Document:

Exhibit 10.6

 

EMPLOYMENT AGREEMENT

 

THIS AGREEMENT
is made effective as of the 10th day of May 2005, by and among
Compression Polymers Holding Corporation, a Delaware Corporation (“CPH”), and its
wholly owned subsidiary, Vycom Corp., a Delaware corporation (“Vycom”) (“Employer”), and Ralph Bruno (“Executive”).

 

RECITALS

 

WHEREAS,
Executive is currently employed by Vycom; and

 

WHEREAS,
Compression Polymers Holdings II LP (the “Purchaser”), a Delaware limited partnership,
has purchased all of the shares of capital stock of Compression Polymers Corp.
(“CPC”),
a Delaware corporation, and Vycom pursuant to a Stock Purchase Agreement, dated
March 12, 2005, among Compression Polymers Holdings LLC, a Delaware limited
liability company, the Purchaser, CPC, Vycom, CPCapitol Acquisition Corp., a
Delaware corporation, and North Keyser Partners, LLC, a Delaware limited
liability company; and

 

WHEREAS,
Employer desires to continue to employ the Executive and to utilize his
management services as indicated herein, and Executive has agreed to provide
such management services to Employer; and

 

WHEREAS, as a
condition precedent and a material inducement for Employer to continue 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. Employer hereby agrees to employ Executive as the President -
AZEK commencing on the date hereof 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 Employer and to the promotion of its interests consistent
with and subject to the direction and control of

 

 

the Board of Directors of Employer (the “Board”). Executive shall devote
substantially all of his business time, energies, attention and abilities to
the operation of the business of Employer 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 of this Agreement, Employer shall pay to Executive, in the
aggregate, $200,000 per year (“Base Compensation”), payable bi-weekly and prorated for
any partial employment period.

 

(b)                                 Bonus.
Subject only to the limitations set forth in this Agreement, Executive shall be
entitled to receive an annual incentive bonus (the “Incentive Bonus”) based upon the
achievement of certain budget performance goals related to Employer’s and/or
CPC’s (i) EBITDA, (ii) working capital, (iii) capital expenditures and/or (iv)
such other performance criteria as the Compensation Committee of the Board (the
“Compensation Committee”)
shall determine. Such annual goals shall be determined by the Compensation
Committee in consultation with the Chief Executive Officer of the Employer (the “CEO”). For the
2005 fiscal year, (i) the maximum Incentive Bonus shall be $125,000, and (ii)
at least 75% of the Incentive Bonus shall be based on EBITDA performance goals
of Employer and CPC. Exhibit A demonstrates the potential 2005 Incentive
Bonus payment if the Compensation Committee determines that the Incentive Bonus
shall be based entirely (100%) on EBITDA performance goals. Each Incentive
Bonus shall be paid no later than 21⁄2 months following the end of the fiscal
year to which it relates.

 

3.                                       Benefits.

 

(a)                                  Subject
to Section 3(b) below, Executive shall be eligible to participate in such
benefit programs offered by 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 Board (or committee thereof) approval) and in each case no more
favorable than the terms of benefits generally available to the employees of
Employer (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)                                 Notwithstanding
the foregoing, Executive shall be entitled, at a minimum, to the following: (i)
major medical insurance coverage comparable to the insurance coverage currently
provided by Employer for Executive; (ii) ten (10) days of paid sick leave
during each annual period, which shall be cumulative and (iii) four (4) weeks
of paid vacation leave during each annual period.

 

2

 

(c)                                  During
the Term, Executive shall be authorized to incur necessary and reasonable
travel, entertainment and other business expenses in connection with his duties
hereunder. Employer shall reimburse Executive for such expenses upon
presentation of an itemized account and appropriate supporting documentation,
all in accordance with the generally applicable policies; provided the CEO’s
approval shall be required prior to Executive’s incurring $10,000 of expenses
in any one instance or $20,000 of expenses in the aggregate.

 

4.                                       Equity
Participation. On the date hereof Executive is purchasing class A units and
class B units of Compression Polymers Holding I LP (“CPH I”) pursuant to
and in accordance with the terms of the subscription agreements 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 Employer; provided, however, that any
termination by Executive pursuant to Section 5(e) shall not be treated as a
voluntary termination under this Section 5(c);

 

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

 

(e)                                  Executive’s
termination of his employment for Good Reason (as hereinafter defined).

 

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 or upon Executive’s
termination of his employment for Good Reason, Employer shall be obligated, in
lieu of any other remedies available to Executive, to pay Executive (A) his

 

3

 

then current Base Compensation for (1) the one (1) year period
following the Termination Date (“Termination Payment”) plus (B) all accrued but unpaid amounts
payable to Executive under this Agreement and under any bonus, incentive or
other plan. The Termination Payment is payable under this Section 6(b) in
accordance with the payroll practices of Employer.

 

(c)                                  In
the event of a termination of Executive’s employment pursuant to Section 5(b)
as a result of his death or disability, Employer 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 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 which 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.

 

7.                                       Definitions.

 

(a)                                  “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 Employer’s property for personal purposes) or a felony,
an act of moral turpitude, or of any tortious or unlawful act causing material
harm to 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 Employer, (iv) other misconduct that is
materially detrimental to 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
between CPH, Vycom, CPC, Compression Polymers Holding II Corporation and
Executive, dated as of the date hereof (the “Non-Competition Agreement”) or any
other agreement with or for the benefit of Employer 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 Employer.

 

4

 

(b)                                 “Good Reason” shall
mean (i) there is a substantial reduction of the level of Executive’s
compensation, perquisites, authority, title or scope of duties (it being
understood that Executive shall report solely to the CEO or his designee),
provided, however, that it is understood that Employer may hire a successor to
fill Executive’s office, Employer may require that Executive work together with
such successor as the successor takes on increasing amounts of the
responsibility formerly entrusted to Executive, and the hiring and employment
of such successor shall not constitute “Good Reason” for Executive’s
termination of his employment; (ii) the failure in any material way of Employer
otherwise to fulfill any of its material obligations under this Agreement; or
(iii) the involuntary relocation of Employer’s offices at which Executive is
principally employed to a location more than 50 miles from such offices, or the
requirement by Employer that Executive be based anywhere other than Employer’s
offices at such location on an extended basis, except for required travel on
Employer’s business to an extent substantially consistent with Executive’s
business travel obligations.

 

8.                                       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 which are sufficient for any or all of
Executive’s covenants set forth herein or in the Non-Competition Agreement.

 

9.                                       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 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.

 

10.                                 Miscellaneous.

 

(a)                                  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:

 

801 Corey Street

Moosic, Pennsylvania 18507

 

5

 

with copy to:

 

Oliver, Price & Rhodes

P.O. Box 240

1212 South Abington Road

Clarks Summit, PA 18411

ATTN: 
Alfred J. Weinschenk, Esquire

 

if to Employer:

 

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.

 

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 Employer. 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 Employer and its successors and assigns, except that the duties
and responsibilities of

 

6

 

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 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 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.

 

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.

 

7

 

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

 

	
   

  	
  COMPRESSION POLYMERS

  HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ CHRISTOPHER P. MAHAN

  	
   

  
	
   

  	
   

  	
  Name: Christopher P. Mahan

  
	
   

  	
   

  	
  Title:   Chairman

  
	
   

  	
   

  
	
   

  	
  VYCOM CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ CHRISTOPHER P. MAHAN

  	
   

  
	
   

  	
   

  	
  Name: Christopher P. Mahan

  
	
   

  	
   

  	
  Title:   Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  /s/ 
  RALPH BRUNO

  	
   

  
	
   

  	
  Name:

  	
  RALPH BRUNO

  

 

8

 

Exhibit
A

 

	
  Achieved EBITDA

  	
   

  	
  % of Target Achieved

  	
   

  	
  Bonus Payable

  
	
  $

  	
  41,000,000

  	
   

  	
  89.2

  	
   

  	
  $

  	
  0

  
	
  $

  	
  42,000,000

  	
   

  	
  91.3

  	
   

  	
  $

  	
  0

  
	
  $

  	
  43,000,000

  	
   

  	
  93.5

  	
   

  	
  $

  	
  20,000

  
	
  $

  	
  44,000,000

  	
   

  	
  95.7

  	
   

  	
  $

  	
  40,000

  
	
  $

  	
  45,000,000

  	
   

  	
  97.9

  	
   

  	
  $

  	
  60,000

  
	
  $

  	
  46,000,000

  	
   

  	
  100

  	
   

  	
  $

  	
  80,000

  
	
  $

  	
  47,000,000

  	
   

  	
  102.2

  	
   

  	
  $

  	
  100,000

  
	
  $

  	
  48,000,000

  	
   

  	
  104.4

  	
   

  	
  $

  	
  120,000

  
	
  $

  	
  49,000,000

  	
   

  	
  106.6

  	
   

  	
  $

  	
  125,000

  
	
  $

  	
  50,000,000

  	
   

  	
  108.7

  	
   

  	
  $

  	
  125,000

  

 

9Exhibit 10.7

 

EMPLOYMENT AGREEMENT

 

THIS AGREEMENT
is made effective as of the 10th day of May 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 Mike
Kapuscinski (“Executive”).

 

RECITALS

 

WHEREAS,
Executive is currently employed by the Employers; and

 

WHEREAS,
Compression Polymers Holdings II LP (the “Purchaser”), a Delaware limited partnership,
has purchased all of the shares of capital stock of CPC and Vycom pursuant to a
Stock Purchase Agreement, dated March 12, 2005, among Compression Polymers
Holdings LLC, a Delaware limited liability company, the Purchaser, CPC, Vycom,
CPCapitol Acquisition Corp., a Delaware corporation, and North Keyser Partners,
LLC, a Delaware limited liability company; and

 

WHEREAS,
Employers desire continue 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 continue 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 of Operations of each of Employers commencing on the date hereof 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 and to the promotion of its
interests consistent with and subject to the direction and control of the Board
of Directors of each of Employers (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 of
this Agreement, Employers shall pay to Executive, in the aggregate, $175,000
per year (“Base
Compensation”), payable bi-weekly and prorated for any partial
employment period.

 

(b)           Bonus. Subject only to the
limitations set forth in this Agreement, Executive shall be entitled to receive
an annual incentive bonus (the
“Incentive Bonus”) based upon the achievement of certain budget
performance goals related to Employers’ (i) EBITDA, (ii) working capital, (iii)
capital expenditures and/or (iv) such other performance criteria as the
Compensation Committee of the Board (the “Compensation Committee”) shall determine. Such
annual goals shall be determined by the Compensation Committee in consultation
with the Chief Executive Officer of the Employer (the “CEO”). For the 2005
fiscal year, (i) the maximum Incentive Bonus shall be $150,000, and (ii) at
least 75% of the Incentive Bonus shall be based on EBITDA performance goals. Exhibit
A demonstrates the potential 2005 Incentive Bonus payment if the
Compensation Committee determines that the Incentive Bonus shall be based
entirely (100%) on EBITDA performance goals. Each Incentive Bonus shall be paid
no later than 21⁄2 months following the end of the fiscal year to which it
relates.

 

3.             Benefits.

 

(a)           Subject to Section 3(b) below,
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
Board (or committee thereof) approval) 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)           Notwithstanding the foregoing,
Executive shall be entitled, at a minimum, to the following: (i) major medical
insurance coverage comparable to the insurance coverage currently provided by
Employers for Executive; (ii) ten (10) days of paid sick leave during each
annual period, which shall be cumulative and (iii) four (4) weeks of paid
vacation leave during each annual period.

 

2

 

(c)           During the Term, Executive shall be
authorized to incur necessary and reasonable travel, entertainment and other
business expenses in connection with his duties hereunder. Employers shall
reimburse Executive for such expenses upon presentation of an itemized account
and appropriate supporting documentation, all in accordance with the generally
applicable policies; provided the Board’s written approval shall be required
prior to Executive’s incurring $10,000 of expenses in any one instance or
$20,000 of expenses in the aggregate.

 

4.             Equity
Participation.            On the date
hereof Executive is purchasing class A units and class B units of Compression
Polymers Holding I LP (“CPH
I”) pursuant to and in accordance with the terms of the
subscription agreements 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(e) 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); or

 

(e)           Executive’s termination of his
employment for Good Reason (as hereinafter defined).

 

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 or upon Executive’s termination of his employment for
Good Reason, Employers shall be obligated, in lieu of any other remedies
available to Executive, to pay Executive (A) his

 

3

 

then current Base Compensation for the one (1) year period following
the Termination Date (“Termination
Payment”) plus (B) all accrued but unpaid amounts payable to Executive
under this Agreement and under any bonus, incentive or other plan. The
Termination Payment is payable under this Section 6(b) in accordance with the
payroll practices of Employers.

 

(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 which 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.

 

7.             Definitions.

 

(a)           “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
between CPH, Vycom, CPC, Compression Polymers Holding II Corporation and
Executive, dated as of the date hereof (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.

 

4

 

(b)           “Good Reason” shall mean (i) there is a
substantial reduction of the level of Executive’s compensation, perquisites,
authority, title or scope of duties (it being understood that Executive shall
report solely to the CEO or his designee), provided, however, that it is
understood that Employer may hire a successor to fill Executive’s office,
Employer may require that Executive work together with such successor as the
successor takes on increasing amounts of the responsibility formerly entrusted
to Executive, and the hiring and employment of such successor shall not
constitute “Good Reason” for Executive’s termination of his employment; (ii)
the failure in any material way of any Employer otherwise to fulfill any of its
material obligations under this Agreement; or (iii) the involuntary relocation
of Employers’ offices at which Executive is principally employed to a location
more than 50 miles from such offices, or the requirement by Employers that
Executive be based anywhere other than Employers’ offices at such location on
an extended basis, except for required travel on Employers’ business to an
extent substantially consistent with Executive’s business travel obligations.

 

8.             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 which are sufficient for any or all of
Executive’s covenants set forth herein or in the Non-Competition Agreement.

 

9.             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 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.

 

10.           Miscellaneous.

 

(a)           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:

 

600 Winter Street

Old Forge, Pennsylvania 18518

 

5

 

with copy to:

 

Oliver, Price & Rhodes

P.O. Box 240

1212 South Abington Road

Clarks Summit, PA 18411

ATTN: 
Alfred J. Weinschenk, Esquire

 

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.

 

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

 

6

 

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.

 

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.

 

7

 

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

 

	
   

  	
  COMPRESSION POLYMERS

  HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ CHRISTOPHER P. MAHAN

  	
   

  
	
   

  	
   

  	
  Name: Christopher P. Mahan

  
	
   

  	
   

  	
  Title:   Chairman

  
	
   

  	
   

  
	
   

  	
  EMPLOYERS:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COMPRESSION POLYMERS CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ CHRISTOPHER P. MAHAN

  	
   

  
	
   

  	
   

  	
  Name: Christopher P. Mahan

  
	
   

  	
   

  	
  Title:   Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  VYCOM CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ CHRISTOPHER P. MAHAN

  	
   

  
	
   

  	
   

  	
  Name: Christopher P. Mahan

  
	
   

  	
   

  	
  Title:   Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  /s/ MIKE KAPUSCINSKI

  	
   

  
	
   

  	
  Name:

  	
  MIKE KAPUSCINSKI

  

 

8

 

Exhibit
A

 

Target EBITDA:
$46,000,000

 

	
  Achieved EBITDA

  	
   

  	
  % of Target

  Achieved

  	
   

  	
  Bonus Payable

  
	
  $

  	
  41,000,000

  	
   

  	
  89.2

  	
   

  	
  $

  	
  5,000

  
	
  $

  	
  42,000,000

  	
   

  	
  91.3

  	
   

  	
  $

  	
  15,000

  
	
  $

  	
  43,000,000

  	
   

  	
  93.5

  	
   

  	
  $

  	
  30,000

  
	
  $

  	
  44,000,000

  	
   

  	
  95.7

  	
   

  	
  $

  	
  45,000

  
	
  $

  	
  45,000,000

  	
   

  	
  97.9

  	
   

  	
  $

  	
  60,000

  
	
  $

  	
  46,000,000

  	
   

  	
  100

  	
   

  	
  $

  	
  75,000

  
	
  $

  	
  47,000,000

  	
   

  	
  102.2

  	
   

  	
  $

  	
  100,000

  
	
  $

  	
  48,000,000

  	
   

  	
  104.4

  	
   

  	
  $

  	
  125,000

  
	
  $

  	
  49,000,000

  	
   

  	
  106.6

  	
   

  	
  $

  	
  150,000

  
	
  $

  	
  50,000,000

  	
   

  	
  108.7

  	
   

  	
  $

  	
  150,000

  

 

9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}]]