Document:

exv10w31

 

Exhibit 10.31

EXECUTION COPY

MANAGEMENT AGREEMENT BETWEEN PREGIS NV

AND MR. FERNANDO DE MIGUEL

	BETWEEN: 	 	PREGIS NV, a company incorporated under Belgian law, having its registered office IN
BELGIUM, at Wellen, Bodemstraat 11 and registered with the Register of Legal Persons under
number BE-404.798.222.
	 
	 	 	Hereby duly represented by David Germis and Sayed Rashed,
in their capacity of directors,

	 
	 	 	Hereinafter referred to as “the Company”;
	 
	AND: 	 	Mr. Fernando De Miguel, residing in Belgium at [to be determined]
	 
	 	 	Hereinafter referred to as “Mr. De Miguel”
	 
	 	 	Hereinafter jointly referred to as “the Parties”.

WHEREAS

	 	1.	 	The Company and its subsidiaries are primarily active in the field of innovative and
reliable protective and foodservice packaging products.
	 
	 	2.	 	The Company requires management services and assistance for the daily operations of
its business activities.
	 
	 	3.	 	Mr. De Miguel has management expertise in the area of managing various business
divisions and functions throughout Europe and has offered the Company to provide the
required management services and assistance.
	 
	 	4.	 	The General Meeting of Shareholders of the Company has appointed Mr. De Miguel as one
of the Directors of the Company with effect on June 1, 2007.
	 
	 	5.	 	Mr. De Miguel has accepted this mandate.
	 
	 	6.	 	The Board of Directors of the Company has appointed Mr. De Miguel as Managing
Director of the Company with effect on June 1, 2007.
	 
	 	7.	 	The Managing Director has accepted this mandate and will perform the management
services and assistance under the terms and conditions set out in this agreement
(hereafter “the Agreement”).
	 
	 	8.	 	The Parties have agreed to conclude the present Management Agreement (hereafter “the
Agreement”) providing for and setting out (i) the terms and conditions of the Parties’
collaboration which Parties wish to construe on a fully independent basis and (ii) the
Parties’ various rights and obligations on this subject.

 

 

THEREFORE IT IS HEREBY AGREED AS FOLLOWS:

Article 1 — Scope of this Agreement

	1.1	 	The Parties enter into present Agreement, effective as from June 1, 2007.
	 
	1.2	 	Mr. De Miguel shall render the Services specified in article 1.3. of the present Agreement
in full independence, and, outside any link of subordination vis-à-vis the Company.
	 
	 	 	As far as necessary, the Parties stress that the freedom and independence towards each other
for the execution of the present Agreement is an essential element of this Agreement,
lacking of which the present Agreement would not have been concluded.
	 
	1.3	 	For the purposes of this Agreement and the services performed hereunder, Mr. De Miguel is
acting as an independent contractor, which duties and responsibilities shall relate to the
daily management tasks (further “the Services”), which shall include:

	 	•	 	daily management of the Company. Mr. De Miguel accepts to assume responsibility for
the daily management of the Company. Within the usual area of responsibilities of a
Managing Director, Mr. De Miguel will be entrusted with the most extensive powers of
daily management as determined in the Articles of Association of the Company.
	 
	 	•	 	representation of the company vis-à-vis the authorities.

The list of Services referred to above is not comprehensive and may be amended, elaborated or
restricted from time to time by mutual agreement. Subsequently, an addendum will be drafted,
signed and added to the present Agreement.

Article 2 — Obligations of MR. DE MIGUEL

	2.1.	 	Mr. De Miguel will render the Services on a fully independent basis and shall at no moment
whatsoever be considered as or be treated as an employee of the Company. The Company shall at
no moment give any orders or instructions to Mr. De Miguel and shall at no moment whatsoever
exercise any form of employer’s authority towards Mr. De Miguel.
	 
	2.2.	 	Mr. De Miguel shall render the Services specified in article 1 here above, and, in general,
perform its mandate in full compliance with the laws of the countries in which the Company
operates and with all competence, independence and dedication expected from a professional
that holds itself out to be a specialist in management expertise. Mr. De Miguel shall devote
to its tasks all means, time and endeavours as necessary. Wherever applicable, Mr. De Miguel
shall be registered with all competent authorities. In case the present or future ruling
would impose specific certificates or other conditions in order to be entitled to render the
Services, Mr. De Miguel undertakes to comply within the shortest and practically possible term
and guarantees and warrants that the person(s) on which it calls will do the same. During

 

 

	 	 	the performance of this Agreement, Mr. De Miguel shall strictly abide by all his obligations
under Belgian law, including obligations pertaining to tax, labour and social security law.
	 
	2.3.	 	Mr. De Miguel shall determine himself how to carry out his tasks and shall receive no direct
instructions regarding how the work should be organized, except for the general guidelines
justified by the necessities of the collaboration between the Parties.
	 
	2.4.	 	Mr. De Miguel shall render a written report of its activities at the intervals and in
accordance with the procedure laid down together with the Company or when the Parties consider
this to be necessary for the monitoring of the proper performance of the duties incumbent upon
the Parties.
	 
	 	 	However, Mr. De Miguel shall not be required to justify himself with regard to the time
spent, methods of work or the organization of its work.
	 
	2.5.	 	Mr. De Miguel shall operate within the Company’s policies and guidelines relating to health,
safety, security and IT security.

Article 3 — Obligations for the company

The Company undertakes:

	(a)	 	to put an office at the disposal of Mr. De Miguel in its premises including all usual
facilities and administrative assistance;
	 
	(b)	 	to provide Mr. De Miguel with all documents, instructions, information, guidelines and
assistance needed to fulfil its mandate.

Article 4 — Fees

	4.1.	 	In consideration for carrying out the Services, Mr. De Miguel will receive an annual fixed
fee of 250.000 EUR. This fee will be paid in 12 monthly installments, at the end of each
month. The monthly fee will be submitted to the applicable taxes due on director’s fees.
	 
	4.2.	 	This compensation has been established by taking into consideration the tax concessions
resulting from the application of the special tax regime; it includes the non-taxable
allowances determined in accordance with the Technical Note as stated in the administrative
circular issued by the Belgian tax authorities on 8 August 1983. These non-taxable allowances
are deemed to cover the following expenses:

	 	•	 	Difference in the costs of living between Belgium and Spain
	 
	 	•	 	Difference in the costs of housing between Belgium and Spain
	 
	 	•	 	Difference in the income taxes between those two countries.

The Company commits to take the necessary actions to apply for the concessions resulting
from the special tax regime. The above-information is disclosed for Belgian income tax
purposes only.

 

 

	4.3.	 	Mr. De Miguel is also eligible to earn an additional variable compensation, which can amount
up to 40% of the annual fee, pursuant to a variable compensation plan that currently is based
upon performance targets/goals set by the Company. Calculation of the Variable Compensation as
well as policies and practices shall be as set forth in the applicable provisions of the Plan,
as such Plan may be revised from time to time.
	 
	4.4.	 	Mr. De Miguel is entitled to invoice the Company for expenses incurred wholly and exclusively
when carrying out the Services, including for example: representation costs, the annual fee
for a credit card, the cost of a mobile phone, fuel, transportation and lodging expenses in
case of business travel for the Company provided that such expenses are duly supported by
original receipts and invoices.
	 
	4.5.	 	Furthermore, as a Managing Director, Mr. de Miguel will be entitled to the use of a company
car, or provided with a monthly car allowance of up to 1,400 EUR.

	4.6.	 	Furthermore, as a Managing Director, Mr. de Miguel will be eligible for the benefits of the
group insurance (pension, death, invalidity, hospitality) subscribed by the Company for its
independent remunerated Managing Directors with a contract for indefinite duration.
	 
	4.7.	 	Mr. De Miguel shall be granted 132.16 stock options pursuant to a stock option agreement
between Mr. De Miguel and the Company’s parent company.
	 
	4.8.	 	All payments are to be made by the Company to Mr. De Miguel. The payments will be made on the
following account: [                    ].

Article 5 — Social security position of mr de Miguel

Mr. de Miguel is subject to the Belgian social security scheme for self-employed workers.
It is therefore Mr. de Miguel’s responsibility to affiliate to a social insurance fund for
self-employed workers and to pay the quarterly bills of social security contributions
issued by this fund.

Article 6 — Terms of the Agreement and Termination

	6.1	 	This Agreement is entered into for an indefinite duration, effective as of June 1, 2007.
	 
	6.2	 	This agreement may be terminated at any time by Mr. De Miguel subject to twelve (12) months’
written notice to the Company. In case this Agreement is terminated by Mr. De Miguel without
notice, Mr. De Miguel will pay to the Company an indemnity of 250.000 EUR.
	 
	 	 	This agreement for indefinite duration may be terminated at any time by the Company subject
to twelve (12) months’ written notice to Mr. De Miguel.
	 
	 	 	The Company may decide to request Mr. De Miguel not to serve the notice.
	 
	 	 	In case this Agreement is terminated by the Company without notice, the Company will pay to
Mr. De Miguel an indemnity of 250.000 EUR.

 

 

	6.3	 	In case of violation by any party of any of its obligations under this Agreement, the other
party shall be entitled to terminate this Agreement by registered mail immediately and de
jure, without notice nor compensation or indemnity, in case the defaulting party fails to
remedy such violation within ten (10) working days following the written notification by
registered mail of such violation.

	6.4	 	The Company shall be entitled to terminate the present Agreement by registered mail
immediately and de jure, without notice nor compensation in the case Mr. De Miguel, whilst
carrying out the Services, is guilty of any gross misconduct or gross negligence or commits
any serious or persistent breach of any of its undertakings or obligations to the Company or
any subsidiary or affiliate thereof (whether under this Agreement or otherwise).

	6.6	 	Upon termination of this Agreement for any reason (and whether or not as a result of breach
of this Agreement by the Company), Mr. De Miguel shall, at the request of the Company,
immediately agree to terminate any mandates that may have been granted in order to allow Mr.
De Miguel to carry out the Services, without prejudice to any other rights accruing to either
party hereto.

	6.7	 	Any unilateral termination of this Agreement has to be notified to the other party by
registered mail.

Article 7 — Confidentiality

	7.1	 	Mr. De Miguel shall not (other than in the proper performance of its duties under the present
Agreement or with the prior written consent of the Company or unless ordered by a court of
competent jurisdiction) at any time either during the continuance of this Agreement or after
its termination disclose or communicate to any person or use for its own, or its employees or
shareholder’s benefit or the benefit of any person other than the Company or any affiliated
Company or through any failure to exercise all due care and diligence cause or permit any
unauthorized disclosure of any confidential information of the Company of any affiliated
Company which Mr. De Miguel has obtained in the course of the execution of the present
Agreement. The provisions of this Clause shall not apply to any confidential information
which:

	 	•	 	Is in or enters the public domain other than by breach of this Agreement; or
	 
	 	•	 	Is obtained from any third party that is lawfully authorized to disclose such
information.

	7.2	 	All notes, memoranda, records and writings relating to any intellectual property, trade
secret, or confidential information concerning the business of the Company or any affiliated
Company or any of its or their suppliers, agents, distributors, customers or others which
shall have been acquired, received or made by Mr. De Miguel during the course of this
Agreement shall be the property of the Company or any affiliated Company and Mr. De Miguel
shall, upon termination of this Agreement, be immediately returned to the Company,
irrespective of the carrier and without retention of any copies.

Article 8 — Non Competition and Non Solicitation

	8.1	 	During the term of this Agreement, Mr. De Miguel shall not, directly or indirectly, engage in
the business of, own or control any direct or indirect interest in, act as

 

 

director, officer, employee of, either in a full time or temporary capacity, or offer
consultancy services to, or be connected in any manner with any person, firm corporation,
association or other entity which competes with the businesses of the Company or any of its
affiliates.

	8.2	 	Mr. De Miguel undertakes moreover, during a period of one (1) year after the termination of
the present Agreement, to withhold from approaching, engaging, employing, sub-contracting
with, paying for the services of or endeavouring to entice away from the Company through the
intermediary of third parties, any individual/ company who is an employee, a director, a
partner or an independent contractor of the Company or any other company that is part of the
group the Company belongs to and that the same conditions shall apply to all its employees and
shareholders

	8.3	 	Mr. De Miguel undertakes not to engage for a period of one (1) year following the termination
of this Agreement directly or indirectly, in the business of, own or control any direct or
indirect interest in, act as director, officer, employee of, either in a full time or
temporary capacity, or offer consultancy Services to, or be connected in any manner with any
person, firm, corporation, association or other entity, which competes with the business of
the Company or any of its affiliates.
	 
	 	 	The non compete will apply in the following geographical area: Belgium, United Kingdom,
Netherlands, France, Spain Germany, Italy, Poland, Czech Republic, Hungary and Romania.

	8.4	 	Any violation of the provisions of this Article shall automatically entitle the Company to
obtain damages from Mr. De Miguel in the amount of twice the amount paid to Mr. De Miguel in
the twelve months prior to termination and notwithstanding the right for the Company to claim
a higher indemnity if it produces evidence of more important damages.

Article 9 — Notifications

All notifications by registered letter or otherwise, provided for or not by this Agreement, shall
be validly addressed to the above-mentioned registered office of the Company and above-mentioned
registered office of Mr. De Miguel. If case of change of these addresses, the change shall be
notified by registered mail with a proof of receipt.

A notice sent by registered mail shall be deemed as served on the third working day following the
day on which it was posted and registered at the post office.

Article 10 — Entire Agreement

This Agreement cancels and supersedes all previous Agreements between the parties be it oral or in
writing. These prior Agreements have to be considered as terminated in common Agreement and/or
null and void.

Any modification to this Agreement can only be inserted through a written addendum, signed by both
parties.

 

 

Article 11 — Severability

The clauses of this Agreement are independent from each other and, hence, the invalidity of one
clause does not affect the validity of the others.

In the event that one of the provisions of this Agreement is invalid, parties will substitute this
provision by a new provision, which makes it possible to achieve the same result, or at least a
similar result.

Article 11 — Governing Law and Jurisdiction

This Agreement shall be governed by Belgian law.

Any dispute arising out or in connection with this Agreement shall be finally settled by
the Court of Commerce of Brussels.

* * *

Made in
Wellen, Belgium, in two originals, on May 15, 2007, each party acknowledging having
received a duly executed copy.

	 	 	 
	 
	 	 
	/s/
David Germis

/s/ Sayed Rashed
 	 	/s/
Fernando De Miguel
	For the Company

	 	Mr. De Miguel
	Pregis NVexv10w32

 

Exhibit 10.32

SEPARATION AGREEMENT

          This Separation Agreement (the “Agreement”), dated August 27, 2007, is entered into by and
among Timothy J. Cunningham (“Mr. Cunningham”), Pregis Holding I Corporation, a Delaware
corporation (“Holding I”), and its wholly owned subsidiaries, Pregis Holding II Corporation, a
Delaware corporation (“Holding II”), and Pregis Corporation, a Delaware Corporation (the “Company”
and together with Holding I and Holding II, the “Companies”).

          WHEREAS, Mr. Cunningham is employed by the Companies pursuant to an Employment Agreement among
Mr. Cunningham and the Companies, dated as of April 12, 2006 (the “Employment Agreement”);

          WHEREAS, Mr. Cunningham and Holding I are parties to a Noncompetition Agreement dated as of
April 12, 2006 (the “Noncompetition Agreement”) and a Subscription Agreement (the “Subscription
Agreement”) dated as of May 1, 2006;

          WHEREAS, Mr. Cunningham and the Company’s Board of Directors have mutually agreed that a
separation is in the best interests of Mr. Cunningham and the Company;

          WHEREAS, Mr. Cunningham’s employment with the Companies shall conclude on the Separation Date
(as defined below); and

          WHEREAS, as a condition precedent and a material inducement for the Companies to provide to
Mr. Cunningham the Separation Benefits (as defined below), Mr. Cunningham has agreed to execute
this Agreement and the Waiver and Release of Claims attached as Exhibit A hereto and be bound by
the provisions herein and therein.

          NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and
for the monetary and other consideration set forth below, the parties agree as follows:

     1. Interim Position. As of August 27, 2007, Mr. Cunningham shall cease to hold the
position of Chief Financial Officer. Mr. Cunningham shall be appointed to the position of Interim
Chief Financial Officer as of August 27, 2007, and shall continue to hold this position until the
earlier to occur of (i) December 31, 2007 and (ii) any such earlier date determined by mutual
agreement of Mr. Cunningham and the Company (the “Separation Date”); provided, however, that the
Company may change Mr. Cunningham’s position from Interim Chief Financial Officer to consultant
during this time. While serving as Interim Chief Financial Officer or consultant, Mr. Cunningham
shall (i) receive his base salary of $350,000 per year, payable bi-weekly and prorated for any
partial employment period and (ii) be eligible to participate in the Companies’ benefit programs to
the extent of his participation prior to his change of position. The parties agree that effective
upon the Separation Date, Mr. Cunningham shall be deemed to have resigned from any directorship,
position or office with or in the Companies or their affiliates. For the avoidance of doubt, the
date of Mr. Cunningham’s

 

 

termination of employment for purposes of application of the Noncompetition Agreement shall be
the Separation Date.

     2. Separation Benefits. In consideration for acceptance of the terms contained in
this Agreement and the Waiver and Release of Claims attached as Exhibit A, the Company shall (i)
pay to Mr. Cunningham an amount equal to his base salary as of the Separation Date (the
“Termination Payment”); (ii) pay to Mr. Cunningham all accrued but unpaid amounts payable to him
under any employee benefit plan, including four (4) weeks of weekly base salary in settlement of
accrued vacation benefits, and reimbursements for any unreimbursed expenses incurred in accordance
with the Companies’ policies prior to the Separation Date (the “Accrued Payment”); and (iii)
continue to provide Mr. Cunningham with medical benefits on the same terms that would have
otherwise applied to him had he remained an active employee until the earlier of (a) December 31,
2008 or (b) the date Mr. Cunningham becomes eligible for medical benefits from a subsequent
employer (the “Continued Medical Benefits”). In addition, the Company shall pay Mr. Cunningham an
incentive bonus for the fiscal year 2007, based on the Companies’ actual performance through the
end of such fiscal year (pro rata if the Separation Date occurs before December 31, 2007) (the
“Incentive Payment,” collectively with the Termination Payment, Accrued Payment and Continued
Medical Benefits, the “Separation Benefits”). The Company’s obligation to pay Mr. Cunningham the
Termination Payment and Incentive Payment, to provide him Continued Medical Benefits and to provide
the benefits set forth in Section 3 below shall, in each case, be conditioned upon: (i) Mr.
Cunningham’s continued compliance with his obligations under the Noncompetition Agreement, (ii) Mr.
Cunningham’s execution, delivery and non-revocation of the Waiver and Release of Claims and (iii)
Mr. Cunningham’s continued compliance with his obligations under this Agreement. The Separation
Benefits shall be subject to any and all applicable withholding taxes or other amounts required by
law to be withheld. The Termination Payment shall be paid in installments on the Companies’
regular payroll dates occurring during the twelve (12) month period immediately following the
effectiveness of the Waiver and Release of Claims. The Incentive Payment shall be paid in 2008 at
the time Companies ordinarily pay incentive bonuses to its executives with respect to the fiscal
year in which the Separation Date occurs. The Accrued Payment shall be paid within thirty (30)
days following the Separation Date. The Separation Benefits shall continue to be paid and provided
until the dates provided herein if Cunningham dies prior thereto.

     3. Stock Options. Subject to Section 2 hereof, on January 1, 2008 Mr. Cunningham
shall vest with respect to 3.026 of the shares subject to the Nonqualified Stock Option Agreement,
dated as of February 27, 2007, between Holding I and Mr. Cunningham (the “2007 Option Grant”) if
the EBITDA vesting conditions with respect to such shares are satisfied. With respect to the
portion, if any, of the 2007 Option Grant which becomes vested, and the portion of the options
which are vested pursuant to the Nonqualified Option Agreement for Employees, dated as of May 1,
2006, between Holding I and Mr. Cunningham (the “2006 Option Grant”), Mr. Cunningham may exercise
such vested portion until the date six (6) months following the Separation Date.

     4. Release of Claims. Mr. Cunningham shall sign the Waiver and Release of Claims
attached hereto as Exhibit A on the Separation Date.

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     5. Non-Disparagement. Mr. Cunningham agrees that he shall not, from and after the
date of this Agreement, make or publish any disparaging statements (whether written or oral)
regarding any of the Companies, or their affiliates, stockholders, subsidiaries, directors,
officers and employees, and any affiliates, agents, representatives, successors and assigns of any
of the foregoing; and the Companies shall cause its directors and executive officers not to make or
publish any disparaging statements (whether written or oral) regarding Mr. Cunningham.

     6. Forfeiture of Separation Benefits. Mr. Cunningham acknowledges and agrees that,
notwithstanding any other provision of this Agreement, in the event Mr. Cunningham materially
breaches the representations or any of his obligations pursuant to the Waiver and Release of Claims
or the Noncompetition Agreement, Mr. Cunningham will forfeit his right to receive all payments
provided for under Section 2 of this Agreement that have not been paid to him as of the date of
such breach and, if those payments were made as of the time of such breach, Mr. Cunningham agrees
that he will reimburse the Companies, immediately, for the amount of such payments.

     7. Severability. Each provision hereof and portion thereof is severable, and if one
or more provisions hereof or portions thereof are declared invalid, the remaining provisions and
portions thereof shall nevertheless remain in full force and effect. If any provision of this
Agreement or portion thereof is so broad, in scope or duration or otherwise, as to be
unenforceable, such provision shall be interpreted to be only so broad as is enforceable.

     8. Enforceability. The failure to enforce at any time any of the provisions of this
Agreement or to require at any time performance by the other party of any of the provisions hereof
shall in no way be construed to be a waiver of such provisions or to affect the validity of this
Agreement, or any part hereof, or the right of either party thereafter to enforce each and every
such provision in accordance with the terms of this Agreement.

     9. Binding Effect; Assignment. This Agreement shall be binding upon any and all
successors and assigns of Mr. Cunningham and the Companies. Mr. Cunningham may not assign this
Agreement.

     10. Governing Law. Except for issues or matters as to which federal law is
applicable, this Agreement shall be governed by and construed and enforced in accordance with the
laws of the State of New York without giving effect to the conflicts of law principles thereof.

     11. Entire Agreement. This Agreement, Appendix A to this Agreement, the Employment
Agreement and the Noncompetition Agreement constitute the entire agreement between the parties
hereto, and supersede all prior agreements, understandings and arrangements, oral or written, if
any, between the parties hereto, with respect to the subject matter hereof.

[signature page follows]

-3-

 

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

	 	 	 	 	 
	 	 	 
	 	                                            /s/ Timothy J. Cunningham
 	 
	 	Timothy J. Cunningham 	 
	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	The Companies:	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PREGIS HOLDING I CORPORATION	 	 	 	 	 	PREGIS HOLDING II CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Michael T. McDonnell	 	 	 	 	 	By:	 	/s/ Michael T. McDonnell	 	 
	 	 	 

Name:	 
 	 

Michael T. McDonnell	 	 	 	 	 	 	 	 

Name:	 
 	 

Michael T. McDonnell	 	 
	 

	 	Title:
	 	President & CEO
	 	 	 	 	 	 	 	Title:
	 	President & CEO	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PREGIS CORPORATION	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Michael T. McDonnell	 	 	 	 	 	 	 	 
	 	 	 

Name:	 
 	 

Michael T. McDonnell	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Title:
	 	President & CEO	 	 	 	 	 	 	 	 	 	 	 	 

-4-

 

EXHIBIT A

WAIVER AND RELEASE OF CLAIMS

     1. In consideration of the payments and benefits to be made under the Separation Agreement,
dated as of August 27, 2007 to which Timothy J. Cunningham (“Mr. Cunningham”), Pregis Holding I
Corporation, a Delaware corporation (“Holding I”), and its wholly owned subsidiaries, Pregis
Holding II Corporation, a Delaware corporation (“Holding II”), and Pregis Corporation, a Delaware
Corporation (the “Company” and together with Holding I and Holding II, the “Companies”) are parties
(the “Separation Agreement”), Mr. Cunningham, with the intention of binding himself, his heirs,
executors, administrators and assigns, does hereby release and forever discharge the Companies,
their affiliates, stockholders, subsidiaries, directors, officers and employees, and any
affiliates, agents, representatives, successors and assigns of any of the foregoing, and directors
and officers of the foregoing (collectively referred to as the “Releasees”), from any and all
obligations, liabilities, damages, costs, claims, complaints, charges, or causes of action in law
or equity that Mr. Cunningham or his heirs, administrators, successors, or assigns may now have or
may ever have against any Releasee, whether accrued, absolute, contingent, unliquidated or
otherwise, and whether known or unknown on the date hereof, which have or may have arisen out of
any act or omission occurring, or state of facts existing, on or prior to the date of execution of
this Agreement (collectively “Claims”), including but not limited to (i) Claims in any way related
to Mr. Cunningham’s employment with the Companies or the termination of that employment, including,
but not limited to, pursuant to the Stock Option Agreements, dated as of May 1, 2006 and February
27, 2007, between Mr. Cunningham and Holding I, and (ii) Claims based on federal, state or local
law or regulation or the common law, including but not limited to Claims in any way related to
Title VII of the Civil Rights Act of 1964, the Illinois Human Rights Act, the Equal Pay Act, the
Fair Labor Standards Act, the Americans with Disabilities Act, the Employee Retirement Income
Security Act of 1974, as amended, the Age Discrimination in Employment Act, all applicable state
and local labor and employment laws (including all laws concerning discrimination, unlawful and
unfair labor and employment practices), breach of contract, wrongful discharge, defamation or
intentional infliction of emotional distress, but expressly not including any claim against any
Releasee arising out of any breach of any provision of the Separation Agreement, including, without
limitation, the provisions relating to the continuing effectiveness and exercisability of options
under the Stock Option Agreements described in Section 3 of the Separation Agreement (the “Waiver
and Release”).

     2. The Companies acknowledge that, as of the date of this Waiver and Release, they are not
aware of any actual or threatened claim or cause of action arising from or in any respect relating
to the Employment Agreement, dated as of April 12, 2006, among Mr. Cunningham and the Companies, or
Mr. Cunningham’s employment by the Companies, or the conclusion thereof. Nothing contained in this
Section shall be deemed to constitute a waiver of any legal rights of the Releasees.

-1-

 

     3. The Waiver and Release is for any relief, no matter how denominated, including, but not
limited to, injunctive relief, wages, back pay, front pay, compensatory damages, or punitive
damages. Mr. Cunningham further agrees that he will not file or permit to be filed on his behalf
any Claims. The Release shall not apply to the obligations set forth in this Waiver and Release,
pursuant to qualified plans maintained by or contributed to by the Companies, or pursuant to the
continuation coverage provisions of the Consolidated Omnibus Reconciliation Act of 1985, as
amended. If and to the extent a court of competent jurisdiction shall determine any part or
portion of the Waiver and Release to be invalid or unenforceable, the same shall not affect the
remainder of the Waiver and Release which shall be given full effect without regard to the invalid
part or portion of the Waiver and Release. Mr. Cunningham acknowledges that he has been given a
period of twenty-one (21) days to consider whether to execute this Waiver and Release. Mr.
Cunningham may, for a period of seven (7) days following (and not including) the date of execution
of this Waiver and Release, revoke this Waiver and Release by a signed writing delivered to the
General Counsel of the Company at the Company’s headquarters. If no such revocation occurs, this
Waiver and Release shall become irrevocable in its entirety, and binding and enforceable against
Mr. Cunningham, on the next day following the day on which the foregoing seven (7) day period has
elapsed. If Mr. Cunningham revokes this Waiver and Release, this Waiver and Release shall be null
and void. Mr. Cunningham acknowledges that the Waiver and Release relates only to Claims which
exist as of the date hereof.

     4. Mr. Cunningham represents that with respect to any act or omission occurring, or state of
facts existing, on or prior to the date of execution of this Waiver and Release, he has not filed
any complaints, charges or lawsuits against any Releasee with any government agency or any court.
Mr. Cunningham acknowledges that the payments and benefits he is receiving in connection with the
Separation Agreement and his obligations under this Waiver and Release are in addition to anything
of value to which Mr. Cunningham is entitled from the Companies.

     5. Nothing in this Waiver and Release shall be construed as an admission by any Releasee of
any liability on its part under any federal, state, or local law or regulation or the common law.
Mr. Cunningham acknowledges that no representation or fact or opinion has been made by any
Releasee, or anyone acting on any Releasee’s behalf, to induce him to execute this Waiver and
Release. Mr. Cunningham also acknowledges that he has had the opportunity to consult with an
attorney prior to signing this Waiver and Release, and that he has read and understood all of the
provisions of this Waiver and Release.

[signature page follows]

-2-

 

     IN WITNESS WHEREOF, the parties have executed this Waiver and Release of Claims as of the date
and year indicated under the signature line below.

	 	 	 	 	 
	 	 	 
	 	                                            /s/ Timothy J. Cunningham
 	 
	 	Timothy J. Cunningham 	 
	 	Date: 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	The Companies:	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PREGIS HOLDING I CORPORATION	 	 	 	 	 	PREGIS HOLDING II CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Michael T. McDonnell	 	 	 	 	 	By:	 	/s/ Michael T. McDonnell	 	 
	 	 	 

Name:	 
 	 

Michael T. McDonnell	 	 	 	 	 	 	 	 

Name:	 
 	 

Michael T. McDonnell	 	 
	 

	 	Title:
	 	President & CEO
	 	 	 	 	 	 	 	Title:
	 	President & CEO	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PREGIS CORPORATION	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Michael T. McDonnell	 	 	 	 	 	 	 	 
	 	 	 

Name:	 
 	 

Michael T. McDonnell	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Title:
	 	President & CEO	 	 	 	 	 	 	 	 	 	 	 	 

-3-

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