Document:

Exhibit 10.8

 

EMPLOYMENT AGREEMENT

 

THIS AGREEMENT is made effective as of the 4th day of October 2005,
by and among Compression Polymers Holding Corporation, a Delaware Corporation (“CPH”), and its
wholly owned subsidiaries, Compression Polymers Corp., a Delaware corporation (“CPC”), and Vycom
Corp., a Delaware corporation (“Vycom”) (CPC
and Vycom, collectively, the “Employers” and individually an “Employer”), and
Scott Harrison (“Executive”).

 

RECITALS

 

WHEREAS, Executive desires to be employed by the Employers; and

 

WHEREAS, Employers desire to employ the Executive and to utilize his
management services as indicated herein, and Executive has agreed to provide
such management services to Employers; and

 

WHEREAS, as a condition precedent and a material inducement for
Employers to employ and pay Executive, Executive has agreed to execute this
Agreement and be bound by the provisions herein; and

 

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

 

PROVISIONS

 

1.                                       Term
and Duties. Employers hereby agree to employ Executive as the Vice
President - Finance commencing on November 1, 2005 (the “Start Date”)
and continuing for a period of three (3) years (the “Initial Term”) or
until terminated in accordance with this Section 1 or Section 5. Unless
terminated by written notice delivered at least thirty (30) days prior to the
expiration of the Initial Term, Executive’s employment shall continue for
successive one (1) year terms (each one (1) year term hereinafter
referred to as a “Subsequent
Term” and together with the Initial Term, the “Term”) until
terminated by written notice delivered at least thirty (30) days prior to the
expiration of the Subsequent Term. Subject to the provisions of this Agreement,
during the Term, Executive shall devote his best efforts and abilities to the
performance of Executive’s duties on behalf of Employers, including treasury,
accounting, audit, investor relations, human resources and information
technology functions, and to the promotion of their interests consistent with
and subject to the direction and control of the Board of Directors of each
Employer (the “Board”).
Executive shall devote substantially all of his business time, energies,
attention and abilities to the operation of the business of Employers and 

 

 

shall not be actively involved
in any other trade or business or as an employee of any other trade or
business.

 

2.                                       Compensation
During Term.

 

(a)                                  Base
Compensation. In consideration of the services to be rendered by Executive
during the Term, Employers shall pay to Executive, in the aggregate, an annual
base salary of $125,000 (“Base
Compensation”), payable bi-weekly and prorated for any partial
employment period.

 

(b)                                 Bonus.
Subject only to the limitations set forth in this Agreement, commencing with
the fiscal year beginning January 1, 2006, Executive shall be entitled to
receive an annual incentive bonus (the “Incentive Bonus”) based upon the
achievement of certain personal and Employer performance goals as the Compensation
Committee of the Board (the “Compensation Committee”) shall determine. For each such
fiscal year, the maximum Incentive Bonus shall be 20% of Executive’s
then-current Base Compensation. Each Incentive Bonus shall be paid no later
than 60 days following the end of the fiscal year to which it relates.

 

(c)                                  Promotion.                                      At
such time as the Executive may become the Employers’ Chief Financial
Officer, the Base Compensation shall be $160,000 and the maximum Incentive
Bonus shall be 30% of Base Compensation and the Executive shall be entitled to
purchase an additional 200 class B units of limited partnership interests
of Compression Polymers Holding I LP (“CPH I”) for an aggregate purchase price of
$2,000 and otherwise on the same terms and conditions as set forth in the
subscription agreement referred to in Section 4 hereof (including the
rights of optional redemption and the reference dates therefor set forth in Section 3
of such subscription agreement).

 

3.                                       Benefits.

 

(a)                                  Executive
shall be eligible to participate in such benefit programs offered by each
Employer (other than bonus plans), such as health, dental, life insurance,
vision, vacations and 401(k), as are offered to similarly-situated employees
(except in the case of equity-based incentive plans where awards are subject to
the approval of the Board or a committee thereof) and in each case no more
favorable than the terms of benefits generally available to the employees of
Employers (based on seniority and salary level), subject in each case to the generally
applicable terms and conditions of the plan, benefit or program in question.

 

(b)                                 On
or before the Start Date, the Employers shall pay to the Executive a lump-sum
amount of $15,000 to cover expenses incurred in connection with relocating his
residence. In addition, during the first year of the Term, Executive shall be
reimbursed for 90 days’ temporary living expenses and the cost of moving his
household goods.

 

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4.                                       Equity
Participation.                                    On
the date hereof Executive is purchasing class B units of limited
partnership interests of CPH I pursuant to and in accordance with the terms of
the subscription agreement between Executive and CPH I entered into on the date
hereof.

 

5.                                       Termination.
Executive’s employment shall terminate upon the first to occur of the following
(each, a “Termination
Date”):

 

(a)                                  The
expiration of the Term;

 

(b)                                 Executive’s
death or disability (mentally, physically or emotionally), so that Executive
cannot substantially perform his duties hereunder for a period of ninety
(90) consecutive days or for one hundred eighty (180) days during any 365 day
period during the Term;

 

(c)                                  Executive’s
voluntary termination of his employment for any reason, upon not less than 10
business days’ written notice to Employers; provided, however, that any
termination by Executive pursuant to Section 5(f) shall not be
treated as a voluntary termination under this Section 5(c);

 

(d)                                 Employers’
termination of Executive’s employment for Cause (as hereinafter defined);

 

(e)                                  Employers’
termination of Executive’s employment without Cause (as hereinafter defined);
or

 

(f)                                    Executive’s
voluntary termination of his employment during the first year of employment
within 14 days following the appointment of an individual other than Executive
as the successor to John Loyack as Chief Financial Officer of the Employers.

 

6.                                       Termination
Payments.

 

(a)                                  Except
as otherwise provided herein, if Executive’s employment is terminated by thirty
(30) days’ prior written notice pursuant to Section 1 hereof or Section 5,
Executive’s Base Compensation and other benefits (it being understood that no
Incentive Bonus shall be payable), if any, shall terminate at the end of the
month during which such termination occurs.

 

(b)                                 Upon
termination of Executive’s employment without Cause during the first year of
employment or upon Executive’s termination of his employment pursuant to Section 5(f),
Employers shall be obligated, in lieu of any other remedies available to
Executive, to pay Executive a lump-sum payment equal to his then-current Base
Compensation plus any bonus accrued to the date of termination (“Termination Payment”).
The Termination Payment is payable under this Section 6(b) within
thirty days after the Executive’s termination of employment.

 

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(c)                                  In
the event of a termination of Executive’s employment pursuant to Section 5(b) as
a result of his death or disability, Employers shall pay to Executive, his
estate or legal representative, as the case may be, all amounts accrued to
the date of termination and payable to Executive hereunder and under any other
bonus, incentive or other plan.

 

(d)                                 Any
termination of the Term shall not adversely affect or alter Executive’s rights
under any employee benefit plan of any Employer in which Executive, at the date
of termination, has a vested interest, unless otherwise provided in such
employee benefit plan or any agreement or other instrument attendant thereto.

 

(e)                                  If
Executive is a “specified employee” for purposes of Section 409A of the
Internal Revenue Code of 1986, as amended, any payments required to be made
pursuant to this Section 6 that are subject to Section 409A shall not
commence until six months from the Termination Date, with the first payment
equaling the first six months of Termination Payments.

 

(f)                                    “Cause”
as used herein shall mean Executive’s (i) commission of an act which
constitutes common law fraud, embezzlement (other than occasional, customary
and de minimis use of Employers’ property for personal purposes) or a felony,
an act of moral turpitude, or of any tortious or unlawful act causing material
harm to any Employer’s business, standing or reputation, (ii) gross
negligence on the part of Executive in the performance of his duties
hereunder, (iii) breach of his duty of loyalty or care to any Employer, (iv) other
misconduct that is materially detrimental to any Employer; (v) ongoing
refusal or failure to perform Executive’s duties or the deliberate and
consistent refusal to conform to or follow any reasonable policy adopted
by the Board, in each case after receiving written notice describing his
noncompliance and being given a five (5) business days opportunity to cure
(to the extent curable) such non-compliance; or (vi) material breach by
Executive of this Agreement, the Non-Competition Agreement among CPH, Vycom,
CPC and Executive, dated as of the Start Date (the “Non-Competition Agreement”)
or any other agreement with or for the benefit of Employers to which Executive
is a party or by which Executive is bound, which is not cured (to the extent
curable) within five (5) business days following written notice from
Employers.

 

7.                                       Consideration.
Executive acknowledges and agrees that the consideration set forth in the
recitals to this Agreement and the rights and benefits hereunder are all and
singularly valuable consideration that are sufficient for any or all of
Executive’s covenants set forth herein or in the Non-Competition Agreement.

 

8.                                       No
Prior Agreements. Executive represents and warrants that his performance of
all the terms of this Agreement does not and shall not breach any fiduciary or
other duty or any covenant, agreement or understanding (including, without
limitation, any agreement relating to any proprietary information, knowledge or
data 

 

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acquired in confidence, trust
or otherwise) to which he is a party or by the terms of which he may be
bound. Executive further covenants and agrees not to enter into any agreement
or understanding, either written or oral, in conflict with the provisions of
this Agreement.

 

9.                                       Notices.
All notices, requests, consents and demands by the parties hereto shall be
delivered by hand, by confirmed facsimile transmission, by recognized national
overnight courier service or by deposit in the United States mail, postage
prepaid, by registered or certified mail, return receipt requested, addressed
to the party to be notified at the addresses set forth below:

 

if to
Executive:

 

Scott C. Harrison

7342  Dartmouth Ave.

University City, MO 63130

Tel:  (570) 650-4378

 

if to
Employers:

 

C/o AEA
Investors LLC

Park Avenue
Tower

65 East 55th
Street

New York, NY
10022

Attn: Sanford
Krieger

 

with copy to:

 

Fried, Frank,
Harris, Shriver and Jacobson LLP

One New York
Plaza

New York, NY
10004-1980

Attn: Chris
Ewan

 

Notices shall be effective immediately upon
personal delivery or facsimile transmission, one (1) business day after
deposit with an overnight courier service or three (3) business days after
the date of mailing thereof. Other notices shall be deemed given on the date of
receipt. Any party hereto may change the address specified herein by
written notice to the other parties hereto.

 

10.                                 Withholding.
Anything in this Agreement to the contrary notwithstanding, all payments
required to be made by the Employers to the Executive or to the Executive’s
estate or beneficiaries in connection with the Executive’s employment hereunder
shall be subject to the withholding of such amounts as the Employers may reasonably
determine 

 

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pursuant to any applicable law
or regulation. The Executive shall be solely responsible for the payment of all
taxes relating to the payment or provision of any amounts or benefits
hereunder.

 

11.                                 Entire
Agreement. This Agreement cancels and supersedes any and all prior
agreements and understandings between the parties hereto with respect to the
obligations of Executive. Executive hereby agrees that, as of the date hereof,
this Agreement shall take effect and no further obligations of any kind
whatsoever shall be owed by Employers. This Agreement constitutes the entire
agreement between the parties with respect to the matters herein provided, and
no modifications or waiver of any provision hereof shall be effective unless in
writing and signed by each Employer and Executive.

 

12.                                 Binding
Effect. All of the terms and provisions of this Agreement shall be binding
upon the parties hereto and its or his heirs, executors, administrators, legal
representatives, successors and assigns, and inure to the benefit of and be
enforceable by either Employer and its successors and assigns, except that the
duties and responsibilities of Executive hereunder are of a personal nature and
shall not be assignable or delegable in whole or in part.

 

13.                                 Severability.
In the event that any provision of this Agreement or application thereof to
anyone or under any circumstance is found to be invalid or unenforceable in any
jurisdiction to any extent for any reason, such invalidity or unenforceability
shall not affect any other provision or application of this Agreement which can
be given effect without the invalid or unenforceable provision or application
and shall not invalidate or render unenforceable such provision or application
in any other jurisdiction.

 

14.                                 Remedies;
Waiver. No remedy conferred upon any Employer by this Agreement is intended
to be exclusive of any other remedy, and each and every such remedy shall be
cumulative and shall be in addition to any other remedy given hereunder or now
or hereafter existing at law or in equity. No delay or omission by any Employer
in exercising any right, remedy or power hereunder or existing at law or in
equity shall be construed as a waiver thereof, and any such right, remedy or
power may be exercised by the party possessing the same from time to time
and as often as may be deemed expedient or necessary by such party in its
sole discretion.

 

15.                                 Counterparts.
This Agreement may be executed in several counterparts, each of which is
an original and all of which shall constitute one instrument. It shall not be
necessary in making proof of this Agreement or any counterpart hereof to
produce or account for any of the other counterparts.

 

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16.                                 Governing
Law. The validity, interpretation, construction, performance and
enforcement of this Agreement shall be governed by the laws of the State of New
York, without application of conflict of laws principles.

 

17.                                 Headings.
The captions and headings contained in this Agreement are for convenience only
and shall not be construed as a part of the Agreement.

 

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IN WITNESS WHEREOF, the parties have executed
this Agreement as of the date and year first above written.

 

 

	
   

  	
  EMPLOYERS:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  COMPRESSION POLYMERS CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ JOHN R. LOYACK

  
	
   

  	
   

  	
  Name:

  	
  John R. Loyack

  
	
   

  	
   

  	
  Title:

  	
  Chief Operating Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  VYCOM CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ JOHN R. LOYACK

  
	
   

  	
   

  	
  Name:

  	
  John R. Loyack

  
	
   

  	
   

  	
  Title:

  	
  Chief Operating Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ SCOTT HARRISON

  	
   

  
	
   

  	
  Name:  Scott Harrison

  
						

 

8LOAN AGREEMENT

Exhibit 10.6

LOAN AGREEMENT

May 26, 2005

This Convertible Loan Agreement (this "Agreement") is made and entered into as of May 26, 2005, by and among Fresh HarvestTM Products, Inc. (hereinafter “Fresh HarvestTM” or “Borrower”), a New York corporation, located at 280 Madison Ave Suite 1005 New York, NY 10016 and Sarah Dumbrille, an individual(s) Lender (hereinafter “Lender”) located at 85 Lawton Blvd, Suite 1004, Toronto, ON M4V 1Z7, and Michael Jordan Friedman ("Guarantor"), with reference to the following facts:

Borrower desires to borrow from Lender, and Lender desires to lend to Borrower, certain funds described below, all on the terms and conditions set forth in the attached Summary of Principal Terms.

In order to induce Lender to lend the above-mentioned funds, Guarantor desires to guarantee repayment thereof, all on the terms and conditions set forth in the attached Summary of Principal Terms.

THEREFORE, in consideration of the foregoing, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereby agree as follows:

1.   The Convertible Loan.  Upon satisfaction of the conditions set forth in the attached, and at the times and upon the terms indicated in the attached, Lender shall make a Convertible Loan to Borrower (the "Loan"). The Loan is convertible at the option of the investor at any time during the Term of the Loan.  At such time as the loan is converted by Lender, it shall be converted into shares at the price of $0.50 per share.

2. Terms.  The Loan shall be in the aggregate total amount of $20,000 (twenty thousand dollars) and shall be advanced to Borrower in a single increment: $20,000 (twenty thousand dollars) on or before May 30, 2005.  The Loan shall bear interest of 10% (per annum) and shall be fully due and payable on November 26, 2006.  

Commencing November 26, 2006, if Lender does not convert the Loan, Borrower shall make one equal payment to Lender of principal in respect of the Loan in the amount of $20,000 (twenty thousand dollars) plus accrued interest.  

The parties have executed this Agreement as of the date first set forth above.

/s/ Sarah Dumbrille

6/1/05

LENDER:

________________________

______

Sarah Dumbrille

Date

BORROWER:  Fresh HarvestTM Products, Inc.

/s/ Michael Jordan Friedman

6/1/05

By:

_____________________

_______

Michael Jordan Friedman

Date

Its:

Chairman and Chief Executive Officer

/s/ Michael Jordan Friedman

6/1/05

GUARANTOR:

__________________________

_______

Michael Jordan Friedman

Date

1

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