Document:

Release and Settlement Agreement

 

Exhibit 10.2

[REDACTED — OMITTED MATERIAL HAS BEEN
FILED SEPARATELY WITH THE COMMISSION AND IS DENOTED HEREIN BY
***.]

	 	 	 	 	 	 	 
	 	
NORTH CAROLINA
	 	 	 	 	IN THE GENERAL COURT OF JUSTICE

SUPERIOR COURT DIVISION

	 	FORSYTH COUNTY	 	 	 	 	01 CVS 4733
	 	 	 	 	 	 	 
	 	
BLUE RHINO CORPORATION,
	 	 	)
	 	 

	 	 	 	 	)
	 	 

	 	Plaintiff,
	 	 	)
	 	RELEASE AND

	 	 	 	 	)
	 	SETTLEMENT AGREEMENT

	 	     vs.	 	 	)
	 	 

	 	 	 	 	)
	 	 

	 	PRICEWATERHOUSECOOPERS LLP,
	 	 	)
	 	 

	 	 	 	 	)
	 	 

	 	          Defendant.	 	 	)
	 	 

     This Release and Settlement Agreement is made and entered into this 26th
day of February, 2003 by and between Blue Rhino Corporation (“Blue Rhino”) and
PricewaterhouseCoopers LLP (“PwC”) (collectively the “Parties”);

     WHEREAS, the Parties are currently engaged in litigation in the General
Court of Justice, Superior Court Division, of Forsyth County, North Carolina in
a case styled Blue Rhino Corporation v. PricewaterhouseCoopers LLP, Case No. 01
CvS 4733 (the “Lawsuit”); and

     WHEREAS, the Parties, based upon this Release and Settlement Agreement,
have agreed to compromise their claims and defenses each against the other in
final and complete resolution of all claims and issues between the Parties; and

     WHEREAS, the Parties have agreed to enter into this Release and Settlement
Agreement to accomplish their joint goal of settling and resolving all claims.

     NOW, THEREFORE, in consideration of the mutual covenants and promises set
forth herein, the adequacy and sufficiency of which is hereby acknowledged, the
undersigned parties hereto agree as follows:

 

 

     1.     Payment. PwC shall pay to Blue Rhino the sum of **********
********************************** on or before February 26, 2003, to be held
in trust by Blue Rhino’s attorneys until filing of the Dismissal referred to in
Paragraph 2 hereof.

     2.     Dismissal. Upon receipt of Payment from PwC, Blue Rhino shall execute
and file with the Forsyth County Clerk of Superior Court a Voluntary Dismissal
with Prejudice of all claims against PwC.

     3.     Release by Blue Rhino. Blue Rhino does hereby relinquish, remise,
release and forever discharge PwC and its respective members, partners,
principals, insurers, agents, assigns, servants, employees, officers,
directors, shareholders, representatives, and any and all other persons,
parties or corporations that might be in privity with them, whether named
herein or not, of and from all liabilities, costs, claims, demands, damages,
losses, causes of action and suits which Blue Rhino may now have or claim to
have, or might hereafter have or claim to have, whether same is known or not
known at this time, arising out of or related to the claims that were asserted,
or could have been asserted, in the Lawsuit.

     4.     Release by PricewaterhouseCoopers. PwC does hereby relinquish, remise,
release and forever discharge Blue Rhino and its respective insurers, agents,
assigns, servants, employees, officers, directors, shareholders,
representatives, and any and all other persons, parties or corporations that
might be in privity with them, whether named herein or not, of and from all
liabilities, costs, claims, demands, damages, losses, causes of action and
suits which PwC may now have or claim to have, or might hereafter have or claim
to have, whether same is known or not known at this time, arising out of or
related to the claims that were asserted, or could have been asserted, in the
Lawsuit.

-2-

 

     5.     No Admission of Liability. The Parties hereto agree that this Release and
Settlement Agreement is a settlement of disputed claims, and that neither this
Agreement nor performance of any action hereunder shall be deemed an admission
of any wrongdoing or liability by either party.

     6.     Costs and Attorneys’ Fees. The Parties hereto shall bear their own
costs and attorneys’ fees incurred in connection with the Lawsuit.

-3-

 

     7.     Non-Disparagement. The Parties specifically agree they will not, except
as required by law or professional regulations, do or say anything to any
person or entity not a party to this Agreement that a reasonable person would
expect at the time would have the effect of diminishing or constraining the
goodwill and good reputation of any other of the Parties to this Agreement.

     8.     Return of Documents. Blue Rhino shall return to PwC all documents
produced by PwC during the course of this litigation, including all copies
thereof.

     9.     Entire Consideration and Agreement. This document sets forth the
entire consideration for this Release and Settlement Agreement, which
consideration is contractual and not a mere recital. All agreements and
understandings between the Parties are embodied and expressed herein.

     10.     No Other Promises or Inducement. The undersigned Parties expressly
warrant that no promise or inducement has been offered except as set forth
herein. This Release and Settlement Agreement is executed without reliance
upon any statement or representation of any person or party, or their
representatives. Acceptance of the consideration set forth herein is in full
accord and satisfaction of each of the causes of action which are disputed or
could have been disputed herein.

     11.     Voluntary Execution. The Parties enter into this Release and
Settlement Agreement voluntarily, upon advice of counsel and of their own
accord and represent and warrant that they are under no duress and coercion in
entering said agreement. The Parties further represent and warrant that they
have reviewed the Release and Settlement Agreement and agree in all respects to
its terms.

-4-

 

     12.     Benefit of Agreement. This Release and Settlement Agreement shall
inure to the benefit of and shall be binding upon the undersigned parties and
their respective heirs, executors, administrators, trustees, successors and/or
assigns.

     13.     Warranty of Ownership of Claims. All parties warrant and represent
that they are the sole holder and owner of each and every claim, cause of
action, right or chose in action relating to the matters that are asserted or
could have been asserted by the parties in this lawsuit and that no assignment,
in whole or in part, of these claims, causes or rights has been made to any
other party.

     14.     Execution of Additional Documents. The Parties agree that they will
execute any and all additional documents necessary to effectuate the intent and
purpose of this Release and Settlement Agreement.

     15.     Confidentiality. It is expressly agreed that the terms and conditions
of the Release and Settlement Agreement, are, and shall remain, confidential,
and shall not be revealed or disclosed by any party hereto except with the
express written consent of all Parties hereto or upon the order of a court of
competent jurisdiction, as may be necessary to enforce the terms of this
Release and Settlement Agreement, or as may be necessary to comply with
applicable professional regulations and applicable federal or state laws and
regulations.

     16.     North Carolina Law. This Release and Settlement Agreement shall be
construed under and governed by the laws of the State of North Carolina. All
Parties consent to the jurisdiction of the General Court of Justice of Forsyth
County, North Carolina for the enforcement of this Release and Settlement
Agreement.

     17.     Integration and Merger. This Release and Settlement Agreement
embodies, merges and integrates all prior and current agreements and
understandings of the parties with

-5-

 

 regard to the settlement of the claims asserted or which could have been
asserted by either Party in the above styled and numbered causes and may not be
clarified, modified, changed or amended, except in writing, signed by each of
the signatories hereto.

     The parties hereto have set their hands and seals this the 26th day of
February, 2003.

	 	 	 	 
	 	 	
BLUE RHINO CORPORATION
	 
	 	 	
By:	
 /s/ Billy D. Prim

	 	 	
Its:	
President
	 
	 	 	 
	 
	Attest:	 	 
	 
	By:	/s/ Mark Castaneda

	 	 
	 
	 	 	
PRICEWATERHOUSECOOPERS LLP
	 
	 	 	
By:	 /s/

	 	 	
Its:	Leader Litigation Practice Group

-6-<PAGE>
                                                                    EXHIBIT 10.4

                     SCHWEITZER-MAUDUIT INTERNATIONAL, INC.
                          OUTSIDE DIRECTORS STOCK PLAN
                   (Amended and Restated as of April 24, 2003)

1.       Stock Grant. Subject to the approval of the adoption on by the Board of
Directors ("Board") of Schweitzer-Mauduit International, Inc. ("Company") of the
Schweitzer-Mauduit International, Inc. Outside Directors Stock Plan ("Plan") by
the sole shareholder of the Company, any member of the Board who is not
otherwise actively employed by the Company or any of its subsidiaries or
affiliates ("Outside Director") shall receive his or her annual retainer fees in
shares of unrestricted common stock of the Company, with any fractional share to
be paid in cash.

2.       Administration. This Plan shall be administered by the Board or a
Committee thereof, as appointed from time to time ("Administrator"). The
Administrator shall have discretion to interpret the Plan, including any
ambiguities contained herein, and, subject to its provisions, to make all
determinations necessary or desirable for the Plan's administration. Any action
taken by the Administrator in the interpretation and administration of the Plan
shall be final and binding in all matters relating to the Plan. The
Administrator may authorize any director, officer, or employee of the Company to
assist the Administrator in the administration of the Plan and to execute
documents on behalf of the Administrator. The Administrator may also delegate to
such director, officer, or employee such other ministerial or administrative
duties as deemed appropriate by the Administrator. No member of the Board or of
the Committee serving as Administrator shall be liable for any act done or
omitted to be done by such member or by any other member in connection with the
Plan, except for such member's own willful misconduct or as expressly provided
by statute.

3.       Source of Shares. Shares delivered by the Company to an Outside
Director in accordance with this Plan will be unrestricted shares of common
stock of the Company, which may be either authorized and unissued shares or
shares that were once issued and subsequently reacquired by the Company;
provided, however, that such shares have been registered with the Securities and
Exchange Commission; and provided further, that the total number of shares
issued under this Plan shall not exceed 130,000 absent Board approval.

         The Company is under no obligation to establish a fund or reserve in
order to distribute shares under the Plan. The Company has not segregated or
earmarked any shares or any of the Company's assets for the benefit of an
Outside Director, and the Plan does not, and shall not be construed to, require
the Company to do so. The Outside Director shall have only an unsecured,
contractual right against the Company for the grant hereunder, and such right
shall not be deemed superior to the right of any other creditor.

4.       Amount of Compensation to be Paid in Stock. The Outside Director shall
receive payment of his or her annual retainer fees solely in shares of
unrestricted common stock with any fractional share to be paid in cash.

5.       Number of Shares and Date of Payment. (a) Any shares due to an Outside
Director under this Plan for a calendar year shall be payable on a quarterly
basis on January 1, April 1, July 1,

<PAGE>

and October 1. The number of shares to be distributed to an Outside Director
shall be determined by first dividing the director's annual retainer fees by
four (4) and then dividing such quarterly quotient by the market value of the
common stock of the Company as determined under subparagraph (b) below, with
subsequent distributions base on such quarterly quotient divided by the market
value of the common stock of the Company as determined under subparagraph (b)
below. In no event shall the payment to an Outside Director under this Plan
exceed the annual retainer fee or portion thereof actually payable to such
Outside Director, and the Administrator, as necessary, shall make such pro rata
adjustments to the number of shares payable to an Outside Director hereunder to
reflect any reduction in his or her annual retainer fee or portion thereof
actually payable to the Outside Director.

         (b)      For purposes of this Plan, the term "market value" shall have
                  the following meaning:

                  (1) with respect to common stock of the Company that is issued
                  by the Company, the average of the high and low prices of the
                  common stock of the Company, as published in the Wall Street
                  Journal in its report of New York Stock Exchange composite
                  transactions, on the date one day prior to the date of
                  distribution as set forth in (a) above (or the average of the
                  high and 1ow sale prices on the trading day immediately
                  preceding such determination date if the common stock of the
                  Company is not traded on the date one day prior to the date of
                  distribution).

                  (2) with respect to common stock of the Company that is
                  purchased on the open market for distribution hereunder, the
                  actual purchase price paid for such common stock on the date
                  of purchase.

6.       Nontransferability of Rights. During an Outside Director's lifetime,
any payment under the Plan shall be made only to the Outside Director or his or
her estate. No amount under the Plan shall be subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or
charge, and any attempt under the Plan to do so shall be void. No amount under
the Plan shall be subject to the debts, contracts, liabilities, engagements, or
torts of an Outside Director or his or her estate entitled thereto.

7.       Rights of Outside Director. Nothing contained in the Plan or with
respect to any grant under the Plan shall interfere with or limit in any way the
right of shareholders of the Company to remove any Outside Director from the
Board, nor confer upon any Outside Director any right to continue on the Board
as an Outside Director.

An Outside Director receiving a grant under the Plan shall become the holder of
record of the shares awarded under the Plan and shall have all of the incidents
of ownership of such shares, including but not limited to the right to vote such
shares and receive cash or other dividends payable with respect to such shares,
upon distribution of such shares to the Outside Director.

8.       Taxes. The Outside Director or his or her estate shall be liable for
all taxes on shares issued under the Plan. The Company may make appropriate
arrangements to collect from Outside Directors or withhold shares from
distribution hereunder in amounts necessary to satisfy any withholding
obligation with respect to the issuance of shares under the Plan.

<PAGE>

9.       Amendment or Termination. The Plan may be wholly or partially amended
or otherwise modified, suspended or terminated by the Board of Directors or by
a committee thereof with the approval of the Board of Directors; provided,
however, that, without the approval of the shareholders of the Company entitled
to vote thereon, no amendment may be made which would, absent such shareholder
approval, disqualify the Plan for coverage under Rule 16b-3, as promulgated by
the Securities and Exchange Commission under the Securities Exchange Act of
1934, as amended, as that rule may be amended from time to time; and provided
further that the Plan may not be amended more than once every six (6) months
unless such amendment is made in order to comply with changes to either the
Internal Revenue Code of 1986, as amended, or the Employee Retirement Income
Security Act of 1974, as amended, and the rules thereunder. Notwithstanding the
foregoing, no such amendment or termination shall impair any rights to payments
to which a director may be entitled prior to the effective date of such
amendment or termination.

10.      Governing Law. The terms of the Plan shall be governed, construed,
administered, and regulated by the laws of the state of Georgia and applicable
law. In the event that any provision of the Plan shall be determined to be
illegal or invalid for any reason, the other provisions shall continue in full
force and effect as if such illegal provision had never been included herein.

11.      Effective Date. Subject to the approval of the adoption by the Board of
this Plan by the sole shareholder of the Company, the Plan shall be effective
January 1, 1996.

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