Document:

EX-10.5

 

Exhibit 10.5

OPTION AGREEMENT

     Polypore International, Inc., a Delaware corporation (the “Company”), pursuant to its
2006 Stock Option Plan (the “Plan”), hereby grants to the Holder Annual Performance Vested
Options and Cumulative Performance Vested Options to purchase the number of shares of Stock set
forth below. The Annual Performance Vested Options and Cumulative Performance Vested Options
(collectively, the “Performance Vested Options”), as well as any Prior Options (the Prior
Options and the Performance Vested Options are sometimes collectively referred to hereafter as the
“Options”) are subject to all of the terms and conditions set forth in this option
agreement (this “Option Agreement”) as well as all of the terms and conditions of the Plan,
all of which are incorporated herein in their entirety. Capitalized terms not otherwise defined
herein shall have the same meaning as set forth in the Plan.

	 	 	 	 	 
	Holder:

	 	                                        
	 	 
	 
	 	 	 	 
	Date of Grant:

	 	June 15, 2006	 	 
	 
	 	 	 	 
	Number of Shares Subject to
Annual Performance Vested
Options:

	 	                                        1	 	 
	 
	 	 	 	 
	Number of Shares Subject to
Cumulative Performance Vested
Options:

	 	
                                        2	 	 
	 
	 	 	 	 
	Exercise Price of
Performance Vested Options:

	 	$772.46	 	 
	 
	 	 	 	 
	Expiration Date of
Performance Vested Options:

	 	June 15, 2016	 	 
	 
	 	 	 	 
	Vesting Schedule:
	 	 	 	 

	 	 	 	 	 
	 

	 	Annual Performance

Vested Options:
	 	
Annual Performance Vested Options shall vest in accordance
with Section 5(f)(ii)(1) and (3) of the Plan.
	 
	 	 	 	 
	 

	 	Cumulative Performance

Vested Options:
	 	
Cumulative Performance Vested Options shall vest in
accordance with Section 5(f)(ii)(2) and (3) of the Plan.

 

			
	1	 	Insert number of shares representing 50% of the total grant size.
	 
	2	 	Insert number of shares representing 50% of the total grant size.

 

 

	 	 	 
	Prior Options:

	 	As a condition of the grant of Annual Performance Vested
Options and Cumulative Performance Vested Options under
this Option Agreement, Holder and Company hereby
acknowledge and agree that, as of the Effective Date, (i)
all Prior Unvested Options granted to Holder, if any,
shall be deemed cancelled, and of no further force or
effect; and (ii) all Prior Vested Options previously
granted to Holder, if any, shall no longer be subject to
the terms and conditions of the Company’s 2004 Stock
Option Plan or, except as provided in the next sentence,
the option agreement entered into in connection therewith,
and shall instead be deemed “Options” for all purposes
under the Plan and under this Option Agreement and be
subject to the terms and conditions contained in each.
This paragraph shall have no effect as to the number of
shares of Stock subject to, and the exercise price and
Expiration Date applicable to, any Prior Vested Option
granted to Holder, subject to any subsequent adjustment
applicable to all Options as permitted under the Plan.
	 
	 	 
	Exercise of Options:

	 	To exercise a vested Option in whole or in part, the
Holder (or his or her authorized representative) must give
written notice to the Committee, stating the number of
shares of Stock with respect to which he or she intends to
exercise the Options. The Company will issue the shares
of Stock with respect to which the Options are exercised
upon payment of the shares of Stock acquired in accordance
with Section 5(e) of the Plan, which Section 5(e) is
incorporated herein by reference and made a part hereof.
	 
	 	 
	 

	 	Upon exercise of Options, the Holder will be required to
satisfy applicable withholding tax obligations as provided
in Section 13 of the Plan.
	 
	 	 
	Termination of
Employment or Service:

	 	Section 5(h) of the Plan regarding treatment of Options
upon termination of the Holder’s employment or service is
incorporated herein by reference and made a part hereof.
	 
	 	 
	Restrictions on Stock:

	 	Section 6 of the Plan regarding restrictions on Stock
acquired upon exercise of an Option is incorporated herein
by reference and made a part hereof.
	 
	 	 
	Repurchase Rights:

	 	Section 7 of the Plan regarding the Repurchase Rights is
incorporated herein by reference and made a part hereof.

2

 

	 	 	 	 	 	 	 
	Additional Terms:

	 	Options shall be subject to the following additional terms:	 	 
	 
	 	 	 	 	 	 
	 

	 	•
	 	Options shall be exercisable in whole shares of
Stock only.	 	 
	 
	 	 	 	 	 	 
	 

	 	•
	 	Each Option shall cease to be exercisable as to
any share of Stock when the Holder purchases the share of
Stock or when the Option otherwise expires.	 	 
	 
	 	 	 	 	 	 
	 

	 	•
	 	This Option Agreement does not confer upon the
Holder any right to continue as an employee or service
provider of the Company, the Employer or any of their
respective Affiliates.	 	 
	 
	 	 	 	 	 	 
	 

	 	•
	 	This Option Agreement shall be construed and
interpreted in accordance with the laws of the State of
Delaware, without regard to the principles of conflicts of
law thereof.	 	 
	 
	 	 	 	 	 	 
	 

	 	•
	 	This Option Agreement shall constitute written
notice to the Holder that the Committee has consented, and
the Holder is permitted, to transfer the Options, or the
Stock acquired upon the exercise of the Options, for
legitimate estate planning -purposes, including any
transfer by the Holder of all or any portion of his or her
shares of Stock or Options (i) to or for the benefit of
any spouse, child or grandchild of the Holder, or (ii) to
a trust or partnership for the benefit of any of the
foregoing, including transfers by will or the laws of
descent and distribution.	 	 
	 
	 	 	 	 	 	 
	Representations and
Warranties of
Holder:	 	Holder hereby represents and warrants to the Company that:
	 
	 	 	 	 	 	 
	 

	 	•
	 	Holder understands that the Stock has not been
registered under the Securities Act, nor qualified under
any state securities laws, and that it is being offered
and sold pursuant to an exemption from such registration
and qualification based in part upon such Holder’s
representations contained herein;	 	 
	 
	 	 	 	 	 	 
	 

	 	•
	 	Holder has been informed that the shares of Stock
are restricted securities under the Securities Act and may
not be resold or transferred unless the shares of Stock
are first registered under the Federal -securities laws or
unless an exemption from such registration is available;
and	 	 
	 
	 	 	 	 	 	 
	 

	 	•
	 	Holder is prepared to hold the shares of Stock for
an indefinite period and that Holder is aware that	 	 

3

 

	 	 	 	 	 	 	 
	 

	 	 	 	Rule
144 as promulgated under the Securities Act, which exempts
certain resales of restricted securities, is not presently
available to exempt the resale of the shares of Stock from
the registration requirements of the Securities Act.	 	 

THE UNDERSIGNED HOLDER ACKNOWLEDGES RECEIPT OF THE PLAN, AND, AS AN EXPRESS CONDITION TO THE GRANT
OF OPTIONS UNDER THIS OPTION AGREEMENT, AGREES TO BE BOUND BY THE TERMS OF BOTH THE OPTION
AGREEMENT AND THE PLAN. UPON EXECUTION BY THE HOLDER, THE COMPANY, ON BEHALF OF ITSELF AND ITS
AFFILIATES AND THE COMMITTEE, AGREES TO BE BOUND BY THE TERMS OF BOTH THIS OPTION AGREEMENT AND THE
PLAN.

	 	 	 	 	 	 	 	 	 
	POLYPORE INTERNATIONAL, INC.	 	HOLDER	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Signature
	 	Signature
	 	 
	 
	 	 	 	 	 	 	 	 
	Title:

	 	 	 	Date:	 	 	 	 
	Date:

	 	 

	 	 	 	 

	 	 
	 

	 	 	 	 	 	 	 	 

4EX-10.1

 

April 4, 2006

Mitch Pulwer

13115 Old Farm Drive

St. Louis, Missouri 63146

Dear Mitch,

On behalf of Polypore, Inc. I am pleased to offer you the position of Vice President and General
Manager of Celgard, LLC reporting to Bob Toth, President and Chief Executive Officer. Your start
date will be on or before April 17, 2006. The details of this offer are as follows:

COMPENSATION

Your base pay will be $20,416.67/month ($245,000.00 annual) paid bi-weekly. This position is based
in Charlotte, N.C. and is a salaried exempt position. In addition to your base pay, you will be
eligible to participate in the Company Incentive Plan with a target opportunity of 70% of the base
pay salary based upon achievement of certain performance targets established by the CEO. You must
be employed a minimum of (3) months in the calendar year to be eligible.

EQUITY ARRANGEMENT

You will participate in the equity plan at a level consistent with the position of Vice President &
General Manager as one of the top five positions in the Company. The plan is currently being
revised with expected implementation in 2Q or early 3Q, 2006. Complete details will be available
in the near future.

SEVERANCE

In the event you are terminated by the Company without cause, you will be eligible for severance
payments for a period of 9 months at your base pay. Should you be terminated for cause you will
not be entitled to severance benefits.

RELOCATION EXPENSES

All reasonable and customary relocation costs including closing costs, realtor fees, move of
household goods will be paid by the Company contingent upon your relocation to the Charlotte area
no later than June 1, 2007. Relocation expenses that are taxable to you will be grossed up
accordingly. In addition, temporary housing expenses for up to 9 months targeted at $1500/monthly
will be provided.

 

 

VACATION

You will be eligible for four (4) weeks vacation on an annual basis prorated in 2006.

BENEFITS

You will be eligible for our Benefits Program described in the benefits summary that has been
provided. Any questions you have regarding insurance and/or benefits may be directed to Debi
Cutright at 704-587-8574.

Our offer is contingent upon you successfully completing a post-offer physical that confirms that
you are able to perform the essential functions of the job, with or without reasonable
accommodation, a background check and passing a drug screening test prior to actual employment. If
you fail the drug screen test or the background check, this offer of employment will be withdrawn.
If you accept our offer, we will schedule your post-offer physical.

On your first working day, please bring two forms of identification (i.e. driver’s license and
social security card). If any of the above documents are not available, please give us a call to
get a complete list of other acceptable forms of identification.

CONFIDENTIALITY AGREEMENT

You will be required to sign the Polypore, Inc. Confidentiality and Non-Disclosure Agreement.

PLEASE ACKNOWLEDGE:

I understand that employment is for no fixed period, and that my employment with the Company can be
terminated with or without cause by the Company or by myself at any time. No oral representation
to the contrary has been made to me, and I further understand that no employee of the Company is
authorized to make any such representation. I also understand that Company policies, procedures,
and the like, are not contractual, and may be altered, changed or deviated by the Company at its
sole discretion.

I understand it is the policy of the Company to respect all trade secrets and confidential know-how
and information of any other company, including its competitors, and any company where its
consultants and employees may have previously worked. Accordingly, I represent and warrant (i)
that I am free to divulge to the Company without any violation of any rights of others, any and all
information, practices and techniques which I may describe, divulge or in any other manner make
known to the Company during my employment with the Company, (ii) that the services and duties to be
performed for the Company and its affiliates will not infringe any third party copyright, patent,
trade secret or other intellectual property right, and (iii) that I am free to accept employment
with the Company, have no obligations inconsistent with this offer and any subsequent employment
with the Company.

2

 

Please acknowledge your acceptance of this offer by signing the original and returning it to me.
We are excited about you joining Polypore, Inc., and look forward to a successful relationship.

Regards,

/s/ John J. O’Malley

John O’Malley

Senior Vice President

Human Resources

Polypore, Inc.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	ACCEPTANCE

	 	/s/ Mitch Pulwer
	 	DATE
	 	April 7, 2006	 	 
	 

	 	 
	 	 	 	 	 	 

cc: D. Cutright

3

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