This Employment Agreement, dated May 9, 2005, by and between AEP Industries Inc., a Delaware corporation having its offices at 125 Phillips Avenue, South Hackensack, New Jersey 07606 (the “Company”), and David J. Cron (the “Executive”), presently residing at 506 Braeburn Road, Hohokus, NJ 07423, is entered into and shall be effective as of November 1, 2004 (the “Effective Date”).
The Executive is an employee of the Company; and
The Company desires to continue to employ Executive upon the terms and conditions set forth in this Agreement, and Executive desires to accept such continuation of employment.
Accordingly, in consideration of the mutual promises contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereto agree as follows:
Section 1. Employment; Term.
(a) Employment. Subject to Section 3, commencing as of the Effective Date, the Company hereby agrees to continue to employ Executive, and Executive hereby agrees to continue to be employed by the Company, in accordance with the terms and provisions of this Agreement.
(b) Term. The initial term of this Agreement shall be a period of three (3) years (the “Initial Term”). Thereafter this Agreement shall be extended for successive periods of one (1) year each from the Effective Date (each an “Extended Term” and together with the Initial Term the “Term”) unless either party gives written notice to the other at least one hundred (180) days before the expiration of the Initial Term or the then current Extended Term that it does not wish to extend this Agreement beyond the last day of the current Term.
Section 2. Terms of Employment.
(a) Position. During the term of Executive’s employment, Executive shall serve in the position set forth on the signature page hereto and shall report to the person or persons set forth on the Executive Data Sheet annexed hereto as Exhibit A. Executive shall have supervision and control over, and responsibility for, such management and operational functions of the Company currently assigned to such position, and shall have such other powers and duties (including holding officer positions with the Company and one or more subsidiaries of the Company) as may from time to time be prescribed by the person or persons to whom Executive will report, so long as such powers and duties are reasonable and customary for such position of an enterprise comparable to the Company. The primary person(s) that Executive reports to shall be such person(s) as set forth under the label “Reports to” on the Executive Data Sheet annexed hereto as Exhibit A.
(b) Duties. During the term of Executive’s employment, and excluding any periods of vacation and sick leave to which Executive is entitled, Executive agrees to devote substantially all of his business time to the business and affairs of the Company and, to the extent necessary to discharge the responsibilities assigned to Executive hereunder, to use Executive’s reasonable best
efforts to perform faithfully, effectively and efficiently such responsibilities. During the term of Executive’s employment, it shall not be a violation of this Agreement for Executive to (1) serve on corporate, civic or charitable boards or committees, (2) deliver lectures or fulfill speaking engagements, and (3) manage personal investments, so long as such activities do not interfere with the performance of Executive’s responsibilities as an employee of the Company in accordance with this Agreement.
(i) Base Salary. During the term of Executive’s employment, Executive shall receive an annual base salary (the “Annual Base Salary”), which shall be paid in accordance with the customary payroll practices of the Company, at least equal to the base salary set forth on the Executive Data Sheet annexed hereto as Exhibit A. Commencing on November 1, 2005 (the “First Date”), and on each subsequent anniversary date of the First Date as long as Executive remains an employee of the Company (the First Date and each subsequent anniversary of the First Date being herein referred to as an “Adjustment Date”), the Annual Base Salary of Executive in effect on the day preceding the Adjustment Date shall be increased by (A) the percentage equal to the percentage increase, if any, in the Consumer Price Index for all Urban Consumers for the New York-Northeastern New Jersey Metropolitan Area (or any successor Consumer Price Index) based on data published by the Bureau of Labor Statistics of the United States Department of Labor for the 12-month period ended on the September 30th immediately preceding the Adjustment Date over such Consumer Price Index for September 30, in the year preceding the Adjustment Date, and (B) such additional amount as the Board of Directors of the Company (the “Board”) in its discretion may determine to be appropriate. The result of such increase or increases to the then current Annual Base Salary shall constitute Executive’s Annual Base Salary commencing on the Adjustment Date then at hand and continuing until the next Adjustment Date. Any increase in Annual Base Salary shall not serve to limit or reduce any other obligation to Executive under this Agreement. After an Adjustment Date the term Annual Base Salary as used in this Agreement shall refer to Annual Base Salary as so increased.