Document:

webmedia_8k-ex1031.htm

 

EXHIBIT 10.31

EXECUTION VERSION

CONFIDENTIAL

 SETTLEMENT AND RELEASE AGREEMENT

This SETTLEMENT AND RELEASE AGREEMENT, dated as of March 23, 2010 (this “Agreement”), is made and entered into by and between Getty Images, Inc., a Delaware corporation (“Purchaser”), and WebMediaBrands Inc. (formerly Jupitermedia Corporation), a Delaware corporation (“Seller”).  Capitalized terms used but not defined herein have the meanings given to them in the Purchase Agreement (as defined below).

 

RECITALS

 

WHEREAS, Seller and Purchaser entered into that certain Stock Purchase Agreement, dated as of October 22, 2008 (the “Purchase Agreement”), pursuant to which, among other things, Purchaser purchased from Seller all of the issued and outstanding capital stock of Jupiterimages Corporation (the “Company”) on February 23, 2009;

 

WHEREAS, Seller, Purchaser and U.S. Bank National Association (the “Escrow Agent”) entered into that certain Escrow Agreement, dated as of February 23, 2009 (the “Escrow Agreement”), pursuant to which, among other things, $2,000,000 of the Purchase Price was deposited into an escrow account (the “Escrow Amount”) to provide a partial fund against which a Purchaser Indemnitee may assert an Indemnification Claim (as defined in the Escrow Agreement);

 

WHEREAS, pursuant to Section 2.3 of the Purchase Agreement, the Purchase Price was subject to a Purchase Price Adjustment based on the Closing Date Net Working Capital of the Company; and

 

WHEREAS, pursuant to the terms and subject to the conditions contained herein, Seller and Purchaser desire that (a) the Escrow Amount shall be released to Purchaser in full and complete satisfaction of (i) all claims, known or unknown and whether or not previously raised by Purchaser, that are related to the Purchase Price Adjustment and (ii) certain other Liabilities described herein, and (b) the interest earned on the Escrow Amount shall be released to Seller.

 

NOW, THEREFORE, in consideration of the foregoing and the mutual representations, warranties, covenants and agreements herein contained, and intending to be legally bound hereby, the parties hereto hereby agree as follows:

 

1. Settlement of Purchase Price Adjustment and Certain Long-Term Tax Liabilities.

 

(a) Notwithstanding anything contained in the Purchase Agreement or the Escrow Agreement to the contrary, Seller and Purchaser hereby agree that Purchaser shall be entitled to receive $2,000,000, which amount shall be paid to Purchaser from the Escrow Amount, in full and complete satisfaction of (i) all claims, known or unknown and whether or not previously raised by Purchaser, that are related to the Purchase Price Adjustment and (ii) certain claims related to long-term Tax Liabilities as set forth on Exhibit A attached hereto (the “Released Tax Liabilities”).

 

  

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(b) Concurrently with the execution of this Agreement, Seller and Purchaser shall execute and deliver to the other party that certain Disbursement Instruction in the form attached hereto as Exhibit B (the “Disbursement Instruction”), pursuant to which the Escrow Agent shall be directed to distribute (a) to Purchaser the Escrow Amount and (b) to Seller any and all interest earned on the Escrow Amount prior to the distribution thereof, in each case, subject to the provisions of such Disbursement Instruction.

 

2. Release.

 

(a) Except as expressly set forth in Section 3 hereof, each of Seller and Purchaser, on its own behalf and on behalf of its agents, successors, permitted assigns, predecessors, Subsidiaries, Affiliates, administrators, trustees, officers, directors, employees, stockholders, partners or members (whether their ownership interests are held directly or indirectly), attorneys and other agents, hereby releases, waives and forever discharges, effective as of the date hereof, the other party hereto and its respective Affiliates, Subsidiaries, officers, directors, employees, stockholders, partners, members, attorneys and other agents, successors and permitted assigns from any and all actions, causes of action, suits, debts, dues, sums of money, accounts, bonds, bills, covenants, controversies, agreements, promises, variances, trespasses, damages, judgments, executions, claims and demands whatsoever, obligations, Contracts, covenants, fees, costs and Damages of any kind whatsoever (whether direct, indirect, consequential, incidental or otherwise, including legal fees incurred in connection herewith or in connection with the enforcement of this Agreement and the posting of any bond in connection with any appeal process), known or unknown, in its own right or derivatively, whether or not previously raised, in Law or equity, in each case, that are related to the Purchase Price Adjustment (including, without limitation, each of the claims related to the Purchase Price Adjustment listed or described on Exhibit C attached hereto) and the Released Tax Liabilities (collectively, the “Released Claims”).  Without limiting the foregoing, each party expressly acknowledges and agrees that it shall not be entitled to pursue any Released Claim as an Indemnification Claim or other claim or cause of action pursuant to the Purchase Agreement.

 

(b) This Section 2 is for the benefit of each of Seller and Purchaser and shall be enforceable by each of them directly against the other party.  With respect to such Released Claims, each of Seller and Purchaser hereby expressly waives any and all rights conferred upon it by any statute or Law which provides that a release does not extend to claims which the claimant does not know or suspect to exist in its favor at the time of executing the release, which if known by it must have materially affected its settlement with the released party.  Each party hereby represents and warrants to the other party that, as of the date hereof, it has no knowledge of, and does not intend to assert, any other Indemnification Claims; provided, however, that any such knowledge or intent that exists as of the date hereof will have no impact on the ability or rights of such party to assert an Indemnification Claim unless such party’s failure to disclose such knowledge or intent as of the date hereof is intentional.

 

3. Limitations.  The release of the Released Claims set forth in Section 2 hereof shall not be applicable to, and shall not affect any rights of Purchaser or Seller to enforce or defend any other claims (other than the Released Claims) arising from and permitted under the Purchase Agreement, including Indemnification Claims and any other claims related to long-term Tax Liabilities not otherwise included in the Released Tax Liabilities.

 

 

  

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4. Confidentiality.  Except to the extent necessary to comply with applicable Law, court process or obligations pursuant to any listing agreement with a national securities exchange or national securities quotation system each party hereto agrees that it will hold, and will cause its Affiliates, directors, officers, employees, agents, representatives and advisors (including attorneys, accountants, consultants, bankers and financial advisors) to hold, in confidence all information regarding the existence of this Agreement and any of the terms and conditions hereof and the transactions contemplated hereby.  Without limiting the foregoing, Purchaser acknowledges and agrees that Seller shall be entitled to disclose this Agreement and/or the terms hereof pursuant to a Form 8-K, Form 10-K and/or other similar filings with the SEC.

 

5. Representations and Warranties.  Each party hereto represents and warrants to the other party that (a) it has the requisite power and authority to enter into and perform its obligations under this Agreement, (b) the execution, delivery and performance of this Agreement have been duly and validly authorized and (c) this Agreement has been duly and validly executed and delivered by each party hereto and constitutes a valid and binding agreement of such party, enforceable in accordance with its terms.

 

6. Amendment.  This Agreement may not be amended other than in an instrument in writing signed by each of the parties hereto.

 

7. Construction.  The parties acknowledge that each party hereto has contributed to the drafting of this Agreement and, therefore, waive the application of any Law, regulation, holding or rule of construction providing that ambiguities in an agreement or other document will be construed against the party drafting such agreement or document.

 

8. Assignment.  This Agreement and the rights and obligations hereunder may not be assigned without the prior written consent of each of the parties hereto.  This Agreement will be binding upon, inure to the benefit of and be enforceable by the parties and their respective successors and permitted assigns.

 

9. Governing Law.  This Agreement and all matters arising herefrom shall be governed by, and construed in accordance with, the internal Laws of the State of New York applicable to contracts executed and fully performed within the State of New York, without regard to the conflicts of laws provisions thereof.  Any legal action or proceeding with respect to this Agreement shall be brought in the courts of the State of New York or of the United States of America for the State of New York, and, by execution and delivery of this Agreement, the parties hereto hereby accept for themselves and in respect of their property the jurisdiction of the aforesaid courts in connection with any such action or proceeding.  The parties hereto hereby irrevocably waive any objection, including any objection to the laying of venue or based on the grounds of forum non conveniens, which any of them may now or hereafter have to the bringing of any such action or proceeding in such respective jurisdictions.

 

10. Entire Agreement.  This Agreement together with the Exhibits attached hereto are intended to supersede all prior agreements, representations and understandings between or among any of the parties hereto relating to the subject matter hereof.

 

  

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11. Conflicts.  In the event of any conflict between the terms and provisions contained in this Agreement and the Purchase Agreement, this Agreement shall control.

 

12. Counterparts.  This Agreement may be executed and delivered in multiple counterparts (including by facsimile or electronic transmission), which when taken together shall constitute one and the same agreement.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

 

  

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IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed as of the date first written above.

 

PURCHASER

 

GETTY IMAGES, INC.

 

By: /s/ John Lapham         

Name: John Lapham

Title: SVP, General Counsel

 

 

SELLER

 

WEBMEDIABRANDS INC.

 

By: /s/ Alan M. Meckler               

Name: Alan M. Meckler

Title:  CEO

 

 

 

  

5Exhibit 10.15

 

Execution Version

 

POLYMER GROUP, INC.

 

SEPARATION AGREEMENT

 

THIS SEPARATION AGREEMENT is entered into on October 15,
2009, between Polymer Group, Inc., a Delaware corporation (the “Company”),
and Robert J. Kocourek (“Executive”).

 

WHEREAS, the Company and Executive are parties to a
certain change in control severance compensation agreement entered into on January 23,
2008, as amended by Amendment No. 1 to change in control severance
compensation agreement (the “Change in Control Agreement”); and

 

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 16,
2010 (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 the day after the
Company files its periodic report on Form 10-Q for the period ended October 3,
2009.  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 immediately
following the date of this Agreement through and including the Resignation Date
(the “Transition Period”).  At all times
during the Transition Period, the Executive will report directly to the CEO of
the Company.

 

(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 bi-weekly base salary in an amount
equal to $14,730.00 (the “Base Salary Payments”), until October 16, 2010
and, thereafter, until the earlier of April 16, 2011 or the date 

 

 

on which Executive obtains alternate employment (the “Payment End Date”).  Prior to the Payment End Date, Executive
shall notify the Company immediately upon obtaining alternate employment.  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.  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 the Resignation Date which were incurred in the course of performing
his duties and responsibilities and which are consistent with the Company’s
policies in effect from time to time with respect to travel, entertainment and
other business expenses, subject to the Company’s requirements with respect to
reporting and documentation of such expenses.

 

(c)          Bonus.  Executive
shall also be entitled to receive his share of any bonus amounts for the
Company’s 2009 fiscal year if such bonuses are awarded to senior management
generally in the discretion of the Compensation Committee of the Board of
Directors of the Company (the “Discretionary Bonus Payment”, which together
with the Base Salary Payments are referred to herein as the “Severance Payments”).  The Discretionary Bonus Payment shall be
made, if at all, simultaneously with payments to other members of senior
management.  Executive shall not be
entitled to receive any other amounts that may have been or become due to him
pursuant to any Company bonus plan in respect of a bonus for the current or any
subsequent fiscal year.  The amounts
payable under Sections 2(a) and 2(c) shall not be reduced by the
amount of any compensation Executive receives with respect to any other
employment through the Payment End Date.

 

(d)         Vested Restricted Stock and Vested Stock Options. 
Executive shall be entitled (i) to the vested portion of his
restricted stock grants (after reduction for shares withheld by the Company in
payment of taxes on behalf of Executive), subject to the terms and conditions
of the 2008 Stock Plan and 2005 Stock Plan, and (ii) to the vested portion
of the stock options grants, subject to the terms and conditions of the 2003
Option Plan; provided that the provisions of Section 2(c)(ii) of the
Restricted Stock Grant concerning service and performance vested shares and Section 2(b) of
the Restricted Stock Grant concerning immediately vested shares, and the
provisions of Section 6(d)(iii) of the 2003 Option Plan, in each case
covering forfeitures on certain terminations, shall not apply to the shares and
options referred to in this sentence; provided further, that Executive shall be
free to sell his shares of restricted stock, and agrees to only exercise any
stock options and sell the underlying shares of common stock, commencing on the
91st day following the Resignation Date.  The Company agrees that any change that is
generally made to any of the terms and conditions of the stock options issued
under the 2003 Option Plan or the shares issued upon exercise and that is
applicable to all employee holders of such stock options or shares shall also
be made available to the stock options or shares held by Executive.  All other grants of restricted stock and
stock options are hereby forfeited and cancelled.  All shares of restricted stock previously
withheld by the Company in satisfaction of amounts due for taxes resulting from
the grant of shares of restricted stock shall remain with the Company.

 

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(e)          Withholding.  All amounts
payable to Executive as compensation hereunder shall be subject to all required
and customary withholding by the Company.

 

(f)            Insurance.  Following the
Resignation Date and until October 16, 2010, the Company shall, at its
expense, pay the employer portion of the premiums for group medical, dental and
hospitalization insurance at the level and with the coverage in effect for
Executive and his dependants and beneficiaries immediately prior to the
Resignation Date.  Executive shall also
be entitled to receive the continuation of his group medical, dental and
hospitalization insurance coverage as provided under the provisions of the
Consolidated Omnibus Budget Reconciliation Act (“COBRA”) beginning on October 17,
2010, and continuing through October 16, 2011, at his sole cost and
expense.  The Company’s obligation
hereunder with respect to the foregoing benefits shall be limited to the extent
that the Executive obtains any such benefits pursuant to a subsequent employer’s
benefit plans, in which case the Company may reduce the coverage of any
benefits it is required to provide the Executive hereunder so long as the
aggregate coverage and benefits of the combined benefit plans is no less
favorable to the Executive than the coverages and benefits required to be
provided hereunder; provided, that any changes or amendments to such plans that
are applicable to other employees of the Company covered by such plans shall
also apply to Executive and his dependents and beneficiaries.  This subsection (f) shall not be
interpreted so as to limit any benefits to which the Executive, his dependants
or beneficiaries may otherwise be entitled under any of the Company’s employee
benefit plans, programs or practices following the termination of employment of
the Executive, including without limitation, any applicable retiree medical and
life insurance benefits.  The Company may
offset any amounts Executive owes it or its Subsidiaries against any amounts it
or its Subsidiaries owes Executive hereunder.

 

3.               Confidential Information.

 

(a)                                  Obligation to Maintain Confidentiality. 
Executive acknowledges that the continued success of the Company and its
Subsidiaries, depends upon the use and protection of a large body of
confidential and proprietary information. 
All of such confidential and proprietary information existing prior
hereto, now existing or to be developed in the future will be referred to in
this Agreement as “Confidential Information.”  Confidential Information will be interpreted
as broadly as possible to include all information of any sort (whether merely
remembered or embodied in a tangible or intangible form) that is (i) related
to the Company’s or its Subsidiaries’ current or potential business and (ii) is
not generally or publicly known. 
Confidential Information includes, without specific limitation, the
information, observations and data obtained by him during the course of his
employment by the Company and its Subsidiaries concerning the business and
affairs of the Company and its Subsidiaries, information concerning acquisition
opportunities in or reasonably related to the Company’s or its Subsidiaries’
business or industry of which Executive becomes aware during such employment,
the persons or entities that are current, former or prospective suppliers or
customers of any one or more of them during Executive’s employment, as well as
development, transition and transformation plans, methodologies and methods of
doing business, strategic, marketing and expansion plans, including plans
regarding planned and potential sales, financial and business plans, employee
lists and telephone numbers, locations of sales representatives, new and
existing programs and services, prices and terms, customer service, integration
processes, requirements and costs of providing service, support and 

 

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equipment.  Therefore, Executive
agrees that he shall not disclose to any unauthorized person or use for his own
account any of such Confidential Information, unless and to the extent that any
Confidential Information (i) becomes generally known to and available for
use by the public other than as a result of Executive’s acts or omissions to
act or (ii) is required to be disclosed pursuant to any applicable law or
court order.  Executive agrees to deliver
to the Company all memoranda, notes, plans, records, reports and other
documents (and copies thereof) relating to the business of the Company or its
Subsidiaries (including, without limitation, all Confidential Information) that
he may then possess or have under his control.

 

(b)                                 Ownership of Intellectual Property. 
Executive agrees to make prompt and full disclosure to the Company or
its Subsidiaries, as the case may be, of all ideas, discoveries, trade secrets,
inventions, innovations, improvements, developments, methods of doing business,
processes, programs, designs, analyses, drawings, reports, data, software,
firmware, logos and all similar or related information  (whether or not patentable and whether or not
reduced to practice) that relate to the Company’s or its Subsidiaries’ actual
or anticipated business, research and development, or existing or future
products or services and that are conceived, developed, acquired, contributed
to, made, or reduced to practice by Executive (either solely or jointly with
others) while employed by the Company or its Subsidiaries and for a period
thereafter ending on the second anniversary of the Resignation Date
(collectively, “Work Product”). 
Any copyrightable work falling within the definition of Work Product
shall be deemed a “work made for hire” under the copyright laws of the United
States, and ownership of all rights therein shall vest in the Company or its
Subsidiary. To the extent that any Work Product is not deemed to be a “work
made for hire,” Executive hereby assigns and agrees to assign to the Company or
such Subsidiary all right, title and interest, including without limitation,
the intellectual property rights that Executive may have in and to such Work
Product.  Executive shall promptly
perform all actions reasonably requested by the Board to establish and confirm
the Company’s or such Subsidiary’s ownership (including, without limitation,
providing testimony and executing assignments, consents, powers of attorney,
and other instruments).

 

(c)                                  Third Party Information. Executive understands that the Company
and its Subsidiaries have received from third parties confidential or
proprietary information (“Third Party Information”) subject to a duty on
the Company’s and its Subsidiaries’ part to maintain the confidentiality of
such information and to use it only for certain limited purposes.  Without in any way limiting the provisions of
Section 3(a) above, Executive will hold Third Party Information in
the strictest confidence and will not disclose to anyone (other than personnel
of the Company or its Subsidiaries who need to know such information in
connection with their work for the Company or such Subsidiaries) or use, such
Third Party Information unless expressly authorized by a member of the Board in
writing.

 

4.               Non-Compete, Non-Solicitation.

 

(a)                                  In further consideration of the
compensation to be paid to Executive hereunder, including the Severance
Payments, Executive acknowledges that during the course of his employment with
the Company and its Subsidiaries he became familiar with the Company’s trade
secrets and with other Confidential Information concerning the Company and its
predecessors and its Subsidiaries and that his services shall be of special,
unique and 

 

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extraordinary value to the Company and its Subsidiaries, and therefore,
Executive agrees that, from the date of this Agreement until April 16,
2011 (the “Noncompete Period”), he shall not directly or indirectly own
any interest in, manage, control, participate in, consult with, render services
for, or in any manner engage in any business competing with the businesses of
the Company or its Subsidiaries, as such businesses exist or were in process
during his employment by the Company and its Subsidiaries, within any geographical
area in which the Company or its Subsidiaries engage or plan to engage in such
businesses.  Nothing herein shall
prohibit Executive from (i) being a passive owner of not more than 2% of
the outstanding stock of any class of a corporation which is publicly traded,
so long as Executive has no active participation in the business of such
corporation or (ii) from owning an interest in, managing, controlling,
participating in, consulting with, or rendering services for a company in the
textile and apparel industry so long as the company does not manufacture,
market, or sell nonwoven products.  In
the event Executive is approached by a third party that is not a competitor of
the Company and asked to advise such third party with respect to a potential
acquisition of the Company, Executive may request the consent of the Company to
act in such capacity and the Company will consider such request in good faith.

 

(b)                                 During the Noncompete Period, Executive
shall not directly or indirectly through another person or entity (i) induce
or attempt to induce any employee of the Company or any Subsidiary to leave the
employ of the Company or such Subsidiary, or in any way interfere with the
relationship between the Company or any Subsidiary and any employee thereof, (ii) hire
any person who was an employee of the Company or any Subsidiary at any time
during his employment by the Company and its Subsidiaries or (iii) induce
or attempt to induce any customer, supplier, licensee, licensor, franchisee or
other business relation of the Company or any Subsidiary to cease doing
business with the Company or such Subsidiary, or in any way interfere with the
relationship between any such customer, supplier, licensee or business relation
and the Company or any Subsidiary (including, without limitation, making any
negative or disparaging statements or communications regarding the Company or
its Subsidiaries).

 

(c)                                  If, at the time of enforcement of this
paragraph 4, a court shall hold that the duration, scope or area restrictions
stated herein are unreasonable under circumstances then existing, the parties
agree that the maximum duration, scope or area reasonable under such
circumstances shall be substituted for the stated duration, scope or area and
that the court shall be allowed to revise the restrictions contained herein to
cover the maximum period, scope and area permitted by law.

 

(d)                                 In the event of the breach or a
threatened breach by Executive of any of the provisions of this paragraph 4,
the Company would suffer irreparable harm, and in addition and supplementary to
other rights and remedies existing in its favor, the Company shall be entitled
to specific performance and/or injunctive or other equitable relief from a
court of competent jurisdiction in order to enforce or prevent any violations
of the provisions hereof (without posting a bond or other security).  In addition, in the event of an alleged
breach or violation by Executive of this paragraph 4, the Noncompete Period
shall be tolled until such breach or violation has been duly cured.  Executive acknowledges that the restrictions
contained in paragraph 4 are reasonable and that he has reviewed the provisions
of this Agreement with his legal counsel.

 

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5.               Release.  Executive
shall execute the general release dated as of the date hereof (the “Release”)
attached as Exhibit A hereto. 
Without otherwise limiting the Company’s rights and subject to and in
further consideration of Executive’s obligations under the terms of this Agreement,
the Company agrees that it will not, except to the extent required by law,
require Executive to repay or otherwise seek recovery from Executive of any
salary or bonus amounts paid to, or vested restricted stock or vested stock
options granted to, Executive by the Company during Executive’s employment with
the Company.

 

6.               Executive’s Representations. 
Executive hereby represents and warrants to the Company that (i) the
execution, delivery and performance of this Agreement by Executive do not and
shall not conflict with, breach, violate or cause a default under any contract,
agreement, instrument, order, judgment or decree to which Executive is a party
or by which he is bound, (ii) Executive is not a party to or bound by any
employment agreement, noncompete agreement or confidentiality agreement with
any other person or entity and (iii) upon the execution and delivery of
this Agreement by the Company, this Agreement shall be the valid and binding
obligation of Executive, enforceable in accordance with its terms.  Executive hereby acknowledges and represents
that he has consulted with independent legal counsel regarding his rights and
obligations under this Agreement and that he fully understands the terms and
conditions contained herein.

 

7.               Notices.  Any notice
provided for in this Agreement shall be in writing and shall be either
personally delivered, sent by reputable overnight courier service or mailed by
first class mail, return receipt requested, to the recipient at the address
below indicated:

 

Notices to Executive:

 

Robert J. Kocourek

6618 Seton House Lane

Charlotte, NC  28277

 

Notices to the Company:

 

Polymer Group, Inc.

9335 Harris Corners Parkway, Suite 300

Charlotte, NC  28269

Attn:  General Counsel

 

or such other address or to the attention of such
other person as the recipient party shall have specified by prior written
notice to the sending party.  Any notice
under this Agreement shall be deemed to have been given when so delivered, sent
or mailed.

 

8.               Severability.  Whenever
possible, each provision of this Agreement shall be interpreted in such manner
as to be effective and valid under applicable law, but if any provision of this
Agreement is held to be invalid, illegal or unenforceable in any respect under
any applicable law or rule in any jurisdiction, such invalidity,
illegality or unenforceability shall not affect any other provision of this
Agreement or any action in any other jurisdiction, but this 

 

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Agreement shall be reformed, construed and enforced in
such jurisdiction as if such invalid, illegal or unenforceable provision had
never been contained herein.

 

9.               Complete Agreement.  This
Agreement, those documents expressly referred to herein and other documents of
even date herewith, including the Release referred to in Section 5, embody
the complete agreement and understanding among the parties and supersede and
preempt any prior understandings, agreements or representations by or among the
parties, written or oral, which may have related to the subject matter hereof
in any way.

 

10.         Termination of Change in Control Agreement. 
The Company and Executive hereby agree to terminate, in its entirety,
the Change in Control Agreement, without any obligation on the part of the
Company or Executive under such agreement for any event or transaction
occurring prior to or following the termination of such agreement.

 

11.         No Strict Construction.  The language
used in this Agreement shall be deemed to be the language chosen by the parties
hereto to express their mutual intent, and no rule of strict construction
shall be applied against any party.

 

12.         Counterparts.  This
Agreement may be executed in separate counterparts, each of which is deemed to
be an original and all of which taken together constitute one and the same
agreement.

 

13.         Successors and Assigns.  This
Agreement is intended to bind and inure to the benefit of and be enforceable by
Executive, the Company and their respective heirs, successors and assigns,
except that Executive may not assign his rights or delegate his duties or
obligations hereunder without the prior written consent of the Company.

 

14.         Choice of Law.  All issues
and questions concerning the construction, validity, enforcement and
interpretation of this Agreement and the exhibits and schedules hereto shall be
governed by, and construed in accordance with, the laws of the State of North
Carolina, without giving effect to any choice of law or conflict of law rules or
provisions (whether of the State of North Carolina or any other jurisdiction)
that would cause the application of the laws of any jurisdiction other than the
State of North Carolina.

 

15.         Amendment and Waiver.  The
provisions of this Agreement may be amended or waived only with the prior
written consent of the Company (as approved by the Board) and Executive, and no
course of conduct or course of dealing or failure or delay by any party hereto
in enforcing or exercising any of the provisions of this Agreement shall affect
the validity, binding effect or enforceability of this Agreement or be deemed
to be an implied waiver of any provision of this Agreement.

 

16.         Indemnification and Reimbursement of Payments on
Behalf of Executive.  The Company and its respective Subsidiaries
shall be entitled to deduct or withhold from any amounts owing from the Company
or any of its Subsidiaries to Executive any federal, state, local or foreign
withholding taxes, excise tax, or employment taxes (“Taxes”) imposed
with respect to Executive’s compensation or other payments from the Company or
any of its Subsidiaries or 

 

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Executive’s ownership interest in the Company
(including, without limitation, wages, bonuses, dividends, the receipt or
exercise of equity options and/or the receipt or vesting of restricted
equity).  In the event the Company or any
of its Subsidiaries does not make such deductions or withholdings, Executive
shall indemnify the Company and its Subsidiaries for any amounts paid with
respect to any such Taxes.

 

17.         Waiver of Jury Trial.  AS A
SPECIFICALLY BARGAINED FOR INDUCEMENT FOR EACH OF THE PARTIES HERETO TO ENTER
INTO THIS AGREEMENT (AFTER HAVING THE OPPORTUNITY TO CONSULT WITH COUNSEL), EACH
PARTY HERETO EXPRESSLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY LAWSUIT OR PROCEEDING
RELATING TO OR ARISING IN ANY WAY FROM THIS AGREEMENT OR THE MATTERS
CONTEMPLATED HEREBY.

 

18.         Executive’s Cooperation.  Executive
shall cooperate with the Company and its Subsidiaries in any internal
investigation or administrative, regulatory or judicial proceeding as
reasonably requested by the Company (including, without limitation, Executive
being available to the Company upon reasonable notice for interviews and
factual investigations, appearing at the Company’s request to give testimony without
requiring service of a subpoena or other legal process, volunteering to the
Company all pertinent information and turning over to the Company all relevant
documents which are or may come into Executive’s possession, all at times and
on schedules that are reasonably consistent with Executive’s other permitted
activities and commitments) and any request by Executive for indemnification by
the Company shall be subject to such cooperation from Executive.  In the event the Company requires Executive’s
cooperation in accordance with this paragraph, the Company shall reimburse
Executive solely for reasonable travel expenses (including lodging and meals,
upon submission of receipts); provided, that in the event Executive is
required to spend more than 40 hours in any one-year period assisting the
Company under this paragraph on any investigation or administrative, regulatory
or judicial proceeding that involves or arises out of matters or actions that
are substantially unrelated to any conduct of Executive during his employment
with the Company, as opposed to the mere fact that he was the Chief Financial
Officer of the Company during such time period, the Company shall reimburse
Executive for his time in excess of 40 hours at the rate of $350.00 per hour.  Executive also agrees not to initiate contact
with, or provide any information to, any third party in respect of any matter
involving the Company.  Executive shall
also make himself available for an exit interview, and shall provide true and
complete answers to all questions in such interview.

 

19.         Arbitration.  Except with
respect to disputes or claims under paragraphs 3 and 4 hereof (which may be
pursued in any court of competent jurisdiction as specified below and with
respect to which each party shall bear the cost of its own attorney’s fees and
expenses except as otherwise required by applicable law), each party hereto
agrees that the arbitration procedure set forth in Exhibit B hereto shall
be the sole and exclusive method for resolving any claim or dispute (“Claim”)
arising out of or relating to the rights and obligations acknowledged and
agreed to in this Agreement and the employment of Executive by the Company and
its Subsidiaries (including, without limitation, disputes and claims regarding
employment discrimination, sexual harassment, termination and discharge),
whether such Claim arose or the facts on which such Claim is based occurred
prior to or after the execution and delivery of adoption of this
Agreement.  The parties agree that the
result of any arbitration hereunder shall be final, 

 

8

 

conclusive and binding on all of the parties.  Nothing in this paragraph shall prohibit a
party hereto from instituting litigation to enforce any Final Determination (as
defined in Exhibit B hereto). 
Each party hereto hereby irrevocably submits to the jurisdiction of any
United States District Court or North Carolina state court of competent
jurisdiction sitting in Mecklenburg County, North Carolina, and agrees that such
court shall be the exclusive forum with respect to disputes and claims under
paragraphs 3 and 4 and for the enforcement of any Final Determination, and
irrevocably and unconditionally waives (i) any objection to the laying of
venue of any such action, suit or proceeding in such court or (ii) any
argument, claim, defense or allegation that any such action, suit or proceeding
brought in such court has been brought in an inconvenient forum.  Each party hereto irrevocably consents to
service of process by registered mail or personal service and waives any
objection on the grounds of personal jurisdiction, venue or inconvenience of
the forum.

 

20.         Section and Headings. 
The division of this Agreement into sections and the insertion of
headings are for the convenience of reference only and shall not affect the
construction or interpretation of this Agreement.  The terms “this Agreement”, “hereof”, “hereunder”
and similar expressions refer to this Agreement and not to any particular
section or other portion hereof.  Unless
something in the subject matter or context is inconsistent therewith,
references to sections and clauses are to sections and clauses of this
Agreement.

 

21.         Number.  In this
Agreement, words importing the singular number only shall include the plural
and vice versa, and words importing the masculine gender shall include the
feminine and neuter genders and vice versa, and words importing persons shall
include individuals, partnerships, associations, trusts, unincorporated
organizations and corporations.

 

22.         Independent Advice.  The Company
and the Executive acknowledge and agree that they have each obtained
independent legal advice in connection with this Agreement and they further
acknowledge and agree that they have read, understand and agree with all of the
terms hereof and that they are executing this Agreement voluntarily and in good
faith.

 

23.         Copy of Agreement.  The Executive
hereby acknowledges receipt of a copy of this Agreement duly signed by the
Company.

 

24.         Currency.  All dollar
amounts set forth or referred to in this Agreement refer to U.S. currency.

 

25.         Effectiveness.  Once this
Agreement has been duly executed and delivered by each party hereto, all of the
provisions shall become effective.

 

*    *    *   
*

 

9

 

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement on the date first written above.

 

 

	
   

  	
  Polymer Group, Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Robert J.
  Kocourek

  

 

 

 

Exhibit A

 

GENERAL
RELEASE

 

I, Robert J. Kocourek, in  consideration of and subject to the
performance by Polymer Group, Inc., a Delaware corporation (together with
its subsidiaries, the “Company”), of its obligations under the Separation
Agreement, entered into on October 15, 2009, (the “Agreement”), do
hereby release and forever discharge as of the date hereof the Company and its
affiliates and all present and former directors, officers, agents,
representatives, employees, successors and assigns of the Company and its
affiliates and the Company’s direct or indirect owners (collectively, the “Released
Parties”) to the extent provided below.

 

1.                                       I understand that any payments or
benefits paid or granted to me under paragraph 2 of the Agreement represent, in
part, consideration for signing this General Release and are not salary, wages
or benefits to which I was already entitled. I understand and agree that I will
not receive the payments and benefits specified in paragraph 2 of the Agreement
unless I execute this General Release and do not revoke this General Release
within the time period permitted hereafter or breach this General Release.  Such payments and benefits will not be
considered compensation for purposes of any employee benefit plan, program,
policy or arrangement maintained or hereafter established by the Company or its
affiliates.  I also acknowledge and
represent that I have received all payments and benefits that I am entitled to
receive (as of the date hereof) by virtue of any employment by the Company.

 

2.                                       Except as provided in paragraph 4 below,
I knowingly and voluntarily (for myself, my heirs, executors, administrators
and assigns) release and forever discharge the Company and the other Released
Parties from any and all claims, suits, controversies, actions, causes of
action, cross-claims, counter-claims, demands, debts, compensatory damages,
liquidated damages, punitive or exemplary damages, other damages, claims for
costs and attorneys’ fees, or liabilities of any nature whatsoever in law and
in equity, existing or hereafter arising, based in whole or in part upon any
act or omission, transaction, agreement, event or other occurrence taking place
from the beginning of time through the date this General Release becomes
effective and enforceable and whether known or unknown, suspected, or claimed
against the Company or any of the Released Parties which I, my spouse, or any
of my heirs, executors, administrators or assigns, may have, which arise out
of, are connected with, or occurred during my employment with, or my separation
or termination from, the Company (including, but not limited to, any
allegation, claim or violation, arising under: Title VII of the Civil Rights
Act of 1964, as amended; the Civil Rights Act of 1991; the Age Discrimination
in Employment Act of 1967, as amended (including the Older Workers Benefit
Protection Act); the Equal Pay Act of 1963, as amended; the Americans with
Disabilities Act of 1990; the Family and Medical Leave Act of 1993; the Worker
Adjustment Retraining and Notification Act; the Employee Retirement Income
Security Act of 1974; any applicable Executive Order Programs; the Fair Labor
Standards Act; or their state or local counterparts; the South Carolina Human
Affairs Law, S.C. Code sections 1-13-10 et seq.; S.C. Code sections 41-10-10 et
seq., the retaliatory employment discrimination provision of North Carolina law

 

A-1

 

or under any other federal, state or local civil or human rights law,
including the Sarbanes-Oxley Act of 2002, or under any other local, state, or
federal law, regulation or ordinance; or under any public policy, contract or
tort, or under common law; or arising under any policies, practices or
procedures of the Company; or any claim for wrongful discharge, breach of
contract, infliction of emotional distress, defamation; or any claim for costs,
fees, or other expenses, including attorneys’ fees incurred in these matters)
(all of the foregoing collectively referred to herein as the “Claims”).

 

3.                                       I represent that I have made no
assignment or transfer of the Claims or any other right, claim, demand, cause
of action, or other matter covered by paragraph 2 above.

 

4.                                       I agree that this General Release does
not waive or release any rights or claims that I may have under the Age
Discrimination in Employment Act of 1967, as amended, which arise after the
date I execute this General Release. I acknowledge and agree that my separation
from employment with the Company in compliance with the terms of the Agreement
shall not serve as the basis for any claim or action (including, without
limitation, any claim under the Age Discrimination in Employment Act of 1967,
as amended).

 

5.                                       In signing this General Release, I
acknowledge and intend that it shall be effective as a bar to each and every
one of the Claims hereinabove mentioned or implied. I expressly consent that
this General Release shall be given full force and effect according to each and
all of its express terms and provisions, including those relating to unknown
and unsuspected Claims (notwithstanding any state statute that expressly limits
the effectiveness of a general release of unknown, unsuspected and
unanticipated Claims), if any, as well as those relating to any other Claims
hereinabove mentioned or implied. I acknowledge and agree that this waiver is
an essential and material term of this General Release and that without such
waiver the Company would not have agreed to the terms of the Agreement.  I further agree that in the event I should
bring a Claim seeking damages against the Company, or in the event I should
seek to recover against the Company in any Claim brought by a governmental
agency on my behalf, this General Release shall serve as a complete defense to
such Claims. I further agree that I am not aware of any pending charge or
complaint of the type described in paragraph 2 as of the execution of this
General Release.

 

6.                                       I agree that neither this General
Release, nor the furnishing of the consideration for this General Release,
shall be deemed or construed at any time to be an admission by the Company, any
Released Party or myself of any improper or unlawful conduct.

 

7.                                       I agree that I will forfeit all amounts
payable by the Company pursuant to the Agreement if I challenge the validity of
this General Release. I also agree that if I violate this General Release by
suing the Company or the other Released Parties, I will pay all costs and
expenses of defending against the suit incurred by the Released Parties,
including reasonable attorneys’ fees, and return all payments received by me
pursuant to the Agreement.

 

A-2

 

8.                                       I agree that this General Release is
confidential and agree not to disclose any information regarding the terms of
this General Release, except to my immediate family and any tax, legal or other
counsel I have consulted regarding the meaning or effect hereof or as required
by law, and I will instruct each of the foregoing not to disclose the same to
anyone.

 

9.                                       Any non-disclosure provision in this
General Release does not prohibit or restrict me (or my attorney) from
responding truthfully to any valid inquiry about this General Release or its
underlying facts and circumstances by the Securities and Exchange Commission
(SEC), the Financial Industry Regulatory Authority (FINRA), any other
self-regulatory organization or governmental entity.

 

10.                                 I agree to reasonably cooperate with the
Company in any internal investigation or administrative, regulatory, or
judicial proceeding. I understand and agree that my cooperation may include,
but not be limited to, making myself available to the Company upon reasonable
notice for interviews and factual investigations; appearing at the Company’s
request to give testimony without requiring service of a subpoena or other
legal process; volunteering to the Company pertinent information; and turning
over to the Company all relevant documents which are or may come into my
possession all at times and on schedules that are reasonably consistent with my
other permitted activities and commitments; and any request by me for
indemnification by the Company shall be subject to such cooperation by me.  I understand that in the event the Company
asks for my cooperation in accordance with this provision, the Company will
reimburse me solely for reasonable travel expenses, including lodging and
meals, upon my submission of receipts; provided, that in the event
Executive is required to spend more than 40 hours in any one-year period
assisting the Company under this paragraph on any investigation or
administrative, regulatory or judicial proceeding that involves or arises out
of matters or actions that are substantially unrelated to any conduct of
Executive during his employment with the Company, as opposed to the mere fact
that he was the Chief Financial Officer of the Company during such time period,
the Company shall reimburse Executive for his time in excess of 40 hours at the
rate of $350.00 per hour.

 

11.                                 I agree not to disparage the Company, its
past and present investors, officers, directors or employees or its affiliates
and to keep all confidential and proprietary information about the past or
present business affairs of the Company and its affiliates confidential unless
a prior written release from the Company is obtained.  I further agree that as of the date hereof, I
have returned to the Company any and all property, tangible or intangible,
relating to its business, which I possessed or had control over at any time (including,
but not limited to, company-provided credit cards, building or office access
cards, keys, computer equipment, manuals, files, documents, records, software,
customer data base and other data) and that I shall not retain any copies,
compilations, extracts, excerpts, summaries or other notes of any such manuals,
files, documents, records, software, customer data base or other data.

 

A-3

 

12.                                 Notwithstanding anything in this General
Release to the contrary, this General Release shall not relinquish, diminish,
or in any way affect any rights or claims arising out of any breach by the
Company or by any Released Party of the Agreement after the date hereof.

 

13.                                 Whenever possible, each provision of this
General Release shall be interpreted in, such manner as to be effective and
valid under applicable law, but if any provision of this General Release is
held to be invalid, illegal or unenforceable in any respect under any
applicable law or rule in any jurisdiction, such invalidity, illegality or
unenforceability shall not affect any other provision or any other
jurisdiction, but this General Release shall be reformed, construed and
enforced in such jurisdiction as if such invalid, illegal or unenforceable
provision had never been contained herein.

 

BY SIGNING THIS GENERAL RELEASE, I REPRESENT AND AGREE
THAT:

 

(a)                                  I HAVE READ IT CAREFULLY;

 

(b)                                 I UNDERSTAND ALL OF ITS TERMS AND KNOW
THAT I AM GIVING UP IMPORTANT RIGHTS, INCLUDING BUT NOT LIMITED TO, RIGHTS
UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, AS AMENDED, TITLE VII
OF THE CIVIL RIGHTS ACT OF 1964, AS AMENDED; THE EQUAL PAY ACT OF 1963, THE
AMERICANS WITH DISABILITIES ACT OF 1990; AND THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED;

 

(c)                                  I VOLUNTARILY CONSENT TO EVERYTHING IN
IT;

 

(d)                                 I HAVE BEEN ADVISED TO CONSULT WITH AN
ATTORNEY BEFORE EXECUTING IT AND I HAVE DONE SO OR, AFTER CAREFUL READING AND
CONSIDERATION I HAVE CHOSEN NOT TO DO SO OF MY OWN VOLITION;

 

(e)                                  I HAVE BEEN GIVEN THE OPPORTUNITY FOR AT
LEAST 45 DAYS FROM THE DATE OF MY RECEIPT OF THIS RELEASE SUBSTANTIALLY IN ITS
FINAL FORM ON OCTOBER 13, 2009 TO CONSIDER IT AND THE CHANGES MADE SINCE
THE OCTOBER 13, 2009 VERSION OF THIS RELEASE ARE NOT MATERIAL AND WILL NOT
RESTART THE REQUIRED 45-DAY PERIOD;

 

(f)                                    THE CHANGES TO THE AGREEMENT SINCE
OCTOBER 13, 2009 EITHER ARE NOT MATERIAL OR WERE MADE AT MY REQUEST.

 

(g)                                 I UNDERSTAND THAT I HAVE SEVEN DAYS AFTER
THE EXECUTION OF THIS RELEASE TO REVOKE IT AND THAT THIS RELEASE SHALL NOT
BECOME EFFECTIVE OR ENFORCEABLE UNTIL THE REVOCATION PERIOD HAS EXPIRED;

 

(h)                                 I HAVE SIGNED THIS GENERAL RELEASE
KNOWINGLY AND VOLUNTARILY AND WITH THE ADVICE OF ANY COUNSEL RETAINED TO ADVISE
ME WITH RESPECT TO IT; AND

 

A-4

 

(i)                                     I AGREE THAT THE PROVISIONS OF THIS
GENERAL RELEASE MAY NOT BE AMENDED, WAIVED, CHANGED OR MODIFIED EXCEPT BY
AN INSTRUMENT IN WRITING SIGNED BY AN AUTHORIZED REPRESENTATIVE OF THE COMPANY
AND BY ME.

 

	
  DATE: OCTOBER 15, 2009

  	
   

  

 

A-5

 

Exhibit B

 

ARBITRATION
PROCEDURE

 

1.                                       Notice of Claim. 
A party asserting a Claim (the “Claimant”) shall deliver written
notice to each party against whom the Claim is asserted (collectively, the “Opposing
Party”), with a copy to the persons required to receive copies of notices
under the Agreement (the “Additional Notice Parties”), specifying the
nature of the Claim and requesting a meeting to resolve same.  The Additional Notice Parties shall be given
reasonable notice of and invited and permitted to attend any such meeting.  If no resolution is reached within 10
business days after delivery of such notice, the Claimant or the Opposing Party
may, within 45 days after giving such notice, invoke the arbitration procedure
provided herein by delivering to each Opposing Party and the Additional Notice
Parties a notice of arbitration which shall specify the Claim as to which
arbitration is sought, the nature of the Claim, the basis for the Claim and the
nature and amount of any damages or other compensation or relief sought (a “Notice
of Arbitration”).  Each party agrees
that no punitive damages may be sought or recovered in any arbitration,
judicial proceeding or otherwise. 
Failure to file a Notice of Arbitration within 45 days shall constitute
a waiver of any right to relief for the matters asserted in the notice of
Claim.  Any Claim shall be forever
barred, and no relief may be sought therefor, if written notice of such Claim
is not made as provided above within one year of the date such Claim accrues.

 

2.                                       Selection of Arbitrator. 
Within 20 business days after receipt of the Notice of Arbitration, the
Executive and a duly authorized representative of the Company shall confer,
whether in person, by telephone or in writing, and attempt to agree on an arbitrator
to hear and decide the Claim.  If the
Executive and the Board cannot agree on an arbitrator within ten business days,
then they shall request the American Arbitration Association (the “AAA”)
in Charlotte, North Carolina to appoint an arbitrator experienced in the area
of dispute who does not have an ongoing business relationship with any of the
parties to the dispute.  If the
arbitrator selected informs the parties he cannot hear and resolve the Claim
within the time-frame specified below, the Executive and the Board shall
request the appointment of another arbitrator by the AAA subject to the same
requirements.

 

26.         Arbitration Procedure.  The following
procedures shall govern the conduct of any arbitration under this section.  All procedural matters relating to the
conduct of the arbitration other than those specified below shall be discussed
among counsel for the parties and the arbitrator.  Subject to any agreement of the parties, the
arbitrator shall determine all procedural matters not specified herein.

 

(a)                                  Within 30 days after the delivery of a
Notice of Arbitration, each party shall afford the other, or its counsel, with
reasonable access to documents relating directly to the issues raised in the
Notice of Arbitration.  All documents
produced and all copies thereof shall be maintained as strictly confidential,
shall be used for no purpose other than the arbitration hereunder, and shall be
returned to the producing party upon completion of the arbitration.  There shall be no other discovery except
that, if a reasonable need is shown, limited depositions may be allowed in the
discretion of the arbitrator, it being the expressed intention and agreement of
each 

 

B-1

 

party to have the arbitration proceedings conducted and resolved as
expeditiously, economically and fairly as reasonably practicable, and with the
maximum degree of confidentiality.

 

(a)          All written communications regarding the proceeding
sent to the arbitrator shall be sent simultaneously to each party or its
counsel, with a copy to the Additional Notice Parties.  Oral communications between any of the
parties or their counsel and the arbitrator shall be conducted only when all
parties or their counsel are present and participating in the conversation.

 

(b)         Within 20 days after selection of the arbitrator, the
Claimant shall submit to the arbitrator a copy of the Notice of Arbitration,
along with a supporting memorandum and any exhibits or other documents
supporting the Claim.

 

(c)          Within 20 days after receipt of the Claimant’s
submission, the Opposing Party shall submit to the arbitrator a memorandum
supporting its position and any exhibits or other supporting documents.  If the Opposing Party fails to respond to any
of the issues raised by the Claimant within 20 days of receipt of the Claimant’s
submission, then the arbitrator may find for the Claimant on any such issue and
bar any subsequent consideration of the matter.

 

(d)         Within 20 days after receipt of the Opposing Party’s
response, the Claimant may submit to the arbitrator a reply to the Opposing
Party’s response, or notification that no reply is forthcoming.

 

(e)          Within 10 days after the last submission as provided
above, the arbitrator shall confer with the parties to select the date of the
hearing on the issues raised by the Claim. 
Scheduling of the hearing shall be within the sole discretion of the
arbitrator, but in no event more than 30 days after the last submission by the
parties, and shall take place within 50 miles of the corporate headquarters of
the Company at a place selected by the arbitrator or such other place as is
mutually agreed.  Both parties shall be
granted substantially equal time to present evidence at the hearing.  The hearing shall not exceed one business day,
except for good cause shown.

 

(f)            Within 30 days after the conclusion of the hearing,
the arbitrator shall issue a written decision to be delivered to both parties
and the Additional Notice Parties (the “Final Determination”).  The Final Determination shall address each
issue disputed by the parties, state the arbitrator’s findings and reasons
therefor, and state the nature and amount of any damages, compensation or other
relief awarded.

 

(g)         The award rendered by the arbitrator shall be final
and non-appealable, except as otherwise provided under the Federal Arbitration
Act, and judgment may be entered upon it in accordance with applicable law in
such court as has jurisdiction thereof.

 

27.         Costs of Arbitration.  Each party
shall bear its own costs of conducting the arbitration, and administrative fees
shall be shared equally among the parties.

 

28.         Satisfaction of Award.  If any party
fails to pay the amount of the award, if any, assessed against it within 30
days after the delivery to such party of the Final Determination, 

 

B-2

 

the unpaid amount shall bear interest from the date of
such delivery at the lesser of (i) prime lending rate announced by
Citibank N.A. plus three hundred basis points and (ii) the maximum rate
permitted by applicable usury laws.  In
addition, such party shall promptly reimburse the other party for any and all
costs or expenses of any nature or kind whatsoever (including attorneys’ fees)
reasonably incurred in seeking to collect such award or to enforce any Final
Determination.

 

29.         Confidentiality of Proceedings. 
The parties hereto agree that all of the arbitration proceedings
provided for herein, including any notice of claim, the Notice of Arbitration,
the submissions of the parties, and the Final Determination issued by the
arbitrator, shall be confidential and shall not be disclosed at any time to any
person other than the parties, their representatives, the arbitrator and the
Additional Notice Parties; provided, however, that this provision shall not
prevent the party prevailing in the arbitration from submitting the Final
Determination to a court for the purpose of enforcing the award, subject to
comparable confidentiality protections if the court agrees; and further provided
that the foregoing shall not prohibit disclosure to the minimum extent
reasonably necessary to comply with (i) applicable law (or requirement
having the force of law), court order, judgment or decree, including, without
limitation, disclosures which may be required pursuant to applicable securities
laws, and (ii) the terms of contractual arrangements (such as financing
arrangements) to which the Company or any Additional Notice Party may be
subject so long as such contractual arrangements were not entered into for the
primary purpose of permitting disclosure which would otherwise be prohibited
hereunder.

 

B-3

 

ANNEX
I

 

SUBSIDIARIES

 

Albuma S.A.S.

 

Bonlam Holdings BV

 

Bonlam S.A. de C.V.

 

Chicopee Asia Limited

 

Chicopee Holdings B.V.

 

Chicopee Holdings CV

 

Chicopee, Inc.

 

DIFCO Performance Fabrics
Inc.

 

Dominion Nonwovens
Sudamerica, S.A.

 

Dominion Textile (USA) L.L.C.

 

Dominion Textile
Mauritius Inc.

 

Dominion Textile, Inc.

 

DT Acquisition Inc.

 

Fabrene, L.L.C.

 

Fabrene, Inc.

 

Geca Tapes B.V.

 

Geca-Tapes PTE LTD

 

Nanhai Nanxin Non-Wovens
Co. Ltd.

 

Nordlys SAS

 

Parametro Technologico,
S.L.

 

PGI Europe, Inc.

 

PGI Holdings BV

 

PGI Neunkirchen GmbH

 

PGI Nonwoven (Foshan) Co.
Ltd.

 

PGI Nonwoven Ltd.

 

 

PGI Nonwovens (China) Co.
Ltd.

 

PGI Nonwovens A.B.

 

PGI Nonwovens BV

 

PGI Nonwovens Mauritius

 

PGI Nonwovens Switzerland
Sarl

 

PGI Polymer, Inc.

 

Pristine Brands
Corporation

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