EXHIBIT 10.9

 

THIS AMENDMENT dated March 1, 1995 to AGREEMENT dated May 1, 1980,

 

BETWEEN   THE NEWARK GROUP, INC., a New Jersey corporation having its principal
office at 20 Jackson Drive, Cranford, NJ 07016 (“Newark”), AND   FREDERICK G.
VON ZUBEN, a resident of New Vernon, New Jersey (“von Zuben”);

 

W I T N E S S E T H    T H A T :

 

WHEREAS, by agreement dated May 1, 1980, Newark and von Zuben agreed that upon
termination of von Zuben’s employment by Newark, Newark would purchase all of
von Zuben’s shares for “book value”, which was defined as an amount per share
equal to the net worth of Newark divided by the number of shares outstanding;
and

 

WHEREAS, von Zuben is now the Chief Operating Officer of Newark and soon will be
elected as its Chief Executive Officer, and thus Newark desires to provide von
Zuben with every incentive to contribute to Newark’s prosperity; and

 

WHEREAS, Newark, therefore believes it is in its best interests to enable von
Zuben to realize the full value for the shares now owned by von Zuben and
hereafter acquired by von Zuben, and further desires to provide von Zuben with a
market for his shares upon the termination of his employment with Newark, which
it is anticipated will occur at the time of his retirement; and

 

WHEREAS, the parties understand and agree that it remains in the best interests
of Newark to restrict the transferability of the shares owned by von Zuben, and

 

NOW THEREFORE, the parties hereto agree that the Agreement dated May 1, 1980 is
hereby amended in the following respects:

 

1. When von Zuben sells his shares to Newark pursuant to Section 1 of the
Agreement, the amount of the purchase price determined pursuant to Section 1.1
shall be the fair market value per share as at the date of the sale, which the
parties hereto agree shall be the then value per share as determined for by the
independent appraiser engaged to determine the price at

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which Newark purchases shares from participants in Newark’s Employees Stock
Ownership Plan (“ESOP”) who desire to sell their shares to Newark pursuant to
the “put option” described in the ESOP.

 

2. The restrictions set forth in the Agreement shall not apply with respect to
any shares acquired by von Zuben from the ESOP.

 

3. If any portion of the purchase price is paid by Newark’s Installment
Promissory Note, such note shall provide for the payment of interest at the
prime rate as in effect from time to time as published in the Money Rates column
of the Wall Street Journal.

 

4. In all other respects the Agreement shall remain in full force and effect.

 

    THE NEWARK GROUP, INC.     By:  

/s/ Edward K. Mullen

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        Edward K. Mullen, Chairman WITNESS:        

/s/ Benedict M. Kohl

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/s/ Frederick G. von Zuben

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Benedict M. Kohl       Frederick G. von Zuben

 

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