Document:

Logitech Management Performance Bonus Plan

 Exhibit 10.1 
 LOGITECH 
 MANAGEMENT PERFORMANCE BONUS
PLAN 
 (AS ADOPTED EFFECTIVE MAY 8, 2008) 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
			
	 ARTICLE 1.
	  	BACKGROUND AND PURPOSE	  	1
	 1.1
	  	Effective Date	  	1
	 1.2
	  	Purpose of the Plan	  	1
			
	 ARTICLE 2.
	  	DEFINITIONS	  	1
			
	 ARTICLE 3.
	  	SELECTION OF PARTICIPANTS AND DETERMINATION OF AWARDS	  	3
	 3.1
	  	Selection of Participants	  	3
	 3.2
	  	Determination of Performance Period	  	3
	 3.3
	  	Determination of Performance Goals	  	3
	 3.4
	  	Determination of Target Awards	  	4
	 3.5
	  	Determination of Payout Formula or Formulae	  	4
	 3.6
	  	Date for Determinations	  	4
	 3.7
	  	Determination of Actual Awards	  	4
	 3.8
	  	Maximum Actual Award	  	4
			
	 ARTICLE 4.
	  	PAYMENT OF AWARDS	  	4
	 4.1
	  	Right to Receive Payment	  	4
	 4.2
	  	Timing of Payment	  	5
	 4.3
	  	Form of Payment	  	5
	 4.4
	  	Payment in the Event of Death	  	5
	 4.5
	  	Suspension or Termination of Awards	  	5
			
	 ARTICLE 5.
	  	ADMINISTRATION	  	6
	 5.1
	  	Administrator Authority	  	6
	 5.2
	  	Decisions Binding	  	6
	 5.3
	  	Delegation by the Administrator	  	6
			
	 ARTICLE 6.
	  	GENERAL PROVISIONS	  	6
	 6.1
	  	Tax Withholding	  	6
	 6.2
	  	No Effect on Employment	  	6
	 6.3
	  	Participation; No Effect on Other Benefits	  	6
	 6.4
	  	Successors	  	7
	 6.5
	  	Nontransferability of Awards	  	7
			
	 ARTICLE 7.
	  	DURATION, AMENDMENT AND TERMINATION	  	7
	 7.1
	  	Duration of the Plan	  	7
	 7.2
	  	Amendment, Suspension or Termination	  	7
			
	 ARTICLE 8.
	  	LEGAL CONSTRUCTION	  	7
	 8.1
	  	Severability	  	7
	 8.2
	  	Requirements of Law	  	7
	 8.3
	  	Captions	  	7

  

 i 

 LOGITECH 
 MANAGEMENT PERFORMANCE BONUS PLAN 
 ARTICLE 1. BACKGROUND AND PURPOSE 
 1.1 Effective Date. This Plan is effective as of May 8, 2008, except that
participation of any executive officers of the Company in the Plan shall be subject to ratification by an affirmative vote of the holders of a majority of the Shares that are present in person or by proxy and entitled to vote at the 2008 Logitech
Annual General Meeting of Shareholders. 
 1.2 Purpose of the Plan. The Plan is intended to increase shareholder value and the success
of Logitech by further motivating Participants to achieve excellent short- and long-term financial performance for Logitech and its business units. The Plan’s goals are to be achieved by providing management with incentive awards based on the
achievement of goals relating to the performance of Logitech. 
 ARTICLE 2. DEFINITIONS 
 The following words and phrases shall have the following meanings, unless a different meaning is plainly required by the context: 
 2.1 “Actual Award” means, as to any Performance Period, the actual award (if any) payable to a Participant for the Performance Period.
Each Actual Award is determined by the Payout Formula for the Performance Period, subject to the Administrator’s authority under Section 3.7 to increase, eliminate or reduce the award otherwise indicated by the Payout Formula. 

2.2 “Administrator” means the Committee, the Company’s Chief Executive Officer or the Vice President or head of the
Company’s Human Resources function, as shall be administering the Plan, in accordance with Section 5.1 of the Plan. 
 2.3
“Affiliate” means any corporation or other entity (including, without limitation, partnerships and joint ventures) controlled by Logitech. 
 2.4 “Base Salary” means, as to any Performance Period, the Participant’s earned salary during the Performance Period. Base Salary shall be calculated before both (a) deductions for taxes or
benefits and (b) deferrals of compensation pursuant to Logitech-sponsored plans or Affiliate-sponsored plans. 
 2.5
“Board” means Logitech’s Board of Directors. 
 2.6 “Committee” means the Compensation Committee of
the Board. 
 2.7 “Disability” means a permanent disability, as determined for purposes of the principal long-term
disability insurance plan maintained by Logitech or the Affiliate employing the Participant, as applicable, for the benefit of the Participant. If there is no such plan, Disability shall be determined in accordance with a policy established by the
Administrator. 

 2.8 “Employee” means any employee of Logitech or of an Affiliate, whether such employee
is so employed when the Plan is adopted or becomes so employed after the adoption of the Plan. 
 2.9 “Fiscal Quarter” means
a fiscal quarter within a Fiscal Year of Logitech. 
 2.10 “Fiscal Year” means the fiscal year of Logitech. 
 2.11 “Logitech” or the “Company” means Logitech International S.A., a Swiss corporation, or any successor thereto.

 2.12 “Participant” means, as to any Performance Period, an Employee who has been selected for participation in the Plan
for that Performance Period pursuant to Section 3.1. 
 2.13 “Payout Formula” means, as to any Performance Period, the
formula or payout matrix established by the Administrator pursuant to Section 3.5 in order to determine the Actual Awards (if any) to be paid to Participants. The formula or matrix may differ from Participant to Participant. 
 2.14 “Performance Period” means a Fiscal Year, or any longer or shorter period determined by the Administrator. 
 2.15 “Performance Goals” means the goal(s) or combined goal(s) determined by the Administrator to be applicable to a Participant for a
Target Award for a Performance Period. As determined by the Administrator, the Performance Goal(s) may provide for a targeted level or levels of achievement using the performance criteria specified by the Administrator. Any criteria used may be
measured (a) in absolute terms, (b) in relative terms, including (without limitation) the passage of time and/or against other companies or metrics, (c) on a per-share basis, (d) against the performance of Logitech as a whole or
against particular segments or products of Logitech and/or (e) on a pre-tax or after-tax basis. Performance Goals may include any one or more of the following performance criteria, either individually, alternatively or in any combination,
applied to either the Company as a whole or to a business unit or Affiliate, either individually, alternatively or in any combination, and measured either annually or cumulatively over a period of years, on an absolute basis or relative to a
pre-established target, to previous years’ results or to a designated comparison group, in each case as specified by the Administrator in writing: (i) brand recognition/acceptance, (ii) cash flow, (iii) cash flow return on
investment, (iv) contribution to profitability, (v) cost control, (vi) cost positions, (vii) cost of capital, (viii) customer satisfaction, (ix) development of products, (x) earnings before interest, taxes and
amortization, (xi) earnings per share, (xii) economic profit, (xiii) economic value added, (xiv) free cash flow, (xv) income or net income, (xvi) income before income taxes, (xvii) market segment share,
(xviii) new product innovation, (xix) operating income or net operating income, (xx) operating margin or profit margin, (xxi) operating profit or net operating profit, (xxii) process excellence, (xxiii) product cost
reduction, (xxiv) product mix, (xxv) product release schedules, (xxvi) product ship targets, (xxvii) quality, (xxviii) return on assets or net assets, 

  

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(xxix) return on capital, (xxx) return on capital employed, (xxxi) return on equity, (xxxii) return on invested capital, (xxxiii) return
on operating revenue, (xxxiv) return on sales, (xxxv) revenue, (xxxvi) sales, (xxxvii) share price performance, (xxxviii) strategic alliances, (xxxix) total shareholder return and (xl) working capital. 

2.16 “Plan” means this Logitech Management Performance Bonus Plan, as set forth in this instrument and as hereafter amended from time
to time. 
 2.17 “Shares” means registered shares of Logitech’s share capital. 
 2.18 “Target Award” means the target award payable under the Plan to a Participant for the Performance Period expressed as a percentage
of his or her Base Salary or a specific dollar amount or by reference to a number of Shares, as determined by the Administrator in accordance with Section 3.4. 
 2.19 “Termination of Employment” means a cessation of the employee-employer relationship between an Employee and Logitech or an Affiliate for any reason, including (without limitation) a termination
by resignation, discharge, death, Disability, retirement or the disaffiliation of an Affiliate, but excluding a transfer from Logitech to an Affiliate or between Affiliates. 
 ARTICLE 3. SELECTION OF PARTICIPANTS AND DETERMINATION OF AWARDS 
 3.1 Selection of
Participants. The Administrator, in its sole discretion, shall select the Employees are at the level of Director or higher and who shall be Participants for any Performance Period. The Administrator also may designate as Participants one or more
individuals (by name or position) who are expected to become Employees during a Performance Period. Participation in the Plan is in the sole discretion of the Administrator and shall be determined Performance Period by Performance Period.
Accordingly, an Employee who is a Participant for a given Performance Period is in no way assured of being selected for participation in any subsequent Performance Period. 
 3.2 Determination of Performance Period. The Administrator, in its sole discretion, shall establish in writing whether a Performance Period shall
be Logitech’s fiscal year or such longer or shorter period of time. The Performance Period may differ from Participant to Participant and from award to award. 
 3.3 Determination of Performance Goals. The Administrator shall establish the Performance Goals for each Participant for the Performance Period. Such Performance Goals shall be set forth in writing. The
Performance Goals may differ from Participant to Participant and from award to award. The Administrator shall determine and set forth in writing whether any significant elements shall be included in or excluded from the calculation of any
Performance Goal with respect to any Participants, including but not limited to (a) restructurings, discontinued operations, extraordinary items, and other unusual or non-recurring charges, (b) an event either not directly related to the
operations of the Company or not within the reasonable control of the Company’s management, or (c) the cumulative effects of tax or accounting changes in accordance with U.S. generally accepted accounting principles. 
  

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 3.4 Determination of Target Awards. The Administrator shall establish a Target Award for each
Participant for each Performance Period. Such Target Award shall be set forth in writing. The Target Award may be expressed as a percentage of a Participant’s Base Salary or a specific dollar amount or by reference to a number of Shares.

 3.5 Determination of Payout Formula or Formulae. The Administrator shall establish a Payout Formula or Formulae for purposes of
determining the Actual Award (if any) payable to each Participant. Each Payout Formula shall (a) be in writing, (b) be based on a comparison of actual performance to the Performance Goals, (c) provide for the payment of a
Participant’s Target Award if the Performance Goals for the Performance Period are achieved at the predetermined level and (d) provide for the payment of an Actual Award greater than or less than the Participant’s Target Award,
depending upon the extent to which actual performance exceeds or falls below the Performance Goals. 
 3.6 Date for Determinations.
The Administrator shall make all determinations under Sections 3.1 through 3.5 on or before the earlier of (i) 90 days after the commencement of each Performance Period or (ii) the expiration of 25% of the Performance Period. 

3.7 Determination of Actual Awards. After the end of each Performance Period the Administrator shall certify in writing (which may be in the
form of Committee minutes) the extent to which the Performance Goals applicable to each Participant for the Performance Period were achieved or exceeded, as determined by the Administrator. The Actual Award for each Participant shall be determined
by applying the Payout Formula to the level of actual performance that has been certified by the Administrator. Any contrary provision of the Plan notwithstanding, the Administrator may (a) reduce or eliminate the Actual Award that otherwise
would be payable under the Payout Formula or (b) determine whether or not any Participant will receive an Actual Award in the event that the Participant incurs a Termination of Employment before such Actual Award is to be paid pursuant to
Section 4.2. If a Participant’s Actual Award is reduced or eliminated, no other Participant’s Actual Award shall be increased as a result. Any reduction or elimination of an Actual Award may be based on subjective factors. 

3.8 Maximum Actual Awards. In no event shall the amount or value of the Actual Award paid to any Participant for any Performance Period exceed
$10,000,000 for each 12 months in a Performance Period (proportionately adjusted for periods of less than 12 months). The value of any Shares in an Actual Award shall be calculated in accordance with Section 4.3. 
 ARTICLE 4. PAYMENT OF AWARDS 
 4.1 Right to Receive
Payment. Each Actual Award that may become payable under the Plan shall be paid solely from the general assets of Logitech or the Affiliate that employs the Participant (as the case may be), as determined by Logitech. No amounts awarded or
accrued under the Plan shall be funded, set aside or otherwise segregated prior to payment. The obligation to pay Actual Awards under the Plan shall at all times be an unfunded and unsecured obligation of Logitech. Participants shall have the status
of general creditors of Logitech or the Affiliate that employs the Participant. 
  

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 4.2 Timing of Payment. Subject to Sections 3.7 and 4.5, payment of each Actual Award shall be
made as soon as administratively practicable, but in no event later than two and one-half months after the end of the applicable Performance Period, as the case may be. 
 4.3 Form of Payment. Each Actual Award shall be paid in cash (or its equivalent) or Shares in a single lump sum, except as otherwise determined by the Administrator. To the extent an Actual Award is paid in
whole or in part in Shares, such Shares shall be granted under Logitech’s 2006 Stock Incentive Plan or such other shareholder approved plan of the Company providing for payment or awarding of Shares. If (i) a Target Award denominated in
cash is paid in Shares or (ii) a Target Award denominated in Shares is paid in cash, the amount of cash or Shares shall be determined based on the closing per share selling price for Shares as quoted on the NASDAQ Stock Market, for Target
Awards denominated in U.S. dollars, or the SWX Swiss Exchange, for Target Awards denominated in any currency other than U.S. dollars, on the date payment of the Actual Award would otherwise have been made. 
 4.4 Payment in the Event of Death. If a Participant dies before receiving an Actual Award that was scheduled to be paid before his or her death
for a prior Performance Period, then the Actual Award shall be paid to the Participant’s designated beneficiary or, if no beneficiary has been designated, to the administrator or representative of his or her estate, subject to applicable law.
Any beneficiary designation or revocation of a prior designation shall be effective only if it is in writing, signed by the Participant and received by Logitech prior to the Participant’s death, subject to applicable law. 
 4.5 Suspension or Termination of Awards. The Administrator may with respect to any one or more Performance Periods establish terms and conditions
for the suspension of the payment or for the non-payment of any Actual Award in the event of misconduct of a Participant. In the absence of the establishment of such terms and conditions, the following terms shall apply: If at any time (including
after the conclusion of a Performance Period) the Administrator reasonably believes that a Participant has committed an act of misconduct as described in this Section 4.5, the Administrator may suspend the payment of an Actual Award, pending a
determination of whether an act of misconduct has been committed. If the Administrator determines that a Participant has committed an act of embezzlement, fraud or breach of fiduciary duty, or if a Participant makes an unauthorized disclosure of any
trade secret or confidential information of Logitech or any of its Affiliates, or induces any customer to breach a contract with Logitech or any of its Affiliates, neither the Participant nor his or her estate shall be entitled to receive payment of
any Actual Award. Any determination by the Administrator with respect to the foregoing shall be final, conclusive and binding on all interested parties. For any Participant who is a Vice President or above the determination of the Administrator
shall be subject to the approval of the Board. 
  

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 ARTICLE 5. ADMINISTRATION 
 5.1 Administrator Authority. The Plan shall be administered by the Administrator, subject to Section 5.3, and with respect to any Logitech executive officer the Committee shall act as Administrator. The
Administrator shall have all powers and discretion necessary or appropriate to administer the Plan and to control its operation, including (without limitation) the power to (a) determine which Employees shall be granted awards,
(b) prescribe the terms and conditions of the awards, (c) interpret the Plan, (d) adopt such procedures and sub-plans as are necessary or appropriate, (e) adopt rules for the administration, interpretation and application of the
Plan and (f) interpret, amend or revoke any such rules. 
 5.2 Decisions Binding. All determinations and decisions made by the
Administrator, the Board or any delegate of the Administrator pursuant to the provisions of the Plan shall be final, conclusive and binding on all persons and shall be given the maximum deference permitted by law. 
 5.3 Delegation by the Administrator. The Administrator, on such terms and conditions as it may provide, may delegate all or part of its authority
and powers under the Plan to one or more directors and/or employees of Logitech, except that the Committee may not delegate its authority and powers under the Plan with respect to Logitech executive officers. 
 ARTICLE 6. GENERAL PROVISIONS 
 6.1 Tax
Withholding. Logitech or an Affiliate, as applicable, shall withhold all required taxes from an Actual Award, including any federal, state, local or other taxes. 
 6.2 No Effect on Employment. Neither the Plan nor any Target Award shall confer upon a Participant any right with respect to continuing the Participant’s employment with the Company or an Affiliate
thereof. Nothing in the Plan shall interfere with or limit in any way the right of Logitech or an Affiliate, as applicable, to terminate any Participant’s employment or service at any time, with or without cause. Logitech and its Affiliates
expressly reserve the right, which may be exercised at any time and without regard to when during or after a Performance Period such exercise occurs, to terminate any individual’s employment with or without cause, and to treat him or her
without regard to the effect that such treatment might have upon him or her as a Participant. 
 6.3 Participation; No Effect on Other
Benefits. No Employee shall have the right to be selected to receive an award under this Plan, or, having been so selected, to be selected to receive a future award. Except as expressly set forth in a Participant’s employment agreement with
Logitech or an Affiliate thereof, any Actual Awards under the Plan shall not be considered for the purpose of calculating any other benefits to which such Participant may be entitled, including (a) any termination, severance, redundancy or
end-of-service payments, (b) other bonuses or long-service awards, (c) overtime premiums, (d) pension or retirement benefits or (e) future Base Pay or any other payment to be made by Logitech to such Participant. All Participants
expressly acknowledge that there is no obligation on the part of the Company to continue the Plan. Any Actual Awards granted under this Plan are not intended to be compensation of a continuing or recurring nature, or part of a Participant’s
normal or expected compensation, 
  

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 6.4 Successors. All obligations of Logitech and any Affiliate under the Plan, with respect to
awards granted hereunder, shall be binding on any successor to Logitech and/or such Affiliate, whether the existence of such successor is the result of a merger, consolidation, direct or indirect purchase of all or substantially all of the business
or assets of Logitech or such Affiliate, or any similar transaction. 
 6.5 Nontransferability of Awards. No award granted under the
Plan shall be sold, transferred, pledged, assigned or otherwise alienated or hypothecated, other than by will, by the laws of descent and distribution or to the limited extent provided in Section 4.4. All rights with respect to an award granted
to a Participant shall be available during his or her lifetime only to the Participant. 
 ARTICLE 7. DURATION, AMENDMENT AND TERMINATION 

7.1 Duration of the Plan. The Plan shall commence on the date specified herein and shall remain in effect thereafter until terminated pursuant
to Section 7.2. 
 7.2 Amendment, Suspension or Termination. The Board or the Administrator may amend, suspend or terminate the
Plan, or any part thereof, at any time and for any reason. No award may be granted during any period of suspension or after termination of the Plan. 
 ARTICLE 8. LEGAL CONSTRUCTION 
 8.1 Severability. In the event any provision of the Plan shall be held illegal or
invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 
 8.2 Requirements of Law. The granting of awards under the Plan shall be subject to all applicable laws, rules and regulations, and to such
approvals by any governmental agencies or national securities markets as may be required. 
 8.3 Captions. Captions are provided
herein for convenience only and shall not serve as a basis for interpretation or construction of the Plan. 
  

 7Employment Aggreement, Joseph L. Gorga

 EXHIBIT 10.1 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (“Agreement”) is entered into
effect as of January 1, 2008 (the “Effective Date”), by and between Joseph L. Gorga (“Executive”) and International Textile Group, Inc. (“Company” or “ITG”), a Delaware corporation. 
 R E C I T A L S: 
 A. Executive serves as the
President and Chief Executive Officer of ITG and is a key corporate officer of ITG and is expected to make major contributions to the profitability, growth and financial strength of the ITG. 
 B. ITG desires to employ Executive, and Executive desires to accept such employment, under the terms and conditions of this Agreement. 
 C. The Board of Directors has also determined that it is in the best interests of the stockholders and ITG to promote stability among key officers.

 IN CONSIDERATION OF THE FOREGOING, the mutual covenants contained herein, and other good and valuable consideration, receipt of which is
hereby acknowledged, the parties agree as follows: 
  

	1.	Definitions. 

 1.1 “Accountants”
has the meaning set forth in Section 9.8(B)(i). 
 1.2 “Base Salary” has the meaning set forth in
Section 6.1. 
 1.3 “Board” means the board of directors of ITG. 
 1.4 “Cause” means (A) the commission by Executive of (i) a felony or (ii) any serious crime involving fraud,
dishonesty or breach of trust; (B) gross negligence or intentional misconduct by Executive with respect to ITG or in the performance of his duties to ITG; (C) failure to follow a reasonable, lawful and specific direction of the Board of
Directors of ITG; (D) failure by Executive to cooperate in any corporate investigation, or (E) breach by Executive of any material provision of this Agreement, which breach is not corrected by Executive within ten (10) calendar days
after receipt by Executive of written notice from ITG of such breach. For purposes of this definition, no act or failure to act by the Executive shall be considered “intentional” unless done or omitted to be done by the Executive in bad
faith and without reasonable belief that the Executive’s action or omission was in the best interests of ITG. 
 1.5
“Code” has the meaning set forth in Section 9.8(A). 
 1.6 “Covered Payments” has the meaning set forth
in Section 9.8(A). 
 1.7 “Disability” or “Disabled” means the absence of Executive from
Executive’s duties with the Company on a full time basis for 180 consecutive days as a result of incapacity due to mental or physical illness which is determined to be total and permanent by a physician 

 
selected by the Company or its insurers and reasonably acceptable to Executive or Executive’s legal representative. 
 1.8 “Employee Benefits” means the “benefit plans and policies” for the limited liability companies of ITG or its
predecessor that was the employer of the Executive immediately prior to the execution of this Employment Agreement and Employee Benefits shall refer to such plans until adopted by and as subsequently amended by ITG. 
 1.9 “Excise Tax” has the meaning set forth in Section 9.8(A). 
 1.10 “Excise Tax Reimbursement” has the meaning set forth in Section 9.8(A). 
 1.11 “Good Reason” means the termination of Executive’s employment by Executive for any of the following reasons:

 (A) involuntary reduction in Executive’s Base Salary unless such reduction occurs simultaneously with a reduction in
officers’ salaries generally applicable on a company-wide basis; 
 (B) involuntary discontinuance or reduction in bonus
award opportunities for Executive under ITG’s Incentive or Bonus Plan unless a generally applicable company-wide reduction or elimination of all officers’ bonus awards occurs simultaneously with such discontinuance or reduction;

 (C) involuntary discontinuance of Executive’s participation in any employee benefit plans maintained by ITG unless
such plans are discontinued by reason of law or loss of tax deductibility to ITG with respect to contributions to such plans, or are discontinued as a matter of ITG policy applied equally to all participants in such plans that are in the same
classification of employees as Executive; 
 (D) failure to obtain an assumption of ITG’s obligations under this
Agreement by any successor to ITG, regardless of whether such entity becomes a successor to ITG as a result of a merger, consolidation, sale of assets of ITG, or other form of reorganization, except when the rights and obligations of ITG under this
Agreement are vested in the successor to ITG by operation of law; 
 (E) involuntary relocation of Executive’s primary
office to a location more than fifty (50) miles from the City of Greensboro, State of North Carolina; and 
 (F) material
reduction of Executive’s duties in effect on the Effective Date. 
 1.12 “Incentive or Bonus Plan” has the
meaning set forth in Section 6.2 hereof. 
 1.13 “ITG” means International Textile Group Inc. and each of the
affiliates of International Textile Group Inc. (meaning any entity that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, International Textile Group Inc.), along with all
successors and assigns of each of such entities. 
  

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

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

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

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

  

	2.	Termination of Prior Agreements. 

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

  

	3.	Employment. 

 ITG hereby employs Executive, and
Executive hereby accepts employment, according to the terms and conditions set forth in this Agreement and for the period specified in Section 5 of this Agreement. 
  

	4.	Duties. 

 During the Term, Executive shall serve ITG
as its President and Chief Executive Officer in accordance with reasonable and lawful directions from ITG’s Board of Directors and in accordance with ITG’s Articles of Incorporation and Bylaws, as both may be amended from time to time.
Executive will report directly to the Board of Directors. While Executive is employed by ITG as a full-time employee, Executive shall serve ITG faithfully, diligently, competently and to the best of his ability, and will exclusively devote his full
time, energy and attention to the business of ITG and to the promotion of its interests. Executive shall not, without the written consent of the Board of Directors either render services to or for any person, firm, corporation or 

  

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other entity or organization in exchange for compensation, regardless of the form in which such compensation is paid and whether or not it is paid directly
or indirectly to Executive, or serve as a board member, director or trustee of any corporation or organization regardless of whether Executive is paid for such services. Nothing in this Section 4 shall preclude Executive from managing his
personal investments and affairs, provided that such activities in no way interfere with the proper performance of his duties and responsibilities as President and Chief Executive Officer. 
  

	5.	Term of Employment. 

 Subject to Article 9, the term
of this Agreement (the “Term”) shall commence on the Effective Date and end on December 31, 2011. The Term shall automatically be extended by one year on each December 31, beginning December 31, 2008, unless not later than
September 30 of each year ITG notifies Executive, or Executive notifies ITG, that it or he, as the case may be, does not desire to have the Term extended. For example, if such notice of non-extension is not given by September 30, 2008, the
Term of this Agreement shall automatically be extended to December 31, 2012. 
  

	6.	Compensation. 

 6.1 Base Salary. While
employed under this Agreement, Executive will receive as his compensation for the performance of his duties and obligations to ITG under this Agreement a Base Salary of Six Hundred Sixty Thousand Dollars ($660,000.00) per year, which will be
payable in such installments established by ITG for all salaried employees, and which will be subject to annual review by the Board of Directors or any committee designated by the Board of Directors (the base salary, as it may be modified from time
to time, is referred to herein as the “Base Salary”). 
 6.2 Bonus. In addition to the Base Salary, Executive will receive
with respect to each plan year a bonus in accordance with ITG’s Incentive and Bonus Plan, a copy of which has been delivered to Executive. 
 6.3 Withholding. All compensation payable to Executive pursuant to this Section 6 shall be paid net of amounts withheld for federal, state, municipal or local income taxes, Executive’s share, if any, of any payroll taxes
and such other federal, state, municipal or local taxes as may be applicable to amounts paid by an employer to its employee or to the employer/employee relationship. 
  

	7.	Other Benefits of Employment. 

 7.1 Employee
Benefits. Executive will be entitled to participate in such hospitalization, life insurance, long and short term disability, 401(k) and other employee benefit plans and programs, if any, as may be adopted by ITG from time to time, in accordance
with the provisions of such plans and programs and on the same basis as other full-time salaried employees of ITG who participate in such employee benefit plans (except to the extent that the benefits provided under any of such plans or programs are
expressly offset by any of the benefits provided under or pursuant to this Agreement). 
  

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 7.2 Executive Benefits. Executive shall be entitled to participate in any employee benefit adopted
by ITG for executive level employees. Inasmuch as Executive conducts a significant level of Company business outside of the Company’s corporate offices, Executive shall be entitled to reimbursement during the term of this agreement of annual
membership dues to the country club in which he is a member. 
 7.3 Stock Based Awards. Executive shall be eligible to receive grants
of stock options, performance shares or units, stock appreciation rights, restricted stock, deferred shares, and other stock-based awards in accordance with the provisions of any stock-based award or long-term incentive plan (“Plan”) ITG
may adopt or amend or supersede from time to time. The terms of such grants shall be determined by the Board of Directors (or its designee as provided in the Plan or as appointed by the Board of Directors) in accordance with the Plan, provided,
however, that notwithstanding any provision of the Plan to the contrary, in the event of any termination of Executive’s employment for any reason other than for Cause pursuant to Section 9.3, or for termination of employment for other than
Good Reason pursuant to Section 9.5, any stock-based award granted to Executive prior to such Termination Date shall immediately vest and be exercisable by or issued to the Executive under the Plan. 
 7.4 Taxes and Withholding. Executive shall be responsible for paying all federal, state, municipal or local taxes payable by him with respect to
any benefits provided under this Section 7, and ITG will, when required by law or when otherwise appropriate or customary, withhold from the benefits or other compensation amounts sufficient to satisfy such taxes, unless taxes are to be paid by
ITG as set forth in the provisions of the executive benefit plan, Employee Benefit Plan, or an agreement with the Executive. 
 7.5
Vacation. Notwithstanding any policy of the company for salaried employees, Executive will be entitled to four (4) weeks paid vacation and ITG recognized holidays. 
  

	8.	Termination. 

 8.1 Termination by ITG.

 (A) This Agreement shall automatically terminate effective upon (i) the date of Executive’s death; (ii) the
date that Executive is determined to be permanently Disabled or (iii) the date of Executive’s retirement. 
 (B)
ITG may terminate this Agreement, and Executive’s employment with ITG, without Cause upon ninety (90) days’ prior written notice to Executive. 
 (C) ITG may terminate this Agreement, and Executive’s employment with ITG, with Cause effective immediately and without the
requirement of prior notice to Executive. 
 8.2 Termination by Executive. Executive may terminate this Agreement, and his employment
with ITG, with or without Good Reason, upon ninety (90) days’ prior written notice to ITG. 
  

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 8.3 Notice. Any purported termination of this Agreement by ITG or Executive shall be communicated
by written notice of termination to the other party. Such notice shall indicate the specific termination provision in this Agreement relied upon, shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for
termination of Executive’s employment under the provisions so indicated, and shall specify the Termination Date (which shall not be earlier than the date of the notice). 
  

	9.	Compensation and Benefits Upon Termination of Employment. 

 9.1 Termination of Employment upon Death. If Executive’s employment is terminated by reason of death, his estate shall be entitled to receive only the Base Salary to which Executive was entitled through the date of death, any
accrued unpaid bonus compensation for the prior plan year, any unpaid Target Bonus compensation (calculated on a pro rata basis) due to Executive with respect to the plan year in which the Termination Date occurs, and such other benefits as may be
available to Executive or his estate through ITG’s benefit plans and policies. The payment of said bonus compensation shall be made in a lump sum within sixty (60) days from the Termination Date. 
 9.2 Termination of Employment upon Disability. If Executive’s employment is terminated due to his Disability, Executive shall be entitled to
receive only the Base Salary to which he was entitled through the Termination Date due to Disability, any accrued unpaid bonus compensation for the prior plan year, any unpaid Target Bonus compensation (calculated on a pro rata basis) due to
Executive with respect to the plan year in which the Termination Date occurs, and such other benefits as may be available to Executive through ITG’s benefit plans and policies. The payment of said bonus compensation shall be made in a lump sum
within sixty (60) days from the Termination Date. 
 9.3 Termination of Employment by ITG for Cause. If Executive’s
employment is terminated for Cause as provided in Section 8.1(C), Executive shall be entitled to receive the Base Salary to which he was entitled through the Termination Date, and such other benefits as may be available to him through
ITG’s benefit plans and policies in effect on the Termination Date, other than any accrued but unpaid bonus compensation, which shall be forfeited. 
 9.4 Termination Without Cause or Termination For Good Reason. If ITG terminates Executive’s employment without Cause pursuant to Section 8.1(B) or if Executive terminates his employment for Good
Reason pursuant to Section 8.2, Executive shall receive severance pay equal to (A) four (4) times his Base Salary; (B) four (4) times the average of Executive’s previous three (3) years annual bonus (or if
Executive was employed for less than three (3) years, the average of Executive’s bonus during the actual employment term); and (C) medical and dental coverage under the plan(s) in effect under the COBRA eligibility period for
Executive and any eligible dependents with the costs absorbed by the Company on a tax protected basis to Executive for the period of time Executive and/or dependents(s) remain eligible for COBRA but not to exceed three (3) years from the
Termination Date. Said severance shall be in such installments established by ITG for all salaried employees and bonus payments shall be paid at the same time bonus payments are made for all plan participants. Executive agrees that he shall not be
entitled to any additional compensation or benefits other than what is set out in this Section 9.4. Executive and ITG agree that the receipt of severance benefits as 

  

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defined in this Section 9.4 are conditioned upon and subject to Executive and ITG executing a valid mutual release agreement releasing any and all
claims which either of them have or may have against the other arising out of Executive’s employment (other than enforcement of this Agreement). 
 9.5 Termination of Employment other than for Good Reason. If Executive terminates employment with ITG pursuant to Section 8.2 other than for Good Reason or Executive elects to not renew this Agreement for
an additional term, Executive shall be entitled to receive only the Base Salary to which he was entitled through the Termination Date, accrued unpaid bonus compensation due to Executive for the plan year prior and such other benefits as may be
available to him through ITG’s benefit plans and policies through the Termination Date. Such bonus payments shall be paid at the same time bonus payments are made for all plan participants. If the Company elects not to renew this Agreement for
an additional term, Executive shall be entitled to receive compensation equal to three (3) years of his Base Salary plus three (3) times the average of Executive’s previous three (3) years annual bonus (or if Executive was
employed for less than three (3) years, the average of Executive’s bonus during the actual employment term). Severance compensation shall be paid in such installments established by ITG for all salaried employees and bonus payments shall
be paid at the same time bonus payments are made for all plan participants. Such severance payments shall commence immediately after the Termination Date. 
 9.6 Effect of Termination. Upon termination of Executive’s employment, the obligations of each of the parties under this Agreement shall expire as of the Termination Date, including, without limitation,
the obligations of ITG to pay any compensation to Executive, except to the extent otherwise specifically provided in this Agreement. Notwithstanding the foregoing, the obligations contained in Sections 9.7 and 10 of this Agreement, the provisions
hereof relating to the obligations of ITG described in the preceding sentence and any other provision of this Agreement that is intended to continue in full force and effect after the termination of Executive’s employment, shall survive the
termination or expiration of this Agreement in accordance with the terms set forth therein. 
 9.7 Non-Payment Due to Breach. In the
event Executive breaches any of the covenants and obligations set forth in this Agreement, including without limitation any of the covenants set forth in Section 10 hereof, then ITG’s obligation to make any remaining payments under this
Agreement that have not already been paid to Executive shall be terminated. 
 9.8 Certain Further Payments by ITG. 
 (A) In the event that any amount or benefit paid or distributed to Executive pursuant to this Agreement, taken together with any amounts or benefits
otherwise paid or distributed to Executive by ITG or any affiliated company (collectively, the “Covered Payments”), are or become subject to the tax (the “Excise Tax”) imposed under Section 4999 of the Internal Revenue Code
of 1986, as amended (the “Code”), or any similar tax that may hereafter be imposed, ITG shall pay to Executive at the time specified in this Section 9.8 an additional amount (the “Excise Tax Reimbursement”) such that the net
amount retained by Executive with respect to such Covered Payments, after deduction of any Excise Tax on the Covered Payments and any Federal, state and local income or employment tax and Excise Tax on the Excise Tax 

  

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Reimbursement provided for by this Section 9.8, but before deduction for any Federal, state or local income or employment tax withholding on such
Covered Payments, shall be equal to the amount of the Covered Payments. 
 (B) For purposes of determining whether any of the Covered
Payments will be subject to the Excise Tax and the amount of such Excise Tax: 
 (i) such Covered Payments will be treated as “parachute
payments” within the meaning of Section 280G of the Code, and all “parachute payments” in excess of the “base amount” (as defined under Section 280G(b)(3) of the Code) shall be treated as subject to the Excise Tax,
unless, and except to the extent that, in the good faith judgment of ITG’s independent certified public accountants appointed prior to the date upon which a change in control became effective or tax counsel selected by such accountants (the
“Accountants”), ITG has a reasonable basis to conclude that such Covered Payments (in whole or in part) either do not constitute “parachute payments” or represent reasonable compensation for personal services actually rendered
(within the meaning of Section 280G(b)(4)(B) of the Code) in excess of the “base amount,” or such “parachute payments” are otherwise not subject to such Excise Tax; and 
 (ii) the value of any non-cash benefits or any deferred payment or benefit shall be determined by the Accountants in accordance with the principles of
Section 280G of the Code. 
 (C) For purposes of determining the amount of the Excise Tax Reimbursement, Executive shall be deemed to
pay: 
 (i) Federal income taxes at the highest applicable marginal rate of Federal income taxation for the calendar year in which the Excise
Tax Reimbursement is to be made; and 
 (ii) any applicable state and local income taxes at the highest applicable marginal rate of taxation
for the calendar year in which the Excise Tax Reimbursement is to be made, net of the maximum reduction in Federal income taxes which could be obtained from the deduction of such state or local taxes if paid in such year. 
 (D) In the event that the Excise Tax is subsequently determined by the Accountants or pursuant to any proceeding or negotiations with the Internal
Revenue Service to be less than the amount taken into account hereunder in calculating the Excise Tax Reimbursement made, Executive shall repay to ITG, at the time that the amount of such reduction in the Excise Tax is finally determined, the
portion of such prior Excise Tax Reimbursement that would not have been paid if such Excise Tax had been applied in initially calculating such Excise Tax Reimbursement. Notwithstanding the foregoing, in the event any portion of the Excise Tax
Reimbursement to be refunded to ITG has been paid to any Federal, state or local tax authority, repayment thereof shall not be required until actual refund or credit of such portion has been made to Executive. Executive and ITG shall mutually agree
upon the course of action to be pursued (and the method of allocating the expenses thereof) if Executive’s good faith claim for refund or credit is denied. 
  

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 (E) In the event that the Excise Tax is later determined by the Accountants or pursuant to any proceeding
or negotiations with the Internal Revenue Service to exceed the amount taken into account hereunder at the time the Excise Tax Reimbursement is made (including, but not limited to, by reason of any payment the existence or amount of which cannot be
determined at the time of the Excise Tax Reimbursement), ITG shall make an additional Excise Tax Reimbursement in respect of such excess (plus any interest or penalty payable with respect to such excess) at the time that the amount of such excess is
finally determined. 
 (F) The Excise Tax Reimbursement (or portion thereof) provided for in Section 9.8(A) above shall be paid to
Executive not later than ten (10) business days following the payment of the Covered Payments; provided, however, that if the amount of such Excise Tax Reimbursement (or portion thereof) cannot be finally determined on or before the date on
which payment is due, ITG shall pay to Executive by such date an amount estimated in good faith by the Accountants to be the minimum amount of such Excise Tax Reimbursement and shall pay the remainder of such Excise Tax Reimbursement as soon as the
amount thereof can be determined, but in no event later than forty five (45) calendar days after payment of the related Covered Payment. 
  

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

 10.1 Non-Disclosure. Executive expressly covenants and agrees that he will not reveal, use, divulge or make known to any person, firm, company or corporation any secret or confidential information of any nature concerning ITG or its
business, or anything connected therewith. 
 10.2 Return of Materials. Executive agrees to deliver or return to ITG upon termination
or expiration of this Agreement or as soon thereafter as possible, all written information and any other similar items furnished by ITG or prepared by Executive in connection with his services hereunder. Executive will retain no copies thereof after
termination of this Agreement or Executive’s employment with ITG. 
 10.3 Non-Competition. In the event of termination or
non-renewal of this Agreement by either ITG or Executive, for any reason, Executive shall not (except as an officer, director, employee, agent or consultant of ITG) during the three (3) year period following the Termination Date, directly or
indirectly, (a) own, manage, operate, join, or have a financial interest in, control or participate in the ownership, management, operation or control of, or be employed as an employee, agent or consultant, or in any other individual or
representative capacity whatsoever, or use or permit his name to be used in connection with, or be otherwise connected in any manner with any business or enterprise that is actively engaged in any business in the Restricted Industry within the
Restricted Territory; provided that the foregoing restriction shall not be construed to prohibit the ownership by Executive of not more than one percent (1%) of any class of securities of any corporation which is engaged in any of the foregoing
businesses, having a class of securities registered pursuant to the Securities Exchange Act of 1934, which securities are publicly owned and regularly traded on any national exchange or in the over-the-counter market, provided, further, that such
ownership represents a passive investment and that neither Executive nor any group of persons including Executive in any way, either directly or indirectly, manages or exercises control of any such corporation, guarantees any of its financial
obligations, 

  

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otherwise takes part in its business other than exercising his rights as a shareholder, or seeks to do any of the foregoing or (b) solicit, call upon,
divert or take away any Restricted Customers for purposes of conducting a business in the Restricted Industry. 
 10.4 No
Solicitation. In addition to the limitation imposed by Section 10.3, Executive hereby further agrees and covenants that during the term of this Agreement, and for a period of three (3) years thereafter, he shall not, directly or
indirectly, on his own behalf or with others (A) induce or attempt to induce any employee of ITG to leave the employ of ITG, or in any way interfere with the relationship between ITG and any employee; (B) knowingly hire any employee of
ITG; or (C) induce or attempt to induce any referral source or other business relation of ITG not to do business with ITG, or to cease doing business with ITG, or in any way interfere with the relationship between any such referral source or
business relation and ITG. 
 10.5 Injunctive Relief. Executive acknowledges that it is impossible to measure in money the damages
that will accrue to ITG by reason of Executive’s failure to observe any of the obligations imposed on him by this Section 10. Accordingly, if ITG shall institute an action to enforce the provisions hereof, Executive hereby waives the claim
or defense that an adequate remedy at law is available to ITG, and Executive agrees not to urge in any such action the claim or defense that such remedy at law exists. 
 10.6 Severability. If a final determination is made by a court having competent jurisdiction that the time or territory or any other restriction contained in Sections 10.1, 10.3 or 10.4 is an unenforceable
restriction on Executive’s activities, the provisions of Sections 10.1, 10.3 or 10.4 shall not be rendered void but shall be deemed amended to apply such maximum time and territory and such other restrictions as such court may judicially
determine or otherwise indicate to be reasonable. 
  

	11.	Miscellaneous. 

 11.1 Assignment. This
Agreement shall be binding upon the parties hereto, their respective heirs, personal representatives, executors, administrators and successors; provided, however, that Executive shall not assign this Agreement. 
 11.2 Governing Law. This Agreement shall be construed under and governed by the internal laws of the State of New York without giving effect to
any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of New York. 
 11.3 Entire Agreement. This Agreement between Executive and ITG, set forth the entire agreement of the parties concerning the employment of
Executive by ITG, and any other oral or written statements, representations, agreements, or understandings made or entered into prior to or contemporaneously with the execution of this Agreement, are hereby rescinded, revoked, and rendered null and
void by the parties. Both parties hereto have participated in the selection of the words and phrases set forth in this Agreement in order to express their joint intentions in entering into this employment relationship, and the parties hereto agree
that there shall not be strict interpretation against either party in connection with any review of this Agreement in which interpretation thereof is an issue. 
  

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 11.4 Notices. Any notice required or permitted under this Agreement shall be deemed to have been
effectively made or given if in writing and personally delivered, or mailed properly addressed in a sealed envelope, postage prepaid by certified or registered mail, delivered by a reputable overnight delivery service or sent by facsimile. Unless
otherwise changed by notice, notice shall be properly addressed to Executive if addressed to the address of Executive on the books and records of ITG at the time of the delivery of such notice, and properly addressed to ITG if addressed to:

 Corporate Secretary 
 International Textile Group, Inc. 
 804 Green Valley Road, Suite 300 
 Greensboro NC 27408 
 11.5
Severability. Wherever there is any conflict between any provision of this Agreement and any statute, law regulation or judicial precedent, the latter shall prevail, but in such event the provisions of this Agreement thus affected shall be
curtailed and limited only to the extent necessary to bring them within the requirements of law. In the event that any provision of this Agreement shall be held by a court of competent jurisdiction to be indefinite, invalid, void or voidable or
otherwise unenforceable, the balance of this Agreement shall continue in full force and effect unless such construction would clearly be contrary to the intentions of the parties or would result in an unconscionable injustice. 
 11.6 Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument. 
 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed the day and year first above written. 
  

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

	Name:	 	David L. Wax	 		 	Joseph L. Gorga
	Title:	 	Director	 		 	

  

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