Term Sheet for Employment Arrangement Frank Nasisi
Exhibit 10.8
Term Sheet
for Employment Arrangement
Frank Nasisi
This Term Sheet outlines the material provisions of the proposed employment agreement between Frank Nasisi (the Executive) and Polypore, Inc., a Delaware corporation (the Company).
EMPLOYMENT
Current Title | President and Chief Executive Officer of the Company. |
Duties | Commensurate with responsibilities normally associated with Title. The Executive will serve as a member of the Board of Directors of the Company (the Board) during the Term and if elected or appointed, as a member of the boards of directors of any of the Companys subsidiaries and/or in one or more executive offices of any entities owned by the Company. |
Effective Date | Upon consummation of the acquisition of the Company by affiliates of Warburg Pincus Private Equity VIII (on or about April 15, 2004) (the Effective Date). |
Term | The term of employment under the Agreement is for the term beginning on the Effective Date and ending on the second anniversary of the Effective Date (the Term); provided, that, unless earlier terminated pursuant to the terms of the employment agreement (including by either party giving written notice of intention not to renew), the Agreement shall automatically renew for an additional one-year period. |
COMPENSATION AND BENEFITS |
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Annual Base Salary | $435,000 (the Base Salary), which may be increased by the Compensation Committee of the Board (the Compensation Committee). |
Bonuses | The Executive is eligible to receive an annual cash bonus based upon achievement of applicable EBITDA targets as follows: |
| % of EBITDA Target Achieved | Bonus Amount |
| <80% | $0 |
| 80% | $145,000 |
| 90% | $174,000 |
| 100% | $290,000 |
| 105% | $304,500 |
| >110% | $319,000 |
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Long Term Incentive | The Executive is entitled to participate in the Companys 2004 Management Incentive Option Plan (the Option Plan), subject to its terms and conditions. A summary of the material terms and conditions of the Option Plan are set forth as Exhibit A to this Term Sheet. | |
Expenses | The Company shall reimburse the Executive for expenses and costs incurred by Executive in connection with the performance of his duties under the Agreement. | |
Benefits | The Executive will participate in all benefit plans applicable to the senior officers of the Company. | |
SEVERANCE BENEFITS |
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Termination Events entitling | The Company will pay the Executive severance benefits upon the occurrence of any of the following events (a Qualifying Termination): | |
| (a) The Company terminates the Executives employment without Cause (other than by reason of death or disability); or | |
| (b) The Executive terminates his employment with Good Reason. |
| Cause means a good faith determination by the Board of: (i) gross negligence or willful misconduct by Executive in connection with Executives employment duties (including, but not limited to, Executives lack of capacity or diligence, a failure by Executive to conform to the usual standards of conduct, or other culpable or inappropriate behavior); (ii) failure by Executive to perform in any material respect his duties or responsibilities after notice and reasonable opportunity to cure; (iii) misappropriation by Executive of the assets or business opportunities of the Company or its affiliates; (iv) embezzlement or other financial fraud committed by Executive or at his direction, or with his knowledge; (v) Executives indictment for, conviction of, admission to, or entry of pleas of no contest to any felony or any crime involving moral turpitude; (vi) Executives abuse of alcohol and/or any use of illegal drugs which, in the Companys judgment, materially interferes with the performance of Executives duties; or (vii) Executives breach of any material provision of the employment agreement. |
| Good Reason means, without Executives consent, (i) a substantial and material diminution in Executives title, duties, responsibilities, reporting relationship or positions, or (ii) a breach by the Company of any material provision of the employment agreement. |
Salary Continuation Amount | Upon a Qualifying Termination, the Company will continue the Executives Base Salary for the period beginning on the date of termination and ending on the date that is eighteen (18) months thereafter (the Severance Period). |
Welfare Benefit Continuation | Upon a Qualifying Termination, the Company will pay the his benefits for the Severance Period, including the cost of COBRA coverage for him and his dependents. |
OTHER PROVISIONS |
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Confidentiality | Standard. |
Non-competition | During the Term and for an 18 month period following any termination of employment for any reason, unless the Executive obtains written consent of the Board. |
Indemnification | Fullest extent permitted under Delaware law, and coverage under Companys D&O policy during the Term. |
The foregoing represents the agreement of the parties set forth below regarding the principal terms of the Executives employment, which will be evidenced by a formal employment agreement to be effective upon the Effective Date.
AGREED AND ACCEPTED on this day of January 2004:
/s/ Frank Nasisi |
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Frank Nasisi |
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PP Acquisition Corporation
/s/ David Barr |
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By: |
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Title: |
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