Exhibit 10.1
[Execution Copy]
POLYMER GROUP, INC.
SEPARATION AGREEMENT
THIS SEPARATION AGREEMENT is entered into on April 8, 2008, between Polymer
Group, Inc., a Delaware corporation (the "Company"), and Willis C. Moore, III
("Executive").
WHEREAS, the Company and Executive are parties to a certain employment agreement
entered into on March 24, 2006, as amended by Amendment No. 1 to Employment
Agreement entered into on March 30, 2007 (the employment agreement, as so
amended, is referred to herein as the "Employment Agreement");
WHEREAS, the Company and Executive are parties to a certain change in control
severance compensation agreement entered into on January 23, 2008 (the "Change
in Control Agreement");
WHEREAS, the Company and Executive wish to end the employment relationship.
In consideration of the mutual covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:
1.
END OF EMPLOYMENT.
(A)
THE COMPANY AND EXECUTIVE HEREBY AGREE THAT THE EMPLOYMENT OF EXECUTIVE
WITH THE COMPANY AND ITS SUBSIDIARIES SHALL END ON APRIL 22, 2008 (THE
"RESIGNATION DATE").
EXECUTIVE ALSO AGREES THAT HIS SERVICE AS AN OFFICER OF
THE COMPANY AND ITS SUBSIDIARIES SHALL END ON THE EARLIER OF THE APPOINTMENT OF
A SUCCESSOR OR APRIL 22, 2008.
EXECUTIVE SHALL TAKE SUCH ACTIONS REASONABLY
REQUESTED BY THE COMPANY IN FURTHERANCE OF THE FOREGOING TO EVIDENCE THE END OF
SUCH EMPLOYMENT AND SUCH SERVICE AS AN OFFICER.
EXECUTIVE SHALL ALSO PROVIDE
SUCH SERVICES AS REASONABLY NECESSARY TO ENSURE A SMOOTH AND ORDERLY TRANSITION
FOR TWO WEEKS IMMEDIATELY FOLLOWING THE DATE OF THIS AGREEMENT THROUGH AND
INCLUDING THE RESIGNATION DATE.
(B)
FOR PURPOSES OF THIS AGREEMENT, "SUBSIDIARIES" SHALL MEAN ANY CORPORATION
OR OTHER ENTITY OF WHICH THE SECURITIES OR OTHER OWNERSHIP INTERESTS HAVING THE
VOTING POWER TO ELECT A MAJORITY OF THE BOARD OF DIRECTORS OR OTHER GOVERNING
BODY ARE, AT THE TIME OF DETERMINATION, OWNED BY THE COMPANY, DIRECTLY OR
THROUGH ONE OF MORE SUBSIDIARIES, INCLUDING WITHOUT LIMITATION THOSE ENTITIES
SET FORTH ON ANNEX I ATTACHED HERETO.
2.
COMPENSATION AND BENEFITS.
(A)
SALARY.
EXECUTIVE SHALL BE ENTITLED TO RECEIVE HIS BASE SALARY
THROUGH THE RESIGNATION DATE.
AS PAYMENT OF SEVERANCE UNDER THIS AGREEMENT,
EXECUTIVE SHALL BE ENTITLED TO RECEIVE HIS MONTHLY BASE SALARY IN AN AMOUNT
EQUAL TO $32,935.50 (THE "BASE SALARY PAYMENTS"), UNTIL APRIL 22, 2010 (THE
"PAYMENT END DATE").
EXECUTIVE SHALL NOT BE ENTITLED TO RECEIVE ANY
BASE SALARY PAYMENTS FOR ANY PERIOD AFTER THE PAYMENT END DATE.
SUCH BASE
SALARY PAYMENTS SHALL BE MADE BI-WEEKLY IN ACCORDANCE WITH THE COMPANY'S CURRENT
PAYROLL PRACTICES; PROVIDED THAT THE FIRST SUCH PAYMENT SHALL BE ON OCTOBER 23,
2008, AND SHALL COVER THE SIX-MONTH PERIOD BETWEEN THE DATE HEREOF AND SUCH
FIRST PAYMENT DATE.
EXECUTIVE SHALL ALSO BE ENTITLED TO AN ADDITIONAL PAYMENT
FOR UNUSED VACATION DAYS OR UNUSED PAID TIME OFF DAYS, WHICH PAYMENT SHALL BE
MADE IMMEDIATELY FOLLOWING THE RESIGNATION DATE.
(B)
EXPENSES.
THE COMPANY SHALL REIMBURSE EXECUTIVE FOR ALL REASONABLE
BUSINESS EXPENSES INCURRED BY HIM PRIOR TO