ORIGINAL 

UNITED STATES OF AMERICA 

FEDERA TRAE COMMISSION
 

)


In the Matter of
 ) 

) 

) 

) 

) Docket No. 9327

)
 

Polypore International, Inc. PUBLIC DOCUMENT
 )


a corporation
 ) 

) 

COMPLAINT COUNSEL'S RESPONSE
 

TO RESPONDENT'S MOTION FOR SANCTIONS
 

I. INTRODUCTION 

On April 
 17, 2009, Respondent Polypore submitted a Motion for Sanctions based on 

Exide purported "interference" with respondent's expert witness. As discussed in more detail 

below, Respondent's motion should be denied for the following reasons: (1) Respondent 

improperly seeks sanctions against Complaint Counsel for alleged conduct of non-par Exide 

Technologies, an action unsupported by any rule or law, (2) Respondent's counsel filed this 

motion without conferrng with Complaint Counsel on the issues raised in the motion, and (3) 

the evidence does not support Respondent's contention that Exide has interfered with 

Respondent's expert. 

II. ARGUMENTS AND AUTHORITIES 

To be clear, Respondent is attempting to have the Judge sanction Complaint Counsel ­

not Exide - by excluding relevant, material, and reliable evidence that Complaint Counsel wil 

elicit from witnesses of Ex ide, a customer of Respondent. See Motion for Sanctions, at 8 

-1­
(moving to exclude testimony from Exide at the hearng). Respondent's request for sanctions 

excluding Complaint Counsel's evidence should be denied because Respondent's motion 

provides no authority supporting the imposition of sanctions against Complaint Counsel based 

on alleged conduct by non-party Exide. Respondent's motion for sanctions against its customer 

Exide should also be denied on the basis that Respondent yet again failed to confer with 

Complaint Counsel prior to filing this motion, as required by the Scheduling Order. Moreover, 

Respondent's arguments regarding Exide's conduct are simply not grounded in fact or law - the 

facts show that neither Exide nor Complaint Counsel have prevented Exide's use of Dr. James 

Mark Stevenson as an expert in this case. Rather, Exide has merely exerted its contractual right 

to protect its confidential information. 

A. Respondent May Not Exact Sanctions Against Complaint Counsel Based on 

the Alleged Conduct of 
 Non-Part Exide. 

Although solely alleging sanctionable conduct by Exide, Respondent's motion seeks 

sanctions against Complaint Counsel. Respondent motion requests that Your Honor "preclud( e) 

Exide from offering any testimony, whether by deposition or otherwise, at the hearng in this 

case." Motion for Sanctions, at 8. It is not Exide, however, that wil "offer" evidence in this 

case. The only paries in ths investigation are the Commission and the Respondent, Polypore. 

It is Complaint Counsel that puts on evidence on behalf of the Commission. Thus, a sanction 

seeking to exclude the testimony of witnesses from Exide - Complaint Counsel's evidence - is a 

sanction against Complaint Counsel. 

Complaint Counsel must present its case regardless of whether third paries voluntarly
 

comply with discovery or not. Indeed, we often elicit evidence from paries that resist 

compliance with the rules. Exide, however, has been subpoenaed to produce documents and will 

testify in this case, and franly has been far more compliant in its discovery obligations than 

-2­
Respondent, which continues to produce documents to Complaint Counsel 
 long after discovery 

1 has closed. 


Respondent has not asserted that Complaint Counsel has done anything wrong here, and 

it canot. We have never had any reason to object to Dr. Stevenson's testimony. Indeed, we
 

have not even seen his expert report, which is now overdue. Respondent therefore seeks to 

sanction Complaint Counsel solely based on actions of non-pary Exide. 

There is simply no basis under the rules or at law to sanction Complaint Counsel based 

on the actions of a non-pary. There is also no provision under the rules for the Judge to sanction 

a non-pary - Exide - by excluding Complaint Counsel's evidence. See, e.g., Rule 3.38(b) 

(providing for sanctions solely against a "par"); Rule 3.42(c) (describing the powers ofthe 

Judge). Rather, the Commission has stated when sanctions under Rule 3.38(b) are waranted. 

Sanctions under Rule 3.38 should be imposed only if(l) production ofthe
 

requested material has been mandated by a subpoena or specific discovery 

order issued by an ALJ or the Commission. . . ; (2) the par's failure to 

comply is unjustified; and (3) the sanction imposed "is reasonable in light 

ofthe material withheld and the purposes of 
 Rule 38(b). 

In re ITT Corp., 104 F. C. 280, 449 (1984) (quoting In re Grand Union Co. 102 F. C. 812 

1087 (1983)); see also In re Basic Research, LLC, Docket No. 9318, Order on Motions to 

Exclude a Witness, For Sanctions, or For Leave to Reopen Discovery for a Limited Purose, slip
 

op. at 3-4 (applying rule in denying sanctions) (McGuire, J.). 

Here, Respondent seeks sanctions based on Exide's purorted interference with
 

Polypore's expert witness. There is no suggestion that Complaint Counsel has done anything 

1 Respondent's comments regarding Exide's alleged discovery delays are merely an attempt 

to smear a witness before tral. Of all the hundreds of thousands of pages of discovery 

Respondent insisted it needed from Exide, it marked just over 50 documents as exhibits. It has 

never raised any issue with Complaint Counsel about needing any more evidence from Exide. 

Moreover, its motion for sanctions is clearly not based on Exide's discovery conduct. 

-3­
wrong here. Nor, as explained further below, could there be such an allegation. As Respondent's 

motion indicates, there is no support under the law or rules for the Judge to sanction one par 

for the actions of another. 

B. Respondent Did Not Confer With Complaint Counsel As Required By
 

Provision 5 Of The Scheduling Order. 

As this is a motion for sanctions, Respondent's counsel had an obligation to meet and 

confer with Complaint Counsel on these issues before fiing its motion. See 16 C.F.R. 3.22(f) 

(requiring meet and confer for motions for sanctions fied pursuant to Rule 3.38(b)) and 

Respondent's Motion for Sanctions, at 1 (admitting that this motion is a motion for sanctions 

fied pursuant to Rule 3.38(b)). 

The rules require that counsel certify that there has been a meet and confer 

by a signed statement representing that counsel for the moving part has 

conferred with opposing counsel in an effort in good faith to resolve by 

agreement the issues raised by the motion and has been unable to reach such an 

agreement. If some of the matters in controversy have been resolved by 

agreement, the statement shall specify the matters so resolved and the matters 

remaining unesolved. The statement shall recite the date, time, and place of each 

such conference between counsel, and the names of all paries paricipating in 

each such conference.
 

Rule 3.22(f). This is the fourh time that Respondent's counsel has filed a motion before
 

bothering to comply with this Rule of Practice. 

Complaint Counsel's knowledge ofthe issues are as follows. Respondent's counsel 

sought an extension from its original deadline of 
 March 20,2009, because Dr. Stevenson had 

received a letter from Exide regarding a confidentiality agreement and required additional time 

to resolve the issue. Accordingly, Complaint Counsel consented to Respondent's motion to 

extend deadlines related to its expert, Dr. Stevenson. See Respondent's Motion For Extension of 

Time, para. 14 (March 23,2009). Subsequently, Respondent's counsel, Eric Welsh told 

Complaint Counsel, Robert Robertson and Steven Dahm, that they were negotiating with Exide 

-4­
over the confidentiality agreement issue and needed a further extension of time to produce Dr. 

Stevenson's expert report. We agreed and told Mr. Welsh that we had no problem with an 

extension oftime for Dr. Stevenson's report so long as it didn't prejudice our ability to take his 

deposition and to provide rebuttal opinions prior to tral. 

No counsel from Respondent, neither Mr. Welsh nor anyone, has conferred with 

Complaint Counsel about moving to exclude Complaint Counsel's evidence because of some 

issue between Respondent and Exide. Counsel for respondent incorrectly represents that "Parker 

Poe and Complaint Counsel discussed these issues in written correspondence on March 26, 2009 

and March 31, 2009." The content of that "discussion" consisted solely of Respondent's counsel 

copying Complaint Counsel on its letter to Exide's counsel, see Exhibit D to Respondent's 

Motion for Sanctions, and Complaint Counsel's March 31, 2009 letter, specifically 
 asking 

Polypore's counsel "What remedy" they think "Judge Chappell can provide." See Exhibit 1 to 

Complaint Counsel Response to Respondent's Motion for Sanctions. Respondent's Counsel 

failed to have any conference with Complaint Counsel on the issues raised in its motion, and 

paricularly, that it seeks to exclude Complaint Counsel's evidence as a remedy for Exide's 

supposed interference with Dr. Stevenson's testimony. 

There is a reason why the Commission has its meet and confer rule, which is nearly 

identical to the one used in federal cours: the rules require that we make the "effort in good faith 

to resolve by agreement the issues raised by the motion." Once again, Respondent failed to even 

try to do so. And for this reason alone, its motion should be denied. 

C. Exide Has Not Interfered With Exide's Expert.
 

Finally, there is no evidence to support Respondent's claim that Exide has interfered with 

Respondent's expert. Respondent's motion merely accuses Exide of exerting its contractual 

right to prevent its former employee, Dr. Stevenson, from disclosing confidential information to 

-5­
Respondent as Respondent's paid, testifyng expert. To Complaint Counsel's knowledge, Exide 

has never said that Dr. Stevenson could not testify. That is apparent from the attached 

documents to Respondent's motion. See, e.g., Exhibit G to Motion for Sanctions ("If Dr. 

Stevenson does not disclose confidential Exide information, he is perfectly free to do as he 

chooses."). Indeed, Respondent's claims that Dr. Stevenson refuses to testify due to fear of 

reprisals from Exide are not based on fact at all, but merely Respondent's "information and 

belief." See Motion for Sanctions, at para. 8-9. Polypore provides no affdavit or declaration to 

substantiate its claims. There is no basis under the rules for Polypore to demand a sanction 

against Complaint Counsel due to mere "information and belief." 

It seems odd that Respondent fails to understand why Exide would question the 

disclosure of its confidential information to Polypore, the same company that has been exerting 

monopoly power over it for some time. Respondent admits that Dr. Stevenson has a 

confidentiality agreement with Exide that precludes him from disclosing confidential 

information to others. See Motion for Sanctions, Para. 7. Dr. Stevenson was apparently 

employed for over 20 years under the terms of that confidentiality agreement. See id. It would 

clearly be harful to Exide for Dr. Stevenson to reveal proprietar information and business
 

secrets to the very company that is using its monopoly power to extract higher prices from 

Exide. 

The confidentiality issue should not have come as a surrise to Respondent, who gave 

Complaint Counsel Dr. Stevenson's resume, listing his positions at Exide in Europe (albeit only 

in motive (or traction)). See Exhibit 2, Respondent's Expert Witness List, Tab 2 (listing 

positions with Chloride and Exide from 1974 to 2006). Yet, Respondent apparently never asked 

-6­
Dr. Stevenson whether he had a confidentiality agreement with his former employer.2 

Moreover, the delay in dealing with this issue is not Exide's fault; it is Respondent's. 

Respondent apparently never checked with Exide's attorneys about Dr. Stevenson. Indeed, 

Exide seemed surprised when Complaint Counsel, in preparation for Dr. Stevenson's deposition 

(which has stil not occured), asked Exide about Dr. Stevenson's experience (or lack thereof) in 

the field. 

III. CONCLUSION
 

In short, the evidence is clear that (i) Exide has a confidentiality agreement with Dr. 

Stevenson; (ii) Exide has not disobeyed any order or rule in this proceeding; (iii) Exide is not a 

pary in this case, and no rule would support a sanction against Complaint Counsel for a 

non-par's conduct; and (iv) Complaint Counsel has acceded to every request by Respondent's
 

counsel on this issue. Finally, Respondent has not followed the rules once again and has failed 

to negotiate this issue in good faith with Complaint CounseL. There are simply no facts, law or 

rule that warant a sanction against Complaint Counselor Exide. The Judge should have the 

opportty to hear all the appropriate facts in this case, including Dr. Stevenson's testimony if it 

is relevant, material, and reliable. 

2 Complaint Counsel takes no position as to whether the other reliefthat Respondent seeks, 

i.e., allowing Dr. Stevenson's evidence to be received in camera, are sufficient protection under 

Exide's agreement with Dr. Stevenson. Respondent has neither briefed the terms ofthat 

agreement nor its legal scope. 

-7­
Dated: April 22, 2009 

~ 

J. ROBERT ROBERTSON
 

Federal Trade Commission
 

Bureau of Competition
 

600 Pennsylvania Ave., NW
 

Washington, DC 20580
 

Telephone: (202) 325-2008
 

Fax: (202) 326-2884
 

Complaint Counsel
 

-8­
CERTIFICATE OF SERVICE 

I hereby certify that on April 22, 2009 I fied via hand and electronic mail delivery an 

original and two copies ofthe foregoing with: 

I hereby certify that on April 


copy of 
 the foregoing with: 

Donald S. Clark, Secretar 

Office of the Secretary 

Federal Trade Commission 

600 Pennsylvania Avenue, NW, Rm. H-135 

Washington, DC 20580 

22, 2009, I served via electronic mail and mail delivery a 

The Honorable D. Michael Chappell 

Administrative Law Judge 

Federal Trade Commission 

600 Pennsylvania Avenue, NW, H-106 

Washington, DC 20580 

oaliêftc.gov 

I hereby certify that on April 22, 2009, I served via electronic mail delivery and first 

class mail two copies of the foregoing with: 

Willam L. Rikard, Jr., Esq. 

Eric D. Welsh, Esq. 

Parker, Poe, Adams & Bernstein, LLP 

401 South Tryon Street, Suite 3000 

Charlotte, North Carolina 28202 

wiliamkardêParkerpoe.com 

ericwelsh~parkerpoe.com 

'L 

Linda Cunngham ... 

Federal Trade Commission 

600 Pennsylvana Avenue, NW 

Washington, DC 20580 

Telephone: (202) 326-2638 

1cunninghamêftc.gov 
UNITED STATES OF AMERjCA 

FEDERAL TRADE COMMISSION 

WASHINGTON. D.C. ê0580 

Bureau of Competition 

Mergers II Division 

March 31, 2009 

VIA EMAILAND.S.MAIL 

Eric D. Welsh, Esq
 

Parker Poe Adams Bernstein LLP
 

Three Wachovia C nter 

Suite 3000
 

401 South TryonS reet
 

Charlotte, NC 282 2 

Re: In t e Matter of Polyp ore International, Inc. Docket No. 9327 

Dear Mr. Welsh: 

We have re 'iewed your letter to Exide dated March 26,2009, on which you copied 

Complaint Counse. To the extent your letter suggests that your expert designations are 

non~public, or that 'e are not entitled to investigate Dr. Stevenson's background, we disagree 

with your assertion . If you are suggesting that there is something improper about Complaint 

Counsel having lu ch with the counsel and witness for Exide during lunch at his deposition, we 

disagree with that s well. Complaint Counsel takes no position with respect to whether Exide's
 

assertion of its ND with Dr. Stevenson is "'improper," though we question what remedy judge
 

Chappell can provi e. 

Sincerely, 

~~--­ .. ~ ~~ - -_.­

Steven A. Damn 

Attorney 

Federal Trade Commission 

(202) 326-2192 

cc: Donald J. ussell, Esq.
 
UNlTED STATES OF AMRICA . 

BEFORE THE FEDERAL TRADE COMMlSSlON 

In the. Matter of ) 

) Docket No. 932.7 

)
 

Polyp.or~Jnternadonal, Inc. )
 

.a corpondioa.. )
 

)
 

.RESPONDENT'S EXPEß.r WJTNESSLrST . - . , . . . . .

Pusiiant to the Scheduling Q~der dated October 22; 2008, Respondent hereby identifies 

the follqwIg p~rson~ as ex:pert witnesses in this matter: .
 

1. Henry J. Kabwaty, Ph. D, Director, LECG
 LECG, LLC .


1725 Eye Street, N.W. Suite 800. 

. Washfugton, DC 20006 . .
 

A cOPY. of Dr. Kahw¡;ty's curent curiculum vitae, listing his experitmce and 

qualification, including any cases in which he hi: testified as an expert witness at tral or 

in a deposition durg the past fQuryears and any publications authored by him within the
 

prior 10 years, is attached at Tab l. 

Dr. Kahwaty's hourly rate for 
 this eIlgagement is $565 per hour. 

2. Dr. Jaiies Mark Stevenson
 

213 Higher Lane.
 

Lymio . 

Chesliire 

W A13.o¡r
 

.UK 

his experience and 

quaification, iIlcluding.any cases in which he. has testified a.s an efCpertwitness at tral or 

A copy of Dr. Stevenson's curent. curculum vitae, listing 


in a deposition diingthe past four years and any piiblicatiönsaiìthored byhim Within the 

prior 10 yea.s., is attached at Tab 2. 

Dr. Stevenson is 
 being compensated on a monthy basis in an amount of $14,00Q, not to ~xce~dthe sur of$70,OOO. . . . .
 

PPAB IS14628v! 
Dated: pecember 18,2008 Respectfuly submitted, 

/- ~
 k/~,l.d6jl Wiliam L. Rikard, Jr. .
 

Edc D. Welsh 

PARRPOE ADAMS & BERNSTEIN, LLP 

Thee Wachovia Center .
 

401 South Tryon Street, Suite 3000
 

Charlotte, NC 28202 .
 

Telephone: (704) 372-9000
 

Facsimilè: (704) 335~9689
 

wiliarkard(ßparkerpcie. com
 

ericwefsh~parkelPoe.èom
 

John F. Graybeal 

PARKR POE ADAMS & llERNSTEJN, LLP 

Wtlchovia Capitol Center. . 

150 Fayettevil1e Street, Suite 1400 

Raleigh, NO 27601 

Telephone: (~i9)835-4599
 

Facsimile: (919) 834-4564
 

Ì:ùhngraybeal~parkerooe.com 

Attorneys/or Respondent 

2 

PPAB 151462Syl 
CERTIFICATE OF 
 SERVICE 

i hereby certify that on December 18, 2008, I served via electronic mail delivery and 

first-:class mail delìvery a. copy of the foregoing Respondent's Expert Witness List upon the following person(s):. .
 

J. Robert Robertson, Esq. 

Federal Trade Commission 

600 Pennsylvana Avenue, NW 

Washington, DC 20580 

rrobertson~ftc.gov 

Steven Dah, Esq. 

Federal Trade Commission 

. 600 Pennsylvana Avenue, NW 

Washington, DC 20S80 

sdah~ftc. Gov
 

~
 

Wiliai L. Rikard, Jr. 

l AltR POE ADAMS BERNSTEIN, LLP
 

Thee Wachovia Center 

40l South Tryon Street, Suite 3000 

Cparlotte, NC 28202 . 

Telephone: (704) 335-901 i 

Facsimile; (704) 334~4706
 

3 

PPAB lS14628v! 
TAB 1
 
LeCG 

Henry J. Kahwaty, PhD, Director, LECG 

LECG, LLC 

1725 Eye Street, NW., Suite 800 

Washington, DC 20006 

Uniti;d States of America 

direct: +1 202 973 9863
 

main: +1 202 466 4422
 

fax: +1 202 466 4487
 

email: hkahwaty~lecg.com
 

LECG Limited ~, 

. Davidson Building 

5 Southampton Street 

London WC2E 7HA 

United Kingdom 

direct: +44 20 7632 5070 

main: +44 20 7632 5000 

fax: +44 20 7632 5050 

810 

Henry Kahwaty works out of LECG's London and Washington, DC offces. His areas of expertise
 

Include microeconomics, industrial organization, antitrust economics, and econometrics. He has
 

completed numerous. market power studies as part of reviews of mergers and other contractual
 

relationships between competitors, monopolization and 
 abuse of dominance inquiries, and i:èregulation and market-based pricing proposals. His merger work includes studies of mergers in 

metals, computer hardware andsoftare, defensè electronics, pharmaceuticais, eléctricity, consumer
 

goods, waste services, and telecommunication services and equipment. In addition, he has
 

experience analyzing competition Issues In the mining, luxury gOOdS. banking, chemicals, softare
 

. dévelopment tools, and hardware emulation industries. He has completèd studies of vertical 

restraints and vertical integration, and. the impact of such vertical relationships on competition. His 

work alSo includes the stUdy of price fixing allegations, Class certification, and antitrust arid patent 

damages. 

. Dr. Kahwaty has presented analyses to the DiréCorate-General for Competition of the Euröpean 

Commission,. the Antitrust Division of the U.S. Department of Justice, the U.S. Federal Trade

Commission,. and the U.S,. Federal Energy ~egulatorY Commission. Prior to joining LËCG, Dr. 

Kahwaty was an Economist With the Antitrust Division of the U.S. Department of Justice. At the
 

Antitrust Division, he specialised in market power analysis for merger and monopolization caseS with
 

a focus on thecomputér softare, banking, and defensé industries. He received his PhD in
 

economics from the University of Pennsylvania in 1991. .
 

Henry J. Kahwaty. Ph.D. www.lecg.coin Page 1 of 5 
LeCG 

QUALIFICATIONS 

PhD, Economics, University of Pennsylvania, Graduate School of Arts and Sciences, Philadelphia, 

Pennsylvania, 1991
 

Thesis Title: Essays on Vertical Relationships 

Thesis Topic: Vertical Relationships with Asymmetric Information and Incomplete Contracting
 

Concentrations: Industrial Organization, Public EconoMics, Monetary Economics 

MA, Economics, University of Pennsylvania, Graduate School of Arts and Sciences, Philadelphia, Pennsylvania, 1988 . 

BA, magna cum laude and Phi Beta Kappa, Mathenìaticsand Economics, University of Pennsylvania, 

College of Arts and Sciences, Philadelphia, Pennsylvania, 1986 

PROFESSIONAL MEMBERSHIPS 

AMerican Economic Association 

PRESENT POSITION 

LECG, Director, 2002 to present 

PREVOUS POSITIONS 

LECG, Principal, 1999-2002 

LECG, Senior Managing Economist, 1997-1999 

LECG, Senior Economist, 1995-1996 

U.S. Department of Justice, Antitrust Division, Economic Litigation Section, Economist, 1991-1995 

. Prepared economic models and analysis for antitrust cases. 

. Prepared antitrust Investigation plans. 

. Reviewed civil Investigative demands,second requests, subpoenas, complaints, affdavits, 

and other documents~ 

. Assisted attorneys. with gathering evidence, including conducting witness interviews and
 

assisting with witness depositions. ..
 

. Recommended whether to initiate enforcement actions. 

PROFESSIONAL EXPE.RIENCE 

Consultant to Rational Softare Corp. in proposed acquisiton of Pure Atria Corp., 1997. 

Consultant to Aptix Corporation In Aptix Corporation v. Quicktutn Design Systems, Inc., 1998. 

Consultant to New England Electric System in proposed acquisition by National Grid Group pic; 1999. 

Consultant to New England Electric System in proposed acquisition of Eastern Utlities Associates;

Consultant for third party in proposed acquisition of Reynolds Metals by Alcoa, 1999-2000. 

1999. .
 

Consultant to SMith Kline Beecham in proposed merger with Glaxo Wellcome, 2000. 

Consultant to National Grid USA in proposed acquisition of Niagara Mohawk, 2000-2001. 

Consultant to Edison Electric InstiMe iri Notice of Proposed Rulemaking on Standards of Conduct for 

Transmission Providers, 2001. 

Henry J. Kahwaty, Ph.D. www.lecg.com Page 2 of 5 
LeCG
 

Consultant to BT Ignite in Public Consultation regarding Draft Recommendation on Relevant Product 

and Service Markets related to the European Commission's Guidelines on Market Analysis and the 

Assessment of Significant Market Power under the Community Regulatory Framework for Electronic 

Communications Networks and Services, 2002. 

Consultant to Alcoa Flexible Packaging in H.S. Crocker, Inc. v. Alcoa Flexible Packaging, 2003-2004. 

Consultant to the Competition Authority (Ireland) regarding its Study of Competition in the Irish 

Banking Sector, 2003 - 2004. 

Consultant. to Financial Services Authority (United Kingdom) regarding its approach to the

implementation of the Capital Requirements Directive, 2004-2005. . 

Consultant to the Competition Authority (Ireland) regarding its Study of Competition in the Irish 

Insurance Sector, 20042005. 

Consultant to the Generic Pharmaceutical Association regarding the benefits of developing a pathway 

for generic biologics, 2007. 

Consultant to Republic SeNices in proposed merger wíth Alled Waste, 2008. 

Consultant to the Generic Pharmaceutical Association regarding the costs associated with
 

implementing e-pedigrees and serialization for the generic pharmaceutcal industry, on-going. 

Consultant to pharmaceutical companies With regard to potential exposure to patent damages from 

at-risk launches of generic products. 

Consultant to parties regarding class certification, competitive effects, and damages estimates in 

antitrust class actions. 

Consultant to parties in other private antitrust cases, intellectual propert cases, and merger reviews. 

Testimony 

Provided deposition testimony in Aptix Corporation v. Quickturn Design Systems, inc., C-96~20909 JF 

(EAI), U.S. District Court for the Northern District of California; 1998. 

Provided declaration relating to the acquisition of New England Electric System by National Grid 

Group pic, Federal Energy Regulatory Commission, Docket No. EC99-49-000, 1.999. . 

Provided declaration relating to acquisition of Eastern Utilities Associates by New England Electric 

System, Federal Energy Regulatory Commission, Docket No. EC99-70-000, 1999. 

Provided declaration relating to the acquisition of Niagara Mohawk by National Grid USA, Federal 

Energy Regulatory Commission, Docket No. EC01-63-000, 2001. 

Provided deposition testimony inH.S. Crocker, Inc. v. Alcoa Flexible Packing, No. 02 C 50010, U.S. 

District Court for the Northern District of Illinois (Western Division), 2004. 

Provided deposition testimony in Energy Alternatives, Inc. v. Tropitone Furniture Co" Inc., 06-CVS8782, North Carolina General Court of Justice, Superior Court Division, 2008. 

Dr. Kahwaty has also provided hearing testimony before the Directorate-General for Competition of 

the European Commission. 

Report 

Provided. report titled "Vertical Integration, Eçonomic Effciency, and Standard$ of Conduct Regulation 

of Electric and Natural Gas Transmission Providers: Notice of PropOsed Rulemaking on Standard of 

Conduct for Transmission Providers, Federal Energy Règulatory Commission, Docket No. RM01-10­ 000, 2001. .
 

Henry J. Kahwaty. Ph.D. www.lecg.com Page 3 of 5 
LeCG
 

Provided report titled "Market Definition and Market Power Analysis: Public Consultation on a Draft 

Commission Recommendation." Public Consultation of the European Commission, 2002 (joint with 

Richard Shin and Richard Levine). 

Provided report titled "Submission 10 the Commission of the European Communities on Green Paper 

on the Review of Council Regulation (EEC).No. 4064/89." European Commission, 2002 (joint with R. 

Shyam Khemani, David Painter, Richard Shin and Kamil Kiljanski). 

Provided report titled "Submission Regarding the Economic Analysis in the Competition Authority's 

Guidelines for Merger Analysis: A Consultative Document." The Competition Authority (Ireland), 2002 

(joint with Jacob Glanville and Kamil Kiljanski). 

Provided report titled "Submission Regarding the Economic Analysis in the Offce of Fair Trading 

Consultation Paper Mergers: Substantive Assessment." The Offce of Fair trading (U.K.), 2003 (joint 

with Bob Young, Jacob Glanvile, and Kamil Kiljanski). 

Provided report titled "Submission regarding the European Commission Notice on the appraisal of 

horizontal mergers." European Commission, 2003 (joint with Bob Young, Jacob Glanvile, Kamil 

Kiljanski, and Eileen Reed). 

Provided report titled "Study of Competition in the Provision of Non-investment Banking Service in John Evans). .
 Ireland: Phase 1 Report." The Competition Authority (Ireland), 2003 (joint with Andy Bazilauskas and

Provided report titled "The Proposed EC Technology Transfer Block Exemption Regulation: An 

Economic Assessment." European Commission, 2003 (joint with Peter Grindley, Edward Sherry, and 

David Teece).
 

Provided report titled "Study of Competition in thè Provision of Nqn-investment Banking Services In 

Ireland: Report and Recommendations." The Competition Authority (Ireland), 2004 (joint with Andy 

Bazilauskas). 

Provided report titled "Survey of the Impacts of C.RD Implementation on the UK Financial Services 

Industry." Financial Services Authority, 2005 uoint with Mark Tilden,Colin Lawrence, Thomas 

Ortenzi, and Karen Forseter). 

Speeches 

"Antitrust Damages," Litigation Services Subcommittee of the Greater Washington Society of Certified 

Pubic Accountants, Washington, D.C., January 28, 1999. 

"Unregulated Affliates and the Market Power Problem," Forum on Electic Power Market 

Restructuring, Washington, D.C., February 19,1999. 

"The Analysis of Market Power," Deregulation Progress Report: Issues and Insights Conference, Vail, 

Colorado, August 4,1999. 

"Worldwide Convergence in Competition Enforcement," XXXV International Association of Financial 

Executives Institutes World Congress, Florence, Italy, October 11, 2004. 

Papers 

"The AnalySis of Market CDncentration, Market Power and the Competitive Effects of Mergers in the 

Electricity Industry" (joint with Richard Gilbert), JUlie 1997. 

"Unregulated Affliates and the Market Power Problem," February 1999. 

"The Use of Econpmetrics by the European Commission and the V.S. Antitrust Agencies" (joint with 

Mary Colemàn), Internatiónal Antitrust Bulletin, Spring/Summer 2004, 35-40. . 

Henry J. Kahwaty, Ph.D. www.lecg.com Page 4 or5 
LeCG
 

"The CompetitiDn Authority's Study of the Irish Banking Sector. Ooint with John Evans), International 

Antitrust Bulletin, Summer/Fall 2005, 24-31. 

TEACHING EXPl=RIENCE 

University of Pennsylvania, Philadelphia, Pennsylvania, 1988-19è1 

Course taught include Industrial Organisation, Topics in Microeconoinics, Topics in 

Macroeconomics, Intermediate Microeconomics, Introductory Microeconomics, Introductory 

Macroeconomics. 

"December 2008 

., 

Henry J. Kahwaty, Ph.D. www.lecg.coin Page 5 of 5 
TAB 2

CURRICULUM VITAE
 

PERSONAL DETAILS 

TILE 

NAM 

ADDRESS 

TELEPHONE NO. 

E"MA 

DATE OF BIRTH 

MATAL STATUS 

CHIDREN 

RELIGION 

DRIVING LICENCE

Dr 

STEVENSON James Mark 

213 Higher Lane 

Lymm 

Cheshire 

W A13 ORN 

UK 

+441925 757104
 

mjs.stevenson(§btinternet.com 

6th October 1949 

Married 

2 

Church of England 

Full 
POSITIONS HELD ))URING CAREER WITH CHLORlllE AND ExinE
 

1974-1978 ­ Process Development Chemist - Traction. 

1978-1980 ­ Product and Material Design Engineer - Traction Team Member Over Hulton 

Project. 

1980-1981 ­ Chief Chemist, Over Hulton. 

1981-1985 ­ Quality Director, Chloride Industrial Batteries. 

1985-1989 - Technical Director Traction including Overseas operations in India, South Africa and 

USA. 

1989..1995 - Operations Director, Over Hulton. 

Technical Director, CEAc including Lile Plant. 

1995-2000 - Managing Director, CMP Batteries. 

UK Countr Manager with full P& L responsibilty for Auto, Traction and Industial 

in the EXIDE Organisation including operations in India, Dubai and Russia ­

turnover250M US$ PBT 25M US$. 

2000-2006 - Vice President Operations Industrial Europe. 

RESPONSffILITIES - VP OPERATIONS INUSTRI EUROPE 

~ Manufacturing Plants
 

- Bad Lauterberg (Germany)
 

- Over Hulton (U) 

- Budingen (Germany)
 

- Lile (France)
 

- La Catuja (Spain)
 

- Castanheira (portgal)
 

- Horten (Norway)
 

- Trafford Park (UK)
 

~ R&n - Traction
 

- Gel Bloc and 2v Tubular cell
 

- AGM Bloc
 

Submarine 

~ Purchasing
 

~ Quality
 

~ Environmental
 

~ Engineering
 
RELEVAN PRO.TECTS/ ACTIVITIES DURING CAREER 

TECHOLOGY SALES 

~ Bulgaria - Balkan Trucks - Traction Tubular FloodeQ, 2 Plants, 2 milion cells per annum.
 

~ India - Exide Industries - Traction 2V celL.
 

~ Luxemburg - Continuous Tubular Gauntlet Manufacture to AmersiL. 

TRACTION TECHNOLOGY 

Process Development 

~ Patent Holder Tubular Positive Plate Filtration FilL. 

~ Doctorate Electrochemistr of the Tubular Positive Plate including an extensive study 

of Formation Parameters ~ University of Manchester. 

~ Patent Holder Continuous Gauntlet Manufacture Tubular Positive Plate. 

Product Design
 

~ FuJI details ofPtoduct Design data including Active MateriaL.
 

~ Utilsations and AJIoy Specifications.
 

~ Developed the Low Maintenance concept for Traction batteries. 

Material Development
 

~ Designer of current Non Woven Gauntlet (Active Material Retainer Tubular Positive) used 

extensively in the Industr for Traction and Stadby cells. 

~ The first to develop and introduce polyethylene separators into Industrial battery applications. 

Charger Technology
 

~ Designs for Traction Chargers including Chargirg Profiles ànd Charge Factors. 
PAPERS PUBLISHED 

1982-1995 

25 Scientific papers all related to Lead Acid Batteries published in various journals including Power 

Sources and presented world-wide, for example, during ELBAC Symposiums. 

TECHNOLOGY TRSFERS WITHI CHLORIE/ EXIE
 

~ South Africa I India IAustralia I USA - Preferred Traction Tubular Technology.
 

~ Germany - Gel 2v cell. 

.~ USA to Portugal - AGM, FT, Standby Power products.
 

~ UK to USA - Tubular Plate Traction. 

TECHNOLOGY CO-OPERATIONS 

~ V ARTA, Germany - Traction. 

~ ENERSYS, USA ~- Traction. 

~ YUASA, Japan - Traction. 

. .. .
 TEC,1lNOLOGY TRASFERS WI:I CHLORIDE/ EXIE
 

~ SPAI - Orbital AGM Spiral bloc. 

~ AUSTRLIA - Traction Tubular Assembly and Formation. 

~ GERM IFCE/SPAIroK. - Standardisation of common DIN Traction 2v celL. 

RELEVAN PROJECTS/ACTIVITIES nutuNG CARER 

CHAGER TECHNOLOGY/MFACTURE 

~ Conventional and High Frequency Technology Development.
 
~ Charging Applications and Regimes Development.
 

~ Manufacturing Facilty of 40,000 chargers per annum implementation. 

PLAN CLOSURS
 

~ Sweden Nol - Traction - 1999 

~ Germany Weiden - Gel 2v Traction - 2004 

~ Spain Malpica - Orbital AGM Spiral - 2004 

~ Italy Casalnuovo - 2v Traction cell - 2005 

~UFACTURG PROJECTS 

2000-2005 

~ Implementation Director for Exide Lean Manufacturing Programme, Excel into the Industrial 

Energy European plants. 

~ Introduction of 
 ISO 14000 Environmental system into all plants.

~ Championed the Exide QMS Quality system into all plants. 

CONSULTANCY 

2007-2009 

Consultant to Battery Industry on a Global Reacb 

Assignments and contracts included, 
 but not comprehensive:

~ Green field traction plant in China - BB Batteries with responsibilty for project validation. 

market demand evaluation, equipment and process identification, product and material design 

specifications, quality standards and manufacturing know-how ~d support. 

)- Traction technology 
 agreement with Exide Industies Ltd (India) to upgrade their product range.

)- Gel bloc and 2v Tubular cell technology Agreeneht with BB Batteries (China) and Exide
 

Industries Ltd (India). 

)- Greenfield traction plant .Middle East - as a full project management contract including product 

technology and manufacturing. 
~ Technology aid agreement - for automotive batteries with BM machines (Austria) for Greenfield 

site in Arenia. 

~ Consultacy contract with Material suppliers to the Battery Industr. These suppliers are based in 

the UK, USA. Italy and India with Global sales.