Document:

Propex Fabrics Holdings Inc. 2005 Stock Awards Plan

 Exhibit 10.1 
  
 PROPEX FABRICS HOLDINGS INC. 
  

2005 STOCK AWARDS PLAN 
  
 I. 
 PURPOSE 
  
 The purpose of the Propex Fabrics Holdings Inc. 2005 Stock Awards Plan (the
“Plan”) is to provide a means through which Propex Fabrics Holdings Inc., a Delaware corporation and its subsidiaries, may attract able persons to the Company and its Affiliates (as defined below) and to provide a means whereby those
employees, directors and consultants, upon whom the responsibilities of the successful administration and management of the Company rest, and whose present and potential contributions to the welfare of the Company are of importance, can acquire and
maintain stock ownership, thereby strengthening their concern for the welfare of the Company and their desire to remain in its employ or service. A further purpose of the Plan is to provide such employees, directors and consultants with additional
incentive and reward opportunities designed to enhance the profitable growth of the Company. Accordingly, the Plan provides for granting Incentive Stock Options, Options which do not constitute Incentive Stock Options, Stock Appreciation Rights,
Restricted Stock Awards, Performance Awards, Phantom Stock Awards, or any combination of the foregoing, as is best suited to the circumstances of the particular employee, director, or consultant, as provided herein. 
  
 II. 
 DEFINITIONS 
  
 The following definitions shall be applicable throughout the Plan unless specifically modified by any paragraph: 
  
 (a) “Affiliate” of any person or entity means any other person or entity which, directly or indirectly, through one or
more intermediaries, controls, is controlled by, or is under common control with such person or entity and, in the case of the Company, includes but is not limited to, Propex Fabrics Inc. 
  
 (b) “Award” means, individually or
collectively, any Option, Restricted Stock Award, Phantom Stock Award, Performance Award or Stock Appreciation Right. 
  
 (c) “Board” means the Board of Directors or Sole Director of the Company. 
  
 (d) “Change of Control” means the
occurrence of any of the following events: (i) any merger, consolidation or other reorganization 

  

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(other than a merger or consolidation with the Principal Holder), in which the Company is not the surviving entity or in which the Company survives only as a
subsidiary of an entity, other than a previously wholly-owned subsidiary of the Company or the Principal Holder, (ii) the Company sells, leases or exchanges all or substantially all of its assets to any other person or entity (other than a
wholly-owned subsidiary of the Company, or the Principal Holder), (iii) the Company is to be dissolved and liquidated, (iv) any person or entity (other than the Principal Holder), including a “group” as contemplated by
Section 13(d)(3) of the 1934 Act, acquires or gains ownership or control (including, without limitation, power to vote) of more than 50% of the outstanding shares of the Company’s voting stock (based upon voting power with respect to the
election of directors), or (v) as a result of or in connection with a contested election of directors, the persons who were directors of the Company before such election shall cease to constitute a majority of the Board. 
  
 (e) “Change of Control Value” shall mean
(i) the per share price offered to stockholders of the Company in any such merger, consolidation, reorganization, sale of assets or dissolution transaction, (ii) the price per share offered to stockholders of the Company in any tender
offer or exchange offer whereby a Change of Control takes place, or (iii) if such Change of Control occurs other than pursuant to a tender or exchange offer, the Fair Market Value per share of the shares into which Awards are exercisable, as
determined by the Committee, whichever is applicable. In the event that the consideration offered to stockholders of the Company consists of anything other than cash, the Committee shall determine the fair cash equivalent of the portion of the
consideration offered which is other than cash. 
  
 (f) “Code” means the Internal Revenue Code of 1986, as amended. Reference in the Plan to any section of the Code shall be deemed to include any amendments or successor provisions to any section and any regulations under
such section. 
  
 (g) “Committee”
means the Compensation Committee of the Board provided that, if the Company has a class of equity securities registered under Section 12 of the 1934 Act (i) the Compensation Committee shall be constituted to include at least two
“non-employee directors” (as defined under Rule 16b-3 promulgated under the 1934 Act), to permit the Awards and subsequent transactions contemplated hereunder to comply with Rule 16b-3 and (ii) any Award subject to Section 162(m)
of the Code shall be made solely by members of the Committee who are “outside directors,” within the meaning of section 162(m) of the Code and applicable interpretive authority thereunder. 
  

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 (h) “Company” means Propex Fabrics Holdings Inc. and any of its
Affiliates, which includes, but is not limited to, Propex Fabrics Inc. 
  
 (i) A “consultant” means an individual who performs services for the Company as an independent contractor. 
  
 (j) A “director” means an individual who performs services for the Company as a member of the Board. 
  
 (k) An “employee” means any person in an
employment relationship with the Company or one of its Affiliates (as defined in section 424 of the Code). 
  
 (l) “1934 Act” means the Securities Exchange Act of 1934, as amended. 
  
 (m) “Fair Market Value” means, as of any
specified date, the closing price of the Stock as reported in The Wall Street Journal’s New York Stock Exchange (“NYSE”) - Composite Transactions listing for such day (corrected for obvious typographical errors), or if the
shares are listed for trading on the NYSE but no closing price is reported in such listing for such day, then the last reported closing price for such shares on the NYSE, or if such shares are not listed or traded on the NYSE, the closing sales
price on any national securities exchange on which the Stock is traded, or if the Stock is not traded on any national securities exchange, then the mean of the reported high and low sales prices for such shares in the over-the-counter market, as
reported on the National Association of Securities Dealers Automated Quotations System, or, if such prices shall not be reported thereon, the mean between the closing bid and asked prices reported by the National Quotation Bureau Incorporated, or,
in all other cases, the fair market value of a share of Stock as determined by the Committee. The Committee may, but shall have no obligation to, engage one or more appraisers in making its determination of Fair Market Value, and the Fair Market
Value as determined by the Committee may be higher or lower than any such appraisal. 
  
 (n) “Holder” means an employee, director, or consultant who has been granted an Award. 
  
 (o) “Incentive Stock Option” means an
option that is designated as an incentive stock option within the meaning of section 422 of the Code. 
  
 (p) “Nonqualified Stock Option” means an option granted under Paragraph VII of the Plan to purchase Stock which does not
constitute an Incentive Stock Option. 
  

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 (q) “Option” means an Award granted under Paragraph VII of the Plan and
includes both Incentive Stock Options to purchase Stock and Nonqualified Stock Options to purchase Stock. 
  
 (r) “Option Agreement” means a written agreement between the Company and a Holder with respect to an Option. 

 
 (s) “Performance Award” means an Award
granted under Paragraph X of the Plan. 
  
 (t)
“Performance Award Agreement” means a written agreement between the Company and a Holder with respect to a Performance Award. 
  
 (u) “Phantom Stock Award” means an Award granted under Paragraph XI of the Plan. 
  
 (v) “Phantom Stock Award Agreement” means a
written agreement between the Company and a Holder with respect to a Phantom Stock Award. 
  
 (w) “Plan” means the Propex Fabrics Holdings Inc. 2005 Stock Awards Plan, as amended from time to time. 
  
 (x) “Principal Holder” means The Sterling
Group, L.P., Genstar Capital, L.P., Laminar Direct Capital, L.P., BNP Paribas Private Capital Group, and their respective Affiliates, in each case, other than their respective portfolio companies. 
  
 (y) “Restricted Stock Agreement” means a
written agreement between the Company and a Holder with respect to a Restricted Stock Award. 
  
 (z) “Restricted Stock Award” means an Award granted under Paragraph IX of the Plan. 
  
 (aa) “Rule 16b-3” means SEC Rule 16b-3
promulgated under the 1934 Act, as such may be amended from time to time, and any successor rule, regulation or statute fulfilling the same or a similar function. 
  
 (bb) “Spread” means, in the case of a Stock Appreciation Right, an amount equal to the
excess, if any, of the Fair Market Value of a share of Stock on the date such right is exercised over the exercise price of such Stock Appreciation Right. 
  

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 (cc) “Stock” means the Class A Common Stock, $0.01 par value, of
the Company. 
  
 (dd) “Stock Appreciation
Right” means an Award granted under Paragraph VIII of the Plan. 
  
 (ee) “Stock Appreciation Rights Agreement” means a written agreement between the Company and a Holder with respect to an Award of Stock Appreciation Rights. 
  
 III. 
 EFFECTIVE DATE AND DURATION OF THE PLAN 
  
 The Plan shall be effective upon the date of its adoption by the Board, provided that the Plan is approved by the stockholders of the Company within twelve months thereafter. All Awards granted under this Plan prior
to stockholder approval of the Plan are expressly subject to the foregoing stockholder approval. If the Plan is not approved by the stockholders within twelve months of the date the Board approved the Plan, the Plan shall terminate and all Awards
granted under the Plan shall become void and of no effect. No further Awards may be granted under the Plan after the expiration of ten years from the date of its adoption by the Board. The Plan shall remain in effect until all Awards granted under
the Plan have been satisfied or expired. 
  
 IV. 
 ADMINISTRATION 
  
 (a) Committee. The Plan shall be administered by the Committee. 
  
 (b) Powers. Subject to the provisions of the Plan, the Committee shall have sole authority, in its
discretion, to determine which employees, directors and consultants shall receive an Award, the time or times when such Award shall be made, whether an Incentive Stock Option, Nonqualified Option or Stock Appreciation Right shall be granted, the
number and class of shares of Stock which may be issued under each Option, Stock Appreciation Right or Restricted Stock Award, and the value of each Performance Award and Phantom Stock Award. In making such determinations, the Committee may take
into account the nature of the services rendered by the respective employees, directors and consultants, their present and potential contributions to the Company’s success and such other factors as the Committee in its discretion shall deem
relevant. The Committee, in its sole discretion, may waive compliance with any provision of any Award, or any related agreement, may extend the date through which any Award is exercisable, and/or may accelerate the earliest date on which such Award
becomes exercisable, provided in each case such action does not adversely affect the rights of the Holder. 
  

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 (c) Additional Powers. The Committee shall have such additional powers as are
delegated to it by the other provisions of the Plan. Subject to the express provisions of the Plan, the Committee is authorized to construe the Plan and the respective agreements executed thereunder, to prescribe such rules and regulations relating
to the Plan as it may deem advisable to carry out the Plan, and to determine the terms, restrictions and provisions of each Award, including such terms, restrictions and provisions as shall be requisite in the judgment of the Committee to cause
designated Options to qualify as Incentive Stock Options, and to make all other determinations necessary or advisable for administering the Plan. The Committee may correct any defect or supply any omission or reconcile any inconsistency in any
agreement relating to an Award in the manner and to the extent it shall deem expedient to carry it into effect. The determinations of the Committee on the matters referred to in this Paragraph IV shall be made in a reasonable, good faith manner.

  
 V. 
 GRANT OF OPTIONS, STOCK APPRECIATION RIGHTS, RESTRICTED STOCK 
 AWARDS, PERFORMANCE
AWARDS AND PHANTOM STOCK AWARDS; 
 SHARES SUBJECT TO THE PLAN 
  
 (a) Stock Grant and Award Limits. The Committee may from time to time grant Awards to one or more
employees, directors, or consultants determined by it to be eligible for participation in the Plan in accordance with the provisions of Paragraph VI. Subject to Paragraph XII, the aggregate number of shares of Stock (irrespective of class) that may
be issued (or in respect of which Awards may be issued) under the Plan shall not exceed 57,750 shares. Shares of Stock shall be deemed to have been issued under the Plan only to the extent actually issued and delivered pursuant to an Award. To the
extent that an Award lapses or the rights of its Holder terminate or are relinquished or the Award is paid in cash, any shares of Stock subject to such Award shall again be available for the grant of an Award. Separate stock certificates shall be
issued by the Company for those shares acquired pursuant to the exercise of an Incentive Stock Option and for those shares acquired pursuant to the exercise of a Nonqualified Stock Option. 
  
 (b) Stock Offered. The stock to be offered pursuant
to the grant of an Award may be authorized but unissued Stock or Stock previously issued and outstanding and reacquired by the Company. 
  

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 VI. 
 ELIGIBILITY 
  
 Awards may be granted only to persons
who, at the time of grant, are employees, directors, or consultants of the Company and its Affiliates; provided that, only employees of the Company and its Affiliates may be granted an Incentive Stock Option. An Award may be granted on more than one
occasion to the same person, and, subject to the limitations set forth in the Plan, such Award may include an Incentive Stock Option or a Nonqualified Stock Option, a Stock Appreciation Right, a Restricted Stock Award, a Performance Award, a Phantom
Stock Award or any combination thereof. 
  
 VII. 
 STOCK OPTIONS 
  
 (a) Option Period. The term of each Option shall be as specified by the Committee at the date of grant; provided that, the term of
an Incentive Stock Option cannot exceed ten years from the date of grant. 
  
 (b) Limitations on Exercise of Option. An Option shall be exercisable in whole or in such installments and at such times as determined by the Committee. 
  
 (c) Special Limitations on Incentive Stock Options.
No more than 45,450 shares of Stock (irrespective of class) may be subject to Incentive Stock Options. Incentive Stock Options may only be granted to employees of the Company and its Affiliates. To the extent that the aggregate Fair Market Value
(determined at the time the respective Incentive Stock Option is granted) of Stock with respect to which Incentive Stock Options are exercisable for the first time by an individual during any calendar year under all incentive stock option plans of
the Company and its parent and subsidiary corporations exceeds $100,000, such Incentive Stock Options shall be treated as Nonqualified Stock Options as determined by the Committee. The Committee shall determine, in accordance with applicable
provisions of the Code, Treasury Regulations and other administrative pronouncements, which of an optionee’s Incentive Stock Options will not constitute Incentive Stock Options because of such limitation and shall notify the optionee of such
determination as soon as practicable after such determination. No Incentive Stock Option shall be granted to an individual if, at the time the Option is granted, such individual owns stock possessing more than 10% of the total combined voting power
of all classes of stock of the Company or of its parent or subsidiary corporation, within the meaning of section 422(b)(6) of the Code, unless (i) at the time such Option is granted the Option price is at least 110% of the Fair Market Value of
the Stock subject to the Option and (ii) such Option by its terms is not exercisable after the expiration of five years from the date of grant. 
  

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 (d) Option Agreement. Each Option shall be evidenced by an Option Agreement in
such form and containing such provisions not inconsistent with the provisions of the Plan as the Committee from time to time shall approve, including, without limitation, provisions to qualify an Incentive Stock Option under section 422 of the Code.
The Option price must be paid in full at the time of each exercise in one or a combination of the following methods (to the extent authorized and approved by the Committee or set forth in the applicable Option Agreement): (a) cash or
immediately available funds (including wire transfer, personal check, cashier’s check, postal or express money order or bank draft) or (b) with shares of common stock already owned by the participant for at least six months, provided that
for purposes of this clause (b), a Holder shall be deemed to own shares of common stock issuable upon conversion of any class or series of preferred stock of the Company owned by such Holder. Additionally, in the discretion of the Committee, payment
for any shares subject to an Option may also be made by a “cashless exercise” which shall include the following: delivering a properly executed exercise notice to the Company, together with a copy of irrevocable instructions to a broker to
deliver promptly to the Company the amount of sale or loan proceeds necessary to pay the purchase price, and, if requested, the amount of any federal, state, local or foreign withholding taxes. To facilitate the foregoing “cashless
exercise,” the Company may enter into agreements for coordinated procedures with one or more brokerage firms. Each Option Agreement shall specify the effect of termination of employment, or the cessation of performing services as a member of
the Board or a consultant to the Company on the exercisability of the Option. Such Option Agreement may also include, without limitation, provisions relating to (i) vesting of Options, (ii) tax matters (including provisions
(1) permitting the delivery of additional shares of Stock or the withholding of shares of Stock from those acquired upon exercise to satisfy federal or state income tax withholding requirements and (2) addressing any other applicable
employee wage withholding requirements), and (iii) any other matters not inconsistent with the terms and provisions of this Plan that the Committee shall in its sole discretion determine. The terms and conditions of the respective Option
Agreements need not be identical. 
  
 (e)
Option Price and Payment. The price at which a share of Stock may be purchased upon exercise of an Option shall be determined by the Committee, but (i) such purchase price shall not be less than the Fair Market Value of Stock subject to
an Option on the date the Option is granted and (ii) such purchase price shall be subject to adjustment as provided in Paragraph XII. The Option or portion thereof may be exercised by delivery of an irrevocable notice of exercise to the
Company. The purchase price of the Option or portion thereof shall be paid in full in the manner prescribed by the Committee. 
  

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 (f) Stockholder Rights and Privileges. The Holder shall be entitled to all the
privileges and rights of a stockholder only with respect to such shares of Stock as have been purchased under the Option and for which certificates of stock have been registered in the Holder’s name. 
  
 (g) Options in Substitution for Stock Options Granted by
Other Corporations. Options may be granted under the Plan from time to time in substitution for stock options held by individuals employed by corporations who become employees as a result of a merger or consolidation of the employing corporation
with the Company, or the acquisition by the Company of the assets of the employing corporation, or the acquisition by the Company of stock of the employing corporation with the result that such employing corporation becomes a subsidiary. 

 
 VIII. 
 STOCK APPRECIATION RIGHTS 
  
 (a) Stock Appreciation Rights. A Stock Appreciation Right is the right to receive an amount equal to the Spread with respect to a share of Stock upon the exercise of such Stock Appreciation Right. Stock
Appreciation Rights may be granted in connection with the grant of an Option, in which case the Option Agreement will provide that exercise of Stock Appreciation Rights will result in the surrender of the right to purchase the shares under the
Option as to which the Stock Appreciation Rights were exercised. Alternatively, Stock Appreciation Rights may be granted independently of Options in which case each Award of Stock Appreciation Rights shall be evidenced by a Stock Appreciation Rights
Agreement, which shall contain such terms and conditions as may be approved by the Committee. The Spread with respect to a Stock Appreciation Right shall be payable in cash, provided that the Stock Appreciation Rights Agreement may specify that the
Spread may be payable in cash, shares of Stock with a Fair Market Value equal to the Spread or in a combination of cash and shares of Stock, at election of the Committee. With respect to Stock Appreciation Rights that are subject to Section 16
of the 1934 Act, however, the Committee shall, except as provided in Paragraph XII(c), retain sole discretion (i) to determine the form in which payment of the Stock Appreciation Right will be made (i.e., cash, securities or any combination
thereof) and (ii) to approve an election by a Holder to receive cash in full or partial settlement of Stock Appreciation Rights. Each Stock Appreciation Rights Agreement shall specify the effect of termination of employment or the cessation of
performing services as a consultant to the Company on the exercisability of the Stock Appreciation Rights. 
  

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 (b) Other Terms and Conditions. At the time of such Award, the Committee, may in
its sole discretion, prescribe additional terms, conditions or restrictions relating to Stock Appreciation Rights, including, but not limited to rules pertaining to termination of employment or the cessation of performing services as a director or
as a consultant to the Company (by retirement, disability, death or otherwise) of a Holder prior to the expiration of such Stock Appreciation Rights. Such additional terms, conditions or restrictions shall be set forth in the Stock Appreciation
Rights Agreement made in conjunction with the Award. Such Stock Appreciation Rights Agreements may also include, without limitation, provisions relating to (i) vesting of Awards, (ii) tax matters (including provisions covering applicable
wage withholding requirements), and (iii) any other matters not inconsistent with the terms and provisions of this Plan, that the Committee shall in its sole discretion determine. The terms and conditions of the respective Stock Appreciation
Rights Agreements need not be identical. 
  
 (c)
Exercise Price. The exercise price of each Stock Appreciation Right shall be determined by the Committee, but such exercise price (i) shall not be less than the Fair Market Value of a share of Stock on the date the Stock Appreciation
Right is granted and (ii) shall be subject to adjustment as provided in Paragraph XII. 
  
 (d) Exercise Period. The term of each Stock Appreciation Right shall be as specified by the Committee at the date of grant.

  
 (e) Limitations on Exercise of Stock
Appreciation Right. A Stock Appreciation Right shall be exercisable in whole or in such installments and at such times as determined by the Committee. 
  
 (f) Stock Appreciation Rights and Section 409A. It is intended that the grant of any Stock Appreciation Right satisfy all the
requirements of Section 409A of the Code. 
  
 IX. 

RESTRICTED STOCK AWARDS 
  
 (a) Forfeiture Restrictions to be Established by the Committee. Shares of Stock that are the subject of a Restricted Stock Award
shall be subject to restrictions on disposition by the Holder and an obligation of the Holder to forfeit and surrender the shares to the Company under certain circumstances (the “Forfeiture Restrictions”). The Forfeiture Restrictions shall
be determined by the Committee in its sole discretion, and the 

  

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Committee may provide that the Forfeiture Restrictions shall lapse upon (i) the attainment of targets established by the Committee that are based on
(1) the price of a share of Stock, (2) the Company’s earnings per share, (3) the Company’s revenue, or the revenue of a business unit of the Company designated by the Committee, (4) the return on stockholders’
equity achieved by the Company, (5) the Company’s pre-tax cash flow from operations or the pre-tax cash flow from operations of a business unit of the Company designated by the Committee, (6) the Company’s return on capital,
(7) the Company’s return on assets or (8) the Company’s free cash flow or the free cash flow of a business unit of the Company designated by the Committee, (ii) the Holder’s continued service or employment with the
Company for a specified period of time, or (iii) a combination of any two or more of the factors listed in clauses (i) and (ii) of this sentence, or other factors set forth in the Restricted Stock Agreement. Each Restricted Stock
Award may have different Forfeiture Restrictions, in the discretion of the Committee. The Forfeiture Restrictions applicable to a particular Restricted Stock Award shall not be changed except as permitted by Paragraph IX(b) or Paragraph XII.

  
 (b) Other Terms and Conditions. Stock
awarded pursuant to a Restricted Stock Award shall be represented by a stock certificate registered in the name of the Holder of such Restricted Stock Award. The Holder shall have the right to receive dividends with respect to Stock subject to a
Restricted Stock Award, to vote Stock subject thereto and to enjoy all other stockholder rights, except that (i) the Holder shall not be entitled to delivery of the stock certificate until the Forfeiture Restrictions shall have expired,
(ii) the Company shall retain custody of the Stock until the Forfeiture Restrictions shall have expired, (iii) the Holder may not sell, transfer, pledge, exchange, hypothecate or otherwise dispose of the Stock until the Forfeiture
Restrictions shall have expired, and (iv) a breach of the terms and conditions established by the Committee pursuant to the Restricted Stock Agreement, shall cause a forfeiture of the Restricted Stock Award. At the time of such Award, the
Committee may, in its sole discretion, prescribe additional terms, conditions or restrictions relating to Restricted Stock Awards, including, but not limited to, rules pertaining to the termination of employment, the cessation of serving on the
Board or the cessation of performing services as a consultant to the Company (by retirement, disability, death or otherwise) of a Holder prior to expiration of the Forfeiture Restrictions. Such additional terms, conditions or restrictions shall be
set forth in a Restricted Stock Agreement made in conjunction with the Award. Such Restricted Stock Agreement may also include, without limitation, provisions relating to (i) vesting of Awards, (ii) tax matters (including provisions
(1) covering any applicable employee wage withholding requirements and (2) requiring or prohibiting an election by the Holder under section 83(b) of the Code), and (iii) any other matters 

  

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not inconsistent with the terms and provisions of this Plan that the Committee shall in its sole discretion determine. The terms and conditions of the
respective Restricted Stock Agreements need not be identical. 
  
 (c) Payment for Restricted Stock. The Committee shall determine the amount and form of any payment for Stock received pursuant to a Restricted Stock Award, provided that in the absence of such a determination,
a Holder shall not be required to make any payment for Stock received pursuant to a Restricted Stock Award, except to the extent otherwise required by law. 
  
 (d) Agreements. At the time any Award is made under this Paragraph IX, the Company and the Holder shall enter into a Restricted
Stock Agreement setting forth each of the matters as the Committee may determine to be appropriate. The terms and provisions of the respective Restricted Stock Agreements need not be identical. 
  
 X. 
 PERFORMANCE AWARDS 
  
 (a) Performance Period. The Committee shall establish, with respect to and at the time of each Performance Award, a performance period over which the performance of the Holder shall be measured. 
  
 (b) Performance Awards. Each Performance Award shall
have a maximum value established by the Committee at the time of such Award. 
  
 (c) Performance Measures. A Performance Award shall be awarded to an employee, director, or consultant contingent upon future performance of the employee, director, or consultant, the Company or any subsidiary,
division or department thereof by or in which he is employed or for which he performs services during the performance period. The Committee shall establish the performance measures applicable to such performance prior to the beginning of the
performance period but subject to such later revisions as the Committee shall deem appropriate to reflect significant, unforeseen events or changes. 
  
 (d) Awards Criteria. In determining the value of Performance Awards, the Committee shall take into account an employee’s,
director’s, or consultant’s responsibility level, performance, potential, other Awards and such other considerations as it deems appropriate. 
  
 (e) Payment. Following the end of the performance period, the Holder of a Performance Award shall be entitled to receive payment of
an 

  

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amount, not exceeding the maximum value of the Performance Award, based on the achievement of the performance measures for such performance period, as
determined by the Committee. Payment of a Performance Award may be made in cash, Stock or a combination thereof, as determined by the Committee. Payment shall be made in a lump sum or in installments as prescribed by the Committee. Any payment to be
made in Stock shall be based on the Fair Market Value of the Stock on the payment date. If a payment of cash is to be made on a deferred basis, the Committee shall establish whether interest shall be credited, the rate thereof and any other terms
and conditions applicable thereto. 
  
 (f)
Termination of Employment, Cessation of Serving on Board or Termination of Service. A Performance Award shall terminate if the Holder does not remain continuously in the employ of the Company or fails to perform services for the Company at
all times during the applicable performance period, except as may be determined by the Committee or as may otherwise be provided in the Award at the time granted. 
  
 (g) Agreements. At the time any Award is made under this Paragraph X, the Company and the Holder
shall enter into a Performance Award Agreement setting forth each of the matters contemplated hereby, and, in addition, such matters set forth in Paragraph IX(b) as the Committee may determine to be appropriate. The terms and provisions of the
respective agreements need not be identical. 
  
 XI. 
 PHANTOM STOCK AWARDS 
  
 (a) Phantom Stock Awards. Phantom Stock Awards are rights to receive shares of Stock (or cash in an amount equal to the Fair Market
Value thereof), or rights to receive an amount equal to any appreciation in the Fair Market Value of Stock (or portion thereof) over a specified period of time, which vest over a period of time or upon the occurrence of an event (including without
limitation a Change of Control) as established by the Committee, without payment of any amounts by the Holder thereof (except to the extent otherwise required by law) or satisfaction of any performance criteria or objectives. Each Phantom Stock
Award shall have a maximum value established by the Committee at the time of such Award. 
  
 (b) Award Period. The Committee shall establish, with respect to and at the time of each Phantom Stock Award, a period over which
or the event upon which the Award shall vest with respect to the Holder. 
  

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 (c) Awards Criteria. In determining the value of Phantom Stock Awards, the
Committee shall take into account an employee’s, director’s, or consultant’s responsibility level, performance, potential, other Awards and such other considerations as it deems appropriate. 
  
 (d) Payment. Following the end of the vesting period
for a Phantom Stock Award, the Holder of a Phantom Stock Award shall be entitled to receive payment of an amount, not exceeding the maximum value of the Phantom Stock Award, based on the then vested value of the Award. Payment of a Phantom Stock
Award may be made in cash, Stock or a combination thereof as determined by the Committee. Payment shall be made in a lump sum or in installments as prescribed by the Committee in its sole discretion. Any payment to be made in Stock shall be based on
the Fair Market Value of the Stock on the payment date. Cash dividend equivalents may be paid during or after the vesting period with respect to a Phantom Stock Award, as determined by the Committee. If a payment of cash is to be made on a deferred
basis, the Committee shall establish whether interest shall be credited, the rate thereof and any other terms and conditions applicable thereto. 
  
 (e) Termination of Employment, Cessation of Serving on Board or Termination of Service. A Phantom Stock Award shall terminate if
the Holder does not remain continuously in the employ of the Company or fails to perform services for the Company at all times during the applicable vesting period, except as may be otherwise determined by the Committee or as set forth in the Award
at the time of grant. 
  
 (f) Agreements.
At the time any Award is made under this Paragraph XI, the Company and the Holder shall enter into a Phantom Stock Award Agreement setting forth each of the matters contemplated hereby and, in addition such matters set forth in Paragraph IX(b) as
the Committee may determine to be appropriate. The terms and provisions of the respective agreements need not be identical. 
  
 (g) Phantom Stock Awards and Section 409A. It is intended that the grant of any Phantom Stock Award satisfy all of the
requirements of Section 409A of the Code. 
  
 XII. 

RECAPITALIZATION OR REORGANIZATION 
  
 (a) The shares with respect to which Awards may be granted are shares of Stock as presently constituted, but if, and whenever, prior to
the expiration of an Award theretofore granted, the Company shall effect a subdivision or consolidation by the Company, the number of shares of Stock with respect to which such Award may thereafter be exercised or 

  

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satisfied, as applicable, (i) in the event of an increase in the number of outstanding shares shall be proportionately increased, and the purchase price
per share shall be proportionately reduced, and (ii) in the event of a reduction in the number of outstanding shares shall be proportionately reduced, and the purchase price per share shall be proportionately increased. 
  
 (b) If the Company recapitalizes or otherwise changes its
capital structure, thereafter upon any exercise or satisfaction, as applicable, of an Award theretofore granted the Holder shall be entitled to (or entitled to purchase, if applicable) under such Award, in lieu of the number of shares of Stock then
covered by such Award, the number and class of shares of stock and securities to which the Holder would have been entitled pursuant to the terms of the recapitalization if, immediately prior to such recapitalization, the Holder had been the holder
of record of the number of shares of Stock then covered by such Award. 
  
 (c) The Committee may, upon the occurrence of a Change of Control, determine that all outstanding Awards shall immediately vest and become exercisable or satisfiable, as applicable. The Committee, in its discretion,
may determine that upon the occurrence of a Change of Control, each Award, other than an Option outstanding hereunder, shall terminate within a specified number of days after notice to the Holder, and such Holder shall receive, with respect to each
share of Stock subject to such Award, cash in an amount equal to the excess, if any, of the Change of Control Value over the exercise price. Further, in the event of a Change of Control, the Committee, in its discretion, but only if a Holder’s
Option Agreement does not provide otherwise, shall act to effect one or more of the following alternatives with respect to outstanding Options, which may vary among individual Holders and which may vary among Options held by any individual Holder:
(1) determine a limited period of time for the exercise of such Options in a manner determined by the Committee (notwithstanding the provisions set forth in Paragraph VII(e) with respect to the exercise of such options) on or before a specified
date (before or after such Change of Control) after which specified date all unexercised Options and all rights of Holders thereunder shall terminate, (2) require the mandatory surrender to the Company by selected Holders of some or all of the
outstanding Options held by such Holders (irrespective of whether such Options are then exercisable under the provisions of the Plan) as of a date, before or after such Change of Control, specified by the Committee, in which event the Committee
shall thereupon cancel such Options and the Company shall pay to each Holder an amount of cash and other consideration, as determined by the Committee in its sole discretion, where the total cash and other consideration paid or delivered per share
is equal to the excess, if any, of the Change of Control Value of the shares subject to such Option over the exercise price(s) under such Options for 

  

 -15- 

 
such shares, (3) make such adjustments to Options then outstanding as the Committee deems appropriate to reflect such Change of Control (provided,
however, that the Committee may determine in its sole discretion that no adjustment is necessary to Options then outstanding) or (4) provide that thereafter upon any exercise of an Option theretofore granted the Holder shall be entitled to
purchase under such Option, in lieu of the number of shares of Stock then covered by such Option, the number and class of shares of stock or other securities or property (including, without limitation, cash) to which the Holder would have been
entitled pursuant to the terms of the agreement of merger, consolidation or sale of assets and dissolution if, immediately prior to such merger, consolidation or sale of assets and dissolution, the Holder has been the holder of record of the number
of shares of Stock then covered by such Option. The provisions contained in this paragraph shall be inapplicable to an Award granted within six (6) months before the occurrence of a Change of Control, but only if (i) the Holder of such
Award is subject to the reporting requirements of Section 16(a) of the 1934 Act and (ii) such provisions (even after preapproval by the Compensation Committee or the Board pursuant to Rule 16b-3) would create a matching transaction under
Section 16(b) of the 1934 Act with respect to such Holder. The provisions contained in this paragraph shall not alter any rights or terminate any rights of the Holder to further payments pursuant to any other agreement with the Company
following a Change of Control. 
  
 (d) In the
event of changes in the outstanding Stock by reason of recapitalization, reorganizations, mergers, consolidations, combinations, exchanges or other relevant changes in capitalization occurring after the date of the grant of any Award and not
otherwise provided for by this Paragraph XII, any outstanding Awards and any agreements evidencing such Awards shall be subject to adjustment by the Committee at its discretion as to the number and price of shares of Stock or other consideration
(including without limitation, cash) subject to such Awards. In the event of any such change in the outstanding Stock, the aggregate number of shares available under the Plan may be appropriately adjusted by the Committee, whose determination shall
be conclusive. 
  
 (e) The existence of the Plan
and the Awards granted hereunder shall not affect in any way the right or power of the Board or the stockholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the Company’s capital
structure or its business, any merger or consolidation of the Company, any issue of debt or equity securities ahead of or affecting Stock or the rights thereof, the dissolution or liquidation of the Company or any sale, lease, exchange or other
disposition of all or any part of its assets or business or any other corporate act or proceeding. 
  

 -16- 

 (f) Any adjustment provided for in Subparagraphs (a), (b), (c) or (d) above
shall be subject to any required stockholder action. 
  
 (g) Except as hereinbefore expressly provided, the issuance by the Company of shares of stock of any class or securities convertible into shares of stock of any class, for cash, property, labor or services, upon direct sale, upon the
exercise of rights or warrants to subscribe therefor, or upon conversion of shares of obligations of the Company convertible into such shares or other securities, and in any case whether or not for fair value, shall not affect, and no adjustment by
reason thereof shall be made with respect to, the number of shares of Stock subject to Awards theretofore granted or the purchase price per share, if applicable. 
  
 XIII. 
 AMENDMENT
AND TERMINATION OF THE PLAN 
  
 The Board in its discretion may
terminate the Plan at any time with respect to any shares for which Awards have not theretofore been granted. The Board shall have the right to alter or amend the Plan or any part thereof from time to time; provided that no change in any Award
theretofore granted may be made which would impair the rights of the Holder without the consent of the Holder (unless such change is required in order to cause the benefits under the Plan to qualify as performance-based compensation within the
meaning of section 162(m) of the Code and applicable interpretive authority thereunder), and provided, further, that the Board may not, without approval of the stockholders, amend the Plan: 
  
 (a) to increase the maximum number of shares which may be
issued on exercise or surrender of an Award, except as provided in Paragraph XII; 
  
 (b) to change the class of employees, directors, or consultants eligible to receive Awards or materially increase the benefits accruing to
employees, directors, or consultants under the Plan; 
  
 (c) to extend the maximum period during which Awards may be granted under the Plan; 
  
 (d) to modify materially the requirements as to eligibility for participation in the Plan; or 
  
 (e) to decrease any authority granted to the Committee
hereunder in contravention of Rule 16b-3. 
  

 -17- 

 XIV. 
 MISCELLANEOUS 
  
 (a) No Right to an
Award. Neither the adoption of the Plan by the Company nor any action of the Board or the Committee shall be deemed to give an employee, director, or consultant any right to be granted an Award to purchase Stock, a right to a Stock Appreciation
Right, a Restricted Stock Award, a Performance Award or a Phantom Stock Award or any of the rights hereunder except as may be evidenced by an Award or by an Option Agreement, Stock Appreciation Rights Agreement, Restricted Stock Agreement,
Performance Award Agreement or Phantom Stock Award Agreement on behalf of the Company, and then only to the extent and on the terms and conditions expressly set forth therein. The Plan shall not be a “funded plan” within the meaning of the
Employee Retirement Income Security Act of 1974, as amended. The Company shall not be required to establish any special or separate fund or to make any other segregation of funds or assets to assure the payment of any Award. 
  
 (b) No Employment or Service Rights Conferred.
Nothing contained in the Plan shall (i) confer upon any employee, director, or consultant any right with respect to continuation of employment or service with the Company or any subsidiary or (ii) interfere in any way with the right of the
Company or any subsidiary to terminate an employee’s, director’s, or consultant’s employment or service at any time, with or without cause. 
  
 (c) Other Laws; Withholding. The Company shall not be obligated to issue any Stock pursuant to any Award granted under the Plan at
any time when the shares covered by such Award have not been registered under the Securities Act of 1933 and such other state and federal laws, rules or regulations as the Company or the Committee deems applicable and, in the opinion of legal
counsel for the Company, there is no exemption from the registration requirements of such laws, rules or regulations available for the issuance and sale of such shares. No fractional shares of Stock shall be delivered, nor shall any cash in lieu of
fractional shares be paid. The Company shall have the right to deduct in connection with all Awards any taxes required by law to be withheld and to require any payments required to enable it to satisfy its withholding obligations. 
  
 (d) No Restriction on Corporate Action. Nothing
contained in the Plan shall be construed to prevent the Company or any subsidiary from taking any corporate action which is deemed by the Company or such subsidiary to be appropriate or in its best interest, whether or not such action would have an
adverse effect on the Plan or any Award made under the Plan. No employee, director, consultant, beneficiary or other person shall have any claim against the Company or any subsidiary as a result of any such action. 
  

 -18- 

 (e) Restrictions on Transfer. An Award shall not be transferable otherwise than by
will or the laws of descent and distribution or pursuant to a “qualified domestic relations order” as defined by the Code or Title I of the Employee Retirement Income Security Act of 1974, as amended, or the rules thereunder, and shall be
exercisable during the Holder’s lifetime only by such Holder or the Holder’s guardian or legal representative. However, the Committee may, in its discretion, provide in an Option Agreement (other than with respect to an Incentive Stock
Option) that the Option right granted to the individual may be transferred (in whole or in part and shall be subject to such terms and conditions as the Committee may impose thereon, including, without limitation, the approval by the Company of the
form of transfer agreement) by the individual to (i) the spouse, children, grandchildren and/or the direct descendents of the individual (“Immediate Family Members”), (ii) a partnership in which such Immediate Family Members and,
if applicable, the individual are the only partners, or (iv) any other person or entity otherwise permitted by the Committee. Following transfer, any such transferred Option rights shall continue to be subject to the same terms and conditions
as were applicable to the Option rights immediately prior to transfer; provided, however, that no transferred Option rights shall be exercisable unless arrangements satisfactory to the Company have been made to satisfy any tax withholding
obligations the Company may have with respect to the Option rights. 
  
 (f) Rule 16b-3. It is intended that any grant of an Award (and subsequent transactions contemplated thereby) made to a person subject to Section 16 of the 1934 Act meet all of the requirements of Rule
16b-3. If any such Award does not comply with Rule 16b-3, such Award shall be construed or deemed amended to comply with Rule 16b-3. 
  
 (g) Section 162(m). If the Plan is subject to section 162(m) of the Code, it is intended that the Plan comply fully with and
meet all the requirements of section 162(m) of the Code so that Options and Stock Appreciation Rights granted hereunder and, if determined by the Committee, Restricted Stock Awards, shall constitute “performance-based” compensation within
the meaning of such section. If any provision of the Plan would disqualify the Plan or would not otherwise permit the Plan to comply with section 162(m) as so intended, such provision shall be construed or deemed amended to conform to the
requirements or provisions of section 162(m); provided that no such construction or amendment shall have an adverse effect on the economic value to a Holder of any Award previously granted hereunder. 
  

 -19- 

 (h) Section 409A. It is intended that any grant of an Award to which
Section 409A of the Code is applicable satisfy all of the requirements of such section. 
  
 (i) Governing Law. This Plan shall be construed in accordance with the laws of the State of Delaware. 
  
 IN WITNESS WHEREOF, the Company has caused this Plan to be executed on this
25th day of October, 2005. 
  

			
	PROPEX FABRICS HOLDINGS INC.
		
	 By:
	 	 /s/ Edmund A. Stanczak, Jr.

	 	 	President and Chief Executive Officer

  

 -20-Form of Nonqualified Stock Option Agreement for Employees

 Exhibit 10.2 
  
 PROPEX FABRICS HOLDINGS INC. 
 NONQUALIFIED STOCK OPTION AGREEMENT 
 FOR EMPLOYEES 
 (2005 Stock Awards Plan) 
  
 This Nonqualified Stock Option Agreement (“Option Agreement”) is between Propex Fabrics Holdings Inc., a Delaware corporation (the
“Company”), and                      (the “Optionee”). 
  
 W I T N E S S E T H: 
  
 The Company has heretofore adopted the Propex Fabrics Holdings Inc. 2005
Stock Awards Plan (the “Plan”) for the purposes of attracting able persons to the Company and providing employees, directors and consultants of the Company and its Affiliates (as defined in the Plan) with additional incentive to enhance
the profitable growth of the Company and to encourage them to remain in the employ or service of the Company and its Affiliates (collectively hereinafter referred to as the “Company”). 
  
 NOW THEREFORE, for and in consideration of these premises it is agreed as
follows: 
  
 1. Option. Subject to the terms and
conditions contained herein, the Company, effective as of                      (the “Grant Date”), hereby irrevocably grants to
Optionee the right and option (“Option”) to purchase from the Company              shares of the Company’s Class A Common Stock, $0.01 par value
(“Stock”), at a price of $100 per share. 
  
 2.
Option Period. Unless otherwise provided for herein, the Option herein granted may be exercised by Optionee in whole or in part at any time during a ten (10) year period (the “Option Period”) beginning on the Grant Date,
subject to the limitation that said Option shall not be exercisable for more than a portion of the aggregate number of shares offered by this Option determined by Optionee’s number of full years of employment or service with the Company from
             to the date of such exercise (“Vested”), in accordance with the following schedule: 
  

 -1- 

			
	 Number of Full Years of Employment or Service
 from Grant Date

	  	 Cumulative Percentage of Total Shares Granted
 That May Be Purchased (“Vested”)

	 Less than 1 Year
	  	0%
	 One Year
	  	0%
	 Two Years
	  	25%
	 Three Years
	  	50%
	 Four Years
	  	75%
	 Five Years or more
	  	100%

  
 Upon the occurrence of
a “Change of Control” (as defined in Section 11), the Option granted under this Option Agreement shall be fully exercisable and vested. 
  
 Notwithstanding anything in this Agreement to the contrary, the Committee (as defined in the Plan), in its sole discretion, may waive the foregoing
schedule of vesting, and upon written notice to the Optionee, accelerate the earliest date or dates on which any of the Options granted hereunder are exercisable. 
  
 3. Procedure for Exercise. The Option herein granted may be exercised by written notice by Optionee to the
Chief Financial Officer and the General Counsel of the Company setting forth the number of shares of Stock with respect to which the Option is to be exercised accompanied by payment for the shares to be purchased, and specifying the address to which
the certificate for such shares is to be mailed. Payment shall be by means of cash, or a cashier’s check, bank draft, postal or express money order payable to the order of the Company, or at the discretion of the Committee, in Stock theretofore
owned by such Optionee for at least six (6) months (or a combination of cash and Stock). Notice may also be delivered by fax or telecopy provided that the purchase of such shares is delivered to the Company via wire transfer on the same day the
fax is received by the Chief Financial Officer and the General Counsel of the Company. As promptly as practicable after receipt of such written notification and payment, the Company shall deliver to Optionee certificates for the number of shares of
Stock with respect to which such Option has been so exercised. 
  
 4. Termination of Employment. 
  
 (a) For Cause
or Voluntary. If Optionee’s employment or service with the Company is terminated during the Option Period “For Cause” (as defined below) or if Optionee voluntarily terminates his or her employment or service with the Company
(“Voluntary Termination”), Options granted to him or her, whether they are exercisable (Vested) or not on such date of termination of employment or service For Cause or on the date of Optionee’s Voluntary Termination of employment or
service shall thereupon expire. 
  

 -2- 

 As used in this Agreement, the term “For Cause” means (i) breach of
Optionee’s obligations under any offer letter or employment agreement after Optionee has been given notice specifying such breach and a reasonable opportunity to cure such breach; (ii) failure to adhere to any written policy of the Company
and its Affiliates after Optionee has been given notice specifying the failure and a reasonable opportunity to comply with such policy or cure Optionee’s failure to comply; (iii) Optionee’s conviction of, indictment for or the
entering of a guilty plea or plea of no contest with respect to, a felony, the equivalent thereof, or any other crime with respect to which imprisonment is a possible punishment; (iv) the commission by Optionee of an act of fraud upon the
Company or any of its Affiliates; (v) the misappropriation (or attempted misappropriation) of any funds or property of the Company or any of its Affiliates; (vi) failure to perform the duties assigned to Optionee under any offer letter or
employment agreement after reasonable notice and opportunity to cure such performance; (vii) Optionee’s engagement in any direct, material conflict of interest with the Company or any of its Affiliates without compliance with the conflict
of interest policy of the Company or any of its Affiliates, if any, then in effect; (viii) Optionee’s engagement, without the written approval of the Board of Directors of the Company (“Board”), in any activity which competes
with the business of the Company or any of its Affiliates or which would result in a material injury to the Company or any of its Affiliates; (ix) Optionee’s engagement in any activity which would constitute a material violation of the
provisions of the Company’s or any of its Affiliates’ insider trading policy or business ethics policy, if any, then in effect, or (xi) any act or omission that, in the judgment of the Board has or could have a material adverse effect
on (a) the Company’s properties, operations or public image, or (b) the health, safety or morale of any of the suppliers, employees or customers of the Company or any of its Affiliates. 
  
 (b) Non-Voluntary. If the Company terminates the Optionee’s employment or service
with the Company for any reason other than For Cause, Voluntary Termination, death, or disability, then all Options hereunder exercisable (Vested) at the date of such termination shall be thereafter exercisable by Optionee for a period of thirty
(30) days from the date of such termination. Upon the expiration of such thirty (30) day period, this Option shall expire. In no event may any Option be exercised after the end of the Option Period. 
  
 (c) Committee Discretion. Notwithstanding anything herein to the contrary, the
Committee, in its sole discretion, may allow the Optionee to exercise all or a portion of this Option that is unexercised for a period of time after the Optionee’s Voluntary Termination or non-voluntary termination of employment. 
  
 5. Death or Disability. If Optionee’s employment or
service with the Company is terminated by his or her death or disability, then all Options hereunder exercisable (Vested) at the date of such death or disability shall be thereafter exercisable by Optionee, his executor or administrator, or the
person or persons to whom his rights under this Option Agreement shall pass by will or by the laws of descent and distribution, 

  

 -3- 

 
as the case may be, for a period of one year from the date of Optionee’s death or disability. Upon the expiration of such one-year period, the Option
shall expire. In no event may any Option be exercised after the end of the Option Period. 
  
 (a) Disability. Optionee shall be deemed subject to a “disability” if, in the opinion of a physician selected by the Committee, he is incapable of performing services for the Company of the kind he
was performing at the time the disability occurred by reason of any medically determinable physical or mental impairment which can be expected to result in death or to be of long, continued and indefinite duration. The date of determination of
disability for purposes hereof shall be the date of such determination by such physician. 
  
 (b) Committee Discretion. Notwithstanding anything herein to the contrary, the Committee, in its sole discretion, may allow the Optionee to exercise all or a portion of this Option that is exercisable (Vested)
for a longer period than one year after disability or death. 
  
 6. Cashing Out Option. On receipt of written notice of exercise pursuant to Section 3, the Committee may elect to cash-out all or a part of the portion of the shares of Stock for which all or a portion of this Option is
being exercised by paying Optionee an amount, in cash or Stock, equal to the excess of the Fair Market Value (as defined in the Plan) of the Stock over the option price times the number of shares of Stock for which the Option is being exercised (and
cashed-out) on the effective date of such exercise. 
  
 7.
Transferability. This Option shall not be transferable by Optionee otherwise than by Optionee’s will or by the laws of descent and distribution. During the lifetime of Optionee, the Option shall be exercisable only by him. Any
heir or legatee of Optionee shall take rights herein granted subject to the terms and conditions hereof. No such transfer of this Option Agreement to heirs or legatees of Optionee shall be effective to bind the Company unless the Company shall have
been furnished with written notice thereof and a copy of such evidence as the Committee may deem necessary to establish the validity of the transfer and the acceptance by the transferee or transferees of the terms and conditions hereof. 

 
 8. No Rights as Stockholder. Optionee shall have no rights
as a stockholder with respect to any shares of Stock covered by this Option Agreement until the date of issuance of a certificate for shares of Stock purchased pursuant to this Option Agreement. Until such time, Optionee shall not be entitled to
dividends or to vote at meetings of the stockholders of the Company. Except as provided in Section 10 hereof, no adjustment shall be made for dividends (ordinary or extraordinary, whether in cash or securities or other property) paid or
distributions or other rights granted in respect of any share of Stock for which the record date for such payment, distribution or grant is prior to the date upon which the Optionee shall have been issued share certificates, as provided herein
above. 
  

 -4- 

 9. Extraordinary Corporate Transactions. If the Company recapitalizes or otherwise changes
its capital structure, (each of the foregoing a “Fundamental Change”), then thereafter upon any exercise of any Option hereunder, the Optionee shall be entitled to purchase under the Option, in lieu of the number of shares of Stock as to
which the Option shall then be exercisable, the number and class of shares of stock and securities to which the Optionee would have been entitled pursuant to the terms of the Fundamental Change if, immediately prior to such Fundamental Change, the
Optionee had been the holder of record of the number of shares of Stock as to which the Option is then exercisable. Upon the occurrence of a Fundamental Change, the Options granted hereunder shall be governed by Paragraph XII of the Plan.

  
 10. Changes in Capital Structure. The existence
of outstanding Options shall not affect in any way the right or power of the Company or its shareholders to make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in the Company’s capital structure or its
business, or any merger or consolidation of the Company, or any issuance of Stock or subscription rights thereto, or any issuance of bonds, debentures, preferred or prior preference stock ahead of or affecting the Stock or the rights thereof, or the
dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceedings, whether of a similar character or otherwise. If the outstanding shares of Stock of the
Company shall at any time be changed or exchanged by declaration of a stock dividend, stock split, combination of shares, or recapitalization, the number and kind of shares subject to the Plan or subject to any Options theretofore granted, and the
Option prices, shall be appropriately and equitably adjusted so as to maintain the proportionate number of shares without changing the aggregate Option price. 
  

11. Change of Control. Except as provided below, each of the following events shall hereinafter be defined as a “Change of
Control”: 
  
 (a) the Company shall not be the surviving entity in any
merger, consolidation, or other reorganization with an entity which is not the Principal Holder (as defined in the Plan) (or survives only as a subsidiary of another entity other than a previously wholly-owned subsidiary of the Company or the
Principal Holder); 
  
 (b) the Company sells, leases or exchanges all or
substantially all of the Company’s assets to any other person or entity (other than a wholly-owned subsidiary of the Company, or the Principal Holder); 
  
 (c) any person or entity which entity is not the Principal Holder (including a “group” as contemplated by Section 13(d)(3) of the Securities Exchange Act
of 1934, as amended (“1934 Act”)) acquires or gains ownership or control of (including, without limitation, power to vote) more than 50% of the outstanding shares of the Company’s voting stock (based upon voting power with respect to
the election of directors); 
  
 (d) the Company is to be dissolved and liquidated;
or 
  

 -5- 

 (e) as a result of or in connection with a contested election of directors, the persons who were directors of the Company
before such election shall cease to constitute a majority of the Board. 
  
 12. Occurrence of a Change of Control. Upon the occurrence of an event of Change of Control, the Committee, in its discretion, may act to affect one or more of the following alternatives with respect to this Option:

  
 (a) determine a limited period of time for the exercise of the Option in a
manner determined by the Committee on or before a specified date (before or after such Change of Control) after which specified date any unexercised portion of the Option and all rights of Optionee shall terminate; 
  
 (b) require the mandatory surrender to the Company by the Optionee of some or all of the
outstanding Option as of a date (irrespective of whether the Option is exercisable), before or after such Change of Control, specified by the Committee, in which event the Committee shall thereupon cancel the Option and the Company shall pay to the
Optionee an amount of cash and other consideration, as determined by the Committee in its sole discretion, where the total cash and other consideration paid or delivered per share is equal to the excess, if any, of the Change of Control Value (as
defined in the Plan) of the shares subject to the unexercised portion of the Option over the exercise price of the Option; 
  
 (c) make such adjustments to the Option then outstanding as the Committee deems appropriate to reflect the Change of Control; or 
  
 (d) provide that upon any exercise of this Option, the Optionee shall be entitled to purchase
under such Option, the number and class of shares of stock or other securities or property (including, without limitation, cash) to which the Optionee would have been entitled if, immediately prior to the Change of Control, the Optionee had been the
holder of record of the number of shares of Stock then covered by the Option. 
  
 The provisions contained in this Section shall be inapplicable to this Option if granted within six (6) months before the occurrence of a Change of Control, but only if (i) the Optionee is subject to the
reporting requirements of Section 16(a) of the 1934 Act and (ii) such provisions (even after preapproval by the Committee or the Board pursuant to Rule 16b-3) would create a matching transaction under Section 16(b) of the 1934 Act
with respect to the Optionee. The provisions contained in this Section shall not terminate any rights of the Optionee to further payments pursuant to any other agreement with the Company following a Change of Control. 
  
 13. Compliance With Securities Laws. Upon the acquisition of
any shares pursuant to the exercise of the Option herein granted, Optionee (or any person acting under Section 7) will enter into such written representations, warranties and agreements as the Company may reasonably request in order to comply
with applicable securities laws or with this Option Agreement. 
  

 -6- 

 14. Compliance With Laws. Notwithstanding any of the other provisions hereof, Optionee
agrees that he will not exercise the Option(s) granted hereby, and that the Company will not be obligated to issue any shares pursuant to this Option Agreement, if the exercise of the Option(s) or the issuance of such shares of Stock would
constitute a violation by the Optionee or by the Company of any provision of any law or regulation of any governmental authority. 
  
 15. Withholding of Tax. To the extent that the exercise of this Option or the disposition of shares of Stock acquired by exercise of this
Option results in compensation income to the Optionee for federal or state income tax purposes, the Optionee shall pay to the Company at the time of such exercise or disposition (or such other time as the law permits if the Optionee is subject to
Section 16(b) of the 1934 Act) such amount of money as the Company may require to meet its obligation under applicable tax laws or regulations; and, if the Optionee fails to do so, the Company is authorized to withhold from any cash
remuneration then or thereafter payable to the Optionee, any tax required to be withheld by reason of such resulting compensation income or Company may otherwise refuse to issue or transfer any shares otherwise required to be issued or transferred
pursuant to the terms hereof. Payment of the withholding tax by the Optionee shall be made in accordance with Paragraph XIV(c) of the Plan. 
  
 16. Stockholders Agreements. Optionee, or the Optionee’s representative upon the Optionee’s death or disability, agrees that with
respect to all shares of Stock purchased under this Option, he or she shall be bound by any Stockholders Agreement of the Company which restrict the ability of such stockholders of the Company to transfer their shares of Stock, unless the Company
otherwise waives the Optionee’s obligation under this Section 16. 
  
 17. Resolution of Disputes. As a condition of the granting of the Option hereby, the Optionee and his heirs and successors agree that any dispute or disagreement which may arise hereunder shall be
determined by the Committee in its sole discretion and judgment, and that any such determination and any interpretation by the Committee of the terms of this Option Agreement shall be final and shall be binding and conclusive, for all purposes, upon
the Company, Optionee, his heirs and personal representatives. 
  
 18. Legends on Certificate. The certificates representing the shares of Stock purchased by exercise of an Option will be stamped or otherwise imprinted with legends in such form as the Company or its counsel may require with
respect to any applicable restrictions on sale or transfer and the stock transfer records of the Company will reflect stop-transfer instructions with respect to such shares. 
  
 19. Notices. Every notice hereunder shall be in writing and shall be given by registered or certified mail or
by fax or telecopy. All notices of the exercise of any Option hereunder shall be directed to Propex Fabrics Holdings Inc., 260 The Bluffs, Austell, GA 30168, Attention: Chief Financial Officer and the General Counsel. Any notice given by the Company
to Optionee directed to him at his address on file with the Company shall be effective to bind him and any other person who shall acquire rights 

  

 -7- 

 
hereunder. The Company shall be under no obligation whatsoever to advise Optionee of the existence, maturity or termination of any of Optionee’s rights
hereunder and Optionee shall be deemed to have familiarized himself with all matters contained herein and in the Plan which may affect any of Optionee’s rights or privileges hereunder. 
  
 20. Construction and Interpretation. Whenever the term
“Optionee” is used herein under circumstances applicable to any other person or persons to whom this award, in accordance with the provisions of Section 7 hereof, may be transferred, the word “Optionee” shall be deemed to
include such person or persons. References to the masculine gender herein also include the feminine gender for all purposes. 
  
 21. Agreement Subject to Plan. This Option Agreement is subject to the Plan. The terms and provisions of the Plan (including any subsequent
amendments thereto) are hereby incorporated herein by reference thereto. In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and
prevail. All definitions of words and terms contained in the Plan shall be applicable to this Option Agreement. 
  
 22. Employment Relationship. Employees shall be considered to be in the employment of the Company as long as they remain employees of the
Company or a parent or subsidiary corporation (as defined in Section 424 of the Internal Revenue Code of 1986, as amended). Any questions as to whether and when there has been a termination of such employment and the cause of such termination,
shall be determined by the Committee, and its determination shall be final. Nothing contained herein shall be construed as conferring upon the Optionee the right to continue in the employ of the Company, nor shall anything contained herein be
construed or interpreted to limit the “employment at will” relationship between the Optionee and the Company. 
  
 23. Binding Effect. This Option Agreement shall be binding upon and inure to the benefit of any successors to the Company and all persons
lawfully claiming under Optionee. 
  

 -8- 

 IN WITNESS WHEREOF, this Option Agreement has been executed this      day of
                    , 200  . 
  

	
	PROPEX FABRICS HOLDINGS INC.
	
	 By:

	
	 Print Name:

	
	 Print Title:

	
	OPTIONEE
	
	

	
	 Name:

  

 -9-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00092-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00092-of-00352.parquet"}]]