Severance Agreement between Pliant Corporation and Kenneth J. Swanson (June 2, 2008)
This agreement between Pliant Corporation and Kenneth J. Swanson outlines the terms of severance benefits if Mr. Swanson's employment is involuntarily terminated, except for termination for cause. He will receive one year of salary paid over 12 months and outplacement support. If he is a specified employee of a public company and the severance exceeds certain IRS limits, the excess will be paid after six months. The agreement does not change his at-will employment status.
Exhibit 10.6
June 2, 2008
Mr. Kenneth J. Swanson
c/o Pliant Corporation
1475 Woodfield Road
Schaumburg, Illinois 60173
Dear Ken:
This letter revises and supersedes as of January 1, 2008, the severance benefit provisions in the Companys letter to you of August 17, 2004, in light of the tax regulations under Section 409A of the Internal Revenue Code.
You are eligible for one year of salary continuance (payable over the 12-month period beginning with your separation from service) and outplacement support in the event your employment is involuntarily terminated, except if you are terminated for cause (as determined exclusively by the Companys Board of Directors). In the event that upon your separation you are a specified employee of a public company (as those terms are defined in those regulations) and the total salary continuance exceeds the maximum involuntary separation pay amount (currently $460,000) permitted by the Section 409A regulations, the excess will be paid no earlier than the date that is six months after your separation from service. The foregoing is not, however, intended to modify your status of an at will employee of the Company.
If you agree that this correctly restates the terms of your severance benefit, please sign one copy of this letter below and return the signed copy to me.
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| Pliant Corporation |
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| By: | /s/ Harold C. Bevis |
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| Harold C. Bevis |
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| President and Chief Executive Officer |
Agreed:
/s/ Kenneth J. Swanson |
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Kenneth J. Swanson |
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