Document:

Exhibit 10.10

MANAGEMENT
AGREEMENT

 

AGREEMENT made as of May 10, 2005 by and between
COMPRESSION POLYMERS HOLDING CORPORATION, a Delaware corporation (the “Corporation”),
and AEA INVESTORS LLC, a Delaware limited liability company (“AEA”).

WHEREAS, AEA renders advisory and consulting services
to selected client companies, and the Corporation desires to retain AEA to
render advisory and consulting services to it and AEA is willing to provide
such services on the terms and conditions hereinafter set forth;

NOW, THEREFORE, it is mutually agreed as follows:

1.             The
Corporation hereby retains AEA to render advisory and consulting services to
the Corporation, and AEA hereby agrees to render such services, for the period
commencing on May 10, 2005 and continuing so long as AEA or its investor group
directly or indirectly own an interest in the Corporation.  AEA shall render such advisory and consulting
services to the Corporation in connection with such financial, management and
other matters relating to the business and operations of the Corporation, or
any of its subsidiaries or affiliated companies, as the Corporation’s Board of
Directors may from time to time request (the “Services”).

2.             As
compensation for the Services rendered pursuant to Section 1 hereof, the Corporation
shall pay, and AEA will accept, so long as this Agreement continues in effect
and subject to the limitations under any indenture or credit facility of the
Corporation in effect at the time such fee is determined, an annual fee to be
determined by the Board of Directors of the Corporation, commencing as of May
1, 2006.  Such fee shall be due and
payable quarterly in advance on the first day of each calendar quarter,
commencing as of May 1, 2006.  The
Corporation also agrees to the provisions with respect to indemnifying AEA and
the other matters set forth in Annex A hereto, which is hereby incorporated by
reference into this Agreement (the “Indemnification Agreement”).

 

(a)           It
is the understanding of the parties that AEA may be involved with potential
acquisitions, mergers, financing, or other major transactions or strategic
initiatives involving the Corporation and/or its subsidiaries or affiliates, in
which case AEA shall be entitled to such compensation, in addition to the fee
provided above so long as AEA is continuing to provide the Services, as the
Board of Directors of the Corporation and AEA shall mutually agree.

(b)           In
the event that the Corporation employs any employee of AEA as an officer of the
Corporation, any of its subsidiaries or affiliates or otherwise, and such
employment or other arrangement involves a substantial amount of such
employee’s time, the Corporation shall compensate such employee at a reasonable
rate to be agreed upon among such employee, the Board of Directors of the Corporation
and AEA, and the compensation payable to such employee by such Corporation
shall not reduce or affect in any way any of the fees payable to AEA hereunder.

(c)           In
addition to the aforementioned fees, the Corporation shall reimburse AEA and
its affiliates for their reasonable out-of-pocket costs and expenses incurred
in connection with the performance of the Services hereunder.  In addition, the Corporation shall reimburse
AEA and its affiliates for their out-of-pocket expenses (including, without
limitation, legal, accounting, consulting and other professional fees) incurred
in connection with (i) AEA’s and its affiliates’ monitoring of the investment
in the Corporation and the development, preparation, negotiation, printing and
execution of any amendment, supplement or modification to this Agreement or any
of the other agreements or documents executed in connection with or related to
the investments in the Corporation held by affiliates of AEA and (ii) the
enforcement, performance and administration of this Agreement or any of the
other agreements or documents executed in connection with or related to the
investments held by affiliates of AEA in the Corporation.

 

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3.             Any notice required to be given hereunder shall be in
writing and shall be deemed sufficient if delivered in person or mailed by
certified mail as follows: if to the Corporation, to it at its office at 801
Corey Street, Moosic, PA 18507, or such other address as the Corporation may hereafter
designate for that purpose; and if to AEA, to it at its office at Park Avenue
Tower, 65 East 55th Street, New York, NY 10022, or such other address as AEA
may hereafter designate for that purpose.

4.             This
Agreement, together with the Indemnification Agreement, constitutes the entire
agreement between the parties and supersedes all prior agreements and
understandings, both written and oral, with respect to the subject matter
hereof.  This Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns, including any corporation into which the Corporation
shall consolidate or merge or to which it shall transfer substantially all of
its assets.  This Agreement shall be
governed by and construed in accordance with the laws of the State of New York
applicable to contracts made and to be performed entirely within such state.

IN WITNESS WHEREOF, the parties hereto have duly
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

  

 

	
   

  	
  AEA INVESTORS
  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ CHRISTINE J.
  SMITH

  
	
   

  	
   

  	
  Name:  Christine J. Smith

  
	
   

  	
   

  	
  Title:    Vice
  President

  

 

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ANNEX A - INDEMNIFICATION AGREEMENT

 

As
part of the consideration for the agreement of AEA to furnish its services
under this Agreement, the Corporation hereby agrees to indemnify and hold
harmless AEA and its affiliates and the respective managing directors,
officers, directors, investors, shareholders, members, partners, employees and
agents of, and persons controlling, AEA or any of its affiliates within the
meaning of either Section 15 of the Securities Act of 1933, as amended, or
Section 20 of the Securities Act of 1934, as amended, and each of their
respective successors and assigns (collectively, the “indemnified persons”)
from and against all claims, liabilities, expenses, losses or damages (or
actions in respect thereof) related to or arising out of actions taken (or
omitted to be taken) by AEA pursuant to the terms of this Agreement, or AEA’s
role in connection therewith; provided, however,
that the Corporation shall not be responsible for any claims, liabilities,
expenses, losses and damages to the extent that it is finally judicially
determined that they result primarily from actions taken or omitted to be taken
by AEA in bad faith or due to AEA’s gross negligence or willful
misconduct.  If for any reason (other
than the bad faith, gross negligence or willful misconduct of AEA as provided
above) the foregoing indemnity is unavailable to the indemnified persons or
insufficient to hold the indemnified persons harmless, then the Corporation
shall contribute to the amount paid or payable by the indemnified persons as a
result of such claim, liability, expense, loss or damage in such proportion as
is appropriate to reflect not only the relative benefits received by the
Corporation on the one hand and AEA on the other, but also the relative fault
of the Corporation and AEA, as well as any relevant equitable considerations,
subject to the limitation that in any event AEA’s aggregate contribution to all
claims, expenses, losses, liabilities and damages (except to the extent judicially
determined to have been primarily caused by the bad faith, gross negligence or
willful misconduct of AEA) shall not exceed the amount of fees actually
received by AEA pursuant to this Agreement. 
Promptly after receipt by AEA of notice of any complaint or the
commencement of any action or proceeding with respect to which indemnification
may be sought against the Corporation, AEA will notify the Corporation in
writing of the receipt or commencement thereof, but failure to notify the
Corporation will relieve the Corporation from any liability which it may have
hereunder only if, and to the extent that, such failure results in the
forfeiture of substantial rights and defenses, and will not in any event
relieve the Corporation from any other obligation to any indemnified person
other than under this Indemnification Agreement.  The Corporation shall assume the defense of
such action (including payment of fees and disbursements of counsel) insofar as
such action shall relate to any alleged liability in respect of which indemnity
may be sought against the Corporation. 
AEA shall have the right to employ separate counsel in any such action
and to participate in the defense thereof, but the fees and disbursements of
such counsel shall be at the expense of AEA unless employment of such counsel
has been specifically authorized by the Chief Executive Officer of the
Corporation in writing.  The Corporation
shall pay the fees and expenses of one separate 

 

 

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counsel for AEA
and any other indemnified persons if the named parties to any such action
(including any impleaded parties) include the Corporation (or any of the
directors of the Corporation) and AEA and (i) in the good faith judgment of AEA
the use of joint counsel would present such counsel with an actual or potential
conflict of interest or (ii) AEA shall have been advised by counsel that there
may be one or more legal defenses available to it which are different from or
additional to those available to the Corporation (or the director(s)).  The Corporation shall not be liable to
indemnify any person for any settlement of any claim or action effected without
written consent of the Chief Executive Officer of the Corporation, which
consent shall not be unreasonably withheld. 
In addition, the Corporation hereby agrees to reimburse AEA and each
other indemnified person for all expenses (including reasonable fees and
disbursements of counsel if the Corporation does not assume the defense of such
action) as they are incurred by AEA, or any indemnified person in connection
with investigating, preparing or defending any such action or claim.  AEA shall have no liability to the
Corporation, any of its subsidiaries or affiliates or any of their directors,
officers or employees in connection with the services which AEA renders
pursuant to this Agreement, except for AEA’s bad faith, gross negligence or
willful misconduct judicially determined as aforesaid.  The indemnification, contribution and expense
reimbursement obligation the Corporation has under this paragraph shall be in
addition to any liability the Corporation may otherwise have.  Any right to trial by jury
with respect to any action or proceeding arising in connection with or as a
result of either AEA’s engagement or any matter referred to in this Agreement
is hereby waived by the parties hereto.  The provisions of this
Annex A shall survive any termination or completion of the engagement
provided by this Agreement.

*  *  *

 

5Exhibit 10.11

AMENDMENT NO. I TO

MANAGEMENT
AGREEMENT

 

AMENDMENT
NO. 1, dated as
of May 1, 2006 (this Amendment), to the Management Agreement, dated as of
May 10, 2005 (the "Agreement"), by and between COMPRESSION
POLYMERS HOLDING CORPORATION, a Delaware corporation (the
"Corporation"), and AEA INVESTORS LLC, a Delaware limited liability
Company ("AEA"). Capitalized terms used but not otherwise defined
herein shall have the meanings ascribed to such terms in the Agreement.

 

WHEREAS, the parties desire to amend the
Agreement and related arrangements as provided herein;

 

NOW,
THEREFORE, in
consideration of the premises, covenants, representations, warranties and
mutual agreements herein set forth, the parties hereto agree as follows:

 

SECTION 1. Amendment.

 

1.             Section 2 of the Agreement is
hereby amended by deleting the first sentence in its entirety and substituting
therefor the following:

 

"2.           As compensation for the Services
rendered pursuant to Section 1 hereof, the Corporation shall pay, and AEA
will accept, so long as this Agreement continues in effect and subject to the
limitations under any indenture or credit facility of the Corporation in effect
at the time such fee is determined, an annual fee in the amount o $1,500,000,
commencing as of May 1, 2006."

 

SECTION 2. Effect
of Amendment. Except as and to the extent expressly modified by this
Amendment, the Agreement shall remain in full force and effect in all respects.

 

SECTION 3. Counterparts.
This Amendment may be executed by the parties hereto in separate counterparts,
each of which when so executed and delivered shall be an original, but all such
counterparts shall together constitute one and the same instrument, Each
counterpart may consist of a number of copies of this Amendment, each of which
may be signed by less than all of the parties hereto, but together all such
copies are signed by all of the parties hereto.

 

SECTION 4. Headings.
Headings of the Sections of this Amendment are for the convenience of the
parties only and shall be given no substantive or interpretive effect
whatsoever.

 

IN
WITNESS WHEREOF,
the parties have duly executed this Amendment as of the date first written
above.

 

	
   

  	
  COMPRESSION POLYMERS

  HOLDING CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ CHRISTOPHER P.
  MAHAN

  
	
   

  	
  Name:

  	
  Christopher P. Mahan

  
	
   

  	
  Title:

  	
  Chairman

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  AEA INVESTORS LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ CHRISTINE J. SMITH

  
	
   

  	
  Name: 

  	
  Christine J. Smith

  
	
   

  	
  Title:

  	
  Vice President

  

 

 

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