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Exhibit 10.29    
  

 
 

AMENDMENT NO. 5 TO
  CREDIT AGREEMENT
  AND CONSENT TO ACQUISITION    
  

        This AMENDMENT NO. 5 TO CREDIT AGREEMENT AND CONSENT TO ACQUISITION (this "Amendment") is dated as of
August 15, 2001 and entered into by and among OUTSOURCING SERVICES GROUP, INC., a Delaware corporation ("OSG"), as Guarantor, its
wholly-owned Subsidiaries, AEROSOL SERVICES COMPANY, INC., a California corporation, PIEDMONT
LABORATORIES, INC., a Georgia corporation, KOLMAR LABORATORIES, INC., a Delaware corporation,  ACUPAC PACKAGING, INC., a New Jersey corporation, and PRECISION PACKAGING AND SERVICES,
 INC., an Ohio corporation (the "Borrowers"), the banks and other financial institutions signatory hereto that are parties as Lenders to the Credit Agreement referred to
below (the "Lenders"), BT COMMERCIAL CORPORATION, as agent (in such capacity, the "Agent") for the Lenders and the Issuing Bank (as defined in the
Credit Agreement referred to below) and HELLER FINANCIAL, INC., acting as co-agent (in such capacity, the "Co-Agent"). 

Recitals  

        Whereas, the Borrowers, OSG, the Lenders, the Co-Agent and the Agent have entered into that certain
Credit Agreement dated as of January 8, 1998 (as amended by Amendment and Waiver No. 1 dated as of April 29, 1998, Amendment No. 2 dated as of February    ,
1999, Amendment No. 3 to Credit Agreement dated as of February 29, 2000 and Amendment No. 4 to Credit Agreement dated as of January 11, 2001 and as supplemented by the
addition of additional Borrowers, the "Credit Agreement"; capitalized terms used in this Amendment without definition shall have the meanings given such terms in the Credit Agreement); and 

        Whereas, the Borrowers have requested that the Lenders agree, subject to the conditions and on the terms set forth in this Amendment, to
amend certain provisions of the Credit Agreement and to consent to the Acquisition by OSG of the stock of Dermal Sciences, Inc. ("Dermal") for a cash purchase price of $3,500,000 (subject to
working capital adjustment) and an earnout of up to $750,000 ("Earnout"), and to the payment of $750,000 to the seller for an agreement not to compete; 

        Whereas, the Lenders are willing to agree to amend the Credit Agreement and to consent to the acquisition of Dermal, subject to the
conditions and on the terms set forth herein; 

 

        Now Therefore, in consideration of the premises and the mutual agreements set forth herein, the Borrowers, OSG, the Lenders, the
Co-Agent and the Agent agree as follows: 

        1.    AMENDMENTS TO CREDIT AGREEMENT.    Subject to the conditions and on the terms set forth
in this Amendment and in reliance on the representations and warranties of the Borrowers and OSG set forth in this Amendment, the Credit Agreement is hereby amended as follows: 

        1.1    Amendment to Minimum EBITDA Covenant.    Section 8.1 of the Credit Agreement is
deleted in its entirety and replaced with the following: 

        "8.1    Minimum EBITDA.    OSG and its Subsidiaries shall maintain as of the end of each Test Period ending on the
last day of each fiscal quarter set forth below consolidated EBITDA of not less than the amount set forth below: 

	FISCAL QUARTER
 
	 	EBITDA

	12/31/00	 	$	33,000,000
	3/31/01	 	 	31,300,000
	6/30/01	 	 	28,400,000
	9/30/01	 	 	28,700,000
	12/31/01	 	 	29,800,000
	3/31/02	 	 	30,200,000
	6/30/02	 	 	31,700,000
	9/30/02	 	 	31,700,000
	12/31/02	 	 	30,300,000

        1.2    Amendment to Funded Debt Coverage Covenant.    Section 8.3 of the Credit
Agreement is deleted in its entirety and replaced with the following: 

        "8.3    Funded Debt Coverage.    OSG and its Subsidiaries shall maintain a Funded Debt Ratio for any Test Period
ending on the last day of any fiscal quarter set forth below of not greater than the ratio set forth below: 

	FISCAL QUARTER
 
	 	RATIO

	12/31/2000	 	5.00 : 1.00
	03/31/2001	 	5.00 : 1.00
	06/30/2001	 	5.00 : 1.00
	09/30/2001	 	5.60 : 1.00
	12/31/2001	 	5.30 : 1.00
	03/31/2002	 	5.30 : 1.00
	06/30/2002 and thereafter	 	4.80 : 1.00

        1.3    Amendment to Capital Expenditures Covenant.    The first sentence of Section 8.6
of the Credit Agreement is deleted in its entirety and replaced with the following: 

"The
Borrowers and their Subsidiaries shall not make payments for Capital Expenditures in any Fiscal Year set forth below in excess of the amount set forth below: 

	1998	 	$	4,500,000
	1999	 	 	5,000,000
	2000	 	 	8,500,000
	2001	 	 	9,750,000
	2002	 	 	10,500,000;

2

 

provided,
that the maximum amount for each Fiscal Year shall be increased by an amount equal to fifty percent (50%) of the amount by which the actual Capital Expenditures
for the immediately preceding Fiscal Year are less than the maximum permitted amount for such Fiscal Year, without giving effect to any amounts carried forward to that Fiscal Year." 

        2.    CONSENT TO ACQUISITION.    Notwithstanding the conditions and requirements of
Section 8.7 (Additional Indebtedness) of the Credit Agreement and subsections (e) and (f) of Section 8.20 of the Credit Agreement, by its execution of this Amendment, each
Lender consents and agrees to (i) the Acquisition by OSG of all of the stock of Dermal Sciences, Inc.("Dermal") on the terms set forth herein, (ii) that such Acquisition shall be
a Permitted Acquisition under the Credit Agreement, and (iii) to the incurrence and payment of the Earnout; provided, that Dermal shall become a Borrower in
accordance with the Credit Agreement and that, prior to the inclusion of the assets of Dermal in the Borrowing Base, OSG shall deliver to the Agent appraisals meeting the standards described in
section 7.2(c) of the Credit Agreement of the Equipment owned by Dermal to be included in the Borrowing Base, if any, and the Agent shall have completed its review of the Accounts and Inventory
of Dermal. 

        3.    REPRESENTATIONS AND WARRANTIES OF THE BORROWERS AND OSG.    In order to induce the
Lenders, the Co-Agent and the Agent to enter into this Amendment, the Borrowers and OSG represent and warrant to each Lender, the Co-Agent and the Agent that the following
statements are true, correct and complete: 

        3.1    Power and Authority.    Each of the Credit Parties has all corporate power and
authority to enter into this Amendment and, as applicable, the Consent of Guarantors attached hereto (the "Consent"), and to carry out the transactions contemplated by, and to perform its obligations
under or in respect of, this Amendment and the Credit Agreement as amended hereby. 

        3.2    Corporate Action.    The execution and delivery of this Amendment and the Consent and
the performance of the obligations of each Credit Party under or in respect of this Amendment and the Credit Agreement as amended hereby have been duly authorized by all necessary corporate action on
the part of each of the Credit Parties. 

        3.3    No Conflict or Violation or Required Consent or Approval.    The execution and delivery
of this Amendment and the Consent and the performance of the obligations of each Credit Party under or in respect of this Amendment and the Credit Agreement as amended hereby do not and will not
conflict with or violate (a) any provision of the articles or certificate of incorporation or bylaws or other governing documents of any Credit Party, (b) any Requirement of Law,
(c) any order, judgment or decree of any court or other governmental agency binding on any Credit Party or any of its Subsidiaries, or (d) any indenture, agreement or instrument to which
any Credit Party or any of its Subsidiaries is a party or by which any Credit Party or any of its Subsidiaries, or any property of any of them, is bound, and do not and will not require any consent or
approval of any Person. 

        3.4    Execution, Delivery and Enforceability.    This Amendment and the Consent and the
Credit Agreement as amended hereby and each other Credit Document have been duly executed and delivered by each Credit Party thereto and are the legal, valid and binding obligations of such Credit
Party, enforceable in accordance with their terms, except as enforceability may be affected by applicable bankruptcy, insolvency, and similar proceedings affecting the rights of creditors generally. 

        3.5    No Default or Event of Default.    No event has occurred and is continuing or will
result from the execution and delivery of this Amendment that would constitute a Default or an Event of Default. 

3

 

        3.6    No Material Adverse Effect.    No event has occurred that has resulted, or could
reasonably be expected to result, in a Material Adverse Effect. 

        3.7    Senior Debt.    All Obligations of the Borrowers, whether now outstanding or hereafter
created or incurred, constitute "Guarantor Senior Debt" under the terms of the Subordinated Debt Documents, and all Obligations of OSG, whether now outstanding or hereafter created or incurred,
constitute "Senior Debt" under the terms of the Subordinated Debt Documents. 

        3.8    Representations and Warranties.    Each of the representations and warranties contained
in the Credit Documents is and will be true and correct in all material respects on and as of the date hereof and as of the effective date of this Amendment, except to the extent that such
representations and warranties specifically relate to an earlier date, in which case they were true, correct and complete in all material respects as of such earlier date. 

        4.    CONDITIONS TO EFFECTIVENESS OF THIS AMENDMENT.    This Amendment shall be effective only
if and when signed by, and when counterparts hereof shall have been delivered to the Agent (by hand delivery, mail or telecopy) by, the Borrowers, OSG and Majority Lenders and only if and when each of
the following conditions is satisfied: 

        4.1    Consent of Guarantors.    Each of the Guarantors shall have executed and delivered to
the Agent the Consent. 

        4.2    No Default or Event of Default; Accuracy of Representations and Warranties.    No
Default or Event of Default shall exist and each of the representations and warranties made by the Credit Parties herein and in or pursuant to the Credit Documents shall be true and correct in all
material respects as if
made on and as of the date on which this Amendment becomes effective (except that any such representation or warranty that is expressly stated as being made only as of a specified earlier date shall
be true and correct as of such earlier date), and the Borrowers shall have delivered to the Agent a certificate confirming such matters. 

        4.3    Supporting Documents.    The Borrowers shall have delivered to the Agent copies of
resolutions of each of the Credit Parties approving and authorizing this Amendment and the Consent together with an incumbency certificate for the persons executing this Amendment and the Consent. 

        4.4    Amendment Fee.    The Borrowers shall have paid to the Agent, for the ratable benefit
of the Lenders, an amendment fee of $175,000, which shall be fully earned and non-refundable. 

        4.5    Expense Reimbursements.    The Borrowers shall have paid all expense reimbursements due
to the Agent pursuant to Section 11.10 of the Credit Agreement. 

        5.    EFFECT OF THIS AMENDMENT.    From and after the date on which this Amendment becomes
effective, all references in the Credit Documents to the Credit Agreement shall mean the Credit Agreement as amended hereby. Except as expressly amended hereby or waived herein, the Credit Agreement
and the other Credit Documents, including the Liens granted thereunder, shall remain in full force and effect, and are hereby ratified and confirmed. 

        6.    APPLICABLE LAW.    THE VALIDITY, INTERPRETATIONS AND ENFORCEMENT OF THIS AMENDMENT AND
ANY DISPUTE ARISING OUT OF OR IN CONNECTION WITH THIS AMENDMENT, WHETHER SOUNDING IN CONTRACT, TORT, EQUITY OR OTHERWISE, SHALL BE GOVERNED BY THE INTERNAL LAWS (AS OPPOSED TO THE CONFLICTS OF LAWS
PROVISIONS OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW) AND DECISIONS OF THE STATE OF NEW YORK. 

4

 

        7.    COMPLETE AGREEMENT.    This Amendment sets forth the complete agreement of the parties
in respect of any amendment to any of the provisions of any Credit Document or any waiver thereof. 

        8.    CATCHLINES & COUNTERPARTS.    The catchlines and captions herein are intended
solely for convenience of reference and shall not be used to interpret or construe the provisions hereof. This Amendment may be executed by one or more of the parties to this Amendment on any number
of separate counterparts (including by telecopy), all of which taken together shall constitute but one and the same instrument. 

[remainder
of page intentionally left blank] 

5

  

        IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by a duly authorized officer as of the date first
above written. 

	 	 	OUTSOURCING SERVICES GROUP, INC.
 
	

 	
 	

By:	

/s/  PERRY MORGAN      
 Name: Perry Morgan

Title: Vice President, Chief Financial Officer and Corporate Secretary
	

 	
 	
AEROSOL SERVICES COMPANY, INC.
	

 	
 	

By:	

/s/  PERRY MORGAN      
 Name: Perry Morgan

Title: Vice President, Chief Financial Officer and Corporate Secretary
	

 	
 	
PIEDMONT LABORATORIES, INC.
	

 	
 	
By:	

/s/  PERRY MORGAN      
 Name: Perry Morgan

Title: Vice President, Chief Financial Officer and Corporate Secretary
	

 	
 	
KOLMAR LABORATORIES, INC.
	

 	
 	

By:	

/s/  PERRY MORGAN      
 Name: Perry Morgan

Title: Vice President, Chief Financial Officer and Corporate Secretary
	

 	
 	
ACUPAC PACKAGING, INC.
	

 	
 	

By:	

/s/  PERRY MORGAN      
 Name: Perry Morgan

Title: Vice President, Chief Financial Officer and Corporate Secretary
	

 	
 	
PRECISION PACKAGING AND SERVICES, INC.
	

 	
 	

By:	

/s/  PERRY MORGAN      
 Name: Perry Morgan

Title: Vice President, Chief Financial Officer and Corporate Secretary

S-1

 

	

 	
 	
BT COMMERCIAL CORPORATION,
 as Agent
	

 	
 	

By:	

/s/  SAM A. CARDONE      
 Name: Sam A. Cardone

Title: Director
	

 	
 	
BANKERS TRUST COMPANY,
 as a Lender
	

 	
 	

By:	

/s/  SAM A. CARDONE      
 Name: Sam A. Cardone

Title: Director
	

 	
 	
HELLER FINANCIAL, INC.,
 as Co-Agent and as a Lender
	

 	
 	

By:	

/s/  TARA UROBEL      
 Name: Tara Urobel

Title: Vice President
	

 	
 	
NATIONAL BANK OF CANADA,
 as a Lender
	

 	
 	

By:	

/s/  GREGORY J. HALL      
 Name: Gregory J. Hall

Title: Vice President
	

 	
 	

By:	

/s/  MARK TITO      
 Name: Mark Tito

Title: Vice President
	

 	
 	
CALIFORNIA BANK & TRUST,
 as a Lender
	

 	
 	

By:	

/s/  PAUL W. JOHNSON JR.      
 Name: Paul W. Johnson Jr.

Title: Vice President
	

 	
 	
FLEET CAPITAL CORPORATION,
 as a Lender
	

 	
 	

By:	

/s/  MARK D. NEWLUN      
 Name: Mark D. Newlun

Title: Senior Vice President

S-2

 
 
 

CONSENT OF GUARANTORS    
  

        Each of the undersigned is a Guarantor of the Obligations of the Borrowers under the Credit Agreement and hereby (a) consents to the foregoing Amendment,
(b) acknowledges that notwithstanding the execution and delivery of the foregoing Amendment, the obligations of each of the undersigned Guarantors are not impaired or affected and the
Guaranties continue in full force and effect, and (c) ratifies its Guaranty. 

        IN
WITNESS WHEREOF, each of the undersigned has executed and delivered this Consent of Guarantors as of the 15th day of August, 2001. 

	 	 	OUTSOURCING SERVICES GROUP, INC.
 
	

 	
 	

By:	

/s/  PERRY MORGAN      
 Name: Perry Morgan

Title: Vice President, Chief Financial Officer and Corporate Secretary
	

 	
 	
AEROSOL SERVICES COMPANY, INC.
 
	

 	
 	

By:	

/s/  PERRY MORGAN      
 Name: Perry Morgan

Title: Vice President, Chief Financial Officer and Corporate Secretary
	

 	
 	
PIEDMONT LABORATORIES, INC.
 
	

 	
 	

By:	

/s/  PERRY MORGAN      
 Name: Perry Morgan

Title: Vice President, Chief Financial Officer and Corporate Secretary
	

 	
 	
KOLMAR LABORATORIES, INC.
 
	

 	
 	

By:	

/s/  PERRY MORGAN      
 Name: Perry Morgan

Title: Vice President, Chief Financial Officer and Corporate Secretary
	

 	
 	
ACUPAC PACKAGING, INC.
 
	

 	
 	

By:	

/s/  PERRY MORGAN      
 Name Perry Morgan

Title: Vice President, Chief Financial Officer and Corporate Secretary

S-3

 

	

 	
 	
PRECISION PACKAGING AND SERVICES, INC.
 
	

 	
 	

By:	

/s/  PERRY MORGAN      
 Name: Perry Morgan

Title: Vice President, Chief Financial Officer and Corporate Secretary
	

 	
 	
KOLMAR CANADA, INC.
 
	

 	
 	

By:	

/s/  PERRY MORGAN      
 Name: Perry Morgan

Title: Vice President, Chief Financial Officer and Corporate Secretary
	

 	
 	
OSG IVERS-LEE, INC.
 
	

 	
 	

By:	

/s/  PERRY MORGAN      
 Name: Perry Morgan

Title: Vice President, Chief Financial Officer and Corporate Secretary

S-4

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Exhibit 10.29

AMENDMENT NO. 5 TO CREDIT AGREEMENT AND CONSENT TO ACQUISITION

CONSENT OF GUARANTORSQuickLinks
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Exhibit 10.30    
  

 
 

EMPLOYMENT AGREEMENT    
  

        THIS EMPLOYMENT AGREEMENT (this "Agreement") is made as of the 1st day of January 2001 by and between OUTSOURCING SERVICES GROUP, INC., a Delaware
corporation having its principal place of business at 25 Commerce Drive, Allendale, New Jersey 07401 (the "Company"), and Perry Morgan, whose address is 27 Laura Lane, Warwick, New York 10990 (the
"Employee"). 

W I T N E S S E T H:  

        WHEREAS, the Company is engaged, through its subsidiaries Aerosol Services Company, Piedmont Laboratories, Inc., Kolmar Laboratories, Inc., Acupac
Packaging, Inc., and Precision Packaging and Services, Inc. (collectively, the "Subsidiaries"), in the business of providing aerosol and liquid filling of cosmetics, toiletries,
pharmaceutical products, cleaning products, skin care products and other consumer goods and related packaging services (the "Business") and has need for management personnel with experience in said
business; 

        WHEREAS,
the Employee is experienced in the Business and in the management of such Business; 

        WHEREAS,
the Company desires to employ the Employee in an executive capacity upon the terms and conditions set forth in this Agreement; and 

        WHEREAS,
the Employee is willing to enter into this Agreement with respect to the Employee's employment and services upon the terms and conditions set forth in this Agreement; 

        NOW
THEREFORE, in consideration of the foregoing recitals and the mutual promises contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, and intending to be legally bound, the parties agree as follows: 

 
 

I. TERM    
  

        SECTION 1.01    Employment.    Subject to the provisions of Section 4.01 hereof, the Company hereby
employs the Employee and the Employee hereby accepts employment with the Company for a period of 2 years beginning on July 1, 2001 and terminating at the close of business on
June 30, 2003 (the "Employment Term"). The Employment Term may be extended by a mutual agreement in writing for additional years on the same or mutually agreeable terms, but if no such mutual
agreement is executed prior to June 30, 2003 the Employment Term shall expire, and employment shall continue on an at will basis, but Sections 5.01 through 5.06 shall continue in effect. If the
employment of Employee is terminated pursuant to Article 4 of this Agreement or by reason of the death or disability of Employee, the time during which the Employee is actually employed shall
be referred to as the "Employee's Employment." 

 
 

II. DUTIES    
  

        SECTION 2.01    General Duties.    The Employee shall serve as the Chief Financial Officer of the Company
during the Employee's Employment. Further, Employee shall serve as an officer and/or member of the board of directors of any of the Subsidiaries if requested. The Employee shall, during Employee's
Employment, subject to the policies of the Chief Executive Officer and the Board of Directors of the Company (the "Board"), manage and direct the business of the Company and its Subsidiaries,
performing those acts and doing those things customarily done by the Chief Financial Officer for companies comparable to the Company. The Company shall indemnify the Employee for such service to the
maximum extent permitted by applicable law. 

        SECTION
2.02    Devotion of Time to the Company's Business.    The Employee agrees during Employee's Employment, to
devote his best efforts to his employment, and perform such duties 

 

consistent with his capacity as Chief Financial Officer of the Company as shall be determined by the Chief Executive Officer and the Board. The Employee further agrees to (i) devote
substantially all his business time to the business and affairs of the Company and to fulfill the duties of his office, (ii) devote his time and resources to the recruitment, training and
development of a team of focused professionals capable of managing and directing the business of the Company, and (iii) faithfully observe his duties to preserve as confidential all trade and
other secrets of the Company. During Employee's Employment, and continuing for any Restricted Period (as defined in Section 5.04 below) thereafter during which Employee is paid pursuant to
Section 3.03, unless otherwise agreed to in advance and in writing by the Company, the Employee shall not seek or accept other employment, become self-employed in any other
capacity, or engage in any activities which are detrimental to the business of the Company. Notwithstanding the foregoing, the Employee may engage in personal investment activities, which do not
interfere with the Employee's duties under this Agreement. For purposes of this Agreement, any such investment activity, which involves a competitor or supplier of the Company, will automatically be
deemed to conflict with Employee's duties hereunder. 

 
 

III. COMPENSATION    
  

        SECTION 3.01    Base Salary.    As compensation for his services hereunder, during the Employment Term, the
Employee shall receive a base salary equal to One Hundred and Eighty-Five Thousand Dollars ($185,000) per year. Such base salary shall be payable in cash at the times and in the
installments consistent with the Company's payroll practices. The Company shall review such salary on at least an annual basis with a view to consider increases considering, among other factors,
Company performance and cost-of-living increases. Once base salary is increased, it shall not be reduced without the Employee's written consent. 

        SECTION
3.02    Bonus Plans.    

        (a)  The
Employee shall be a full participant in any performance bonus plan made available to similarly situated senior executives of the Company. 

        (b)  All
options that the employee has received prior to the date of this Agreement, or may receive subsequent to the date of this Agreement, pursuant to the Company's
Amended and Restated 1998 Stock Option Plan (the "Plan") are and shall remain subject to the terms and conditions specified in the Plan and related separate agreements, and are not affected in any way
by this Agreement. 

        (c)  Employee
may be eligible to participate in a stock option program. Subject to recommendation by the Chief Executive Officer and approval by the Board or its Compensation
Committee, Employee may be eligible for an annual award of options to purchase shares of Company stock pursuant to the
Company's benefit plans. Any such awards shall be governed by and subject to the terms and conditions of such benefit plans and related separate agreements, and are not in any way affected by this
Agreement. 

        (d)  The
Company shall continue in effect the terms of its current certificate of incorporation and bylaws, which provide for indemnification of officers and directors to the
maximum extent provided by law. The Company is responsible for all financial costs of and carries directors' and officers' liability insurance with a deductible of [$100,000]
and a maximum coverage of [$5] million but reserves the right to change such coverage if the Company's directors so determine. 

        SECTION
3.03    Continuation of Salary.    

        (a)  If
the Employee dies or becomes disabled so that he is unable to perform his duties hereunder, the Company shall pay the Employee or his estate (or its designee) his
base salary bi-weekly, but not beyond the end of the Employment Term, and shall continue for such period to provide the benefits described in Section 3.04. 

2

 

        (b)  If
the Company terminates this Agreement for any reason except as specified in Section 4.01, or if Employee resigns for "good reason" as described in
Section 4.02, the Company agrees to continue to pay the Employee his base salary bi-weekly, and to provide the benefits described in Section 3.04, for the longer of
(i) the balance of the Employment Term, or (ii) twelve (12) months from the date of termination or resignation. 

        SECTION
3.04    Benefits.    During the Employment Term, the Employee shall be entitled to insurance benefits
substantially similar to those now provided under the Company's employee health benefit plan as now in effect, and may continue such benefits after any termination of the Employee's Employment by
paying the applicable premium to the extent allowed by applicable law. However, the Company may cease providing such benefits if any law or regulation prohibits making benefits available except on an
equal basis for all employees and if the benefits now provided Employee are not so available. To be more specific: 

        (a)  The
Company shall provide Employee medical, dental, life insurance, profit-sharing and other benefits in accordance with the OSG benefit plans. 

        (b)  Employee
shall receive three (3) weeks of paid vacation per year or such greater amount of vacation as is provided under any Company policy then applicable to
Employee 

        (c)  Employee
shall receive an automobile allowance of [$800] per month. The Company shall also reimburse Employee for the costs of maintenance and
fuel for one automobile as a business expense, which shall be payable in accordance with the Company's standard practices after receipt by the Company of appropriate documentation of such expenses.
Employee shall pay the insurance premiums on such automobile and shall, on the Company's request, furnish proof that liability insurance of at least $500,000 is in effect. 

 
 

IV. TERMINATION    
  

        SECTION
4.01    Termination by the Company for Cause.    The Company may terminate Employee's employment under this
Agreement for "Cause." "Cause" shall mean such cause as would entitle the Company to terminate Employee's employment and shall include the following acts or omissions: 

        (a)  Employee's
failure to perform the duties of his office or to conduct and manage the business of the Company in a manner reasonably consistent with the criteria
established by the Chief Executive Officer and the Board, provided that prior to any termination under this Section 4.01(a) Employee shall be given written notice of the deficiencies and a
reasonable opportunity to correct his conduct if the matters in question can be corrected; 

        (b)  Conduct
on the part of the Employee which constitutes the breach of any statutory or common law duty of loyalty to the Company which has, in the view of the Chief
Executive Officer or the Board, a material adverse effect on the Company; 

        (c)  Any
illegal act by the Employee (as evidenced by a conviction for a criminal offense) which in the view of the Chief Executive Officer or the Board materially and
adversely affects the business of the Company; 

        (d)  Engagement
by the Employee in any act of serious misconduct, whether or not such act occurs in connection with the performance of Employee's duties hereunder, which in
the view of the Chief Executive Officer or the Board adversely affects the business and/or reputation of the Company; or 

        (e)  Intentional
wrongful engagement in any activity prohibited by Section 5.01 (Nondisclosure), 5.03 (Nonsolicitation) or 5.04 (Noncompetition) hereof or employment
in another business in a manner not permitted by Section 2.02. 

3

 

        It
shall be presumed that the Employee's participation in a business enterprise other than the Company (except for service on boards of directors approved by the Company) constitutes
cause for termination under clause (e) of this section. Termination by the Company shall be accomplished by written notice to the Employee. Employee specifically acknowledges that the Company's
remedy for actions described or referred to in Sections 4.01(b), 4.01(c), 4.01(d) or 4.01(e) shall not be limited to termination and may include exercise of all legal and equitable remedies available
to the Company, including, without limitation, the remedies set forth in Section 5.05 of this Agreement. 

        SECTION
4.02    Resignation for Good Reason.    Employee may resign for "good reason" and thereby terminate Employee's
Employment (but not his other obligations hereunder) as a result of the following: 

        (a)  Without
the Employee's prior written consent, a reduction in his then current salary; 

        (b)  The
taking of any action by the Company that would substantially diminish the aggregate value of the benefits provided to the Employee under the Employee's medical,
health, accident, disability, life insurance, thrift and retirement plans in which he was participating other than any such reduction which is (i) required by law, (ii) implemented in
connection with a general concessionary arrangement affecting all employees or affecting the group of employees (senior management) of which the Employee is a member or (iii) generally
applicable to all beneficiaries of such plans; 

        (c)  An
involuntary relocation of the Employee's place of employment to a place more than fifty (50) miles with the exception of the Corporate Center in Northern New
Jersey; 

        (d)  Resignation
as a result of unlawful discrimination or other unlawful acts committed against employee, as evidenced by a settlement, arbitration award or final court
order; or 

        (e)  A
reduction in duties and responsibilities, which results in the Employee no longer having the customary duties of Chief Financial Officer. 

        As
long as the Company continues to make the payments provided for in Section 3.03(b), none of the actions specified in clauses (a) through (e) above shall
constitute a breach of this Agreement. 

        SECTION
4.03    Damages for Breach of Contract.    In the event of a breach of this Agreement by either the Company or
the Employee resulting in damages to the other party, that party may recover from the party breaching this Agreement any and all damages that may be sustained, excluding incidental, consequential and
punitive damages. 

        SECTION
4.04    Arbitration.    If any dispute hereafter arises between the parties hereto and/or their agents or
employees relating to the terms and provisions of this Agreement or otherwise, including but not limited to any claim for breach of any or covenant (express or implied), tort claims, claims for
discrimination or harassment (including, but not limited to race, sex, religion, national origin, age, handicap or disability), claims for compensation or benefits (except where a benefit plan or
pension plan or insurance policy specifies a different claims procedure) and claims for violations of any federal, state or other governmental law, statute, regulation or ordinance (except for claims
involving workers' compensation benefits), then either party may initiate arbitration proceedings with the Judicial Arbitration and Mediation Services, Inc. ("JAMS") in New York, New York in
accordance with the Employment Rules of JAMS, as the exclusive remedy for such dispute and in lieu of any court action, which is hereby expressly waived. Any demand for resolution for such a matter
must be submitted to JAMS and served on the other party within the period covered by the applicable statute of limitations. Both parties hereby consent to such arbitration, and any arbitration award
shall be final and binding. The parties may agree on a retired judge from the JAMS panel to serve as the arbitrator. If they are unable to agree, JAMS will provide a list of three available judges and
each party may strike one. The remaining judge will serve as the arbitrator. Neither party shall disclose the existence of any dispute or 

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the terms of any arbitration decision to any third party, other than their legal counsel, accountants, financial advisors or as required by law. Judgment upon any awarded rendered by JAMS may be
entered in any court having jurisdiction. Nothing contained in this section shall prevent the Company, however, from seeking and obtaining equitable relief to enforce the restrictions (including on
arbitration) in Article V. 

        SECTION
4.05    Attorneys' Fees and Costs.    If any action in law or in equity is commenced to enforce or interpret
the terms of this Agreement, the prevailing party or parties (as determined by the court hearing such matter) shall be entitled to reasonable attorneys' fees, costs and necessary disbursements in
addition to any other relief to which such party may be entitled. In the event of an arbitration, the parties shall each bear their respective costs unless otherwise specifically awarded by the
arbitrator. In that instance, the arbitrator shall have discretion to determine the extent, if any, to which a party shall be treated as a "prevailing party" and to award or withhold fees and costs. 

        SECTION
4.06.    Deemed Resignation.    If this Agreement is terminated for any reason other than the expiration of
the Employment Term, Employee shall be deemed to have resigned voluntarily as an officer and director of the Company, and of any Subsidiaries, if applicable, if he was serving in any of such
capacities at the time of termination. 

 
 

V. RESTRICTIVE COVENANTS    
  

        The following restrictive covenants shall apply to this Agreement: 

        SECTION
5.01    Nondisclosure.    Employee shall not at any time during the term of this Agreement or thereafter,
except as required in the performance of his duties and as authorized by the Company, either directly or indirectly, disclose or divulge to any other person, firm or entity the names, addresses,
preferences, prices being charged by or to the Company or any other confidential information concerning or relating to any of the former or existing suppliers, contractors, employees or customers of
the Company, or any secret, proprietary or confidential information of the Company, (collectively, "Confidential Information") which shall not be or become public knowledge (other than by acts by
Employee or representatives of Employee in violation of this Agreement). After termination of Employee's employment with the Company, Employee shall not, without the prior consent of the Company or
except as may be required by law or legal process, communicate or divulge any such Confidential Information to anyone other than the Company and those designated by it, and agrees not to do any act to
impair, prejudice or destroy the goodwill of the Company. However, nothing contained in this Section 5.01 shall preclude Employee from using any information known to him through his experience
in the industry outside of his employment by the Company or any confidential information of the Company learned by Employee outside of his employment with the Company, which was communicated to him by
a lawful disclosure. 

        If
Employee ceases to work for the Company for any reason, Employee shall return to the Company all Confidential Information in any form or media and all copies thereof, shall delete all
Confidential Information from any computers Employee owns or uses, and shall participate in an exit interview for the purpose of ensuring that the Confidential Information and business relationships
will not be put at risk in any new position that Employee may assume. Employee also shall advise any new employer of the restriction under this Article V and provide the Company written proof
he has done so. 

        SECTION
5.02    Ownership of Intellectual Property.    Employee acknowledges and agrees that all intellectual property
(including without limitation all ideas, concepts, inventions, technology, formulae, plans, designs, drawings, illustrations and photographs, which may be protectable, in whole or in part, under any
patent, copyright, trademark, trade secret or other intellectual property law, including the Uniform Trade Secrets Act), developed, created, conceived, made or reduced to practice during Employee's
employment with the Company which (a) relate to the business of the Company, (b) result 

5

 

from the duties or work performed by Employee hereunder either alone or with others, or (c) are developed during working time or using the Company's equipment, supplies, facilities, resources,
materials or information, shall be the sole and exclusive property of the Company. Employee shall and hereby does assign, for no additional consideration, all right, title and interest in and to such
intellectual property to the Company (and/or the Subsidiaries, as the Company may direct), and agrees to execute and deliver any and all documents requested by the Company in order to properly
document such assignments. 

        SECTION
5.03    Nonsolicitation.    Since Employee's solicitation of the customers of the Company, or any parent,
affiliate or subsidiary of the Company, under certain circumstances would necessarily involve the use or disclosure of Confidential Information, Employee shall not, either directly or indirectly, at
any time during the term of this Agreement and for a period of one (1) year from the date Employee's employment with the Company terminates for any reason, including termination or expiration
of this Agreement (the "Restricted Period"): (a) call on, solicit or take away, or attempt to call on, solicit or take away, any past or present customers of the Company, or any parent,
affiliate or subsidiary of the Company; (b) employ, hire or solicit the employment of any person employed by the Company, or any parent, affiliate or subsidiary of the Company; (c) do
any act to impair, prejudice or destroy the goodwill of the Company, or any parent, affiliate or subsidiary of the Company, or to prejudice or impair the relationship or dealing between the Company,
or any parent, affiliate or subsidiary of the Company, and any customer and/or supplier of the Company, its affiliates and/or subsidiaries; or (d) assist any other person, firm or entity in any
such acts. If the Company terminates this Agreement on a basis not stated in Section 4.01, or on a basis described in Section 4.01(a), Employee shall not be required to honor this
Section 5.03 unless Company continues to pay Employee's salary and benefits for the balance of the Employment Term, or such longer period as is provided in Section 3.03(b), even if such
payments are not required. 

        SECTION
5.04    Non-competition.    While employed by the Company, Employee shall not conduct any other
business, or be employed by or serve as a consultant to or serve as a member of the board of directors of any other person or entity without prior written approval from the Company. During the
Restricted Period, Employee shall not engage, whether as an employee, consultant, or in any other capacity, whether for pay or otherwise, in the business of conducting or facilitating (collectively, a
"Competing Business"). Employee recognises and agrees that the Company's business and customer base is nationwide and international and, accordingly, agrees that to protect the Company's business the
foregoing restrictions must be nationwide and international as well. Notwithstanding the foregoing, this covenant not to compete shall only be in effect as long as the Company continues to pay to the
Employee, during the Restricted Period, the salary and benefits described in Section 3.03, even if such payments are not otherwise required. Additionally, Employee agrees and acknowledges that
if the provisions of this Section 5.04 are triggered, Employee shall receive adequate consideration from the payments made by the Company during the Restricted Period to enable him to earn a
satisfactory living during the time that covenant not to compete is in effect. 

        Nothing
in this Section 5.04 shall prevent Employee from holding or acquiring common stock in any company which is publicly traded on any nationally recognized stock exchange or
on the National Market System of The Nasdaq Stock Market, provided that such holdings are less than five percent (5%) of the outstanding capital stock of such publicly-traded company. 

        SECTION
5.05    Equitable Relief.    Employee acknowledges and agrees that his services are of a special, unique and
extraordinary value to the Company and its Subsidiaries and that damages alone may be an inadequate remedy for any breach of this Agreement. Accordingly, in the event of the breach by Employee of any
of the provisions of this Agreement, the Company may, in addition and supplementary to other rights and remedies existing in its favor and in aid of arbitration, apply to any court of law or equity of
competent jurisdiction for specific performance and/or injunctive or other relief in order to enforce, or prevent any violations of, the provisions of this Agreement. 

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        SECTION
5.06    Survival.    The provisions of this Section 5 shall survive the termination of this Agreement,
irrespective of the reason herefore. 

 
 

VI. MISCELLANEOUS    
  

        SECTION 6.01    Notices.    Any notices to be given hereunder by either party to the other shall be in writing
and may be effected by personal delivery, by courier, or by mail (registered or certified), postage prepaid with return receipt requested, or by facsimile confirmed by mail. Mailed notices shall be
addressed to the parties at the addresses appearing in the introductory paragraph. Mailed notices shall be deemed communicated as of four (4) calendar days after mailing. Notices delivered
personally or by courier shall be deemed delivered when actually received. Either party may change its address for notice purposes by complying with the provisions of this Section 6.01. 

        SECTION
6.02    Entire Agreement.    This Agreement supersedes and replaces any and all prior or contemporaneous
agreements, arrangements and understandings, whether oral or in writing, between the parties hereto with respect to the employment of the Employee by the Company (except for any Option Agreements) and
contains all of the covenants and agreements between the parties with respect to such employment in any manner whatsoever. Each party to this Agreement acknowledges that no representations,
inducements, promises or agreements, orally or otherwise, have been made by any party, which are not embodied herein, and that no other prior agreement, statement or promise not contained in this
Agreement shall be valid and binding. Any modification of this Agreement, statement or promise not contained in this Agreement shall not be valid or binding. Any modification of this Agreement will be
effective only if it is in writing signed by the parties. 

        SECTION
6.03    Partial Invalidity.    If any provision of this Agreement, or any word, phrase, clause, sentence or
other portion thereof, is held by a court of competent jurisdiction to be invalid, void or unenforceable for any reason, such provision or portion thereof will be modified or deleted in such a manner
as to make this Agreement, as modified, legal and enforceable to the fullest extent permitted under applicable laws. 

        SECTION
6.04    Law Governing Agreement.    This Agreement shall be governed by and construed in accordance with the
law of the State of New Jersey. 

        SECTION
6.05    Currency.    All amounts described in this Agreement are in United States Dollars. 

        SECTION
6.06    Successors and Assigns.    The rights and obligations of the Company and the Employee under this
Agreement shall inure to the benefit of and shall be binding upon the successors and assigns of the Company. The rights and obligations of Employee hereunder may not be assigned by Employee, except as
contemplated by Section 3.03. 

        SECTION
6.07    No Conflict.    The Company hereby represents and warrants to Employee that this Agreement and the
Company's obligations hereunder do not violate or conflict with the terms, conditions or covenants of the Company's (and certain of its subsidiaries') financing agreements entered into on or about the
Effective Date. 

        SECTION
6.08    Waiver.    Either party's failure to enforce any provision or provisions of this Agreement shall not
in any way be construed as a waiver of any such provision or provisions, nor prevent that party thereafter from enforcing each and every other provision of this Agreement. The rights granted both
parties herein are cumulative and shall not constitute a waiver of either party's right to assert all other legal remedies available to it under the circumstances. Any waiver by the Company of any
breach of any provision of this Agreement by Employee shall not be construed to be a continuing waiver, or a consent to any subsequent breach, unless otherwise expressly specified. 

7

 

        SECTION
6.09    Counterparts.    This Agreement may be executed in one or more counterparts, which when taken together
shall constitute one complete instrument. The parties hereto agree that for this purpose, facsimile signatures shall be accepted as originals. 

        SECTION
6.10    Prior Performance.    The parties agree that performance by either party hereunder, during the periods
specified, in accordance with the terms hereof, but prior to the date this Agreement is fully executed and delivered, shall be subject to and governed by the terms of this Agreement, to the extent
that no prior contract is in place. 

[SIGNATURE
PAGE FOLLOWS] 

8

 
[SIGNATURE
PAGE TO EMPLOYMENT AGREEMENT] 

        IN
WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the day and year first above written. 

	"Company"
	

OUTSOURCING SERVICES GROUP, INC.
	

By:	
 	

/s/  JOSEPH HEALY      
 Name: Joseph Healy

Title: President and CEO
	

"Employee"
	

/s/ Perry Morgan
 Perry Morgan

9

QuickLinks

Exhibit 10.30

EMPLOYMENT AGREEMENT

I. TERM

II. DUTIES

III. COMPENSATION

IV. TERMINATION

V. RESTRICTIVE COVENANTS

VI. MISCELLANEOUS

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}]]