its Associated Companies, if requested.  The Executive confirms
that he will also co-operate to ensure completion of any other formal
resignations/removals from positions which he holds by reason of his employment
including as a trustee of the Company's pension scheme.

     

    
      	
              4.  

            	
              Payments

            

    

     

    Subject
to the Executive’s compliance with all the terms and warranties of this
Agreement, by way of compensation for the termination of his employment but
without any admission of liability, the Company will make a
payment to the Executive of £727,587 (gross) less any necessary withholdings
(the “Termination
Payment”) within 5 working days of the later of the Termination Date and
receipt of this signed agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
Executive shall also be entitled to an additional payment of £738,000 (less
necessary withholdings) under Clause 14 of his contract of employment dated 19
August 2005 if there is a Change in Control (as defined in the contract of
employment) of Chesapeake or a sale or divestiture of the Company, before 31
July 2009.

     

    On the
commencement of any proceedings by the Executive against the Company or any
Associated Company or any other breach of this Agreement, the Company may, in
its absolute discretion, require the Termination Payment and the Redundancy
Payment to be repaid to the extent that the Company incurs any liabilities,
losses, damages, costs or expenses as a result of or in connection with such
proceedings or breach.

     

    The
Company shall maintain adequate Directors’ and Officers’ insurance cover in
respect of the Executive for a period of six years from the Termination
Date.

     

    
      	
              5.  

            	
              Taxation

            

    

     

    In
accordance with the Company’s understanding of current tax withholding
requirements, the first £30,000 of the Termination Payment will be paid without
any deduction for income tax or national insurance contributions. Income tax and
Executive’s national insurance will be deducted from the remainder of the
Termination Payment.

     

    Any
further tax or employee’s national insurance which may be payable in respect of
any of the Termination Payment will be for the Executive’s own account and the
Executive agrees with the Company (for itself and on behalf of each Associated
Company) that, to the extent that the Company and/or any Associated Company is
obliged to make any payment of, or in respect of tax or national insurance or
any fine, penalty or interest (other than deductions which the Company is
obliged to make on the payments or arrangements set out in this Agreement)
(“Taxes”) in respect
thereof, the Executive will promptly indemnify the Company or the relevant
Associated Company on an after-tax basis in full for any such
Taxes.  The Executive will be given an opportunity to make
representations to HM Customs & Excise before any payments are
made.

     

    
      	
              6.  

            	
              Return
      of Property

            

    

     

    The
Executive confirms that on or before the Termination Date he will return to the
Company all property of the Company and its Associated Companies of or whatever
kind in his possession or under his control (except for his company car) and
that he has not kept copies or extracts of any papers, documents, lists or
records or any other Company property in any form whatsoever, save that the
Executive shall be entitled to retain his mobile telephone and mobile telephone
number.  The Executive shall be entitled to retain his company car
until 30 November, 2007 and shall return it to the Company in good condition,
fair wear and tear excepted, on or before such date.

     

    
      	
              7.  

            	
              Restrictive
      Covenants

            

    

     

    The
Executive confirms that he will continue to comply with the obligations and
restrictions imposed upon him and contained in clauses 17, 19 and 20 of his
contract of employment dated 19 August 2005 and expressed to apply on or
following termination of that contract, notwithstanding its
termination.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              8.  

            	
              Duty
      of Confidentiality

            

    

     

    The
Executive agrees that he continues to owe a duty of confidentiality to the
Company and its Associated Companies after the Termination Date and he will not
use to the detriment or prejudice of the Company or any Associated Company or
divulge to any person, company, firm, corporate body or any other third party,
any information concerning the business or affairs of the Company or any
Associated Company which may have come into his knowledge by reason of his
employment without the prior written consent of the Company otherwise than as
required by law.

     

    Except as
required by law or any regulatory authority, the parties agree to keep the
existence and terms of this Agreement entirely confidential and not to make,
either orally or in writing, any disparaging or derogatory remarks concerning,
in the Executive’s case, the Company, its Associated Companies or any of their
officers or executives and, in the case of the Company and Chesapeake, the
Executive, and the parties agree not, at any time, to communicate with any
section of the media on any matter concerning, in the case of the
Executive,  the Company or any Associated Company or any of their
officers or executives and, in the case of the Company and Chesapeake, the
Executive.

     

    
      	
              9.  

            	
              Payment
      of Costs by the Company

            

    

     

    The
Company will pay the reasonable costs of the solicitor named in clause 12 below
being costs incurred by the Executive in connection with the termination of his
employment subject to its receipt of an invoice addressed to the Executive and
marked payable by the Company in respect of those costs and subject to a maximum
excluding VAT of £3,500.

     

    
      	
              10.  

            	
              Full
      and Final Settlement Clause

            

    

     

    The
Executive agrees that the above terms are in full and final settlement of all
and any claims, costs, expenses or rights of action of any kind whatsoever or
howsoever arising (whether statutory, contractual, at common law or otherwise)
whether known or unknown to the parties, whether or not existing in fact or in
law at the time of this Agreement and whether or not they are or could be in the
contemplation of the parties at the time of this Agreement (and whether arising
in the United Kingdom or in any other country in the world) that he may have now
or in the future against the Company or any Associated Company or any officer or
Executive or shareholder or pension trustee thereof relating to or arising
directly or indirectly out of or in connection with his employment prior to the
Termination Date, the termination of his employment with the Company on the
Termination Date or any other matter whatsoever outstanding on the Termination
Date  including but not limited to any claim relating to or arising
out of any directorships or other offices with the Company or any Associated
Companies or their termination but, for the avoidance of doubt, excluding any
claim arising out of a breach of this Agreement, for personal injury or in
respect of accrued pension rights (the “Specified
Matters”).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    In
particular, but without limitation, this release extends to any claim which the
Executive may otherwise have for breach of service agreement or other contract
(including wrongful dismissal), holiday pay, unlawful deduction from wages,
redundancy, unfair dismissal, any claim for equal pay under the Equal Pay Act
1970, unlawful discrimination (whether direct or indirect), harassment or
victimisation on grounds of sex, sexual orientation, race, religion or belief,
age or disability and any breach of (a) the Working Time Regulations 1998, (b)
section 47B of Part IVA of the Employment Rights Act 1996 (relating to
detrimental treatment or dismissal relating to a protected disclosure) and (c)
the Protection from Harassment Act 1997 (the “Specified
Claims”)

     

    The
Company and Chesapeake agrees that the above terms are in full and final
settlement of all and any claims, costs, expenses or rights of action of any
kind whatsoever or howsoever arising (whether statutory, contractual, at common
law or otherwise) of which either the Company or Chesapeake  is aware
or should reasonably be aware as at the date of this Agreement, at the time of
this Agreement and whether or not they are or could be in the contemplation of
the parties at the time of this Agreement (and whether arising in the United
Kingdom or in any other country in the world) that either the the Company or
Chesapeake may have now or in the future against the Executive relating to or
arising directly or indirectly out of or in connection with the Executive’s
employment prior to the Termination Date, the termination of his employment with
the Company on the Termination Date or any other matter whatsoever outstanding
on the Termination Date other than any breach of this Agreement.

     

    
      	
              11.  

            	
              Warranty
      that all potential claims have been
disclosed.

            

    

     

    The
Executive warrants, undertakes and represents to the Company that, having taken
independent legal advice he has previously notified the Company, in writing, of
all and any actual or potential claims (whether at the date of this Agreement or
in the future) he may have against the Company or any of its Associated
Companies or any of their Executives or officers or shareholders or pension
trustees and he has no other complaints whatsoever against the Company in
relation to the Specified Matters including, without limitation, the Specified
Claims  and he agrees that he shall not  institute or
commence any claims, actions or proceedings before any court or Employment
Tribunal whatsoever regarding the same.

     

    
      	
              12.  

            	
              Compliance
      with the Requirements of the ERA

            

    

     

    The
Executive confirms that he has taken independent legal advice as to the terms
and effect of this Agreement from James Davies of Lewis Silkin who is a
solicitor of the Supreme Court of England and Wales holding a current practising
certificate and in respect of whom there is currently in force a policy of
insurance covering the risk of a claim in relation to the advice given to the
Executive, and, in particular, he understands that he will not be able to bring
or pursue any claim in any court or Employment Tribunal against the Company or
any Associated Company arising from his employment with the Company or its
termination including, without limitation, the Specified Claims.  It
is agreed that the conditions regulating compromise agreements
under:

     

    
      	
              ·  

            	
              section
      203(3) of the Employment Rights Act
1996,

            

    

     

    
      	
              ·  

            	
              section
      77 of the Sex Discrimination Act
1975,

            

    

     

    
      	
              ·  

            	
              section
      72 of the Race Relations Act 1976,

            

    

     

    
      	
              ·  

            	
              Schedule
      3A (Part 1) of the Disability Discrimination Act
  1995,

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              ·  

            	
              Regulation
      35 of the Working Time Regulations
1998,

            

    

     

    
      	
              ·  

            	
              Schedule
      4, paragraph 2 (2) of each of the Employment Equality (Religion or Belief)
      Regulations 2003 and the Employment Equality (Sexual Orientation)
      Regulations 2003; and

            

    

     

    
      	
              ·  

            	
              Schedule
      5, Paragraph 2(2) of the Employment Equality (Age) Regulations
      2006.

            

    

     

    have been
satisfied.

     

    
      	
              13.

            	
              Binding
      Agreement

            

    

     

    Notwithstanding
that this Agreement is marked “without prejudice” it shall when signed by all
parties become binding and open.

     

    

     

    SIGNED  /s/  J. P. Causey,
Jr.

                    Director

                   
for and on behalf of

                   
Field Group plc

    

    SIGNED  /s/ Andrew J.
Kohut

                    for and
on behalf of

                   
Chesapeake Corporation

    

    SIGNED  /s/ Neil
Rylance

                   
Neil Rylance

    

    DATED  August
24, 2007csk10k_ex1025.htm

    Exhibit
10.25

    

    Named
Executive Officers’ and Directors’ Compensation

    

    Base Salaries –The
base salaries and their respective effective dates for the Named Executive
Officers are based on annual salaries as follows:

    

    
      	
              Andrew
      J. Kohut

            	
              President
      & Chief Executive Officer

            	
              $570,000

            	
              January
      1, 2007

            
	
              Joel
      K. Mostrom

            	
              Executive
      Vice President & Chief Financial Officer

            	
              $340,000

            	
              July
      24, 2007

            
	
              J.P.
      Causey Jr.

            	
              Executive
      Vice President, Secretary & General Counsel

            	
              $292,000

            	
              January
      1, 2007

            
	
              Michael
      Cheetham (1)

            	
              Vice
      President – Pharmaceutical & Healthcare Packaging

            	
              £180,000

            	
              July
      24, 2007

            
	
              Timothy
      D. Whitfield (2)

            	
              Vice
      President – Branded Products Packaging

            	
              £146,400

            	
              July
      24, 2007

            

    

    

    (1) Mr.
Cheetham’s base salary in U.S dollars as of January 1, 2008 was approximately
$359,000

    (2) Mr.
Whitfield’s base salary in U.S dollars as of January 1, 2008 was approximately
$292,000

    

    Annual Incentive
Awards – Effective as of January 1, 2008, the Named Executive Officers
were designated participants in the 2008 Annual Incentive
Program.  The target award for Mr. Kohut under the 2008 Annual
Incentive Program is 60% of his 2008 base salary; the target awards for Messrs.
Mostrom and Causey are 50% of their respective 2008 base salaries; and the
target awards for Messrs. Cheetham and Whitfield are 45% of their respective
2008 base salaries.  Awards for Messrs. Kohut, Mostrom and Causey will
be based 75% on the Corporation’s financial performance and 25% on individual
performance.  Awards for Messrs. Cheetham and Whitfield will be based
75% on their respective division’s financial performance and 25% on individual
performance.  The corporate and division performance component will be
based on the achievement of targets based on (a) improvement in operating income
before interest expense, income taxes, depreciation  and amortization
over 2007 levels and  (b) operating income before interest expense,
income taxes, depreciation  and amortization as a percent of net
sales.  The individual performance component will be based on the
individual officer’s achievement of individual performance goals during
2008.

    

    2008-2010 Long-term
Incentive Program - On January 7, 2008, as participants in the 2008-2010
cycle of the Long-Term Incentive Program, the Named Executive Officers received
the following awards of shares of performance-based restricted common stock of
the Corporation:

    

    
      	
              Andrew
      J. Kohut

            	
              President
      & Chief Executive Officer

            	
              68,900

            
	
              Joel
      K. Mostrom

            	
              Executive
      Vice President & Chief Financial Officer

            	
              29,800

            
	
              J.P.
      Causey Jr.

            	
              Executive
      Vice President, Secretary & General Counsel

            	
              25,600

            
	
              Michael
      Cheetham

            	
              Vice
      President – Pharmaceutical & Healthcare Packaging

            	
              25,400

            
	
              Timothy
      D. Whitfield

            	
              Vice
      President – Branded Products Packaging

            	
              20,600

            

    

    

    The
restricted shares will vest based on the Corporation’s total shareholder return
over the 2008-2010 cycle compared to the total shareholder return of a peer
group consisting of the companies in the Dow Jones Global Containers and
Packaging Company Index during the three- year cycle.

    

    Directors’
Compensation:

    Employee
directors of the Corporation are not paid for their service on the Board of
Directors or any Board committee.  Each non-employee director receives
an annual retainer of $32,000 for Board service; an attendance fee of $1,800 for
each day attending a Board meeting, a committee meeting or meetings, or an
organized Board of Directors business activity; and reimbursement of
expenses.  A non-employee director traveling across the Atlantic or
Pacific Ocean for a Board or Board committee meeting receives an additional
meeting fee of $1,800.  The Chairmen of the Compensation and the
Corporate Governance and Nominating Committees each receive an additional annual
retainer of $6,000.  The Chairman of the Audit Committee receives an
additional annual retainer of $10,000.  When there is not an employee
Chairman of the Board, the non-employee Chairman of the Board receives an
additional annual retainer of $125,000.  In addition, non-employee
directors are eligible to receive awards of common stock, stock options or other
equity awards under the provisions of the Corporation’s 2005 Incentive
Plan.

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