Document:

Exhibit 10.1

 

Employment Agreement

 

This Agreement is entered into by and between DARAMIC, LLC (hereinafter referred to as “Daramic”), a Delaware limited liability company with a primary address of 11430 N. Community House Road, Suite 350, Charlotte, NC 28277, USA; DARAMIC SAS (Société par Actions Simplifiée) (hereinafter referred to as “the Company”), with a capital of 10,060,000 Euros, registered in the “Registre de Commerce” in Colmar, France under the number B 392 391 728 000 20, Code NAF: 2229 A, located at 25 rue Westrich, 67600 SELESTAT, France, with Social Security contributions paid under the number 162 172 137 13001 to the URSSAF, located at 16 rue Contades, 67307 SCHILTIGHEIM, France, acting through its authorized representative Isabelle Goldin, Human Resource Manager; POLYPORE INTERNATIONAL, INC. (hereinafter referred to as “Polypore”), a Delaware corporation with a primary address of 11430 N. Community House Road, Suite 350, Charlotte, NC 28277, USA; POLYPORE (SHANGHAI) MEMBRANE PRODUCTS CO. LTD. (hereinafter referred to as “Polypore (Shanghai)”), L1, 3rd Floor, No 207 Taigu Rd WaiGaoQiao Free Trade Zone Shanghai, 200131 P.R. China; and Mr. Pierre Hauswald, born on May 15th, 1953 in Sainte-Marie-aux-Mines, French Nationality, residing at: 7520 Kinvara Court, Charlotte, NC 28270, USA.

 

Background:

 

(1)                                  The Company, Daramic and Polypore (Shanghai) are wholly owned subsidiaries of Polypore; and

 

(2)                                  As of the date of this Agreement, Mr. Hauswald is employed by Daramic as its Vice President, General Manager — Daramic; and

 

(3)                                  Daramic has been successful in establishing a strong business presence in Asia; and

 

(4)                                  To ensure continued growth and to reach its complete potential in Asia, it is necessary that the Company send a top-level executive to Asia on a short-term, temporary assignment to establish additional presence and drive sales in Asia; and

 

(5)                                  The Company believes that Mr. Hauswald’s experience and knowledge of the Company makes him the best candidate for this assignment.

 

Therefore, the Company, Mr. Hauswald, and Daramic agree as follows:

 

1.             Term and Conditions

 

Beginning April 1, 2011, Mr. Hauswald will assume the title of President - Daramic Asia, reporting to Robert Toth, Chief Executive Officer of Polypore.  Through December 31, 2013, Mr. Hauswald will remain an officer and member of the Senior Leadership Team

 

 

of Polypore. Through December 31, 2011, Mr. Hauswald will be employed by Daramic, and will continue to be based in Charlotte, NC, USA.  During the period from April 1, 2011 to December 31, 2011, Mr. Hauswald will spend approximately 30% of his time in Asia.

 

Beginning January 1, 2012, Mr. Hauswald will relocate his legal residence to France and will be employed by the Company.  From May 1, 2012 through December 31, 2013 (unless extended at the Company’s request and with Mr. Hauswald’s consent), Mr. Hauswald will be on assignment to Polypore (Shanghai).

 

At the end of Mr. Hauswald’s assignment to Polypore (Shanghai), through May 31, 2015, Mr. Hauswald will remain with the Company in a consulting role, with responsibilities to be determined at the mutual agreement of the parties.

 

Upon the termination of this Agreement, no additional payments, including but not limited to statutory severance or termination payments, will be made from the Company to Mr. Hauswald.

 

In the context of Mr. Hauswald’s duties for the Company, Mr. Hauswald may be required to travel throughout the world.  In so doing, Mr. Hauswald will respect all local laws and regulations of the jurisdictions in which he travels, including, but not limited to, the Peoples Republic of China.  Throughout the term of this Agreement, Mr. Hauswald will abide by all Polypore employment policies, including, without limitation, its Code of Business Conduct and Ethics and Foreign Corrupt Practices Act  policy, copies of which have previously been provided to Mr. Hauswald.

 

Exhibit 1 hereto sets forth the duties and remuneration of Mr. Hauswald during the term of this Agreement and is incorporated herein by reference.

 

2.             Termination

 

This Agreement may be terminated by either party for any reason upon three (3) months’ written notice to the other.  In case termination by the Company or Daramic is made prior to December 31, 2013, Mr. Hauswald will be eligible to receive severance under Polypore’s Severance Policy then in effect.

 

During the term of this Agreement, and for a period of thirty-six (36) months after the termination of this Agreement for any reason, Mr. Hauswald agrees that he will not seek or accept employment with, or provide consulting services for, any company that is a competitor with the Company, Daramic or their affiliates, in (a) the United States, (b) North America, (c) Central America, (d) South America, (e) Europe, (f) the Middle East, or (g) Asia.  In addition, during this same period, Mr. Hauswald agrees that he will not solicit or encourage any individual that has been employed by the Company, Daramic or their affiliates within the twelve (12) month-period prior to the termination of this Agreement to resign employment with the Company, Daramic or their affiliates or to seek employment with any company that is a competitor with the Company, Daramic or

 

 

their affiliates.  For purposes of this Agreement, a company will be considered to be a competitor with the Company, Daramic or their affiliates if it manufactures or sells separators to the energy storage industry.

 

This Agreement may be terminated by the Company or Daramic for Cause (as defined below), upon a majority vote of the Board of Directors of Polypore, at a meeting occurring at least ten (10) business days after the Company or Daramic provides Mr. Hauswald with written notice that the Company or Daramic intends to terminate Mr. Hauswald’s employment for Cause, at which meeting Mr. Hauswald shall have the opportunity to be heard with respect to the conduct giving rise to the termination for Cause.

 

For purposes of this Agreement, “Cause” shall mean: (A) gross negligence or willful misconduct by Mr. Hauswald in connection with Mr. Hauswald’s employment duties or responsibilities hereunder; (B) a material and continued failure by Mr. Hauswald to perform in any material respect his duties or responsibilities after notice and reasonable opportunity to cure; (C) misappropriation by Mr. Hauswald of the assets or business opportunities of the Company, Daramic or their affiliates; (D) embezzlement or other financial fraud committed against the Company, Daramic or their affiliates by Mr. Hauswald or at his direction, or with his prior personal knowledge; (E) Mr. Hauswald’s conviction of, admission to, or entry of pleas of no contest to any felony, or any crime involving moral turpitude that materially interferes with the performance of Mr. Hauswald’s duties; (F) Mr. Hauswald’s abuse of alcohol and/or any use of illegal drugs that materially interferes with the performance of Mr. Hauswald’s duties; or (G) Mr. Hauswald’s breach of any material provision of this Agreement, including and policies of Polypore or its affiliates applicable to Mr. Hauswald or incorporated herein by reference.

 

3.             Applicable Law

 

This contract will be interpreted in accordance with the laws of the state of North Carolina, USA.

 

4.             Resolution of Disputes

 

In the event of a dispute between the parties which is unable to be resolved by amicable discussions between the parties, any disputes arising out of or in connection with this Agreement shall be referred to and finally resolved by arbitration in Charlotte, North Carolina, USA, in accordance with Rules of the International Center for Dispute Resolution, by a single arbitrator appointed in accordance with such rules; provided, that each party will be entitled to seek interim, interlocutory or permanent injunctive relief from any court of competent jurisdiction. The arbitration proceedings will be conducted in the English language. The decision resulting from the arbitrator will be final and binding on the parties.  During the period when a dispute is being resolved, the parties shall continue their performance of this Agreement in all respects other than the issue(s) in dispute.

 

 

The foregoing Agreement has been read and approved by the undersigned:

 

	
DARAMIC   SAS
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Isabelle Goldin
    	
 
    
	
Name   and Title:
    	
Isabelle   Goldin, HR Manager
    	
 
    
	
Date:
    	
4/1/11
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
DARAMIC,   LLC
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Robert B. Toth
    	
 
    
	
Name   and Title:
    	
Robert   B. Toth, President, Polypore International, Inc.
    	
 
    
	
Date:
    	
4/1/11
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
POLYPORE   INTERNATIONAL, INC.
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Robert B. Toth
    	
 
    
	
Name   and Title:
    	
Robert   B. Toth, President
    	
 
    
	
Date:
    	
4/1/11
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
POLYPORE   (SHANGHAI) MEMBRANE PRODUCTS CO. LTD.
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Robert B. Toth
    	
 
    
	
Name   and Title:
    	
Robert   B. Toth, Director
    	
 
    
	
Date:
    	
4/1/11
    	
 
    
	
 
    	
 
    
	
Acceptance   by Mr. Pierre Hauswald
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/ Pierre Hauswald
    	
 
    
	
Pierre   Hauswald
    	
 
    
	
 
    	
 
    
	
Date:
    	
4/1/11
    	
 
    
					

 

 

EXHIBIT 1

 

DUTIES AND REMUNERATION

 

Duties:

 

Attached

 

Salary and Benefits:

 

Through December 31, 2011:

 

·                  Base pay, bonus structure, and benefits will be paid by Polypore in its discretion, provided that it will not be inconsistent with prior years.

·                  Continued eligibility to participate in Polypore’s incentive and equity compensation plans and other benefit plans (in amounts, if any, as determined by Polypore), if other officers of Polypore or its affiliates are eligible to participate in such plans.

·                  Reimbursement for the reasonable cost of an apartment in Shanghai, up to a maximum of 30,000 RMB per month, will be paid to Mr. Hauswald beginning on or after July 1, 2011, as needed.

·                  Reimbursement for the reasonable cost of a company car and driver (up to a maximum of 20,000 RMB per month), will be paid to Mr. Hauswald beginning on or after July 1, 2011, as needed.

·                  Assistance in the sale of Mr. Hauswald’s U.S. home and the storage and transport of his household goods to France in accordance with Polypore’s relocation benefits policy.  In addition, Daramic will pay for the packing and transport of one ocean-going container of household items to be shipped to Shanghai.

·                  Polypore will provide support and pay for the preparation of Mr. Hauswald’s US income tax filing for 2011.

 

Beginning January 1, 2012 through the end of the Agreement, May 31, 2015 (Mr. Hauswald’s retirement):

 

·                  A base salary of Euro 60,000 per year will be paid by Daramic, for the mandate of President of Daramic SAS under the same conditions that apply to the Company’s site in Sélestat, France.

 

Beginning January 1, 2012 through the end of Mr. Hauswald’s assignment to Polypore (Shanghai):

 

·                  An additional amount of Euro 148,460 per year will be paid by Daramic, while Mr. Hauswald is living in France, under the same conditions that apply to the Company’s site in Sélestat, France, and then by Polypore (Shanghai), while Mr. Hauswald is on assignment to China under the same conditions that apply to the Company’s site in Shanghai, China.  Salary adjustments will be considered in accordance with the Company’s policies and practice.

 

 

·                  Eligibility to participate in Polypore’s incentive compensation plans (if other officers of Polypore or its affiliates are eligible to participate in such plans), with a target incentive of 50% of his base annual gross salary.

·                  Continued eligibility to participate in Polypore’s equity compensation plans and other benefit plans (in amounts, if any, as determined by Polypore), if other officers of Polypore or its affiliates are eligible to participate in such plans.

 

Beginning May 1, 2012 through the end of Mr. Hauswald’s assignment to Polypore (Shanghai):

 

·                  A “Contrat de mise a disposition” starting May 1, 2012 through the end of Mr. Hauswald’s assignment to Polypore (Shanghai) defines conditions of employment.

·                  Polypore (Shanghai) will pay for the cost of a suitable apartment in Shanghai, up to a maximum of 30,000 RMB per month.

·                  Polypore (Shanghai) will pay for a company car and driver (up to a maximum of 20,000 RMB per month).

·                  Reimbursement for the cost of spousal travel, up to a maximum of Euro15,000 per year.

·                  Reimbursement for all expenses incurred in regards to resident visa and working permit renewal, passport medical visits, and vaccines made necessary by Company-directed business travel.

·                  Subject to compliance with the Company’s policies regarding substantiation of business expenses, reimbursement of reasonable business expenses incurred on behalf of the Company in connection with the performance of Mr. Hauswald’s duties as President, Daramic Asia.

·                  While working abroad, Mr. Hauswald (and his spouse as a legal dependent) shall be covered by the French Social Security regime.  The corresponding charges, calculated on Mr. Hauswald’s salary, are the responsibility of Mr. Hauswald, for the employee part, and the Company, for the employer’s part.

·                  Unless Mr. Hauswald is terminated for Cause, at the end of the term of Mr. Hauswald’s assignment, Mr. Hauswald and his spouse will be repatriated to France at the expense of the Company in accordance with Polypore’s relocation benefits policy.

 

Beginning at the end of Mr. Hauswald’s assignment to Shanghai through May 31, 2015:

 

·                  A salary of Euro 60,000 per year, corresponding to the mandate of President Daramic SAS, and a consulting fee of Euro 7,000 per month will be paid by the Company, for services to be provided to the Company including but not limited to development and maintenance of customer relationships, strategic planning, business unit leadership, market analysis, and resource optimization.

 

 

Mission of: President Daramic Asia

 

Updated: March 12th, 2011

 

Mission:

 

Ensure continued growth of Daramic in Asia in order to reach its complete potential in this region and provide support to Polypore initiatives in this region when needed.

 

·      Lead the Asia Growth Task force (AGT)

·      Complete the project in Xiangfan joint venture with Camel

·      Enhance our operation and explore the opportunities in India

·      Explore how to address our ongoing capacity needs in Asia

 

 

Detailed AGT initiatives:

 

1) Achieve annual growth targets (organic, conversion & share gain)

 

2) Develop strong relationships with top 10 customers

 

3) Execute capacity expansion plans

 

4) Develop organizational structure, define resource needs, and recruit and fill positions as needed

 

5) Execute acquisition strategy and opportunistic actions

 

 

	
//s//   Pierre Hauswald
    	
 
    
	
 
    	
 
    
	
Pierre   HauswaldEXHIBIT 10.2

 

EMPLOYMENT CONTRACT

 

By and between the undersigned

 

The Company DARAMIC SAS (Société par Actions Simplifiée)

With a capital of 10,065,000 Euros

Registered in the « Registre de Commerce » in Colmar, France under the number B 392 391 728 000 20

Code NAF: 2229A,

Located at 25 rue Westrich, 67600 SELESTAT, France

With Social Security contributions paid under the number 162 172 137 13001 to the URSSAF, located at 16 rue Contades, 67307 SCHILTIGHEIM, France

 

Acting through its authorized representative Isabelle Goldin, Human Resources Manager DARAMIC SAS, Sélestat

 

Hereinafter referred to as “the Company”

 

On the one part,

 

And

 

Mr. Pierre Hauswald

Born on May 15th, 1953 in Sainte-Marie-aux-Mines (France)

French Nationality

Residing at 7, rue Saint-Urbain

F 67650, Dieffenthal

 

On the other part

 

And after stating that:

 

Term and conditions

 

It is recalled that Mr. Pierre Hauswald joined the company Daramic SAS (previously WR Grace) on June 22nd, 1987, as Production Manager, status Cadre, coefficient 550.

 

Mr. Pierre Hauswald grew within the company to become Site Manager, then Manufacturing Director and VP Manufacturing for the whole Daramic Group.

 

Mr. Pierre Hauswald has been then expatriated in the USA, as VP General Manager.

 

 

This contract’s goal is to confirm the transfer of Mr. Pierre Hauswald to Daramic SAS as Director of Development and Industrialization of New Products, from January 1st, 2012.

 

The company Daramic SAS guarantees of course to Mr. Pierre Hauswald his rights arising from his seniority since he first joined the company June 22, 1987.

 

Mr. Pierre Hauswald indeed exercised his professional activity to Daramic SAS, and then on behalf of Polypore since the date of hiring without discontinuity in exercising various functions for the needs of the company Daramic SAS and the Group both in France and abroad.

 

Duration of Contract

 

This contract is concluded for an indefinite period.

In view of Mr. Pierre Hauswald seniority in the group, it is expected no probationary period.

 

Functions

 

Mr. Pierre Hauswald’s function in the company will be Director of Development and Industrialization of New Products, corresponding to the following conventional qualification:

 

·      Status “Cadre Dirigeant”

·      Coefficient 940

 

Place of work

 

As information, it is stated that Mr. Pierre Hauswald will exercise its functions on the site of Daramic SAS located at Sélestat (67-France).

 

The practice of his mission may nevertheless lead to professional travels, including abroad.

 

Compensation

 

In consideration of his work, Mr. Pierre Hauswald will perceive a gross monthly pay of 11,420.00 Euros (eleven thousand four hundred twenty Euros).

 

Annual gross remuneration of Mr. Pierre Hauswald is set to 148,460.00 Euros (one hundred forty eight thousand Euros four hundred sixty), payable in thirteen monthly installments.

 

This remuneration is a lump sum because it corresponds to the exercise of executive function that Mr. Pierre Hauswald must lead to a successful outcome.

 

This compensation is a function of the accomplishment of Mr. Pierre Hauswald’s tasks and the results obtained.

 

It is indeed said that in his qualification as Executive, Mr. Pierre Hauswald enjoys a large autonomy in the organization of its activity and is responsible for his missions and responsibilities. This leads him to take initiatives with a wide freedom of organization.

 

Mr. Pierre Hauswald is eligible:

 

·      To the system of variable remuneration established by Polypore for executives (Polypore Incentive Plan) with a target of 50% of the gross annual salary

 

 

·      To the stock options or any other incentive program given to the senior leaders of Polypore.

 

For information, Mr. Pierre Hauswald is also President of the company Daramic SAS and paid from January 2012 1st, an amount of 60,000 Euros gross annual.

 

Absences

 

Mr. Pierre Hauswald shall immediately notify the Company of all absence whatever the reason.

 

Mr. Pierre Hauswald undertakes to provide a medical certificate or other appropriate justification for his absence within 48 hours.

 

Mr. Pierre Hauswald undertakes to inform the management regularly of his health status.

 

In the case of extended absence from work, Mr. Pierre Hauswald must send at the same time the medical certificate justifying it.

 

Paid Holidays

 

Mr. Pierre Hauswald shall have the right to paid holidays foreseen by the Articles L.3141-1 of “Code du Travail” and in accordance with the collective bargaining agreement applicable to the Company.

 

Notice period

 

The parties may terminate this contract under the conditions laid down by legal or conventional provisions in force.

 

Professional obligations

 

Mr. Pierre Hauswald agrees to observe all instructions and work instructions as may be given and the utmost discretion in all matters concerning the activities of the company.

 

Mr. Pierre Hauswald undertakes to maintain, in the strict way, the utmost discretion in all of the information that he could collect on occasion of its functions or the fact of his presence in the company to third parties and employees of the company.

 

This duty of discretion will remain even after the end of this agreement regardless of the cause.

 

Mr. Pierre Hauswald recognizes that all documents available are and remain the exclusive property of the company Daramic SAS and Polypore, as well as all the documents prepared by his care for business professional.

 

Mr. Pierre Hauswald formally undertakes to disclose none of the plans, studies, designs, projects, achievements, studied in the company in the group, or on behalf of clients of the company, or to the company itself, expressing in this regard bound by the professional secrecy. The same is true of the information, results, etc., arising from work carried out in the business or found in the clients.

 

 

This obligation of secrecy will remain even after the end of this agreement regardless of the cause.

 

Accordingly, Mr. Pierre Hauswald undertakes to render any document at any time, upon the first request on the part of the company Daramic SAS.

 

Mr. Pierre Hauswald shall inform the company without delay any amendment subsequent to its commitment which could happen in his civil status, family status, address, etc.

 

Items not covered in this contract will be settled by applying the legal rules and the national collective agreement referred to in this agreement, as long as it remains applicable as mandatory.

 

Collective Agreement and Regulation

 

This contract is governed by the laws and regulations, as well as by the provisions of the Collective Agreement currently in force within the company.

 

Matters not provided for in this contract shall be settled by application of legal rules and the National Collective agreement.

 

Subject to a change of activity or any other event that would lead them into question, the provisions currently in force are those provided by the Plastics Industry Collective Agreement.

 

In case of any discrepancy in the execution or interpretation of these clauses, the parties agree to attempt to resolve amicably any disputes that may arise between them.

 

Business Expenses

 

Business expenses that may be incurred by Mr. Pierre Hauswald under the instructions of the Company will be reimbursed in accordance with established procedures.

 

Social Protection

 

Mr. Pierre Hauswald will benefit from existing social systems within the company.

 

For information, these plans are:

 

·                  Régime de retraite complémentaire affiliated to MALAKOFF-MEDERIC (Irec, Capimmec) 15 avenue du Centre Guyancourt — 78281 St Quentin en Yvelines

·                  Régime de prévoyance affiliated to MALAKOFF-MEDERIC (Urrpimmec) 15 avenue du Centre Guyancourt — 78281 St Quentin en Yvelines

·                  Pension plan contributions defined by membership in the FEDERATION continental - additional group GENERALI 11 boulevard Haussmann - 75311 Paris for contract “Framework” n ° 312 497 Article 83

 

Done in Selestat, April the 1st, 2011

 

In three originals, one for each party and one for Polypore.

 

 

	
For the   Company
    	
For the   Employee
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/ Isabelle Goldin
    	
 
    	
/s/ Pierre Hauswald
    
	
Isabelle   Goldin
    	
Pierre   Hauswald
    
	
 
    	
 
    
	
(read and approved,   signature)
    	
(read and approved,   signature)

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