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EXHIBIT 10.22  

Confidential
materials omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. Asterisks denote such omissions. 

 
 

GOLF CART SEPARATOR SUPPLY CONTRACT    
    

        This Agreement is entered into this    day of July, 2001, by and between Daramic, Inc. and its Affiliates ("Daramic") and Exide Corporation and
its Affiliates ("Exide"). 

	1.
	Definitions 

        As
used herein the following terms shall have the following meanings: 

        "Affiliates"
shall mean any Person in which either Daramic or Exide, directly or indirectly, owns or controls fifty percent (50%) or more of the ownership indicia, as well as any Person
which, directly or indirectly, owns 50% or more of, or otherwise controls the management decisions of Exide or Daramic. 

        "AI
Supply Agreement" shall mean the Automotive and Industrial Supply Contract between Exide and Daramic entered into this same date. 

        "Industrial
Price Index" shall mean the Industrial Price Index published by the Journal of Commerce, or a reasonable substitute should that volume cease to be published. 

        "North
American Supply Agreement" shall mean the North American Supply Agreement of December 15, 1999 between Exide and Daramic, as amended on this date. 

        "Person"
shall mean any individual, partnership, corporation, trust or any other legal entity or any government or political subdivision. 

        "Prices"
shall mean the prices for Golf Cart Separators set forth in Exhibit A attached hereto, as adjusted from time to time as set forth in Section 3.2 hereof. 

        "Golf
Cart Separator" or "Separator" shall mean any polymer based battery separator used by Exide in the production of golf cart batteries. 

        "Specifications"
shall mean the specifications for the Golf Cart Separators set forth in Exhibit B attached hereto which may be amended from time to time by mutual written
agreement of the parties, provided that Exide shall have the final say as to the acceptability of any modified Specification. 

        "Term"
shall mean July    , 2001 through December 31, 2009. 

	2.
	Golf
Cart Separators 

        The
intent of this Agreement is that Daramic shall have the option to supply [*****] Golf Cart Separators on a worldwide basis, subject to any specific Exide
customer requirement. When and if Daramic or any of its Affiliates develops (or represents) and qualifies a Golf Cart Separator of equal or superior performance to the battery separators currently
being used by Exide to produce batteries for golf carts, then within 90 days of said qualification, Exide agrees to purchase [*****] for Golf Cart Separators from
Daramic pursuant to this Agreement. However, if a specific customer demands the use of a non-Daramic product, then Exide can use that product [*****]. The parties
will use reasonable, good faith efforts to qualify Daramic's existing polymer based golf cart battery separator products for use by Exide as soon as reasonably practicable, provided that Daramic shall
not be required to expend any additional capital to qualify its existing products for use by Exide. However, if from time to time during the Term of this Agreement Daramic chooses to do so, to the
extent that Daramic incurs costs, expenses or capital expenditures to modify or increase the capacity of its production assets used to manufacture Golf Cart Separators to be supplied under this
Agreement, Exide will reimburse Daramic for such costs, subject to a maximum total cost to Exide of [*****] for all such costs, expenses or capital expenditures during the Term
of this Agreement. Exide's obligation to reimburse this amount 

 

only
applies to the extent that their annual purchases of Golf Cart Separators under this Agreement exceed [*****], or where it is desirable for Daramic to modify its existing
equipment to meet a specification or requirement of Exide. 

	3.
	Prices 

        3.1
Initial Prices for the initial Golf Cart Separators to be supplied pursuant to this Agreement shall be as set forth on Exhibit A attached hereto. 

        3.2
Subject to the other terms of this Agreement, Prices shall remain firm until January 1, 2002 and are subject to annual revisions thereafter by Daramic to reflect any
Substantial Change (as defined below) in Daramic's cost to manufacture Golf Cart Separators. These prices are based on [*****] (collectively, "Manufacturing Costs"). In the
event there is a Substantial Change in Daramic's Manufacturing Costs, Daramic will adjust the Price for Golf Cart Separators from time to time while this Agreement is in effect (but not more often
than once per year for each type of Golf Cart Separator) to reflect any such Substantial Change provided that the cumulative effect of any such Price adjustments shall not exceed the cumulative change
in the
Industrial Price Index from May 1, 2001. If an adjustment in Price for a type of Golf Cart Separator is implemented by Daramic due to a Substantial Change, Daramic shall: (i) provide
Exide at least 90 days written notice prior to the effective date of such change and (ii) make available to Exide documentation to substantiate the Substantial Change. The term
"Substantial Change" shall mean any change (upward or downward) exceeding [*****] of Daramic's then-current Manufacturing Costs for any type of Golf Cart Separator.
Prices will also be adjusted based on cost reductions achieved as contemplated by Sections 5 and 6.1 below. 

        3.3
During the term of this Agreement, and for a period of two (2) years thereafter, Daramic shall keep accurate and complete records of all data necessary for the computation of
its Manufacturing Costs. From time to time, upon reasonable notice to Daramic, Exide's designated independent public accountants shall have the right at reasonable times during normal business hours
to examine the records of Daramic applicable to the calculation of and for the sole purpose of verifying the Prices charged Exide hereunder; provided, however, that before obtaining access to and
examining such records, Exide shall cause its independent public accountants to execute and deliver a confidentiality agreement in form and substance reasonably acceptable to Daramic regarding
Daramic's records and the information contained therein. If the records show that Daramic has failed to adjust the Prices in accordance with Section 3.2 and such adjustment would have reduced
the Prices paid by Exide during the applicable period by more than [*****], Daramic shall pay all costs associated with the examination of the records. Otherwise, Exide shall
bear all costs of such examination. If Daramic disputes the calculation of any such adjustment by Exide's independent public accountants, the parties shall agree on the appointment of an independent
third party arbitrator to resolve such dispute. If such arbitrator determines that the calculation by Exide's independent public accountants of the required Price adjustment is accurate, Daramic shall
pay all costs associated with the work performed by the third party arbitrator. If such arbitrator determines that Daramic has complied with Section 3.2, Exide shall pay all costs associated
with the work performed by the third party arbitrator. Otherwise, the arbitrator shall determine how such costs shall be allocated between Daramic and Exide. Daramic will promptly refund to Exide any
overpayment made by Exide plus liquidated damages in an amount equal to [*****]of such overpayment. The parties agree that the amount of liquidated damages set forth in the
immediately preceding sentence is a fair and appropriate estimation of the damages caused to Exide by Daramic's failure to adjust the Prices in accordance with Section 3.2, and Daramic agrees
not to contest or object to Exide's right to such amount of liquidated damages. Conversely, if Daramic prevails, then in addition to its fees and costs, Exide shall also pay Daramic liquidated damages
of [*****] of the alleged overcharge amount as compensation for the business distraction incurred by Daramic. 

2

 

        3.4
[*****] 

	4.
	Payment
Terms 

        Invoices
are to be issued by Daramic upon shipment and are payable [*****] days after date of invoice. Any amounts due by Exide to Daramic, which amounts are not
paid when due, other than amounts disputed by Exide in good faith, shall accrue interest at a rate of [*****] per month, or portion thereof, from the due date until the date
paid. All invoices must reference applicable Exide purchase order/contract release numbers and shall be sent to: 

Exide
Corporation

12600 Deerfield Parkway

Alpharetta, GA 30004

Attention: Accounts Payable 

	5.
	Cost
Reductions 

        Daramic
and Exide will use Customer-Supplier teams as a vehicle to identify and implement cost reduction activities by Daramic associated with Golf Cart Separators. Daramic will identify
the implementation costs, including capital, and cost savings associated with any proposed project. Implementation and the timing for implementation of each project will be mutually agreed upon by the
parties. Price changes based on such projects will reflect a [*****] sharing of the cost savings actually accomplished based on each party's inputs and risks. Both parties
agree that if any capital expense required to implement a particular cost reduction or production expansion project does not support agreed upon payback expectations, then the project will not be
initiated. 

	6.
	Research &
Development 

        6.1
The parties acknowledge that Daramic is a technology leader in the battery separator industry, and Daramic agrees to use commercially reasonable efforts to keep abreast of and
promptly implement all technological improvements, enhancements and/or advances in the manufacture of Golf Cart Separators. The parties intend to [*****] in all benefits
(including cost savings) achieved through the efforts of Daramic or of both parties. 

        6.2
[*****] 

	7.
	Confidentiality

        During
this Agreement and for a period of ten years subsequent to the termination or expiration of this Agreement (regardless of the cause of termination), each party shall hold as
confidential and shall not disclose, directly or indirectly, to third parties nor use (other than in the performance of this Agreement) for its benefit or for the benefit of third parties information
disclosed by or received from the other party and pertaining to its business affairs, including, without limitation, information disclosed by Exide regarding Separators supplied by third parties. It
is understood that this obligation of confidentiality and non-use shall not apply to any information known to either party which (i) is or becomes publicly known through no fault of
its own, (ii) is disclosed to the party by a third party entitled to disclose such information, (iii) was previously known to the other party or (iv) is independently developed by
the other party without reference to any of the other party's confidential information. 

	8.
	Forecasts 

        By
October 1 of each calendar year (and for the first calendar year, within 30 days of Daramic qualifying a Golf Cart Separator for use by Exide), Exide shall provide
Daramic with a written annual estimate of its Golf Cart Separator requirements for the next succeeding calendar year. The estimate shall indicate Exide's estimated requirements for Golf Cart
Separators broken down by type for each of Exide's locations for that calendar year. Commencing July 1, 2001, Exide shall also provide Daramic 

3

 

with
quarterly delivery forecasts for Golf Cart Separators broken down by type for each of Exide's locations with appropriate lead times. During the Term of this Agreement, Exide shall update such
forecasts on a rolling basis at least once every month. 

	9.
	Delivery

        9.1
Delivery of Golf Cart Separators shall be [*****], unless alternative terms are agreed to by the parties in writing. Daramic reserves the right to supply
Separators from an alternate manufacturing facility and will bear any additional delivery costs (or pass on to Exide any additional savings) resulting from such a switch. Title to and risk of loss of
Separators shall pass to Exide upon delivery to the carrier, notwithstanding any prepayment or allowance of freight by Daramic.
Exide shall have the right to choose the mode of delivery and carrier. It shall be Exide's responsibility to arrange for any insurance it desires for the shipped Separators. 

        9.2
Provided that Exide's actual orders submitted are within ten percent (10%) above or below the quarterly forecasts provided by Exide pursuant to Section 8, Daramic undertakes
to deliver ordered Separators no later than fourteen (14) business days after the mutually agreed delivery date. The parties agree to work together in good faith to agree on a mutually
acceptable delivery date that, for standard Separators, will be no less than seven (7) days and no more than fourteen (14) days after submission of a firm order by Exide. For
non-standard Separators or unusually large orders, the parties will work together in good faith to agree on a mutually acceptable delivery date that is feasible based on the extended lead
times needed for these specialized orders. If Daramic is unable to deliver Separators ordered by Exide within fourteen (14) business days after the mutually agreed delivery date, then Daramic
will within 24 hours provide Exide with notice of its inability to do so. The volume of Separators that Daramic fails to ship in the time allowed under this section 9.2 will count in
calculation of the GCS Credit pursuant to section 2.6 of the North American Supply Agreement. If Daramic notifies Exide of an ongoing inability to meet the timely delivery requirements set
forth in this section 9.2, then Exide can make short term arrangements (not to exceed 30 days) to obtain the necessary Separators from a third party. However, such purchases shall not
count toward calculation of the GCS Credit. 

	10.
	Specifications

        Initial
product Specifications are described on Exhibit B. Specifications may not be modified, superseded or otherwise altered except by written agreement signed by authorized
representatives of Exide, provided that Daramic shall not be required to supply any product for which Exide requires a modified Specification, unless Daramic has approved that Specification, which
approval is not to be unreasonably withheld. 

	11.
	Warranties,
Remedies and Limitations 

        11.1
Daramic warrants that the Golf Cart Separators used in the construction of golf cart batteries hereunder do not or will not infringe any patent of the country of original
manufacture by Daramic. Daramic shall defend and hold Exide harmless from and against any and all claims, liabilities and costs (including reasonable attorneys' fees) incurred by Exide as a result of
any breach of this non-infringement warranty. Daramic's liability under this warranty is conditioned upon (i) Exide giving prompt written notice of any claim of patent infringements
made against Exide, (ii) Exide making available to Daramic all information available to Exide in respect of the claim, and (iii) Exide's granting Daramic control of its settlement and/or
litigation, provided, however, that Daramic shall not settle or compromise any claim in a matter that affects the rights or interests of Exide without Exide's prior written consent and further
provided that if Exide's consent is not granted, then Daramic's obligation to defend and hold Exide harmless shall cease and be of no further force and effect as it relates to the particular claim in
question. Daramic may discontinue delivery of Golf Cart Separators if, in Daramic's opinion, their manufacture would constitute patent infringement. Daramic makes no 

4

 

warranty
against patent infringement resulting from use of Golf Cart Separators in combination with other materials or in the operation of any process or resulting from the production of Golf Cart
Separators using specifications provided or required by Exide, and if a claim, suit or action is based thereon, Exide shall defend, indemnify and hold Daramic harmless therefrom. 

        11.2
DARAMIC WARRANTS THAT IT WILL PRODUCE THE GOLF CART SEPARATORS IN A GOOD AND WORKMANLIKE MANNER AND THAT THE GOLF CART SEPARATORS DELIVERED TO EXIDE WILL CONFORM TO THE
SPECIFICATIONS. WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE INCLUDED. DARAMIC ALSO WARRANTS TO EXIDE THAT IT WILL CONVEY GOOD TITLE TO THE GOLF CART SEPARATORS SOLD AND
DELIVERED HEREUNDER FREE OF ANY LIENS AND ENCUMBRANCES. DARAMIC HEREBY EXCLUDES AND DISCLAIMS ALL WARRANTIES EXCEPT THOSE EXPRESSLY SET FORTH IN THIS SECTION 11. THE REMEDIES OF EXIDE FOR ANY BREACH
OF WARRANTY SHALL, SUBJECT TO THE OTHER TERMS OF THIS AGREEMENT, BE THE REPLACEMENT OF THE NONCONFORMING PRODUCT OR, IN THE SOLE DISCRETION OF EXIDE, REFUND FOR THE PRICE PAID FOR ANY NONCONFORMING
PRODUCT, TO THE EXCLUSION OF ANY AND ALL OTHER REMEDIES, INCLUDING, WITHOUT LIMITATION, SPECIAL, PUNITIVE, INDIRECT OR CONSEQUENTIAL DAMAGES. NO AGREEMENT VARYING OR EXTENDING THE FOREGOING WARRANTIES
WILL BE BINDING UPON DARAMIC UNLESS IN WRITING, SIGNED BY AN OFFICER OF DARAMIC. 

	12.
	Force
Majeure 

        Daramic
and Exide shall not be liable for failure to make or take, or delay in making or taking, any delivery due to war, strikes, labor trouble, floods, fires, shortages or interruption
of transportation,
unavailability of materials through no fault of Daramic or Exide or any other cause beyond their respective control ("Force Majeure Event"), but hey shall make every effort to remove any such cause of
their failure or delay as soon as possible provided that neither party shall be required under this section to settle strike or labor controversies. During any period when deliveries are affected by a
Force Majeure Event Daramic shall endeavor to allocate any available Separators among all buyers in such manner as it reasonably considers fair. 

	13.
	Taxes,
Duties and Excises 

        In
the absence of satisfactory evidence of exemption supplied to [*****], all taxes, duties, excises or other charges for which [*****]
may be responsible for collection or payment to any government (national, state or local) upon, measured by or relating to the importation, exportation, production, or any phase or part of the
storage, sale, transportation and/or use of the Golf Cart Separators. 

	14.
	Notices

        Notices,
demands and communications hereunder to Exide or to Daramic shall be deemed to have been duly given if in writing and delivered by overnight delivery service or sent by
registered or certified mail (postage prepaid) or by facsimile (confirmed by delivery of the notice by mail or overnight delivery service) as follows: 

        If
to Daramic:

Daramic, Inc.

20 Burlington Mall Road

Suite 325

Burlington, MA 01803

Facsimile No: 617/273-1112

5

 

Attention:
General Manager or Director Sales & Marketing

with a copy to: 

Jerry
Zucker or James G. Boyd

Daramic, Inc.

4838 Jenkins Avenue

North Charleston, SC 29405

Facsimile: (843) 747-4092 

        If
to Exide: 

Exide
Corporation

12600 Deerfield Parkway

Alpharetta, GA 30004

Facsimile No:

Attention: Vice President—Purchasing and

                  Vice President—Manufacturing. 

        with
a copy to: 

Exide
Corporation 

Princeton,
New Jersey

Facsimile No.:

Attention: General Counsel

        Any
party may designate by notice in writing a new address to which any notice, demand or communication may hereafter be given or sent. 

	15.
	Orders

        Order
releases for Golf Cart Separators will be provided in writing (or if by telephone subsequently confirmed in writing) by Exide to the respective Daramic manufacturing plant. Exide
may use its standard release or purchase order form to specify quantity, destination, requested delivery date and, for f.o.b. sales, desired mode of transportation, of Golf Cart Separators; however,
all terms and conditions of sale shall be as specified in this Agreement and only amended or supplemented by a written agreement signed by senior officers of both parties. To the extent inconsistent
with the terms of this Agreement, the terms of sale stated in either party's invoice, purchase order, order acknowledgment, or similar document shall not apply to sales of Golf Cart Separators under
this Agreement. 

	16.
	Applicable
Law and Effect of Partial Invalidity of This Agreement 

        If
any covenant, agreement, term or provision of this Agreement, as from time to time amended, or the application thereof to any situation or circumstance, shall be invalid or
unenforceable, the remainder of this Agreement, as from time to time amended, or the application of such covenant, agreement, term or provision to situations or circumstances other than those as to
which it is invalid or unenforceable, shall not be affected and each other covenant, agreement, term or provision of this Agreement, as from time to time amended, shall be valid and enforceable to the
fullest extent permitted by applicable law. This Agreement shall be governed by, under and construed in accordance with the laws of the State of Delaware (USA) applicable to contracts entered into and
wholly to be performed therein. 

	17.
	General

        17.1
If Daramic is in breach or violation of any term or condition contained in this Agreement, and, if within thirty (30) days after Exide has given written notice thereof, such
breach or violation is 

6

 

not
cured, then Exide shall have the right to acquire Separators from any available source in such quantities as are necessary to meet the current manufacturing requirements of Exide. Once Daramic is
able to cure such breach or violation, Exide shall resume its purchases from Daramic in accordance with this Agreement. 

        17.2
This Agreement and the Exhibits hereto set forth the entire Agreement and understanding of the parties with respect to the transactions contemplated hereby and supersede all prior
agreements or understandings between the parties with respect to thereto. However, this Agreement does not replace or affect the AI Supply Agreement or the North American Supply Agreement. 

        17.3
This Agreement is not assignable or transferable by either party without the prior written consent of the other party. [*****] 

        17.4
In the event of any conflict between the terms of this document and those contained in any Exhibits hereto, the terms of this document shall control. 

        17.5
This Agreement may be amended, modified, superseded or canceled, and the terms or conditions hereof may be waived only by a written instrument executed by authorized representatives
of Exide and Daramic, or in the case of a waiver by or on behalf of the party waiving compliance. The failure of either party at any time or times to require performance of any provision hereof shall
in no manner affect the right at a later time to enforce the same. No waiver by either party of any condition or breach of any term contained in this Agreement in any one or more circumstances shall
be deemed to be or be construed as further or continuing waiver of any such condition or breach or a waiver of any other condition or of any breach of any other term of this Agreement. 

        17.6
The headings used in this Agreement are for reference only and shall not in any way affect the meaning or interpretation of this Agreement. This Agreement may be executed
simultaneously in multiple counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 

        17.7
Each party will cause its Affiliates to abide by the terms and conditions of this Agreement. 

        17.8
[*****] 

        IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and date first above mentioned. 

Exide
Corporation, for itself, and on behalf of all of its present and future, direct and indirect, parent, subsidiary, and affiliated entities on a worldwide basis. 

	By:	 	[ILLEGIBLE]
	 	 
	

Title:	
 	

	
 	

 
	

Daramic, Inc.	
 	

 
	

By:	
 	

Jerry Zucker
	
 	

 
	

Title:	
 	

Chairman, President & CEO
	
 	

 

7

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EXHIBIT 10.23  

Confidential
materials omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. Asterisks denote such omissions. 

 
 

AMENDMENT TO SUPPLY CONTRACTS    
    

        This Agreement (the "Amendment") is entered into this    day of July, 2001 by and between Daramic, Inc. ("Daramic") and Exide Corporation and
all of its worldwide Affiliates ("Exide"). 

R
E C I T A L S: 

        A.    On
December 15, 1999, Exide and Daramic entered into a North American Supply Agreement for the supply of Separators (the "Exide-NA Agreement"). All
capitalized terms used but not defined in this Amendment shall have the meaning described in the Exide-NA Agreement. 

        B.    On
January 1, 1997, Daramic entered into a worldwide Purchase and Sale Agreement with GNB Technologies, Inc. ("GNB") for the supply of certain products to
GNB and its subsidiaries (the "GNB Agreement"). 

        C.    On
January 1, 1996, Daramic and Exide entered into an Agreement for the Supply of Battery Separators for Lead Acid Starter and Industrial Batteries to Exide's
facilities located outside of North America (the "Exide-Europe Agreement"). On December 15, 1999, Exide and Daramic entered into a First Amendment to Supply Agreement by which they extended the
term of the Exide-Europe Agreement through December 31, 2003. The Exide-NA Agreement, GNB Agreement and Exide-Europe Agreement may be referred to collectively as the "Supply
Contracts." 

        D.    On
or about September 29, 2000, Exide acquired substantially all of the assets and liabilities of GNB, including, without limitation, GNB's rights and obligations
under the GNB Agreement. Because of this acquisition, Exide and Daramic now wish to clarify and amend certain of their obligations and rights under the Supply Contracts. 

        NOW,
THEREFORE, the parties agree as follows: 

Golf
Cart Separators 

        1.     GCS
Supply Agreement. Exide and Daramic agree to enter into an agreement, in the form attached as Attachment 1, for the supply of separators to be used in golf cart
batteries (the "GCS Supply Agreement"). 

GNB
Agreement 

        2.     Termination
of GNB Agreement. The parties agree that the GNB Agreement is cancelled as of the date of this Amendment. Automotive battery separator (defined as polymeric,
microporous separators) volume previously purchased under the GNB Agreement is included in the new Minimum Purchase Requirement described below for the amended Exide-NA Agreement. 

        3.     GNB
Rebate. Under the GNB Agreement, GNB would have been entitled to certain rebates described in Section 4.3 of the GNB Agreement had they purchased certain
agreed volumes of separators under that Agreement in 2000. However, GNB's actual purchases in 2000 did not reach these levels, and therefore neither Exide nor GNB is entitled to claim any such rebate
under the GNB Agreement. 

Exide-Europe
Agreement 

        4.     Amendment
of Exide-Europe Agreement. The parties hereby agree that the Exide-Europe Agreement will be terminated and replaced by the execution of a revised Automotive and
Industrial Supply Contract in the form attached hereto as Attachment 2 (the "AI Supply Agreement"). 

 
Exide-NA
Agreement 

        5.     Title.
The title of the Exide-NA Agreement is hereby changed to "North American, Australian and New Zealand Supply Agreement for Automotive Separators". 

        6.     2000
Deficit Amount. The parties agree that the Deficit Amount due and payable by Exide to Daramic under the Exide-NA Agreement for calendar year 2000 is
[*****]. This amount was due and payable on or before February 15, 2001. On February 28, 2001, Exide made a partial payment of [*****]
towards satisfaction of this Deficit Amount. The balance of the Deficit Amount will be repaid as follows: Exide will amortize [*****](which amount includes the balance of the
2000 Deficit Amount, plus an interest charge of [*****]) by an up-charge of [*****] per thousand lineal feet of Separators purchased in
2001, with a minimum amortization of [*****] per month, beginning April 1, 2001. Daramic will invoice Exide for these up-charge amounts over the balance of
calendar year 2001. If for any reason the full [*****] has not been paid on or before January 15, 2002, Exide will make a lump sum payment to Daramic on or before that
date to repay this amount in full. 

        7.     Exide-NA
Agreement—Amendments Exide and Daramic agree to the following amendments to the Exide-NA Agreement: 

        a.     Definitions
The following definitions and amendments are hereby added or made to the Exide-NA Agreement: 

        The
definition of "Contract Year" shall be revised to mean each calendar year during the Term of the Exide-NA Agreement. 

        Exhibit A
containing the "Prices" is amended to include the prices for Separators previously purchased by GNB. The revised Price list is attached to this Amendment as
Attachment 3. Prior to the date of this Amendment, Daramic has incurred Substantial Changes in its Manufacturing Costs (all as defined in Section 4 of the Exide-NA Agreement)
which would have otherwise resulted in Price increases under the Exide-NA Agreement. However, as part of this Amendment, Daramic has agreed to hold in abeyance any such price increases and
to retain pricing at the levels described in Attachment 3 until January 1, 2002. On or after January 1, 2002, Daramic may adjust all Prices as described in Sections 4.2 and
4.3 of the Exide-NA Agreement to reflect changes in its Manufacturing Costs incurred since January 1, 2001. 

        "Separator"
shall mean polymeric, microporous and/or similar battery separators for use in automotive (starting, lighting and ignition) batteries which were previously manufactured by
Exide for its own use utilizing the manufacturing equipment and facilities currently located at the Corydon, Indiana facility, or by Daramic at its Owensboro, Kentucky facility. Current products which
meet these requirements are listed in Exhibit A attached hereto and made a part hereof. New products with different widths, thicknesses, backweb thicknesses, etc. may be added to
Exhibit A from time to time, but only upon the mutual written agreement of the parties. 

        Exhibit B
containing the "Specifications" is amended to include the specifications for Separators previously purchased by GNB. The revised Specifications are attached to this
Amendment as Attachment 4. The parties will cooperate together and will use their reasonable commercial efforts to standardize the Specifications for both the Exide and former GNB Separators
purchased under the Exide-NA Agreement as soon as practicable, provided that Exide shall have the final say as to the acceptability of the standardized Specifications. 

        The
"Term" of this Agreement shall be extended from the Effective Date through December 31, 2009. 

2

 

        b.     Minimum
Purchase Requirement Section 2 of the Exide-NA Agreement is amended to read as follows: 

        2.     Purchase
and Supply Commitments 

        2.1   Each
Contract Year during the Term of this Agreement, and subject to the terms and conditions set forth below, Exide shall purchase from Daramic, and Daramic agrees to
supply to Exide,[*****] Separators listed on Exhibit A in Exide's North American, Australian and New Zealand manufacturing facilities, which requirements shall be no
less than
[*****] of Separators, of which no less than [*****] of such Separators will have [*****] (for a total of approximately
[*****] of Separators) (hereinafter referred to as Exide's "Minimum Purchase Requirement"). Exide's purchases for use in producing batteries of any type outside of North
America, Australia or New Zealand, or for producing non-automotive batteries within North America, Australia and New Zealand, shall not count towards this Minimum Purchase Requirement. If,
at any time during the Term of this Agreement, Exide (a) acquires all or part ownership of any of Daramic's Customers (as defined below) or (b) establishes a partnership or other joint
venture relationship with any of Daramic's Customers, then and in such event(s), any purchases of Separators by Exide or these partnership or joint venture entities up to but not in excess of the
average annual purchases by such Customers from Daramic over the two years prior to Exide's purchase of or involvement with such entities shall not count toward the Minimum Purchase Requirement. If,
at any time during the Term of this Agreement, Exide acquires substantially all of the assets of a battery manufacturing facility owned by any of Daramic's Customers and such facility, at the time of
the acquisition thereof by Exide, was being supplied with Separators purchased from Daramic, then purchases by Exide for use at such facility shall not count toward the Minimum Purchase Requirement.
For purposes of Sections 2.1 and 2.2, Daramic's "Customers" shall mean the customers listed on Exhibit C attached hereto or their successors; provided, however, that such customers are
purchasing Separators from Daramic at the time of the applicable transaction with Exide. Exide warrants that it will not cause or influence any Customer of Daramic to stop purchasing from Daramic in
anticipation of a potential acquisition by or of Exide with the objective of avoiding the intent of this section 2. Daramic acknowledges and agrees that Exhibit C attached hereto
contains a complete and accurate listing of Daramic's current customers as of the date of this Amendment. 

        2.2   [*****]

        2.3   If
Exide fails to meet its Minimum Purchase Requirement in any Contract Year, then Exide agrees to pay Daramic, (in accordance with Section 2.8 below), an amount
calculated as follows (the "Deficit Amount"): 

([*****]
lineal feet minus the actual lineal feet purchased in that Contract Year) 

multiplied
by 

[*****]
(the "Base Multiplier") 

equals

        the
Deficit Amount, provided, however, that in no event shall the Deficit Amount exceed [*****] in any Contract Year. 

        2.4   The
parties acknowledge and agree that the underlying intent of Sections 2.1 and 2.2 above is that Daramic should realize at least [*****]
[*****] (and approximately [*****]) of incremental Separator sales volume at contribution margins approximately equal to the Base Multiplier as a result
of this Agreement. The addition of this incremental sales volume is an integral part of the consideration for the Purchase Agreement. This entire Agreement, and 

3

 

particularly
Sections 2.1 and 2.2 above, shall be interpreted consistent with and in an effort to give effect to the parties' intent as described in this Section 2.4. 

        2.5   By
October 1 of each Contract Year (and April 1, 2000 for the first Contract Year), Exide shall provide Daramic with a written annual estimate of its
Separator requirements for the next succeeding calendar year. The estimate shall indicate Exide's estimated requirements for Separators broken down by type for each of Exide's locations for that
calendar year. Commencing April 1, 2000, Exide shall also provide Daramic with quarterly delivery forecasts for Separators broken down by type for each of Exide's locations with appropriate
lead times. During the Term of this Agreement, Exide shall update such forecasts on a rolling basis at least once every month. 

        2.6   When
and if Exide begins purchasing a polymer based battery separator for golf cart batteries ("Golf Cart Separators") from Daramic pursuant to the GCS Supply Agreement,
such purchases of Golf Cart Separators shall not count toward satisfaction of Exide's Minimum Purchase Requirement. However, [*****] of the actual, final net invoiced and
collected sales price for all Golf Cart Separators purchased by Exide from Daramic under the GCS Supply Agreement at a minimum average price of [*****], will be treated as a
credit to offset any Deficit Amount otherwise payable by Exide under this Agreement, up to a maximum setoff of [*****] in any calendar year (the "GCS Credit"). Exide will not
receive any GCS Credit for Golf Cart Separators purchased at an average price less than [*****] or that are priced to match "Lower Priced Offers" as defined in
section 3.4 of the GCS Supply Agreement. The GCS Credit is nonrefundable and must be used to offset Deficit Amounts that accrue within the same calendar year during which the Golf Cart
Separators are purchased. It cannot be carried forward nor can it be carried back to offset previous Deficit Amounts. In no event will the GCS Credit have any cash value. Further, the GCS Credit is
nonrefundable and results in no other cash benefit other than for use as a setoff against any Deficit Amount which might otherwise be payable by Exide under this Agreement that may have accrued during
the same calendar year. If GCS Credits are unused because there is not a resulting Deficit Amount sufficient to absorb the credit amount, the credit is lost. The GCS Credit is only accrued for sales
by Daramic to Exide of polymer based Golf Cart Separators. 

        2.7   In
addition to the GCS Credit, Exide shall receive an additional credit of [*****] for calendar year 2001, and a credit of
[*****] per calendar year for 2002 through 2009 to offset any Deficit Amount otherwise payable by Exide under this Agreement ("Lump Sum Credits"). These Lump Sum Credits are
nonrefundable and must be used to offset Deficit Amounts that accrue within the same calendar year during which the Lump Sum Credits accrue. They cannot be carried forward nor can they be carried back
to offset previous Deficit Amounts. In no event will these credits have any cash value. They are nonrefundable and result in no other cash benefit other than for use as a setoff against any Deficit
Amount which might otherwise be payable by Exide under this Agreement that may have accrued during the same calendar year. If Lump Sum Credits are unused because there is not a resulting Deficit
Amount sufficient to absorb the credit amount, the credit is lost. 

        2.8   After
application of the GCS and Lump Sum Credits, if there is a remaining Deficit Amount, this amount, up to a maximum of [*****], can be paid
in arrears via an up-charge on Separator purchases in the subsequent Contract Year. Any Deficit Amount in excess of [*****] due after application of the GCS and
Lump Sum Credits must be paid by Exide within [*****] after the close of the applicable Contract Year. Any Deficit Amount less than [*****], plus a
[*****] installment fee, will be repaid ratably over Separator purchases in the next Contract Year. The actual up-charge will be ratably applied on the lower of:
(i) Exide's actual purchases; or (ii) the first [*****] lineal feet of Separators purchased in the subsequent Contract Year. If Exide's actual purchases fall
below the amounts necessary to fully amortize the remaining Deficit Amount plus the [*****] installment fee, then Exide must make whole this amount with a lump-sum
payment within [*****] after the end of that same Contract Year in which payments were to be 

4

 

fully
amortized. Upon expiration or termination of this Agreement, any Deficit Amounts then outstanding must be paid in full within [*****] after such termination or
expiration. Any Deficit Amount payment that is not paid when due, other than amounts disputed by Exide in good faith, shall accrue interest at the rate of [*****] per month. 

        c.     Payment
Terms. Section 5 of the Exide-NA Agreement is amended to read as follows: 

        5.     Payment
Terms 

Invoices
are to be issued by Daramic upon shipment and are due and payable [*****] days after date of invoice. Any amounts due by Exide to Daramic, which amounts are not paid
when due shall accrue interest at a rate of [*****] per month, or portion thereof, from the due date until the date
paid. All invoices must reference applicable Exide purchase order/contract release numbers or the special terms of this Agreement, and shall be sent to: 

Exide
Corporation

12600 Deerfield Parkway

Alpharetta, GA 30004

Attention: Accounts Payable 

        d.     Research
and Development. Section 7.4 of the Exide-NA Agreement is amended to read as follows: 

        7.4   [*****] 

        8.     Miscellaneous
Except as modified by this Amendment, the Exide-NA Agreement shall remain in full force and effect. 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and date first above mentioned. 

Exide
Corporation, for itself, and on behalf of all of its present and future, direct and indirect, parent, subsidiary, and affiliated entities on a worldwide basis. 

	

By:	
 	

[ILLEGIBLE SIGNATURE]
	
 	

 	
 	

 
	

Title:	
 	

 	
 	

 	
 	

 
	 	 	
	 	 	 	 
	

Daramic, Inc.	
 	

 	
 	

 
	

By:	
 	

Jerry Zucker
	
 	

 	
 	

 
	

Title:	
 	

 	
 	

 	
 	

 
	 	 	Chairman, President & CEO
	 	 	 	 

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QuickLinks

AMENDMENT TO SUPPLY CONTRACTS

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