EX-10.3 2007 SHORT TERM INCENTIVE PLAN



 





Exhibit 10.3









CORPORATE
INCENTIVE PLAN FY '07



Objective:

To create an incentive bats plan that rewards upper managerial level participants for meeting and
exceeding Company performance standards based on Economic Profit (EP). Economic Profit is
defined as EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) adjusted for
Cash Taxes less a Capital Charge of 24% or 2%/month on fixed assets, inventory and amounts
receivable less accounts payable.



Plan Summary:

The plan is dependent on the Company exceeding FY06 actual EP results. Results will be reviewed at
the end of FY07 when year end financials are finalized.




The FY07 Corporate Incentive Plan will induce a worldwide consolidated Exide element and a
Division element. Shown below is the weighting of the elements.



	 	 	 	 	 	 	 	 	 
	 	 	Worldwide	 	 	 	 
	 	 	Consolidated Exide	 	 	 	 
	Participant Category	 	Weighting	 	 	Division Weighting	 
	Division Participant
	 	 	25%	 	 	 	75%	 
	 
	 	 	 	 	 	 	 	 
	Corporate
	 	 	100%	 	 	 	 	 





To be eligible for the year end payout the participant must be employed by Exide and in an
eligible position at the time of payout Participants who join Exide during the plan year will be
eligible for a pro rata portion of their target incentive. Also, payouts for participants who
transfer between divisions or corporate will be pro rated Participation in the plan is at the sole
discretion cite “Company”. Participants are reviewed and participation is determined on a yearly
basis.




There are two thresholds that must be exceeded for the plan to male a payout The Company must meet
a cash / liquidity threshold net of the cost of the plan as of 3/31/2007 and FY07 Economic Profit
must equal or exceed the 50% payout level for a payout to be made.



Below is an example d how the payout will be calculated.



	 	 	 
	FY07 ACTUAL RESULTS	 	Year End Payout
	FY07 Actual EP results in a payout of 50% of the target

	 	Payout at 50%
	 
	 	 
	FY07 Actual EP at the midpoint between FY06 Actual

	 	Payout at 100%
	 
	 	 
	FY07 Actual EP equals FY07 Budgeted EP

	 	Payout at 200%






Year end payout will be based on FY07 performance, which must show improvement over FY06
results. The above example represents just three of the possible payouts.




 









 













CORPORATE INCENTIVE PLAN FY07




EXAMPLE — DIVISION PARTICIPANT




Salary $75,000

Incentive Target 10%

Incentive $7,500




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	PAYOUT	 	 
	 	 	WEIGHTING	 	RESULTS	 	PERCENTAGE	 	PAYOUT AMOUNT
	DIVISION FY07 EP

	 	 	75	%	 	FY07 DIVISION EP

PRODUCES AN

EARNED PAYOUT OF

110% OF TARGET
	 	 	110	%	 	$	6,187.50	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	EXIDE FY07 EP

	 	 	25	%	 	FY07 EXIDE EP

EQUALS MIDPOINT

OR TARGET
	 	 	100	%	 	$	1,875.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL

	 	 	 	 	 	 	 	 	 	 	 	$	8,06250	 






EXAMPLE — CORPORATE PARTICIPANT

Salary $75,000

Incentive Target 10%

Incentive $7,500




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	PAYOUT	 	 
	 	 	WEIGHTING	 	RESULTS	 	PERCENTAGE	 	PAYOUT AMOUNT
	EXIDE FY07 EP

	 	 	100	%	 	FY07 EXIDE EP

EQUALS MIDPOINT

OR TARGET
	 	 	100	%	 	$	7,500	 







Points to remember:




	 	•	 	Payout will be after FY07 results have been finalized and audited
	 
	 	•	 	Participation is at the discretion of the Company.
	 
	 	•	 	Participation is determined on a yearly basis.
	 
	 	•	 	The participant must be in an eligible position and employed by Exide at the time of payout.
	 
	 	•	 	The Company must meet a cash/liquidity threshold net the cost of the plan as of 3/31/07.
	 
	 	•	 	FY07 EP must equal or exceed the 50% payout level for a payout to be made.
	 
	 	•	 	Questions of interpretation and all disputes will be resolved by the EP
Committee, consisting of the President and CEO, the EVP and CFO, and the EVP of
Human Resources.