Document:

Separation Agreement between Gary L. Smith and the Company

 Exhibit 10.1 
 SEPARATION AGREEMENT 
 International Textile Group, Inc. (and each of its subsidiaries and affiliates, the
“Company”) and Gary L. Smith (“Executive”) enter into this Separation Agreement (“Agreement”), which was signed by Executive on the 17 of April, 2008 and is effective on the 24 day of April, 2008 (the “Effective
Date”). The Effective Date shall be no less than 7 days after the date signed by Executive. 
 WITNESSETH: 
 WHEREAS, Executive has been employed by, or an officer or director of, International Textile Group, Inc. and certain of its subsidiaries and affiliates; 
 WHEREAS, Executive and the Company (each a “Party,” and together, the “Parties”) have agreed that Executive’s employment with the Company will
terminate as of May 31, 2008; 
 WHEREAS, Executive and the Company have negotiated and reached an agreement with respect to all rights, duties, and
obligations between them, including, but in no way limited to, any rights, duties, and obligations that have arisen or might arise out of or are in any way related to Executive’s employment with the Company and the termination of that
employment. 
 NOW, THEREFORE, in consideration of the covenants and mutual promises herein contained, it is agreed as follows: 
  

	 	1.	Date of Termination: Until May 31, 2008, (the “Date of Termination”), and subject to the terms and conditions of this Agreement, Executive shall continue as an
employee of the Company and shall continue to receive the same compensation and benefits Executive presently receives. Executive agrees to resign employment and all appointments Executive holds with the Company or its subsidiaries effective on the
Date of Termination. Executive understands and agrees that Executive’s employment with the Company will conclude on the close of business on the Date of Termination. 

  

	 	2.	Salary Continuation Payments: 

  

	 	a.	 Except as set forth in the following sentence, the Company hereby agrees to pay Executive, during the period commencing on the day following the Date of Termination
and ending on May 31, 2010 (the “Salary Continuation Period”), pursuant to this Agreement, an aggregate amount of $826,000 (two times the total amount of Executive’s previous base salary and car allowance), payable in arrears in
24 monthly payments in the amount of $34,416.68 each, and reduced by applicable withholdings and other customary payroll deductions (collectively, the “Salary 

  

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Continuation Payments”). To comply with IRC § 409A, Salary Continuation Payments for the first six months will be accumulated and paid to the
Executive on December 1, 2008. To compensate for the time value of money with respect to the delayed payments, the Company will pay the Executive an additional $3,500.00 on December 1, 2008. 

  

	 	b.	In the event of the Executive’s death during the Salary Continuation Period, the Salary Continuation Payments, the annual bonus referred to in Paragraph 4, the vacation pay
referred to in Paragraph 3, payments respecting stock options and restricted stock referred to in Paragraph 5, and benefits referred to in Paragraphs 6 and 7 shall be payable to Executive’s spouse, or if Executive’s spouse should
predecease Executive, to Executive’s estate. 

  

	 	3.	Receipt of Other Compensation and Benefits: Executive acknowledges and agrees that, other than as specifically set forth in this Agreement, following the Date of Termination,
Executive is not and will not be due any compensation, including, but not limited to, compensation of unpaid salary (except for amounts unpaid and owing for Executive’s employment with the Company prior to the Date of Termination), unpaid
bonus, severance, and accrued or unused vacation time or vacation pay from the Company (Executive, however, on the Date of Termination, shall be paid an amount equal to three (3) weeks of vacation); and as of and after the Date of Termination,
except as provided herein, Executive will not be eligible to participate in any of the benefit plans of the Company. Executive will, however, be entitled to receive benefits which are vested and accrued prior to the Date of Termination pursuant to
the employee benefit plans of the Company in which Executive participates. Participation by the Executive (if any) in any of the compensation or benefit plans of the Company as of and after the Date of Termination shall be subject to and determined
in accordance with the terms and conditions of such plans, except as otherwise expressly set forth in this Agreement. The Company shall promptly reimburse Executive for business expenses incurred in the ordinary course of the Executive’s
employment on or before the Date of Termination, but not previously reimbursed, provided the Company’s policies of documentation and approval are satisfied. 

  

	 	4.	Annual Bonus: For the Salary Continuation Period, Executive shall receive two annual bonuses, each in the amount of $74,520.00, payable on February 28, 2009 and
February 28, 2010, aggregating to $149,040.00. The bonus payments provided for in this Paragraph 4 shall be in lieu of, not in addition to all bonuses that might otherwise have been payable to the Executive but for the termination of
Executive’s employment. Each bonus payment shall be reduced by applicable withholding and other customary payroll deductions. Executive shall not be entitled to participate in any management incentive plan for fiscal year 2008 or thereafter.

  

	 	5.	Stock Options and Restricted Stock: Executive’s Stock Options and Restricted Shares of the Company’s common stock shall vest upon the Date of Termination and the
Company shall make to Executive a tax gross-up payment with respect to the Restricted Stock. This tax gross-up payment will be made upon vesting. 

  

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	 	6.	Other Benefits 

  

	 	a.	Legal Fees: On Executive’s behalf, and at his request, the Parties agree that the Company will pay Executive’s attorney up to a maximum of Ten Thousand Dollars
($10,000.00) to advise Executive with respect to this Agreement. This payment will be made in the month following the Date of Termination. 

  

	 	b.	Outplacement Services: During the Salary Continuation Period, or until Executive is employed by a third party, the Company will pay for outplacement services for Executive
with an outplacement firm approved by the Company in an amount not to exceed Ten Thousand Dollars ($10,000.00). 

  

	 	c.	Unemployment Compensation: If, at the conclusion of the Salary Continuation Period, Executive has not obtained other employment or is not engaged in a business of his own,
and makes a claim for unemployment compensation arising out of his employment by the Company to which he is entitled, the Company agrees not to contest such claim. 

  

	 	d.	Indemnification: As a former officer and director of the Company, Executive shall be entitled to indemnification by the Company to the fullest extent permitted by any
applicable law (including the Delaware statutes), the Company’s Certificates of Incorporation, any Indemnification Agreement with the Company, and the Company’s Directors’ and Officers’ liability insurance.

  

	 	7.	 Employee Benefits: For the Salary Continuation Period, Executive will be entitled to participate in such hospitalization, life insurance, and other employee
benefit plans and programs (except as set forth herein) existing as of the date of this Agreement, in accordance with the provisions of such plans and programs on the same basis as full-time salaried employees of the Company who participate in such
employee benefit plans (except to the extent that the benefits provided under any of the plans or programs are expressly offset by any of the benefits provided under this Agreement). For the avoidance of doubt, Executive’s long term disability
coverage stops at the Date of Termination, but continuation of Executive’s supplemental long-term disability coverage is under the terms of his policy. At the end of the Salary Continuation Period, Executive and any eligible dependents will be
eligible to elect COBRA continuation coverage under the group health plans (medical and dental) generally available to executives of the Company. The amount of expenses eligible for reimbursement, or in-kind benefits, provided under this paragraph
during the Executive’s taxable year may not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year. The reimbursement of any eligible expense 

  

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must be made on or before the last day of the Executive’s taxable year following the taxable year in which the expense was incurred. This right to
reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit. 

  

	 	8.	Continuing Cooperation: Following the Date of Termination, Executive agrees to cooperate with all reasonable requests for information made by or on behalf of the Company with
respect to the operations, practices, and policies of the Company. In addition, Executive agrees that he will assist and cooperate with the Company, to the extent reasonably requested, in any lawsuits, disputes, differences, grievances, claims,
charges, or complaints brought or threatened by any party against the Company or brought by the Company against any party. In connection with any such request: 

  

	 	a.	the Company shall reimburse Executive for all out-of-pocket expenses reasonably and necessarily incurred in responding to such request(s); and 

  

	 	b.	if cooperation with any such request requires more than four (4) hours of Executive’s time, the Company shall pay Executive a reasonable hourly consulting fee for
Executive’s time spent responding to such request. 

  

	 	9.	Confidentiality, Non-Compete, and Non-Solicitation 

  

	 	a.	Non-Disclosure: Unless compelled by subpoena or required by law, Executive expressly covenants and agrees that he will not reveal, use, divulge, or make known to any person,
firm, company or corporation any secret or confidential information of any nature concerning the Company or its business or anything connected therewith. 

  

	 	b.	Return of Materials: Executive agrees to deliver or return to the Company upon the Date of Termination or as soon thereafter as possible, all written information and any
other similar items furnished by the Company or prepared by Executive in connection with his services hereunder. Executive will retain no copies thereof after the Date of Termination. 

  

	 	c.	 Non-Competition: After the Date of Termination, and subject to the Company’s compliance with Sections 2 through 7 of this Agreement, Executive shall not
(except as an agent or consultant of the Company or unless consented to in writing by the Chief Executive Officer of the Company), during the two (2) year period following the Date of Termination, directly or indirectly, (i) own, manage,
operate, join, or have a financial interest in, control or participate in the ownership, management, operation or control of, or be employed as an employee, agent or consultant, or in any other individual or representative capacity whatsoever, or
use or permit his name to be used in connection with, or be otherwise connected in any manner with any business or enterprise that is actively engaged in any business in the Restricted Industry within the Restricted Territory; provided that the
foregoing restriction shall not be construed to prohibit the ownership by Executive of not more than one 

  

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percent (1%) of any class of securities registered pursuant to the Securities Exchange Act of 1934, which securities are publicly owned and regularly
traded on any national exchange or in the over-the-counter market, provided, further, that such ownership represents a passive investment and that neither Executive nor any group of persons including Executive in any way, either directly or
indirectly, manages or exercises control of any such corporation, guarantees any of its financial obligations, otherwise takes part in its business other than exercising his rights as a shareholder, or seeks to do any of the foregoing or
(ii) solicit, call upon, divert or take away any Restricted Customers for purposes of conducting business in the Restricted Industry. 

 For purposes of this Agreement: 
 “Restricted Customers” means all the specific accounts, whether
within or outside the Restricted Territory, with which Executive had any contact or for which Executive had any responsibility (either direct or supervisory) at the time of termination of Executive’s employment and at any time during the two
(2) year period prior to such termination. 
 “Restricted Industry” means the specific industry segment or segments for which
the Executive had any responsibility (either direct or supervisory) at the time of termination of Executive’s employment and at any time during the two (2) year period prior to such termination. 
 “Restricted Territory” means the geographic area(s) within a 200 mile radius of any and all Company location(s) in, to, or for which the
Executive worked, to which Executive was assigned or had any responsibility (either direct or supervisory) at the time of termination of Executive’s employment and at any time during the two (2) year period prior to such termination.

  

	 	d.	No Solicitation: In addition to the limitation imposed by paragraph c. above, unless consented to in writing by the Chief Executive Officer of the Company and subject to the
Company’s compliance with Sections 2 through 7 of this Agreement, Executive hereby further agrees and covenants that during the two (2) year period following the Date of Termination, he shall not, directly or indirectly, on his own behalf
or with others (a) induce or attempt to induce any employee of the Company to leave the employ of the Company, or in any way interfere with the relationship between the Company and any employee; (b) knowingly hire any employee of the
Company; or (c) induce or attempt to induce any referral source or other business relation of the Company not to do business with the Company, or cease doing business with the Company, or in any way interfere with the relationship between any
such referral source or business relation and the Company. 

  

	 	e.	 Injunctive Relief: Executive acknowledges that it is impossible to measure in money the damages that will accrue to the Company by reason 

  

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of Executive’s failure to observe any of the obligations imposed on him by this Section 9. Accordingly, if the Company shall institute an action to
enforce the provisions hereof, Executive hereby waives the claim or defense that an adequate remedy at law is available to the Company, and Executive agrees not to urge in any such action the claim or defense that such remedy at law exists.

  

	 	f.	Severability: If a final determination is made by a court, having competent jurisdiction that the time or territory or any other restriction contained in paragraphs a., c.,
or d. is an unenforceable restriction on Executive’s activities, the provisions of paragraphs a., c., or d. shall not be rendered void but shall be deemed to be amended to apply such maximum time and territory and other such restrictions as
such court may judicially determine or otherwise indicate to be reasonable. 

  

	 	10.	Confidentiality of this Agreement: Except as to comply with legal disclosure requirements or as otherwise required or protected by law, the Parties represent and agree that
they will keep the terms and monetary amounts contained in this Agreement confidential and will not disclose any information regarding this Agreement to anyone other than their attorneys, auditors, tax advisors, financial advisors, Executive’s
spouse, and/or other individuals who have a reasonable need to know, who agree to be bound by these confidentiality provisions. 

  

	 	11.	Non-Disparagement: At all times after the Date of Termination, the Parties shall not criticize or disparage each other, the Company’s directors, officers, employees, or
affiliates in a manner reasonably calculated to result in public embarrassment to, or injury to the business or reputation of any of them. The obligations of this Paragraph 11 shall survive the expiration of the Salary Continuation Period.

  

	 	12.	Executive’s Conduct: Executive hereby represents and warrants that, during Executive’s period of employment with the Company, Executive did not willfully or through
gross negligence breach Executive’s duties as an employee of the Company. 

  

	 	13.	Breach of Agreement: 

  

	 	a.	In the event of any dispute of this Agreement, the party who has the claim under this Agreement shall give the other party written notice and, except in the case of a breach of this
Agreement which is not susceptible to being cured (such as the disclosure of confidential information), ten calendar days in which to cure the breach of this Agreement. 

  

	 	b.	 In the event Executive breaches any of the covenants and obligations set forth in this Agreement, including without limitation, a breach of Paragraphs 9, 10, 11, or
12, then the Company’s obligation to make any further Salary Continuation Payments under this Agreement or provide further any benefit or payment pursuant to Paragraphs 3, 4, 5, 6, or 7 of 

  

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this Agreement shall immediately cease. The cessation of the Company’s obligation to make any further Salary Continuation Payments shall be in addition
to, and not in lieu of, any other recovery or claims that the Company may assert. In the event the Company breaches its obligation to make any Salary Continuation Payments under this Agreement or provide any benefit or payment pursuant to Paragraphs
3, 4, 5, 6, or 7 of this Agreement, and such breach is not cured within twenty (20) days of the Company being notified by Executive of such breach, Executive’s obligations under this Agreement, including without limitation, under
Paragraphs 9, 10, 11, or 12, shall immediately cease. The cessation of Executive’s obligations under this Agreement shall be in addition to, and not in lieu of, any other recovery or claims that Executive may assert.

  

	 	c.	Executive and the Company acknowledge and agree that the Company will or would suffer irreparable injury in the event of a breach or violation or threatened breach or violation of
the provisions set forth in Paragraphs 9, 10, 11, or 12 of this Agreement and agree that in the event of an actual or threatened breach or violation of such provisions, the Company shall be entitled to injunctive relief in the federal or state
courts located in North Carolina to prohibit any such violation or breach or threatened violation or breach, without necessity of posting any bond or security. Such right to injunctive relief shall be in addition to any other right under this
Agreement. 

  

	 	14.	Executive’s Release and Covenant Not to Sue 

  

	 	a.	 Executive, on behalf of Executive’s heirs, executors, administrators, and assigns, does hereby knowingly and voluntarily release, acquit, and forever discharge
the Company, successors, assigns, and past, present, and future directors, officers, employees, trustees, and shareholders of the Company (the “Released Parties”) from and against any and all charges, complaints, claims, cross-claims,
third party claims, counterclaims, contribution claims, liabilities, obligations, promises, agreements, controversies, damages, actions, causes of action, suits, rights, demands, costs, losses, debts, and expenses of any nature whatsoever, known or
unknown, suspected or unsuspected, foreseen or unforeseen, matured or unmatured, which, at any time up to and including the date on which Executive signs this Agreement, exist, have existed, or may arise from any matter whatsoever occurring,
including, but not limited to, any claims arising out of or in any way related to Executive’s employment with the Released Parties and the termination thereof, which Executive, or any of Executive’s heirs, executors, administrators,
assigns, affiliates, and agents ever had, now has, or at any time hereafter may have, own, or hold against any of the Released Parties based on any matter (known or unknown) existing on or before the date on which Executive signs this Agreement;
provided, however, nothing herein shall release any claim by Executive (his heirs, executors, administrators, and assigns) against the Released 

  

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Parties for breach of any obligation under this Agreement or to recover vested benefits under the Employee Retirement Income Security Act of 1974, as
amended. Executive acknowledges that in exchange for this release, the Company is providing Executive with total consideration, financial or otherwise, which exceeds that which Executive might otherwise have been entitled without the release. By
executing this Agreement, Executive is waiving, without limitation, all claims against the Released Parties arising under federal, state, and local labor and anti-discrimination laws, any employment related claims under the Employee Retirement
Income Security Act of 1974, as amended, and any other restriction on the right to terminate employment, including, without limitation, Title VII of the Civil Rights Act of 1964, as amended, the Americans with Disabilities Act of 1990, as amended,
and the North Carolina Human Rights Act, as amended. Nothing herein shall release any Party from any obligation of this Agreement. 

  

	 	b.	 EXECUTIVE SPECIFICALLY WAIVES AND RELEASES THE RELEASED PARTIES FROM ALL CLAIMS EXECUTIVE MAY HAVE AS OF THE DATE EXECUTIVE SIGNS THIS AGREEMENT REGARDING CLAIMS OR
RIGHTS ARISING UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, AS AMENDED, 29 U.S.C. § 621 (“ADEA”). EXECUTIVE FURTHER AGREES: (A) THAT EXECUTIVE’S WAIVER OF RIGHTS UNDER THIS RELEASE IS KNOWING AND VOLUNTARY AND IN
COMPLIANCE WITH THE OLDER WORKER’S BENEFIT PROTECTION ACT OF 1990; (B) THAT EXECUTIVE UNDERSTANDS THE TERMS OF THIS RELEASE; (C) THAT THE SALARY CONTINUATION PAYMENTS AND OTHER BENEFITS CALLED FOR IN THIS AGREEMENT WOULD NOT BE
PROVIDED TO ANY EXECUTIVE TERMINATING HIS OR HER EMPLOYMENT WITH THE COMPANY WHO DID NOT SIGN A RELEASE SIMILAR TO THIS RELEASE, AND THAT SUCH PAYMENTS WOULD NOT HAVE OTHERWISE BEEN OWED TO EXECUTIVE PURSUANT TO ANY PREEXISTING OBLIGATION OF ANY
KIND HAD EXECUTIVE NOT SIGNED THIS RELEASE, AND THAT THE PAYMENTS AND BENEFITS ARE IN EXCHANGE FOR THE SIGNING OF THIS RELEASE; (D) THAT EXECUTIVE HEREBY IS AND HAS BEEN ADVISED IN WRITING BY THE COMPANY TO CONSULT WITH AN ATTORNEY PRIOR TO
EXECUTING THIS RELEASE AND EXECUTIVE HEREBY ACKNOWLEDGES THAT HE HAS IN FACT DONE SO AND THAT THE ATTORNEY HAS FULLY EXPLAINED IN A MANNER UNDERSTOOD BY HIM THE WAIVER OF ANY RIGHTS AND CLAIMS CONTAINED IN THIS SEPARATION AGREEMENT; (E) THAT
THE COMPANY HAS GIVEN EXECUTIVE A PERIOD OF UP TO TWENTY-ONE (21) DAYS WITHIN TO CONSIDER THIS RELEASE AND TO CONSULT WITH AN ATTORNEY, ACCOUNTANT, OR OTHER ADVISOR BEFORE SIGNING THIS AGREEMENT AND THAT THE ACTUAL 

  

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TIME HE HAS TAKEN FOR SUCH PURPOSES WAS ADEQUATE FOR ALL APPROPRIATE CONSULTATIONS; (F) THAT EXECUTIVE REALIZES THAT FOLLOWING EXECUTIVE’S
EXECUTION OF THIS RELEASE, EXECUTIVE HAS SEVEN (7) DAYS IN WHICH TO REVOKE THIS RELEASE BY WRITTEN NOTICE TO THE UNDERSIGNED; AND (G) THAT THIS ENTIRE AGREEMENT SHALL BE VOID AND OF NO FORCE AND EFFECT IF EXECUTIVE CHOOSES TO SO REVOKE,
AND IF EXECUTIVE CHOOSES NOT TO SO REVOKE, THAT THIS AGREEMENT AND RELEASE THEN BECOMES EFFECTIVE AND ENFORCEABLE UPON THE EIGHTH DAY AFTER EXECUTIVE SIGNS THIS AGREEMENT. 

  

	 	c.	To the maximum extent permitted by law, Executive covenants not to sue or to institute or cause to be instituted any action in federal, state, or local agency or court against the
Released Parties, including, but not limited to, any of the claims released in this Agreement. Notwithstanding the foregoing, nothing herein shall prevent Executive or any of the Released Parties from instituting any action required to enforce the
terms of this Agreement or from challenging the validity of the release outlined in Paragraphs 14 a. and b. above. In addition, nothing herein shall be construed to prevent Executive from enforcing any rights Executive may have to recover vested
benefits under the Employee Retirement Income Security Act of 1974, as amended. 

  

	 	d.	Executive represents and warrants that: (a) Executive has not filed or initiated any legal, equitable, administrative, or other proceeding(s) against any of the Released
Parties; (b) no such proceeding(s) have been initiated against any of the Released Parties on Executive’s behalf; (c) Executive is the sole owner of the actual or alleged claims, demands, rights, causes of action, and other matters
that are released in this Paragraph 14; (d) the same have not been transferred or assigned or caused to be transferred or assigned to any other person, firm, corporation or other legal entity; and (e) Executive has the full right and power
to grant, execute, and deliver the releases, undertakings, and agreements contained in this Agreement. 

  

	 	e.	The consideration offered herein is accepted by Executive as being in full accord, satisfaction, compromise and settlement of any and all claims or potential claims, and Executive
expressly agrees that, except as provided for in this Agreement, Executive is not entitled to and shall not receive any further payments, benefits, or other compensation or recovery of any kind from the Company or any of the other Released Parties.
Executive further agrees that in the event of any further proceedings whatsoever based upon any matter released herein, the Company and each of the other Released Parties shall have no further monetary or other obligation of any kind to Executive,
including without limitation any obligation for any costs, expenses, and attorneys’ fees incurred by or on behalf of Executive. 

  

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	 	15.	The Company’s Release and Covenant Not to Sue: 

  

	 	a.	The Released Parties do hereby knowingly and voluntarily release, acquit, and forever discharge the Executive from and against any and all charges, complaints, claims, cross-claims,
third party claims, counterclaims, contribution claims, liabilities, obligations, promises, agreements, controversies, damages, actions, causes of action, suits, rights, demands, costs, losses, debts, and expenses of any nature whatsoever, known or
unknown, suspected or unsuspected, foreseen or unforeseen, matured or unmatured, which, at any time up to and including the date on which this Agreement is executed, exist, have existed, or may arise from any matter whatsoever occurring, including,
but not limited to, any claims arising out of or in any way related to Executive’s employment with the Released Parties and the termination thereof, which any Released Party ever had, now has, or at any time hereafter may have, own, or hold
against the Executive based on any matter (known or unknown) existing on or before the date on of execution of this Agreement. 

  

	 	b.	The Company represents and warrants that the Company has the full right and power to grant, execute, and deliver this Agreement on behalf of the Company, its subsidiaries and
affiliates, and this Agreement represents the legal, valid and binding obligation of such parties, enforceable against such parties, jointly and severally, in accordance with its terms, except as enforceability may be limited by equitable principles
or by bankruptcy, fraudulent conveyance or insolvency laws affecting the enforcement of creditors’ rights generally. 

  

	 	16.	Executive’s Understanding: Executive acknowledges and reaffirms by signing this Agreement that Executive has read and understands this document, that Executive has
conferred with or had the opportunity to confer with Executive’s attorney regarding the terms and meaning of this Agreement, that Executive has had sufficient time to consider the terms provided for in this Agreement, that no representation or
inducements have been made to Executive except as set forth in this Agreement, and that Executive has signed the same KNOWINGLY AND VOLUNTARILY. 

  

	 	17.	Non-Reliance: Executive represents to the Company and the Company represents to Executive that in executing this Agreement they do not rely and have not relied upon any
representation or statement set forth herein made by the other or by any of the other’s agents, representatives, or attorneys with regard to the subject matter, basis, or effect of this Agreement, or otherwise. The Company shall not be
obligated to guarantee any particular tax result for Executive with respect to any payment provided to Executive hereunder, and Executive shall be responsible for any taxes imposed on Executive with respect to any such payment.

  

	 	18.	 Severability of Provisions: In the event that any one or more of the provisions of this Agreement is held to be invalid, illegal, or unenforceable, the
validity, 

  

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legality, and enforceability of the remaining provisions will not in any way be affected or impaired thereby. Moreover, if any one or more of the provisions
contained in this Agreement are held to be excessively broad as to duration, scope, activity, or subject, such provisions will be construed by limiting and reducing them so as to be enforceable to the maximum extent compatible with applicable law.

  

	 	19.	Non-Admission of Liability: Executive agrees that neither this Agreement nor the performance by the parties hereunder constitutes an admission by any of the Released Parties
of any violation of any federal, state, or local law, regulation, common law, breach of any contract, or any other wrongdoing of any type. 

  

	 	20.	Non-Assignability: The rights and benefits under this Agreement are personal to Executive and such rights and benefits shall not be subject to assignment, alienation, or
transfer, except to the extent such rights and benefits are lawfully available to the estate or beneficiaries of Executive upon death. The Company may assign and/or transfer its rights under this Agreement at any time to any of its affiliates or to
any successors to the business or assets of the Company (whether by merger, consolidation, or otherwise) without the consent of Executive. 

  

	 	21.	Entire Agreement: This Agreement sets forth all the terms and conditions with respect to compensation or remuneration of payments, and benefits due Executive from the Company
and supersedes and replaces any and all other agreements or understandings Executive may have had with respect thereto, including the Employment Agreement entered into by the Parties effective as of January 1, 2005, including all amendments
thereto. This Agreement may not be modified or amended except in writing signed by both Executive and an authorized representative of the Company. 

  

	 	22.	Choice of Law: The provisions of this Agreement shall be construed in accordance with the internal laws of the State of North Carolina. 

  

	 	23.	Notice: Any notice to be given hereunder shall be in writing and shall be deemed given when mailed by certified mail, return receipt requested, addressed as follows:

  

			
	To Executive at:	  	Gary L. Smith
		  	5820 Deer Meadow Lane
		  	Summerfield, North Carolina 27358
		
	To the Corporation at:	  	International Textile Group, Inc.
		  	804 Green Valley Road
		  	Suite 300
		  	Greensboro, North Carolina 27408
		  	Attention: General Counsel

  

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 IN WITNESSETH WHEREOF, the parties have executed this Agreement as of the date first written above. 
  

							
	EXECUTIVE	 	COMPANY
				
	 /s/ Gary L. Smith
	  		 	By:	 	 /s/ Joseph L. Gorga

	Name: Gary L. Smith	 	Name:	 	Joseph L. Gorga
		  		 	Title:	 	President and CEO

  

 12Employment Agreement between Willis C. Moore III and the Company

 Exhibit 10.2 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (“Agreement”) is entered into
effective as of May 21, 2008 (the “Effective Date”), by and between Willis C. Moore III (“Executive”) and International Textile Group, Inc. (“Company” or “ITG”), a Delaware corporation. 
 RECITALS: 
 A. Executive serves as the
Executive Vice-President and Chief Financial Officer for International Textile Group, Inc. and is a key corporate officer of International Textile Group, Inc. and is expected to make major contributions to the profitability, growth and financial
strength of the ITG. 
 B. ITG desires to employ Executive, and Executive desires to accept such employment, under the terms and conditions
of this Agreement. 
 C. The Board of Directors has also determined that it is in the best interests of the stockholders and ITG to promote
stability among key officers. 
 IN CONSIDERATION OF THE FOREGOING, the mutual covenants contained herein, and other good and valuable
consideration, receipt of which is hereby acknowledged, the parties agree as follows: 
  

	1.	Definitions. 

 1.1 “Base
Salary” has the meaning set forth in Section 6.1. 
 1.2 “Board” means the board of directors of
ITG. 
 1.3 “Cause” means (A) the commission by Executive of (i) a felony or (ii) any serious crime
involving fraud, dishonesty or breach of trust; (B) gross negligence or intentional misconduct by Executive with respect to ITG or in the performance of his duties to ITG; (C) failure to follow a reasonable, lawful and specific direction
of the President and CEO of ITG; (D) failure by Executive to cooperate in any corporate investigation, or (E) breach by Executive of any material provision of this Agreement, which breach is not corrected by Executive within ten
(10) calendar days after receipt by Executive of written notice from ITG of such breach. For purposes of this definition, no act or failure to act by the Executive shall be considered “intentional” unless done or omitted to be done by
the Executive in bad faith and without reasonable belief that the Executive's action or omission was in the best interests of ITG. For the avoidance of doubt, a reasonably based professional judgment in the application of generally accepted
accounting standards or reasonable actions taken in order to comply with the rules and regulations of the United States Securities and Exchange Commission shall not constitute “Cause” for purposes of this Section 1.3. 
 1.4 “Disability” or “Disabled” means the absence of Executive from Executive's duties with the Company on a full
time basis for 180 consecutive days as a result of incapacity 

 
due to mental or physical illness which is determined to be total and permanent by a physician selected by the Company or its insurers and reasonably
acceptable to Executive or Executive’s legal representative. 
 1.5 “Employee Benefits” means the “benefit
plans and policies” for the limited liability companies of ITG or its predecessor that was the employer of the Executive immediately prior to the execution of this Employment Agreement and Employee Benefits shall refer to such plans until
adopted by and as subsequently amended by ITG. 
 1.6 “Good Reason” means the termination of Executive’s
employment by Executive for any of the following reasons: 
 (A) involuntary reduction in Executive’s Base Salary unless
such reduction occurs simultaneously with a reduction in officers’ salaries generally applicable on a company-wide basis; 
 (B) involuntary discontinuance or reduction in bonus award opportunities for Executive under ITG’s Incentive or Bonus Plan unless a generally applicable company-wide reduction or elimination of all officers’ bonus awards occurs
simultaneously with such discontinuance or reduction; 
 (C) involuntary discontinuance of Executive’s participation in
any employee benefit plans maintained by ITG unless such plans are discontinued by reason of law or loss of tax deductibility to ITG with respect to contributions to such plans, or are discontinued as a matter of ITG policy applied equally to all
participants in such plans that are in the same classification of employees as Executive; 
 (D) Executive and the Company are
unable to agree upon the proper reporting of any financial matter which Executive reasonably believes is appropriate in order to comply with the rules and regulations of the United States Securities and Exchange Commission or in order for the
Company’s financial statements to be prepared in conformity with generally accepted accounting principles; provided that written notice of Executive’s resignation for Good Reason must be delivered to the Company within 30 days after the
occurrence of any such event in order for Executive’s resignation with Good Reason to be effective hereunder; 
 (E)
failure to obtain an assumption of ITG’s obligations under this Agreement by any successor to ITG, regardless of whether such entity becomes a successor to ITG as a result of a merger, consolidation, sale of assets of ITG, or other form of
reorganization, except when the rights and obligations of ITG under this Agreement are vested in the successor to ITG by operation of law; 
 (F) involuntary relocation of Executive’s primary office to a location more than fifty (50) miles from the City of Greensboro, State of North Carolina; and 
 (G) material reduction of Executive’s duties in effect on the Effective Date; provided, however that a change in title or reporting
line will not constitute Good Reason unless such change is coupled with a material reduction in the actual duties of Executive. 
  

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 1.7 “Incentive or Bonus Plan” has the meaning set forth in Section 6.2
hereof. 
 1.8 “ITG” means International Textile Group Inc. and each of the affiliates of International Textile Group
Inc. (meaning any entity that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, International Textile Group Inc.), along with all successors and assigns of each of such entities.

 1.9 “Plan” has the meaning set forth in Section 7.3. 
 1.10 “Restricted Customers” means all the specific customer accounts, whether within or outside of the Restricted Territory, with
which Executive had any contact or for which Executive had any responsibility (either direct or supervisory) at the time of termination of Executive’s employment and at any time during the two (2)-year period prior to such termination.

 1.11 “Restricted Industry” means the specific industry segment or segments for which the Executive had any
responsibility (either direct or supervisory) at the time of termination of Executive’s employment and at any time during the two (2)-year period prior to such termination. 
 1.12 “Restricted Territory” means the geographic area(s) within a 200 mile radius of any and all ITG location(s) in, to, or for
which Executive worked, to which Executive was assigned or had any responsibility (either direct or supervisory) at the time of termination of Executive’s employment and at any time during the two-year period prior to such termination.

 1.13 “Target Bonus” has the meaning set forth in the Incentive or Bonus Plan as defined in Section 6.2 hereof.

 1.14 “Term” has the meaning set forth in Section 5. 
 1.15 “Termination Date” means the date on which the termination of Executive’s employment with ITG becomes effective.

  

	2.	Termination of Prior Agreements. 

 The parties
hereto acknowledge and agree that, effective as of the date hereof, all prior employment agreements if any are terminated and each and every provision of each of such agreements is rendered void and of no further force or effect whatsoever.

  

	3.	Employment. 

 ITG hereby employs Executive, and
Executive hereby accepts employment, according to the terms and conditions set forth in this Agreement and for the period specified in Section 5 of this Agreement. The parties hereto acknowledge that Executive is subject to a Separation
Agreement with a former employer (Polymer Group, Inc. (“PGI”)), dated as of April 8, 2008, that in addition to other obligations contains certain non-solicitation and non-competition provisions. Additionally, Executive is also subject
to certain non-competition provisions in the Polymer Group, Inc. 2003 Stock Option Plan. The non-competition provisions in both 

  

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agreements specifically do not prohibit Executive from rendering services for a company in the textile and apparel industry so long as the company does not
manufacture, market, or sell non-woven products. The Company has represented to the Executive and to PGI that ITG manufactures, distributes, markets, and sells only woven fabrics, apparel, and products and does not nor intend to manufacture,
distribute, market or sell any non-woven products. Based on the aforementioned representations of ITG, the parties further acknowledge that Executive has received relief from such non-competition provisions to enable Executive’s employment
hereunder and to allow for the performance of the duties specified in Section 4 even if ITG were to manufacture, distribute, market, or sell products that contain immaterial amounts (in either quantity or value) of non-woven fabric in the
finished good. Further, if, at any time during the Noncompete Period (as defined in the Separation Agreement) or while Executive has PGI stock options outstanding, either Executive or PGI discovers that the Company does in fact manufacture, market
or sell nonwoven products, PGI shall waive immediate enforcement of the applicable noncompete provisions and shall provide Executive a period of 30 days to take steps to come into compliance with the obligations in the Separation Agreement or in the
PGI 2003 Stock Option Plan, as described in the letter from PGI dated May 13, 2008. The Company agrees to undertake commercially reasonable efforts to assist Executive in such a circumstance. 
  

	4.	Duties. 

 During the Term, Executive shall serve ITG
as its Executive Vice-President and Chief Financial Officer in accordance with reasonable and lawful directions from ITG’s President and CEO and the Board of Directors and in accordance with ITG's Articles of Incorporation and Bylaws, as both
may be amended from time to time. Executive will report directly to the President and CEO of ITG. While Executive is employed by ITG as a full-time employee, Executive shall serve ITG, faithfully, diligently, competently and to the best of his
ability, and will exclusively devote his full time, energy and attention to the business of ITG and to the promotion of its interests. Executive shall not, without the written consent of the President and CEO of ITG, either render services to or for
any person, firm, corporation or other entity or organization in exchange for compensation, regardless of the form in which such compensation is paid and whether or not it is paid directly or indirectly to Executive, or serve as a board member,
director or trustee of any corporation or organization regardless of whether Executive is paid for such services. Nothing in this Section 4 shall preclude Executive from managing his personal investments and affairs, provided that such
activities in no way interfere with the proper performance of his duties and responsibilities as Executive Vice-President and Chief Financial Officer for ITG. 
  

	5.	Term of Employment. 

 Subject to Article 9, the term
of this Agreement (the “Term”) shall commence on the Effective Date and end on May 31, 2011. The Term shall automatically be extended by one year on each May 31, beginning May 31, 2009, unless not later than February 28
of each year ITG notifies Executive, or Executive notifies ITG, that it or he, as the case may be, does not desire to have the Term extended. For example, if such notice of non-extension is not given by February 28, 2009, the Term of this
Agreement shall automatically be extended to May 31, 2012. 
  

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	6.	Compensation. 

 6.1 Base Salary. While
employed under this Agreement, Executive will receive as his compensation for the performance of his duties and obligations to ITG under this Agreement a Base Salary of Four Hundred Thousand Dollars ($400,000.00) per year, which will be payable in
such installments established by ITG for all salaried employees, and which will be subject to annual review by the Board of Directors or any committee designated by the Board of Directors (the base salary, as it may be modified from time to time, is
referred to herein as the “Base Salary”). 
 6.2 Bonus. In addition to the Base Salary, Executive will receive with respect
to each plan year a bonus in accordance with ITG’s Incentive and Bonus Plan, a copy of which has been delivered to Executive. For 2008, Executive will be entitled to receive a minimum of two hundred thousand ($200,000.00) in payment under the
Incentive and Bonus Plan. At the performance level of “Excellence”, Executive will be eligible to earn four hundred eighty thousand dollars ($480,000.00) pursuant to the 2008 Incentive and Bonus Plan. 
 6.3 Withholding. All compensation payable to Executive pursuant to this Section 6 shall be paid net of amounts withheld for federal, state,
municipal or local income taxes, Executive’s share, if any, of any payroll taxes and such other federal, state, municipal or local taxes as may be applicable to amounts paid by an employer to its employee or to the employer/employee
relationship. 
  

	7.	Other Benefits of Employment. 

 7.1 Employee
Benefits. Executive will be entitled to participate in such hospitalization, life insurance, long and short term disability, 401(k) and other employee benefit plans and programs, if any, as may be adopted by ITG from time to time, in accordance
with the provisions of such plans and programs and on the same basis as other full-time salaried employees of ITG who participate in such employee benefit plans (except to the extent that the benefits provided under any of such plans or programs are
expressly offset by any of the benefits provided under or pursuant to this Agreement). In lieu of certain relocation benefits Executive would otherwise be entitled to upon his employment, the Company will provide a lump sum payment in the amount of
$52,925.00, promptly following the Effective Date of this Agreement, to satisfy any relocation expenses Executive may incur. This sum will be “grossed up” for applicable tax withholding requirements, such that the net payment to Executive
after tax withholdings will be $52,925.00. 
 7.2 Executive Benefits. Executive shall be entitled to participate in any employee
benefit adopted by ITG for executive level employees. Such benefits will include, but not be limited to, a car allowance in the annual amount of thirteen thousand dollars ($13,000.00). 
 7.3 Stock Based Awards. Executive shall be eligible to receive grants of stock options, performance units, stock appreciation rights, restricted
stock, deferred shares, and other stock-based awards in accordance with the provisions of any stock-based award or long-term incentive plan (“Plan”) ITG may adopt or amend or supersede from time to time. The terms of such grants shall be
determined by the Board of Directors (or its designee as provided in the Plan 

  

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or as appointed by the Board of Directors) in accordance with the Plan, provided, however, that notwithstanding any provision of the Plan to the contrary, in
the event of any termination of Executive’s employment for any reason other than for Cause pursuant to Section 9.3, or for termination of employment for other than Good Reason pursuant to Section 9.5, any stock-based award granted to
Executive prior to such Termination Date shall immediately vest and be exercisable by or issued to the Executive under the Plan. The initial award to Executive under such Plan shall have a minimum current value of seven hundred eight thousand
dollars ($708,000). 
 7.4 Taxes and Withholding. Executive shall be responsible for paying all federal, state, municipal or local
taxes payable by him with respect to any benefits provided under this Section 7, and ITG will, when required by law or when otherwise appropriate or customary, withhold from the benefits or other compensation amounts sufficient to satisfy such
taxes, unless taxes are to be paid by ITG as set forth in the provisions of the executive benefit plan, Employee Benefit Plan, or an agreement with the Executive. 
 7.5 Vacation. Notwithstanding any policy of the company for salaried employees, Executive will be entitled to four (4) weeks paid vacation and ITG recognized holidays. 
  

	8.	Termination. 

 8.1 Termination by ITG.

 (A) This Agreement shall automatically terminate effective upon (i) the date of Executive’s death; (ii) the
date that Executive is determined to be permanently Disabled or (iii) the date of Executive’s retirement. 
 (B) ITG
may terminate this Agreement, and Executive’s employment with ITG, without Cause upon ninety (90) days’ prior written notice to Executive. 
 (C) ITG may terminate this Agreement, and Executive’s employment with ITG, with Cause effective immediately and without the requirement of prior notice to Executive. 
 8.2 Termination by Executive. Executive may terminate this Agreement, and his employment with ITG, with or without Good Reason, upon ninety
(90) days’ prior written notice to ITG or upon such notice as may be required under the provisions of Section 3. 
 8.3
Notice. Any purported termination of this Agreement by ITG or Executive shall be communicated by written notice of termination to the other party. Such notice shall indicate the specific termination provision in this Agreement relied upon, shall
set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive’s employment under the provisions so indicated, and shall specify the Termination Date (which shall not be earlier than the date
of the notice). 
  

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	9.	Compensation and Benefits Upon Termination of Employment. 

 9.1 Termination of Employment upon Death. If Executive’s employment is terminated by reason of death, his estate shall be entitled to receive only the Base Salary to which Executive was entitled through the date of death, any
accrued unpaid bonus compensation for the prior plan year, any unpaid Target Bonus compensation (calculated on a pro rata basis) due to Executive with respect to the plan year in which the Termination Date occurs, and such other benefits as may be
available to Executive or his estate through ITG’s benefit plans and policies. The payment of said bonus compensation shall be made in a lump sum within sixty (60) days from the Termination Date. 
 9.2 Termination of Employment upon Disability. If Executive’s employment is terminated due to his Disability, Executive shall be entitled to
receive only the Base Salary to which he was entitled through the Termination Date due to Disability, any accrued unpaid bonus compensation for the prior plan year, any unpaid Target Bonus compensation (calculated on a pro rata basis) due to
Executive with respect to the plan year in which the Termination Date occurs, and such other benefits as may be available to Executive through ITG’s benefit plans and policies. The payment of said bonus compensation shall be made in a lump sum
within sixty (60) days from the Termination Date. 
 9.3 Termination of Employment by ITG for Cause. If Executive’s
employment is terminated for Cause as provided in Section 8.1(C), Executive shall be entitled to receive the Base Salary to which he was entitled through the Termination Date, and such other benefits as may be available to him through
ITG’s benefit plans and policies in effect on the Termination Date, other than any accrued but unpaid bonus compensation, which shall be forfeited. 
 9.4 Termination Without Cause or Termination For Good Reason. If ITG terminates Executive’s employment without Cause pursuant to Section 8.1(B) or if Executive terminates his employment for Good
Reason pursuant to Section 8.2, Executive shall receive severance pay equal to (A) three (3) times his Base Salary; (B) three (3) times the average of Executive’s previous three (3) years annual bonus (or if
Executive was employed for less than three (3) years, the average of Executive’s bonus during the actual employment term); and (C) medical and dental coverage under the plan(s) in effect under the COBRA eligibility period for
Executive and any eligible dependents with the costs absorbed by the Company on a tax protected basis to Executive for the period of time Executive and/or dependents(s) remain eligible for COBRA but not to exceed three (3) years from the
Termination Date. Said severance shall be in such installments established by ITG for all salaried employees and bonus payments shall be paid at the same time bonus payments are made for all plan participants. Executive agrees that he shall not be
entitled to any additional compensation or benefits other than what is set out in this Section 9.4. Executive and ITG agree that the receipt of severance benefits as defined in this Section 9.4 are conditioned upon and subject to Executive
and ITG executing a valid mutual release agreement releasing any and all claims which either of them have or may have against the other arising out of Executive’s employment (other than enforcement of this Agreement). 
 9.5 Termination of Employment other than for Good Reason. If Executive terminates employment with ITG pursuant to Section 8.2 other than for
Good Reason or 

  

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Executive elects to not renew this Agreement for an additional term, Executive shall be entitled to receive only the Base Salary to which he was entitled
through the Termination Date, accrued unpaid bonus compensation due to Executive for the prior plan year and such other benefits as may be available to him through ITG’s benefit plans and policies through the Termination Date. Such bonus
payments shall be paid at the same time bonus payments are made for all plan participants. If the Company elects not to renew this Agreement for an additional term, Executive shall be entitled to receive compensation equal to two (2) years of
his Base Salary plus the average of Executive’s previous three (3) years annual bonus (or if Executive was employed for less than three (3) years, the average of Executive’s bonus during the actual employment term). Severance
compensation shall be paid in such installments established by ITG for all salaried employees and bonus payments shall be paid at the same time bonus payments are made for all plan participants. Such severance payments shall commence immediately
after the Termination Date. 
 9.6 Effect of Termination. Upon termination of Executive’s employment, the obligations of each of
the parties under this Agreement shall expire as of the Termination Date, including, without limitation, the obligations of ITG to pay any compensation to Executive, except to the extent otherwise specifically provided in this Agreement.
Notwithstanding the foregoing, the obligations contained in Section 10 of this Agreement, the provisions hereof relating to the obligations of ITG described in the preceding sentence and any other provision of this Agreement that is intended to
continue in full force and effect after the termination of Executive’s employment, shall survive the termination or expiration of this Agreement in accordance with the terms set forth therein. 
 9.7 Non-Payment Due to Breach. In the event Executive breaches any of the covenants and obligations set forth in this Agreement, including without
limitation any of the covenants set forth in Section 10 hereof, then ITG’s obligation to make any remaining payments under this Agreement that have not already been paid to Executive shall be terminated. 
  

	10.	Confidentiality, Non-Compete, and Non-Solicitation. 

 10.1 Non-Disclosure. Executive expressly covenants and agrees that he will not reveal, use, divulge or make known to any person, firm, company or corporation any secret or confidential information of any nature concerning ITG or its
business, or anything connected therewith. 
 10.2 Return of Materials. Executive agrees to deliver or return to ITG upon termination
or expiration of this Agreement or as soon thereafter as possible, all written information and any other similar items furnished by ITG or prepared by Executive in connection with his services hereunder. Executive will retain no copies thereof after
termination of this Agreement or Executive’s employment with ITG. 
 10.3 Non-Competition. In the event of termination or
non-renewal of this Agreement by either ITG or Executive, for any reason, Executive shall not (except as an officer, director, employee, agent or consultant of ITG) during the three (3) year period following the Termination Date, directly or
indirectly, (a) own, manage, operate, join, or have a financial interest in, control or participate in the ownership, management, operation or control of, or be employed as an 

  

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employee, agent or consultant, or in any other individual or representative capacity whatsoever, or use or permit his name to be used in connection with, or
be otherwise connected in any manner with any business or enterprise that is actively engaged in any business in the Restricted Industry within the Restricted Territory; provided that the foregoing restriction shall not be construed to prohibit the
ownership by Executive of not more than one percent (1%) of any class of securities of any corporation which is engaged in any of the foregoing businesses, having a class of securities registered pursuant to the Securities Exchange Act of 1934,
which securities are publicly owned and regularly traded on any national exchange or in the over-the-counter market, provided, further, that such ownership represents a passive investment and that neither Executive nor any group of persons including
Executive in any way, either directly or indirectly, manages or exercises control of any such corporation, guarantees any of its financial obligations, otherwise takes part in its business other than exercising his rights as a shareholder, or seeks
to do any of the foregoing or (b) solicit, call upon, divert or take away any Restricted Customers for purposes of conducting a business in the Restricted Industry. 
 10.4 No Solicitation. In addition to the limitation imposed by Section 10.3, Executive hereby further agrees and covenants that during the term of this Agreement, and for a period of three (3) years
thereafter, he shall not, directly or indirectly, on his own behalf or with others (A) induce or attempt to induce any employee of ITG to leave the employ of ITG, or in any way interfere with the relationship between ITG and any employee;
(B) knowingly hire any employee of ITG; or (C) induce or attempt to induce any referral source or other business relation of ITG not to do business with ITG, or to cease doing business with ITG, or in any way interfere with the
relationship between any such referral source or business relation and ITG. 
 10.5 Injunctive Relief. Executive acknowledges that it
is impossible to measure in money the damages that will accrue to ITG by reason of Executive’s failure to observe any of the obligations imposed on him by this Section 10. Accordingly, if ITG shall institute an action to enforce the
provisions hereof, Executive hereby waives the claim or defense that an adequate remedy at law is available to ITG, and Executive agrees not to urge in any such action the claim or defense that such remedy at law exists. 
 10.6 Severability. If a final determination is made by a court having competent jurisdiction that the time or territory or any other restriction
contained in Sections 10.1, 10.3 or 10.4 is an unenforceable restriction on Executive’s activities, the provisions of Sections 10.1, 10.3 or 10.4 shall not be rendered void but shall be deemed amended to apply such maximum time and territory
and such other restrictions as such court may judicially determine or otherwise indicate to be reasonable. 
  

	11.	Miscellaneous. 

 11.1 Assignment. This
Agreement shall be binding upon the parties hereto, their respective heirs, personal representatives, executors, administrators and successors; provided, however, that Executive shall not assign this Agreement. 
 11.2 Governing Law. This Agreement shall be construed under and governed by the internal laws of the State of New York without giving effect to
any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of New York. 
  

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 11.3 Entire Agreement. This Agreement between Executive and ITG, set forth the entire agreement of
the parties concerning the employment of Executive by ITG, and any other oral or written statements, representations, agreements, or understandings made or entered into prior to or contemporaneously with the execution of this Agreement, are hereby
rescinded, revoked, and rendered null and void by the parties. Both parties hereto have participated in the selection of the words and phrases set forth in this Agreement in order to express their joint intentions in entering into this employment
relationship, and the parties hereto agree that there shall not be strict interpretation against either party in connection with any review of this Agreement in which interpretation thereof is an issue. 
 11.4 Notices. Any notice required or permitted under this Agreement shall be deemed to have been effectively made or given if in writing and
personally delivered, or mailed properly addressed in a sealed envelope, postage prepaid by certified or registered mail, delivered by a reputable overnight delivery service or sent by facsimile. Unless otherwise changed by notice, notice shall be
properly addressed to Executive if addressed to the address of Executive on the books and records of ITG at the time of the delivery of such notice, and properly addressed to ITG if addressed to: 
 Corporate Secretary 
 International Textile Group, Inc. 
 804 Green Valley Road, Suite 300 
 Greensboro NC 27408 
 11.5 Severability. Wherever there is any conflict between any provision of this Agreement and any statute, law regulation or judicial precedent, the latter shall prevail, but in such event the provisions of this Agreement thus
affected shall be curtailed and limited only to the extent necessary to bring them within the requirements of law. In the event that any provision of this Agreement shall be held by a court of competent jurisdiction to be indefinite, invalid, void
or voidable or otherwise unenforceable, the balance of this Agreement shall continue in full force and effect unless such construction would clearly be contrary to the intentions of the parties or would result in an unconscionable injustice.

 11.6 Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all
of which together will constitute one and the same instrument. 
  

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 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed the day and year
first above written. 
  

			
	INTERNATIONAL TEXTILE GROUP, INC.
		
	By:	 	 /s/ Joseph L. Gorga

	Name:	 	Joseph L. Gorga
	Its:	 	President and Chief Executive Officer
		
		 	 /s/ Willis C. Moore, III

		 	Willis C. Moore, III

  

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