## **Exhibit 10.1**

## **TERMINATION AGREEMENT**

The Undersigned:

1.               The public company with limited liability **PGI NONWOVENS B.V.**, incorporatedunder the laws of the Netherlands, hereafter to be referred to as: “PGI”,having its statutory seat in Cuijk, the Netherlands.

and

2.               **MR R. ALTDORF**, domiciled at Kleve (4190), Germany, at theHirschpfuhl 20,  hereafter referred toas: “Mr Altdorf”;

Hereafter together to be referred to as: “the Parties”,

**WHEREAS:**

a)                 MrAltdorf has been employed by PGI since October 1, 1985. The current position ofMr Altdorf at PGI is Managing Director;

b)                Recently,the Parties have discussed a possible termination of the employment of MrAltdorf with PGI and of his positions as Managing Director of PGI and VicePresident & Managing Director, Europe of Polymer Group, Inc., an affiliateof PGI. In order to prevent any uncertainty about such termination and theconsequences thereof, the Parties have consulted with one another and have cometo agreement about this, which agreement is laid down in this terminationagreement (“the Termination Agreement”).

**HAVE AGREED AS FOLLOWS** :

**Section 1.****                                         ****Termination Date**

Mr. Altdorf’s employmentwith PGI will come to an end as per June 30, 2006 (“the Termination Date”) inmutual consent.

**Section 2.****                                         ****Resignation of Offices**

2.1                   As per the Termination Date, Mr Altdorf shallresign as Managing Director of PGI, as Vice President, Managing Director,Europe of Polymer Group, Inc., and other similar positions (if any) which hemay hold of PGI or of any affiliated companies.

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2.2                   PGI shall procure that, at the coming annualshareholders meetings of PGI, Mr Altdorf is granted a customary discharge (“*décharge*”) by the appropriate entities in respect of theperformance of his duties as Managing Director of these companies until hisresignation.

**Section3.****                                         ****Financial Compensation**

3.1                     Payment of an amount of one million fivehundred fifty-five thousand euros (EUR 1.555.000) gross by PGI to Mr. Altdorfis in order.  PGI will pay this amount,net of applicable taxes and/or social security contributions (if any) asmentioned in section 3.3, on July 5, 2006.

3.2                  The payment for notice, holidays and accruedleave for current and/or prior years (in case such rights should exist) aredeemed to be included in the payment mentioned in section 3.1.

3.3.                  Upon Mr Altdorf’s request PGI is willing tospread out the payment mentioned in section 3.1 as periodic payments during2006. Further, PGI is willing to pay the payment in a manner which isfavourable to Mr Altdorf provided this does not cause any additional cost forPGI and is permitted by tax laws (especially, but not restricted to, withrespect to the regulation of 8 December 2005 (nr. DGB2005/6722M) in conjunctionwith the decision of May 26, 2005 (nr. DGB2005/3299M) of the Dutch State Secretaryof Finance), to be proved by a ruling of the applicable tax authorities. Alltaxes and tax related employers’ burdens are for the account of Mr Altdorf andwill be deducted from the  paymentmentioned in section 3.1

**Section 4.****                                         ****No bonus over 2006**

Mr Altdorf is not entitled to a (pro rata) bonus over 2006.

**Section 5.****                                         ****Stock options**

Mr Altdorf will retain his rights to shares vested before theTermination Date in accordance with the 2003 stock option plan of PolymerGroup, Inc.

**Section 6.****                                         ****Company property**

Mr Altdorf will hand over any and all company properties, such as, butnot limited to, documents (copies thereof included), computer files and data,personal computer / laptop (unless otherwise agreed upon in writing), businesscards and contact information related to customers and suppliers, and otherproperty (for instance: credit cards, mobile phones, automobile, and keys) onor before the Termination Date.

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**Section 7.****                                         ****Confidentiality**

Mr Altdorf shall maintain full secrecy with respect to any and allinformation about the particulars of PGI, its affiliated companies (includingbut not limited to Polymer Group, Inc.), its business and clients. To thisrespect all obligations arising from his employment agreements remain fullybinding.

**Section 8.****                                         ****No negative statements**

TheParties will refrain from any negative statement about each other.

**Section 9.****                                         ****Non-solicitation**

Mr Altdorf agrees with PGI that during a period of 12 months after theTermination Date Mr Altdorf will not without the prior written consent of PGI,either alone or jointly with others, or as employee, advisor, manager,consultant or agent of any person or entity, directly or indirectly, solicitthe employment of any person who is, or has at any time during the two yearspreceding the Termination Date been, an employee, vendor or customer of PGIand/or any of its affiliated companies (including but not limited to PolymerGroup, Inc.).

**Section 10.****                                  ****Non-Competition**

Without the prior written consent of PGI, Mr Altdorf will not during aperiod of twenty-nine (29) months after the Termination Date, work directly orindirectly with or for a company or group or individual(s), that wholly orpartially are engaged in the same business as PGI and/or its affiliatedcompanies (including but not limited to Polymer Group, Inc.), wherever located.The payment mentioned in section 3.1 is also paid in return for thisnon-competition clause.

**Section 11.****                                  ****Intellectual Property**

11.1               As a result of his activities for PGI and/orits subsidiaries or affiliates (including but not limited to Polymer Group,Inc.), Mr Altdorf may have made, discovered, or created anything that willqualify for protection by rights of an exclusive nature, such as intellectualproperty rights (which expressly include, but are not limited to patent rights,copyrights, computer programs and the like (the “Intellectual Property Rights”), or know-how rights (the “Rights”). Parties agree that theIntellectual Property Rights and the Rights shall belong to and be the absoluteproperty of PGI or its designee.

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11.2               To the extent not already provided for byDutch Intellectual Property Law, Mr Altdorf hereby transfers in advance, andshall — to the extent this cannot be done in advance — transfer both theIntellectual Property Rights and the Rights to PGI or its designee. As far ascopyrights are concerned, Mr Altdorf hereby transfers in advance, and shall —to the extent this cannot be done in advance — transfer to PGI or its designeeany moral rights. To the extent Dutch Intellectual Property Law does not providefor the transfer of particular moral rights, PGI shall irrevocable waive, forthe benefit of PGI and its successors in title, any such moral rights.

11.3               Mr Altdorf shall, upon first request of PGIor its designee, execute all documents and do all things reasonably necessaryor desirable, to vest — and maintain vested — the Rights (including the moralrights) in PGI or its designee. Any reasonable costs and expenses of Mr Altdorfin respect thereof, will be reimbursed by the PGI or its designee.

**Section 12.****                                  ****Full and final discharge**

The parties grant each other a full and final discharge and declarethis agreement to be in full and final settlement of any and all claims. MrAltdorf hereby agrees to release and forever discharge PGI and its subsidiariesand affiliated companies including Polymer Group, Inc., their respectiveofficers, directors and employees, from any and all actions, causes of action,claims, demands, and liabilities of whatsoever nature arising out of, or inconnection with the employment agreement, the termination thereof or otherwise,whether arising before or after the date hereof.

**Section 13.****                                  ****Miscellaneous**

13.1      Thisagreement shall take precedence over any and all agreements between the partieswith regard to the subject matter of this agreement.

13.2      Ifany article or paragraph of this agreement will be declared null and void, thiswill not affect the validity of the rest of this agreement.

13.3      ThisTermination Agreement shall be governed by and interpreted in accordance withDutch law.

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Drawnup and signed in duplicate in Cuijk
| Date: 8 May 2006             |   | Date: 8 May 2006 |
|-----------------------------------|--------|-----------------------|
|                              |   |                  |
| /s/                               |   | /s/                   |
| Mr Jan Avéres                |   | Mr Rolf Altdorf       |
| On behalf of PGI  Nonwovens BV    |   |                  |
|                              |   |                  |
| Date: 8 May  2006            |   |                  |
|                              |   |                  |
|                              |   |                  |
| /s/                               |   |                  |
| Mr. James  Schaeffer              |   |                  |
| On behalf of  Polymer Group, Inc. |   |                  |

 

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