Document:

Exhibit 4.2  

AMENDED AND RESTATED BY-LAWS

OF

POLYMER GROUP, INC.

A Delaware Corporation  

May 5, 2004  

ARTICLE I

OFFICES  

        Section 1.    Registered Office.    The registered office of the Corporation in the State of Delaware shall be
located at 2711 Centerville Road, Suite 400, Wilmington, Delaware, County of New Castle. The name of the Corporation's registered agent at such address is The Prentice-Hall Corporation
System, Inc. The registered office and/or registered agent of the Corporation may be changed from time to time by action of the board of directors. 

        Section 2.    Other Offices.    The Corporation may also have offices at such other places, both within and
without the State of Delaware, as the board of directors may from time to time determine or the business of the Corporation may require. 

ARTICLE II

MEETINGS OF STOCKHOLDERS  

        Section 1.    Place and Time of Meetings.    An annual meeting of the stockholders shall be held each year for
the purpose of electing directors and conducting such other proper business as may come before the meeting. Unless otherwise directed by the board of directors, annual meetings of stockholders shall
be held in April or May beginning in 2005. At the annual meeting, stockholders shall elect directors and transact such other business as properly may be brought before the meeting pursuant to
Article II, Section 11 hereof. 

        Section 2.    Special Meetings.    Special meetings of stockholders may be called for any purpose and may be
held at such time and place, within or without the State of Delaware, as shall be stated in a notice of meeting or in a duly executed waiver of notice thereof. Such meetings may be called at any time
by the chief executive officer, the board of directors, any two directors or stockholders of the Corporation holding at least 25% of the outstanding shares of the Corporation's common stock, in each
case, by written notice to the secretary of the Corporation (or, if no secretary is then in office, an assistant secretary or the chairman of the board or chief executive officer of the Corporation).
The notice required by the foregoing sentence shall set forth the date (which shall not be less than twenty (20) nor more than sixty (60) days after the date of such notice), time and
purpose or purposes of the meeting in reasonable detail. Thereafter, the Corporation promptly shall take all steps required by this Article II, the General Corporation Law of the State of
Delaware, as amended, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, and all other applicable laws, rules and regulations, to call a special meeting
of the stockholders on the date and time and solely for the purpose or purposes set forth in such notice. The only matters that may be considered at any special meeting of the stockholders are the
matters specified in the notice of the meeting delivered by the Corporation to the stockholders pursuant to Section 4 of this Article II. 

        Section 3.    Place of Meetings.    The board of directors may designate any place, either within or without
the State of Delaware, as the place of meeting for any annual meeting or for any special meeting called by the board of directors. If no designation is made, or if a special meeting be otherwise
called, the place of meeting shall be the principal executive office of the Corporation. 

        Section 4.    Notice.    Whenever stockholders are required or permitted to take action at a meeting, written
or printed notice stating the place, date, time, and, in the case of special meetings, the purpose 

 

or
purposes, of such meeting, shall be given to each stockholder entitled to vote at such meeting not less than ten (10) nor more than sixty (60) days before the date of the meeting. All
such notices shall be delivered, either personally or by mail, by or at the direction of the board of directors, the chief executive officer or the secretary, and if mailed, such notice shall be
deemed to be delivered when deposited in the United States mail, postage prepaid, addressed to the stockholder at his, her or its address as the same appears on the records of the Corporation.
Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except when the person attends for the express purpose of objecting at the beginning of the meeting to the
transaction of any business because the meeting is not lawfully called or convened. 

        Section 5.    Stockholders List.    The officer having charge of the stock ledger of the Corporation shall
make, at least 10 days before every meeting of the stockholders, a complete list of the stockholders entitled to vote at such meeting arranged in alphabetical order, showing the address of each
stockholder and the number of shares registered in the name of each stockholder. Such list shall be open to the examination of any stockholder, for any purpose germane to the meeting, during ordinary
business hours, for a period of at least 10 days prior to the meeting, either at a place within the city where the meeting is to be held, which place shall be specified in the notice of the
meeting or, if not so specified, at the place where the meeting is to be held. The list shall also be produced and kept at the time and place of the meeting during the whole time thereof, and may be
inspected by any stockholder who is present. 

        Section 6.    Quorum.    The holders of a majority of the outstanding shares of capital stock entitled to vote,
present in person or represented by proxy, shall constitute a quorum at all meetings of the stockholders, except as otherwise provided by statute or by the certificate of incorporation. If a quorum is
not present, the holders of a majority of the shares present in person or represented by proxy at the meeting, and entitled to vote at the meeting, may adjourn the meeting to another time and/or
place. When a specified item of business requires a vote by a class or series (if the Corporation shall then have outstanding shares of more than one class or series) voting as a class, the holders of
a majority of the outstanding shares of such class or series entitled to vote, present in person or represented by proxy, shall constitute a quorum (as to such class or series) for the transaction of
such item of business. 

        Section 7.    Adjourned Meetings.    When a meeting is adjourned to another time and place, notice need not be
given of the adjourned meeting if the time and place thereof are announced at the meeting at which the adjournment is taken. At the adjourned meeting the Corporation may transact any business which
might have been transacted at the original meeting. If the adjournment is for more than thirty days, or if after the adjournment a new record date is fixed for the adjourned meeting, a notice of the
adjourned meeting shall be given to each stockholder of record entitled to vote at the meeting. 

        Section 8.    Vote Required.    When a quorum is present, the affirmative vote of the majority of shares
present in person or represented by proxy at the meeting and entitled to vote on the subject matter shall be the act of the stockholders, unless (i) by express provisions of an applicable law
or of the certificate of incorporation a different vote is required, in which case such express provision shall govern and control the decision of such question, or (ii) the subject matter is
the election of directors, in which case Section 2 of Article III hereof shall govern and control the approval of such subject matter. 

        Section 9.    Voting Rights.    Except as otherwise provided by the General Corporation Law of the State of
Delaware or by the certificate of incorporation of the Corporation or any amendments thereto and subject to Section 3 of Article VI hereof, every stockholder shall at every meeting of
the stockholders be entitled to one vote in person or by proxy for each share of common stock held by such stockholder. 

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        Section 10.    Proxies.    Each stockholder entitled to vote at a meeting of stockholders may authorize another
person or persons to act for him or her by proxy, but no such proxy shall be voted or acted upon after three years from its date, unless the proxy provides for a longer period. A duly executed proxy
shall be irrevocable if it states that it is irrevocable and if, and only as long as, it is coupled with an interest sufficient in law to support an irrevocable power. A proxy may be made irrevocable
regardless of whether the interest with which it is coupled is an interest in the stock itself or an interest in the Corporation generally. Any proxy is suspended when the person executing the proxy
is present at a meeting of stockholders and elects to vote, except that when such proxy is coupled with an interest and the fact of the interest appears on the face of the proxy, the agent named in
the proxy shall have all voting and other rights referred to in the proxy, notwithstanding the presence of the person executing the proxy. At each meeting of the stockholders, and before any voting
commences, all proxies filed at or before the meeting shall be submitted to and examined by the secretary or a person designated by the secretary, and no shares may be represented or voted under a
proxy that has been found to be invalid or irregular. 

        Section 11.    Business Brought Before a Meeting.    At an annual meeting of the stockholders, only such
business shall be conducted as shall have been properly brought before the meeting pursuant to this Section 11 of Article II; provided that, nominations for the election of directors
properly made pursuant to the provisions of Article III, Section 5 of these by-laws shall also be considered at such annual meeting. To be properly brought before an annual
meeting, business must be (a) specified in the notice of meeting (or any supplement thereto) given by or at the direction of the board of directors, (b) brought before the meeting by or
at the direction of the board of directors, or (c) otherwise properly brought before the meeting by a stockholder. For business to be properly brought before an annual meeting by a stockholder,
the stockholder must have given timely notice thereof in writing to the secretary of the Corporation. To be timely, a stockholder's notice must (x) be delivered to or mailed and received at the
principal executive offices of the Corporation, at any time prior to the date of the annual meeting, and (y) comply with all applicable requirements of the Securities Exchange Act of 1934, as
amended, and the rules and regulations thereunder with respect to the matters set forth in this Section 11 of Article II. A stockholder's notice to the secretary shall set forth as to
each matter the stockholder proposes to bring before the annual meeting (a) a brief description of the business desired to be brought before the annual meeting, (b) the name and address,
as they appear on the Corporation's books, of the stockholder proposing such business, (c) the class and number of shares of the Corporation which are beneficially owned by the stockholder, and
(d) any material interest of the stockholder in such business. Notwithstanding anything in these by-laws to the contrary, no business shall be conducted at an annual meeting except
in accordance with the procedures set forth in this Section 11 of Article II. The board of directors shall, if the facts warrant, determine that the business was not properly brought
before the meeting and in accordance with the provisions of this
Section 11 of Article II; and if it should so determine, the board shall so declare to the meeting and any such business not properly brought before the meeting shall not be transacted. 

        Section 12.    Action by Written Consent.    Any action required or permitted to be taken at any meeting of the
stockholders of the Corporation may be taken by written consent in lieu of a meeting of the stockholders of the Corporation without a meeting, without prior notice and without a vote, if a consent or
consents in writing, setting forth the action so taken, shall be signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or
take such action at a meeting at which all shares entitled to vote thereon were present and voted and shall be delivered to the Corporation by delivery to its registered office in the State of
Delaware, its principal place of business or an officer or agent of the Corporation having custody of the book in which proceedings of meetings of stockholders are recorded. Such delivery shall be by
hand or by certified or registered mail, return receipt requested. 

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ARTICLE III

DIRECTORS  

        Section 1.    General Powers.    The business and affairs of the Corporation shall be managed by or under the
direction of the board of directors. In addition to such powers as are herein and in the certificate of incorporation expressly conferred upon it, the board of directors shall have and may exercise
all the powers of the Corporation, subject to the provisions of the laws of Delaware, the certificate of incorporation and these by-laws. 

        Section 2.    Number, Election and Term of Office.    The number of directors which shall constitute the board
shall be nine (9), the number of directors may be changed and established from time to time by resolution adopted by affirmative vote of 50.1% of the outstanding shares of the Corporation's common
stock; provided that no reduction in the number of directors constituting the board shall result in the removal of any director from the board during such director's term of office. The board of
directors shall not change the number of directors without shareholder approval as provided in the foregoing sentence. The directors shall be elected by a plurality of the votes of the shares present
in person or represented by proxy at the meeting and entitled to vote in the election of directors; provided that, whenever the holders of any class or series of capital stock of the Corporation are
entitled to elect one or more directors pursuant to the provisions of the certificate of incorporation of the Corporation (including, but not limited to, for purposes of these by-laws,
pursuant to any duly authorized certificate of designation), such directors shall be elected by a plurality of the votes of such class or series present in person or represented by proxy at the
meeting and entitled to vote in the election of such directors. The directors shall be elected in this manner at the applicable annual meeting of the stockholders as set forth in Article II,
Section 1, except as provided in Section 4 of this
Article III. Each director elected shall hold office until a successor is duly elected and qualified or until his or her earlier death, resignation or removal as hereinafter provided. 

        Section 3.    Removal and Resignation.    A director may be removed at any time with or without cause upon a
majority vote of the shares of common stock voting at a meeting or by stockholders holding a majority of the outstanding shares of the Corporation's common stock acting by written consent in lieu of a
meeting. Any director may resign at any time upon written notice to the Corporation. 

        Section 4.    Vacancies.    Vacancies and newly created directorships resulting from any increase in the total
number of directors established by the shareholders pursuant to Section 2 of this Article III may be filled only by the affirmative vote of the majority of the total number of directors
then in office, though less than a quorum, by a sole remaining director or by the affirmative vote of 50.1% of the outstanding shares of the Corporation's common stock. Notwithstanding the foregoing,
the board may not fill a vacancy with any director that was not nominated or designated in accordance with Article IV of the Shareholders Agreement, dated as of March 5, 2003, by and
among the Corporation, MatlinPatterson Global Opportunities Partners L.P. and the other parties identified therein (the "Shareholders Agreement"); provided that the foregoing restriction shall be
terminated upon any termination of Article IV of the Shareholders Agreement. Any director elected to fill a vacancy resulting from an increase in the number of directors shall hold office until
a successor is duly elected and qualified. A director elected to fill a vacancy not resulting from an increase in the number of directors shall have the same remaining term as that of his predecessor.
Each director so chosen shall hold office until a successor is duly elected and qualified or until his or her earlier death, resignation or removal as herein provided. Whenever holders of any class or
classes of stock or series thereof are entitled by the provisions of the certificate of incorporation to elect one or more directors, vacancies and newly created directorships of such class or classes
or series may only be filled by the affirmative vote of the majority of the total number of directors elected by such class or classes or series thereof then in office, or by a sole remaining director
so elected. 

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        Section 5.    Nominations.    

        (a)   Subject
to Section 4 of this Article III, only persons who are nominated in accordance with the procedures set forth in these by-laws shall be
eligible to serve as directors. Nominations of persons for election to the board of directors of the Corporation may be made at a meeting of stockholders (i) by or at the direction of the board
of directors or (ii) by any stockholder of the Corporation who was a stockholder of record at the time of giving of notice provided for in this by-law, who is entitled to vote for
the election of directors at the meeting and who shall have complied with the notice procedures set forth below in Section 5(b) of this Article III. 

        (b)   In
order for a stockholder to nominate a person for election to the board of directors of the Corporation at a meeting of stockholders, such stockholder shall have
delivered timely notice of such stockholder's intent to make such nomination in writing to the secretary of the Corporation. To be timely, a stockholder's notice must (i) be delivered to or
mailed and received at the principal executive offices of the Corporation at any time prior to the date of such meeting of the stockholders; and (ii) comply with all applicable requirements of
the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder with respect to the matters set forth in this Section 5 of Article III. Such stockholder's
notice shall set forth (i) as to each person whom the stockholder proposes to nominate for election as a director at such meeting all information relating to such person that is required to be
disclosed in solicitations of proxies for election of directors, or is otherwise required, in each case pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended
(including such person's written consent to being named in the proxy statement as a nominee and to serving as a director if elected); (ii) as to the stockholder giving the notice (A) the
name and address, as they appear on the Corporation's books, of such stockholder and (B) the class and number of shares of the Corporation which are beneficially owned by such stockholder and
also which are owned of record by such stockholder; and (iii) as to the beneficial owner, if any, on whose behalf the nomination is made, (A) the name and address of such person and
(B) the class and number of shares of the Corporation which are beneficially owned by such person. At the request of the board of directors, any person nominated by the board of directors for
election as a director shall furnish to the secretary of the Corporation that information required to be set forth in a stockholder's notice of nomination which pertains to the nominee. 

        (c)   The
board of directors shall, if the facts warrant, determine that a nomination was not made in accordance with the procedures prescribed by the by-laws, and
if the board should so determine, the board shall so declare to the meeting and the defective nomination shall be disregarded. 

        Section 6.    Annual Meetings.    The annual meeting of the board of directors shall be held without other
notice than this by-law immediately after, and at the same place as, the annual meeting of stockholders. 

        Section 7.    Other Meetings and Notice.    Regular meetings, other than the annual meeting, of the board of
directors may be held without notice at such time and at such place as shall from time to time be determined by the board. Special meetings of the board of directors may be called by the chairman of
the board, at least two of the directors then in office, or the secretary of the Corporation on at least 2 hours notice to each director, either personally, by telephone, mail, telecopy or
e-mail, which notice shall set forth the date, time and place of such special meeting. Regular meetings and special meetings may be held at any place within or outside of the State of
Delaware. 

        Section 8.    Chairman of the Board, Quorum, Required Vote and Adjournment.    The board of directors shall
elect, by the affirmative vote of the majority of the total number of directors then in office, a chairman of the board, who shall preside at all meetings of the stockholders and board of directors at
which he or she is present. If the chairman of the board is not present at a meeting of the stockholders or the board of directors, a majority of the directors present at such meeting shall elect one
of their members to so preside. A majority of the total number of directors then in office shall 

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constitute
a quorum for the transaction of business. Unless by express provision of an applicable law, the Corporation's certificate of incorporation or these by-laws a different vote is
required, the vote of a majority of directors present at a meeting at which a quorum is present shall be the act of the board of directors. If a quorum shall not be present at any meeting of the board
of directors, the directors present thereat may adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum shall be present. 

        Section 9.    Committees.    The board of directors may, by resolution passed by a majority of the total number
of directors then in office, designate one or more committees, each committee to consist of one or more of the directors of the Corporation, which to the extent provided in such resolution or these
by-laws shall have, and may exercise, the powers of the board of directors in the management and affairs of the Corporation, except as otherwise limited by law. The board of directors may
designate one or more directors as alternate members of any committee, who may replace any absent or disqualified member at any meeting of the committee. Such committee or committees shall have such
name or names as may be determined from time to time by resolution adopted by the board of directors. Each committee shall keep regular minutes of its meetings and report the same to the board of
directors when required. 

        Section 10.    Committee Rules.    Each committee of the board of directors may fix its own rules of procedure
and shall hold its meetings as provided by such rules, except as may otherwise be provided by a resolution of the board of directors designating such committee. Unless otherwise provided in such a
resolution, the presence of at least a majority of the members of the committee shall be necessary to constitute a quorum. Unless otherwise provided in such a resolution, in the event that a member
and that member's alternate, if alternates are designated by the board of directors as provided in Section 9 of this Article III, of such committee is or are absent or disqualified, the
member or members thereof present at any meeting and not disqualified from voting, whether or not such member or members constitute a quorum, may unanimously appoint another member of the board of
directors to act at the meeting in place of any such absent or disqualified member. 

        Section 11.    Communications Equipment.    Members of the board of directors or any committee thereof may
participate in and act at any meeting of such board or committee through the use of a conference telephone or other communications equipment by means of which all persons participating in the meeting
can hear and speak with each other, and participation in the meeting pursuant to this Section 11 shall constitute presence in person at the meeting. 

        Section 12.    Waiver of Notice and Presumption of Assent.    Any member of the board of directors or any
committee thereof who is present at a meeting shall be conclusively presumed to have waived notice of such meeting except when such member attends for the express purpose of objecting at the beginning
of the meeting to the transaction of any business because the meeting is not lawfully called or convened. Such member shall be conclusively presumed to have assented to any action taken unless his or
her dissent shall be entered in the minutes of the meeting or unless his or her written dissent to such action shall be filed with the person acting as the secretary of the meeting before the
adjournment thereof or shall be forwarded by registered mail to the secretary of the Corporation immediately after the adjournment of the meeting. Such right to dissent shall not apply to any member
who voted in favor of such action. 

        Section 13.    Action by Written Consent.    Unless otherwise restricted by the certificate of incorporation,
any action required or permitted to be taken at any meeting of the board of directors, or of any committee thereof, may be taken without a meeting if all members of the board or committee, as the case
may be, consent thereto in writing, and the writing or writings are filed with the minutes of proceedings of the board or committee. 

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ARTICLE IV

OFFICERS  

        Section 1.    Officers.    The officers of the Corporation shall be elected by the board of directors and may
consist of a chairman of the board, chief executive officer, one or more vice-presidents, a chief financial officer, a secretary, one or more assistant secretaries and such other officers
and assistant officers as may be deemed necessary or desirable by the board of directors. Any number of offices may be held by the same person. In its discretion, the board of directors may choose not
to fill any office for any period as it may deem advisable. 

        Section 2.    Election and Term of Office.    The officers of the Corporation shall be elected annually by the
board of directors at its first meeting held after each annual meeting of stockholders or as soon thereafter as convenient. Vacancies may be filled or new offices created and filled at any meeting of
the board of directors. Each officer shall hold office until a successor is duly elected and qualified or until his or her earlier death, resignation or removal as hereinafter provided. 

        Section 3.    Removal.    Any officer or agent elected by the board of directors may be removed by the board of
directors at its discretion, with or without cause, but such removal shall be without prejudice to the
contract rights, if any, of the person so removed. The election or appointment of an officer shall not, of itself, create contract rights. 

        Section 4.    Vacancies.    Any vacancy occurring in any office because of death, resignation, removal,
disqualification or otherwise, may be filled by the board of directors. 

        Section 5.    Compensation.    Compensation of all officers shall be fixed by the board of directors, and no
officer shall be prevented from receiving such compensation by virtue of his or her also being a director of the Corporation. 

        Section 6.    Chairman of the Board.    The board of directors may elect a chairman of the board from among its
members. Such person shall preside at all meetings of the board of directors and stockholders and shall have all powers and shall perform all duties incident to the office of the chairman of the board
that may be required by law and shall have such other powers and perform such other duties as may be prescribed by the board of directors or provided in these by-laws. 

        Section 7.    Chief Executive Officer.    The chief executive officer of the Corporation shall, subject to the
powers of the board of directors, have general charge of the business, operations, affairs and property of the Corporation, and control over its officers, agents and employees; and shall see that all
orders and resolutions of the board of directors are carried into effect. The chief executive officer shall report to the board of directors. The chief executive officer is authorized to execute
bonds, mortgages and other contracts requiring a seal, under the seal of the Corporation, except where required or permitted by law to be otherwise signed and executed and except where the signing and
execution thereof shall be expressly delegated by the board of directors to some other officer or agent of the Corporation. The chief executive officer shall have such other powers and perform such
other duties as may be prescribed by the board of directors or as may be provided in these by-laws. 

        Section 8.    Chief Financial Officer.    The chief financial officer of the Corporation shall, under the
direction of the chief executive officer, be responsible for all financial and accounting matters and for the direction of the office of controller. The chief financial officer shall have such other
powers and perform such other duties as may be prescribed by the chief executive officer or the board of directors or as may be provided in these by-laws. 

        Section 9.    Vice-presidents.    The vice-president, or if there shall be more than
one, the vice-presidents, shall perform such duties and have such powers as the board of directors, the chief executive officer or these by-laws may, from time to time,
prescribe. The vice-presidents may also be 

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designated
as executive vice-presidents or senior vice-presidents, as the board of directors or the chief executive officer may from time to time prescribe. 

        Section 10.    The Secretary and Assistant Secretaries.    The secretary shall attend all meetings of the board
of directors, all meetings of the committees thereof and all meetings of the stockholders and record all the proceedings of the meetings in a book or books to be kept for that purpose or shall ensure
that his or her designee or such other person requested by the chairman of the board attends each such meeting to act in such capacity. Under the chairman of the board's supervision, the secretary
shall give, or cause to be given, all notices required to be given by these by-laws or by law; shall have such powers and perform such duties as the board of directors, the chairman of the
board, the chief executive officer or these by-laws may, from time to time, prescribe; and shall have custody of the corporate seal of the Corporation. The secretary, or an assistant
secretary, shall have authority to affix the corporate seal to any instrument requiring it and when so affixed, it may be attested by his or her signature or by the signature of such assistant
secretary. The board of directors may give general authority to any other officer to affix the seal of the Corporation and to attest the affixing by his or her signature. The assistant secretary, or
if there be more than one, any of the assistant secretaries, shall, in the absence or disability of the secretary, perform the duties and exercise the powers of the secretary and shall perform such
other duties and have such other powers as the board of directors, the chairman of the board, the chief executive officer, or secretary may, from time to time, prescribe. 

        Section 11.    Additional Officers.    The board of directors or the chief executive officer may from time to
time appoint such other officers as the board of directors or the chief executive officer may deem advisable and such officers shall have such authority and shall perform such duties as may from time
to time be assigned to them by the board of directors or the chief executive officer. 

        Section 12.    Absence or Disability of Officers.    In the case of the absence or disability of any officer of
the Corporation and of any person hereby authorized to act in such officer's place during such officer's absence or disability, the board of directors may by resolution delegate the powers and duties
of such officer to any other officer or to any director, or to any other person selected by it. 

ARTICLE V

INDEMNIFICATION OF OFFICERS, DIRECTORS AND OTHERS  

        Section 1.    Right to Indemnification.    Each person who was or is made a party or is threatened to be made a
party to or is otherwise involved (including involvement as a witness) in any action, suit or proceeding, whether civil, criminal, administrative or investigative (hereinafter a "proceeding"), by
reason of the fact that he or she is or was a director or officer of the Corporation or, while a director or officer of the Corporation, is or was serving at the request of the Corporation as a
director, officer, employee or agent of another corporation or of a partnership, joint venture, trust or other enterprise, including service with respect to an employee benefit plan (hereinafter, an
"indemnitee"), whether the basis of such proceeding is alleged action in an official capacity as a director or officer or in any other capacity while serving as a director or officer, shall be
indemnified and held harmless by the Corporation to the fullest extent authorized by the Delaware General Corporation Law, as the same exists or may hereafter be amended (but, in the case of any such
amendment, only to the extent that such amendment permits the Corporation to provide broader indemnification rights than permitted prior thereto), against all expense, liability and loss (including
attorneys' fees, judgments, fines, ERISA exercise taxes or penalties and amounts paid in settlement) reasonably incurred or suffered by such indemnitee in connection therewith and such indemnification
shall continue as to an indemnitee who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the indemnitee's heirs, executors and administrators; provided,
however, that, except as provided in Section 2 of Article V with respect to proceedings to enforce rights to indemnification, the Corporation shall indemnify any such indemnitee in
connection with a proceeding (or part thereof) initiated by such 

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indemnitee
only if such proceeding (or part thereof) was authorized by the board of directors of the Corporation. The right to indemnification conferred in this Section 1 of Article V
shall be a contract right and shall include the right to be paid by the Corporation the expenses incurred in defending any such proceeding in advance of its final disposition (hereinafter an "advance
of expenses"); provided, however, that, if and to the extent that the Delaware General Corporation Law requires, an advance of expenses incurred by an indemnitee in his or her capacity as a director
or officer (and not in any other capacity in which service was or is rendered by such indemnitee, including, without limitation, service to an employee benefit plan) shall be made only upon delivery
to the Corporation of an undertaking (hereinafter an "undertaking"), by or on behalf of such indemnitee, to repay all amounts so advanced if it shall ultimately be determined by final judicial
decision from which there is no further right to appeal (hereinafter a "final adjudication") that such indemnitee is not entitled to be indemnified for such expenses under this Section 1 of
Article V or otherwise. The Corporation may, by action of its board of directors, provide indemnification to employees and agents of the Corporation with the same scope and effect as the
foregoing indemnification of directors and officers. 

        Section 2.    Procedure for Indemnification.    Any indemnification of a director or officer of the Corporation
or advance of expenses under Section 1 of this Article V shall be made promptly, and in any event within forty-five (45) days (or, in the case of an advance of
expenses, twenty (20) days), upon the written request of the director or officer. If a determination by the Corporation that the director or officer is entitled to indemnification pursuant to
this Article V is required, and the Corporation fails to respond within sixty (60) days to a written request for indemnity, the Corporation shall be deemed to have approved the request.
If the Corporation denies a written request for indemnification or advance of expenses, in whole or in part, or if payment in full pursuant to such request is not made within forty-five
(45) days (or, in the case of an advance of expenses, twenty (20) days), the right to indemnification or advances as granted by this Article V shall be
enforceable by the director or officer in any court of competent jurisdiction. Such person's costs and expenses incurred in connection with successfully establishing his or her right to
indemnification, in whole or in part, in any such action shall also be indemnified by the Corporation. It shall be a defense to any such action (other than an action brought to enforce a claim for the
advance of expenses where the undertaking required pursuant to Section 1 of this Article V, if any, has been tendered to the Corporation) that the claimant has not met the standards of
conduct which make it permissible under the Delaware General Corporation Law for the Corporation to indemnify the claimant for the amount claimed, but the burden of such defense shall be on the
Corporation. Neither the failure of the Corporation (including its board of directors, independent legal counsel, or its stockholders) to have made a determination prior to the commencement of such
action that indemnification of the claimant is proper in the circumstances because he or she has met the applicable standard of conduct set forth in the Delaware General Corporation Law, nor an actual
determination by the Corporation (including its board of directors, independent legal counsel, or its stockholders) that the claimant has not met such applicable standard of conduct, shall be a
defense to the action or create a presumption that the claimant has not met the applicable standard of conduct. The procedure for indemnification of other employees and agents for whom indemnification
is provided pursuant to Section 1 of this Article V shall be the same procedure set forth in this Section 2 for directors or officers, unless otherwise set forth in the action of
the board of directors providing indemnification for such employee or agent. 

        Section 3.    Service for Subsidiaries.    Any person serving as a director, officer, employee or agent of a
Subsidiary shall be conclusively presumed to be serving in such capacity at the request of the Corporation. 

        Section 4.    Reliance.    Persons who after the date of the adoption of this provision become or remain
directors or officers of the Corporation or who, while a director or officer of the Corporation, become or remain a director, officer, employee or agent of a Subsidiary, shall be conclusively presumed
to have relied on the rights to indemnity, advance of expenses and other rights contained in this 

9

 

Article V
in entering into or continuing such service. The rights to indemnification and to the advance of expenses conferred in this Article V shall apply to claims made against an
indemnitee arising out of acts or omissions which occurred or occur both prior and subsequent to the adoption hereof. 

        Section 5.    Non-Exclusivity of Rights.    The rights to indemnification and to the advance of
expenses conferred in this Article V shall not be exclusive of any other right which any person may have or hereafter acquire under the Certificate of Incorporation or under any statute,
by-law, agreement, vote of stockholders or disinterested directors or otherwise. 

        Section 6.    Insurance.    The Corporation may purchase and maintain insurance on its own behalf and on behalf
of any person who is or was a director, officer, employee or agent of the Corporation or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise against any expense, liability or loss asserted against him or her and incurred by him or her in any such capacity, whether or not the
Corporation would have the power to indemnify such person against such expenses, liability or loss under the Delaware General Corporation Law. 

ARTICLE VI

CERTIFICATES OF STOCK  

        Section 1.    Form.    Every holder of stock in the Corporation shall be entitled to have a certificate, signed
by, or in the name of the Corporation by the chief executive officer or a vice-president and the secretary or an assistant secretary of the Corporation, certifying the number of shares
owned by such holder in the Corporation. If such a certificate is countersigned (1) by a transfer agent or an assistant transfer agent other than the Corporation or its employee or
(2) by a registrar, other than the Corporation or its employee, the signature of any such chief executive officer, vice-president, secretary, or assistant secretary may be
facsimiles. In case any officer or officers who have signed, or whose facsimile signature or signatures have been used on, any such certificate or certificates shall cease to be such officer or
officers of the Corporation whether because of death, resignation or otherwise before such certificate or certificates have been delivered by the Corporation, such certificate or certificates may
nevertheless be issued and delivered as though the person or persons who signed such certificate or certificates or whose facsimile signature or signatures have been used thereon had not ceased to be
such officer or officers of the Corporation. All certificates for shares shall be consecutively numbered or otherwise identified. The name of the person to whom the shares represented thereby are
issued, with the number of shares and date of issue, shall be entered on the books of the Corporation. Shares of stock of the Corporation shall only be transferred on the books of the Corporation by
the holder of record thereof or by such holder's attorney duly authorized in writing, upon surrender to the Corporation of the certificate or certificates for such shares endorsed by the appropriate
person or persons, with such evidence of the authenticity of such endorsement, transfer, authorization, and other matters as the Corporation may reasonably require, and accompanied by all necessary
stock transfer stamps. In that event, it shall be the duty of the Corporation to issue a new certificate to the person entitled thereto, cancel the old certificate or certificates, and record the
transaction on its books. The board of directors may appoint a bank or trust company organized under the laws of the United States or any state thereof to act as its transfer agent or registrar, or
both in connection with the transfer of any class or series of securities of the Corporation. 

        Section 2.    Lost Certificates.    The board of directors may direct a new certificate or certificates to be
issued in place of any certificate or certificates previously issued by the Corporation alleged to have been lost, stolen, or destroyed, upon the making of an affidavit of that fact by the person
claiming the certificate of stock to be lost, stolen, or destroyed. When authorizing such issue of a new certificate or certificates, the Corporation may, in its discretion and as a condition
precedent to the issuance thereof, require the owner of such lost, stolen, or destroyed certificate or certificates, or his or her legal representative, to give the Corporation a bond sufficient to
indemnify the Corporation against any 

10

 

claim
that may be made against the Corporation on account of the loss, theft or destruction of any such certificate or the issuance of such new certificate. 

        Section 3.    Fixing a Record Date for Stockholder Meetings.    In order that the Corporation may determine the
stockholders entitled to notice of or to vote at any meeting of stockholders or any adjournment thereof, the board of directors may fix a record date, which record date shall not precede the date upon
which the resolution fixing the record date is adopted by the board of directors, and which record date shall not be more than sixty (60) nor less than ten (10) days before the date of
such meeting. If no record date is fixed by the board of directors, the record date for determining stockholders entitled to notice of or to vote at a meeting of stockholders shall be the close of
business on the next day preceding the day on which notice is first given. A determination of stockholders of record entitled to notice of or to vote at a meeting of stockholders shall apply to any
adjournment of the meeting; provided, however, that the board of directors may fix a new record date for the adjourned meeting. 

        Section 4.    Fixing a Record Date for Other Purposes.    In order that the Corporation may determine the
stockholders entitled to receive payment of any dividend or other distribution or allotment or any rights or the stockholders entitled to exercise any rights in respect of any change, conversion or
exchange of stock, or for the purposes of any other lawful action, the board of directors may fix a record date, which record date shall not precede the date upon which the resolution fixing the
record date is adopted, and which record date shall be not more than sixty (60) days prior to such action. If no record date is fixed, the record date for determining stockholders for any such
purpose shall be at the close of business on the day on which the board of directors adopts the resolution relating thereto. 

        Section 5.    Registered Stockholders.    Prior to the surrender to the Corporation of the certificate or
certificates for a share or shares of stock with a request to record the transfer of such share or shares, the Corporation may treat the registered owner as the person entitled to receive dividends,
to vote, to receive notifications, and otherwise to exercise all the rights and powers of an owner. The Corporation shall not be bound to recognize any equitable or other claim to or interest in such
share or shares on the part of any other person, whether or not it shall have express or other notice thereof. 

        Section 6.    Subscriptions for Stock.    Unless otherwise provided for in the subscription agreement,
subscriptions for shares shall be paid in full at such time, or in such installments and at such times, as shall be determined by the board of directors. Any call made by the board of directors for
payment on subscriptions shall be uniform as to all shares of the same class or as to all shares of the same series.
In case of default in the payment of any installment or call when such payment is due, the Corporation may proceed to collect the amount due in the same manner as any debt due the Corporation. 

ARTICLE VII

GENERAL PROVISIONS  

        Section 1.    Dividends.    Dividends upon the capital stock of the Corporation, subject to the provisions of
the certificate of incorporation, if any, may be declared by the board of directors at any regular or special meeting, in accordance with applicable law. Dividends may be paid in cash, in property, or
in shares of the capital stock, subject to the provisions of the certificate of incorporation. Before payment of any dividend, there may be set aside out of any funds of the Corporation available for
dividends such sum or sums as the directors from time to time, in their absolute discretion, think proper as a reserve or reserves to meet contingencies, or for equalizing dividends, or for repairing
or maintaining any property of the Corporation, or any other purpose and the directors may modify or abolish any such reserve in the manner in which it was created. 

        Section 2.    Checks, Drafts or Orders.    All checks, drafts, or other orders for the payment of money by or
to the Corporation and all notes and other evidences of indebtedness issued in the name of the Corporation shall be signed by such officer or officers, agent or agents of the Corporation, and in such 

11

 

manner,
as shall be determined by resolution of the board of directors or a duly authorized committee thereof. 

        Section 3.    Contracts.    In addition to the powers otherwise granted to officers pursuant to
Article IV hereof, the board of directors may authorize any officer or officers, or any agent or agents, of the Corporation to enter into any contract or to execute and deliver any instrument
in the name of and on behalf of the Corporation, and such authority may be general or confined to specific instances. 

        Section 4.    Loans.    The Corporation may not lend money to, or guarantee any obligation of, or otherwise
assist any officer or other employee of the Corporation or of its subsidiaries, including any officer or employee who is a director of the Corporation or its subsidiaries other than as permitted by
applicable law and as determined, in the judgment of the directors, that such loan, guaranty or assistance may reasonably be expected to benefit the Corporation. The loan, guaranty or other assistance
may be with or without interest, and may be unsecured, or secured in such manner as the board of directors shall approve, including, without limitation, a pledge of shares of stock of the Corporation.
Nothing in this
section contained shall be deemed to deny, limit or restrict the powers of guaranty or warranty of the Corporation at common law or under any statute. 

        Section 5.    Fiscal Year.    The fiscal year of the Corporation shall be fixed by resolution of the board of
directors. 

        Section 6.    Corporate Seal.    The board of directors shall provide a corporate seal which shall be in the
form of a circle and shall have inscribed thereon the name of the Corporation and the words "Corporate Seal, Delaware." The seal may be used by causing it or a facsimile thereof to be impressed or
affixed or reproduced or otherwise. 

        Section 7.    Voting Securities Owned By Corporation.    Voting securities in any other corporation held by the
Corporation shall be voted by an officer of the Corporation or other person as authorized or directed by the board of directors, which authorization or direction may be general or confined to specific
instances. Any person authorized to vote securities shall have the power to appoint proxies, with general power of substitution. 

        Section 8.    Inspection of Books and Records.    Any stockholder of record, in person or by attorney or other
agent, shall, upon written demand under oath stating the purpose thereof, have the right during the usual hours for business to inspect for any proper purpose the Corporation's stock ledger, a list of
its stockholders, and its other books and records, and to make copies or extracts therefrom. A proper purpose shall mean any purpose reasonably related to such person's interest as a stockholder. In
every instance where an attorney or other agent shall be the person who seeks the right to inspection, the demand under oath shall be accompanied by a power of attorney or such other writing which
authorizes the attorney or other agent to so act on behalf of the stockholder. The demand under oath shall be directed to the Corporation at its registered office in the State of Delaware or at its
principal place of business. The Corporation shall have a reasonable amount of time to respond to any such request. 

        Section 9.    Section Headings.    Section headings in these by-laws are for convenience of
reference only and shall not be given any substantive effect in limiting or otherwise construing any provision herein. 

        Section 10.    Inconsistent Provisions.    In the event that any provision of these by-laws is or
becomes inconsistent with any provision of the certificate of incorporation, the General Corporation Law of the State of Delaware or any other applicable law, the provision of these
by-laws shall not be given any effect to the extent of such inconsistency but shall otherwise be given full force and effect. 

12

 

ARTICLE VIII

AMENDMENTS  

        These by-laws may be amended, altered, or repealed and new by-laws adopted at any meeting of the board of directors by the affirmative
vote of the majority of the total number of directors then in office; provided that any amendment, alteration or repeal of Sections 1, 2 or 9 of Article II, Sections 2, 3, 4 or 5 of
Article III, Section 8 of Article VII, Article VIII or any amendment, alteration or repeal of Article V that results in an adverse effect upon the indemnification
provided to directors therein, in each of the foregoing cases, pursuant to the affirmative vote of the majority of the total number of directors then in office also shall require the approval of at
least one Non-GOF Board Member (as such term is defined in the Shareholders Agreement); provided further that the foregoing approval of at least one Non-GOF Board Member shall
only be required if both (a) at least one Non-GOF Board Member has the right to a seat on the board of directors pursuant to the Shareholders Agreement, and (b) at the time
such approval is sought one of the following is true (i) at least one Non-GOF Board Member is a member of the board of directors, (ii) if a Non-GOF Board Member
is not a member of the board of directors, a Non-GOF Board Member shall have been a member of the board of directors within sixty days of such time, or (iii) if a
Non-GOF Board Member is not, and, within sixty days of such time, has not been, a member of the board of directors, a nomination or designation of a proposed Non-GOF Board
Member shall have been made in good faith pursuant to the terms of the Shareholders Agreement and not withdrawn, and such nominee or designee shall not have refused or declined appointment to the
board of directors. The fact that the power to adopt, amend, alter, or repeal the by-laws has been conferred upon the board of directors shall not divest the stockholders of such powers as
set forth in the certificate of incorporation. 

13Exhibit 4.3  

POLYMER GROUP, INC.

2004 RESTRICTED STOCK PLAN  

1.    Purpose.    

        This
plan shall be known as the Polymer Group, Inc. 2004 Restricted Stock Plan (the "Plan"). The purpose of the Plan shall be to promote the long-term growth and
profitability of Polymer Group, Inc. (the "Company") and its Subsidiaries by providing certain directors of the Company and its Subsidiaries with incentives to maximize stockholder value and
otherwise contribute to the success of the Company. Only grants of restricted stock may be made under the Plan. 

2.    Definitions.    

        (a)   "Board
of Directors" and "Board" mean the board of directors of the Company. 

        (b)   "Cause"
means the occurrence of one or more of the following events: 

        (i)    Conviction
of a felony or any crime or offense lesser than a felony involving the property of the Company or a Subsidiary; or 

        (ii)   A
breach of Executive's duty of loyalty to the Company or any of its Subsidiaries or any act of dishonesty or fraud with respect to the Company or any of its
Subsidiaries; or 

        (iii)  The
commission by Executive of a felony, a crime involving moral turpitude or other act or omission causing material harm to the standing and reputation of the Company
and its Subsidiaries; or 

        (iv)  Reporting
to work under the influence of alcohol or illegal drugs, the use of illegal drugs (whether or not at the workplace) or other repeated conduct causing the
Company or any of its Subsidiaries substantial public disgrace or disrepute or economic harm; or 

        (v)   Any
act or omission aiding or abetting a competitor, supplier or customer of the Company or any of its Subsidiaries to the material disadvantage or detriment of the
Company and its Subsidiaries 

        (c)   "Change
in Control" means the occurrence of one of the following events: 

        (i)    if
any "person" or "group" as those terms are used in Sections 13(d) and 14(d) of the Exchange Act or any successors thereto, other than an Exempt Person, is or becomes
the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act or any successor thereto), directly or indirectly, of securities of the Company representing 50% or more of
the combined voting power of the Company's then outstanding securities, other than an acquisition by an Exempt Person; or 

        (ii)   during
any period of two consecutive years, individuals who at the beginning of such period constitute the Board and any new directors whose election by the Board or
nomination for election by the Company's stockholders was approved by at least two-thirds of the directors then still in office who either were directors at the beginning of the period or
whose election was previously so approved, cease for any reason to constitute a majority thereof; or 

        (iii)  the
consummation of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation (A) which would result in all or a
portion of the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the
surviving entity) more than 50% of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation or
(B) by which the corporate existence of the Company is not affected and following which 

 

the
Company's chief executive officer and directors retain their positions with the Company (and constitute at least a majority of the Board); or 

        (iv)  the
consummation of a plan of complete liquidation of the Company or consummation of the sale or disposition by the Company of all or substantially all the Company's
assets, other than a sale to an Exempt Person. 

        (d)   "Code"
means the Internal Revenue Code of 1986, as amended. 

        (e)   "Committee"
means the Restricted Stock Committee of the Board, which shall consist solely of two or more members of the Board not entitled to receive grants of
restricted stock under the Plan. 

        (f)    "Common
Stock" means the Class A Common Stock, par value $.01 per share, of the Company, and any other shares into which such stock may be changed by reason of a
recapitalization, reorganization, merger, consolidation or any other change in the corporate structure or capital stock of the Company. 

        (g)   "Disability"
means a disability that would entitle an eligible participant to payment of monthly disability payments under any Company disability plan or as otherwise
determined by the Committee. 

        (h)   "Exchange
Act" means the Securities Exchange Act of 1934, as amended. 

        (i)    "Exempt
Person" means (i) MatlinPatterson Global Opportunities Fund L.P., MatlinPatterson Global Opportunities Partners, L.P., MatlinPatterson Global
Opportunities Partners B, L.P., Matlin Patterson LLC, MatlinPatterson Asset Management LLC, MatlinPatterson Global Advisers LLC, MatlinPatterson Global Opportunities Partners(Bermuda), L.P.,
MatlinPatterson Global Partners LLC and any of their respective affiliated entities, (ii) any person, entity or group under the control of any party included in clause (i), or
(iii) any employee benefit plan of the Company or a trustee or other administrator or fiduciary holding securities under an employee benefit plan of the Company. 

        (j)    "Fair
Market Value" of a share of Common Stock of the Company means, as of the date in question, the officially-quoted closing selling price of the stock (or if no
selling price is quoted, the bid price) on the principal securities exchange on which the Common Stock is then listed for trading (including for this purpose the Nasdaq National Market) (the "Market")
for the applicable trading day or, if the Common Stock is not then listed or quoted in the Market, the Fair Market Value shall be the fair value of the Common Stock determined in good faith by the
Board; provided, however, that when shares received upon exercise of an option are immediately sold in the open market, the net sale price
received may be used to determine the Fair Market Value of any shares used to pay the exercise price or applicable withholding taxes and to compute the withholding taxes. 

        (k)   "Non-Employee
Director" has the meaning given to such term in Rule 16b-3 under the Exchange Act and any successor thereto. 

        (l)    "Retirement"
means retirement as defined under any Company pension plan or retirement program or termination of one's employment on retirement with the approval of the
Committee. 

        (m)  "Subsidiary"
means a corporation or other entity of which outstanding shares or ownership interests representing 50% or more of the combined voting power of such
corporation or other entity entitled to elect the management thereof, or such lesser percentage as may be approved by the Committee, are owned directly or indirectly by the Company. 

2

 

3.    Administration    

        The
Plan shall be administered by the Committee; provided that the Board may, in its discretion, at any time and from time to time, resolve to administer the Plan, in which case the term
"Committee" shall be deemed to mean the Board for all purposes herein. Subject to the provisions of the Plan, the Committee shall be authorized to (i) determine the form and substance of grants
made under the Plan to each participant, and the conditions and restrictions, if any, subject to which such grants will be made, (ii) certify that the conditions and restrictions applicable to
any grant have been met, (iii) modify the terms of grants made under the Plan, (iv) interpret the Plan and grants made thereunder, and (iv) adopt, amend, or rescind such rules and
regulations, and make such other determinations, for carrying out the Plan as it may deem appropriate. Decisions of the Committee on all matters relating to the Plan shall be in the Committee's sole
discretion and shall be conclusive and binding on all parties. The validity, construction, and effect of the Plan and any rules and regulations relating to the Plan shall be determined in accordance
with applicable federal and state laws and rules and regulations promulgated pursuant thereto. No member of the Committee and no officer of the Company shall be liable for any action taken or omitted
to be taken by such member, by any other member of the Committee or by any officer of the Company in connection with the performance of duties under the Plan, except for such person's own willful
misconduct or as expressly provided by statute. 

        The
expenses of the Plan shall be borne by the Company. The Plan shall not be required to establish any special or separate fund or make any other segregation of assets to assume the
payment of any award under the Plan, and rights to the payment of such awards shall be no greater than the rights of the Company's general creditors. 

4.    Shares Available for the Plan    

        Subject
to adjustments as provided in Section 10, an aggregate of 200,000 shares of Common Stock (the "Shares") may be issued pursuant to the Plan. Such Shares may be in whole or
in part authorized and unissued or held by the Company as treasury shares. If any grant under the Plan becomes unexercisable or is forfeited as to any Shares, then such forfeited or withheld Shares
shall thereafter be available for further grants under the Plan. 

        Without
limiting the generality of the foregoing provisions of this Section 4 or the generality of the provisions of Sections 3, 6 or 11 or any other section of this Plan, the
Committee may, at any time or from time to time, and on such terms and conditions (that are consistent with and not in contravention of the other provisions of this Plan) as the Committee may, in its
sole discretion, determine, enter into agreements (or take other actions with respect to the options) for new shares of restricted stock containing terms more (or less) favorable than any outstanding
restricted shares. 

5.    Participation    

        Participation
in the Plan shall be limited to the directors (including Non-Employee Directors), of, the Company and its Subsidiaries. Nothing in the Plan or in any grant
thereunder shall confer any right on a participant to continue in the employ as a director of or in the performance of services for the Company or shall interfere in any way with the right of the
Company to terminate the employment or to reduce the compensation or responsibilities of a participant at any time. By accepting any award under the Plan, each participant and each person claiming
under or through him or her shall be conclusively deemed to have indicated his or her acceptance and ratification of, and consent to, any action taken under the Plan by the Company, the Board or the
Committee. 

        Determinations
made by the Committee under the Plan need not be uniform and may be made selectively among eligible individuals under the Plan, whether or not such individuals are
similarly situated. A grant made hereunder in any one year to an eligible participant shall neither guarantee nor preclude a further grant to such participant in that year or subsequent years. 

3

 

6.    Restricted Stock    

        The
Committee may at any time and from time to time grant Shares of restricted stock under the Plan to such participants and in such amounts as it determines. Each grant of restricted
stock shall specify the applicable restrictions on such Shares, the duration of such restrictions (which shall be at least six months except as otherwise determined by the Committee or provided in the
third paragraph of this Section 6), and the time or times at which such restrictions shall lapse with respect to all or a specified number of Shares that are part of the grant. 

        Unless
otherwise determined by the Committee, each Non-employee Director of the Company that is also not affiliated with an Exempt Person (as defined on January 1,
2004), shall be entitled to receive a grant of restricted shares each fiscal quarter, beginning with the fiscal quarter ending April 3, 2004. The number of shares to be granted will be based on
the formula of (x) $2,500 divided by (y) the average closing price of the Class A Common Stock for each trading day in the 15
trading day period ending on the last day of each fiscal quarter. Each grant will be made promptly after the end of such fiscal quarter. 

        The
participant will be required to pay the Company the aggregate par value of any Shares of restricted stock (or such larger amount as the Board may determine to constitute capital
under Section 154 of the Delaware General Corporation Law, as amended, or any successor thereto) within ten days of the date of grant, unless such Shares of restricted stock are treasury
shares. Unless otherwise determined by the Committee, certificates representing Shares of restricted stock granted under the Plan will be held in escrow by the Company on the participant's behalf
during any period of restriction thereon and will bear an appropriate legend specifying the applicable restrictions thereon, and the participant will be required to execute a blank stock power
therefore. Except as otherwise provided by the Committee, during such period of restriction the participant shall have all of the rights of a holder of Common Stock, including but not limited to the
rights to receive dividends and to vote, and any stock or other securities received as a distribution with respect to such participant's restricted stock shall be subject to the same restrictions as
then in effect for the restricted stock. 

        Except
as otherwise provided by the Committee, immediately prior to the consummation of a Change in Control, or at such time as a participant ceases to be a director of the Company and
its Subsidiaries due to death, Disability or Retirement during any period of restriction, all restrictions on Shares granted to such participant shall lapse. At such time as a participant ceases to be
a director of the Company or its Subsidiaries for any other reason, all Shares of restricted stock granted to such participant which have not vested shall be immediately forfeited to the Company. 

7.    Withholding Taxes.    

        (a)    Participant Election.    Unless otherwise determined by the Committee, a participant may elect to deliver
shares of Common Stock (or have the Company withhold shares granted) to satisfy, in whole or in part, the amount the Company is required to withhold for taxes. Such election must be made on or before
the date the amount of tax to be withheld is determined. Once made, the election shall be irrevocable. The fair market value of the shares to be withheld will be the Fair Market Value as of the date
the amount of tax to be withheld is determined. 

        (b)    Company Requirement.    The Company may require, as a condition to any grant under the Plan or to the delivery
of certificates for Shares issued hereunder, that the grantee make provision for the payment to the Company, either pursuant to Section 7(a) or this Section 7(b), of federal, state or
local taxes of any kind required by law to be withheld with respect to any delivery of Shares. The Company, to the extent permitted or required by law, shall have the right to deduct from any payment
of any kind (including normal directors fees) otherwise due to a grantee, an amount equal to any federal, state or local taxes of any kind required by law to be withheld with respect to any delivery
of Shares under the Plan. 

4

 

8.    Transferability.    

        Unless
the Committee determines otherwise, no Shares granted under the Plan shall be transferable by a participant other than by will or the laws of descent and distribution prior to the
date the restrictions on the Shares lapse, or, subject to the provision of Section 5 of the form of grant, to any of your Family Members by gift or a qualified domestic relations order as
defined by the Code. 

9.    Listing, Registration and Qualification.    

        If
the Committee determines that the listing, registration or qualification upon any securities exchange or under any law of Shares is necessary or desirable as a condition of, or in
connection with, the issue of Shares hereunder, no such Shares may be granted, unless such listing, registration or qualification is effected free of any conditions not acceptable to the Committee. 

10.    Adjustments.    

        In
the event of a reorganization, recapitalization, stock split, stock dividend, combination of shares, merger, consolidation, distribution of assets, or any other change in the
corporate structure or shares of the Company, the Committee shall make such adjustment as it deems appropriate in the number and kind of Shares or other property available for issuance under the Plan
(including, without limitation, the total number of Shares available for issuance under the Plan pursuant to Section 4). Any such adjustment shall be final, conclusive and binding for all
purposes of the Plan. 

11.    Amendment and Termination of the Plan.    

        The
Board of Directors or the Committee, without approval of the stockholders, may amend or terminate the Plan, except that no amendment shall become effective without prior approval of
the stockholders of the Company if stockholder approval would be required by applicable law or regulations, including if required for continued compliance with the performance-based compensation
exception of Section 162(m) of the Code or any successor thereto or by any listing requirement of the principal stock exchange on which the Common Stock is then listed. 

12.    Commencement Date; Termination Date.    

        The
date of commencement of the Plan shall be January 1, 2004, subject to approval by the shareholders of the Company. 

        Unless
previously terminated upon the adoption of a resolution of the Board terminating the Plan, the Plan shall terminate at the close of business on January 1, 2014. No
termination of the Plan shall materially and adversely affect any of the rights or obligations of any person, without his or her written consent, under any grant of Shares theretofore granted under
the Plan. 

13.    Severability.    

        Whenever
possible, each provision of the Plan shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of the Plan is held to be
prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of the Plan. 

14.    Governing Law.    

        The
Plan shall be governed by the corporate laws of the State of Delaware, without giving effect to any choice of law provisions that might otherwise refer construction or interpretation
of the Plan to the substantive law of another jurisdiction. 

5

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