Document:

EXHIBIT 10.21

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

AUTOMOTIVE AND INDUSTRIAL 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.

“GCS Supply
Agreement” means the Golf Cart Separator Supply Contract entered into as of the
same date between Exide and Daramic.

“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 and re-titled on this
date as the “North American, Australian and New Zealand Supply Agreement for
Automotive Separators”.

“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 Qualified Products set forth in Exhibit A attached hereto,
as adjusted from time to time as set forth in Section 4 hereof.

“Qualified
Products” shall mean Existing Products and Replacement Products.

“Separator”
shall mean any battery separator used by Exide for any application whatsoever
(other than those products purchased from Daramic pursuant to the North
American Supply Agreement or the GCS Supply Agreement).

“Specifications”
shall mean the specifications for the Qualified Products set forth in Exhibit B
attached hereto which may be amended from time to time only 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.             Existing Products

The intent of
this Agreement is that Exide will offer to purchase, and Daramic shall have the
option to supply,[*****] Separators on a worldwide basis.  To partially give effect to this intent,
effective immediately, Daramic agrees to supply and Exide agrees to purchase
[*****] of the products listed on the attached Exhibit “A” (the “Existing
Products”).  Prices for the Existing
Products are also listed on Exhibit “A.”

3.             Replacement Products

For all
Separators that are not listed on Exhibit A, Daramic shall have the option of
seeking to develop a comparable product or a suitable replacement for the
Separators then being used by Exide (a “Replacement Product”).  Exide will provide Daramic with all necessary
information, subject to contractual confidentiality limitations, regarding
pricing, volumes, forecast demand, composition, specifications, etc. for all of
its Separator requirements sufficient to allow Daramic to evaluate and develop
Replacement Products to the extent Daramic chooses to do so.  [*****] To the extent that Daramic produces
or represents a competitive product comparable to, or a suitable replacement
for any Separator then in use by Exide, at a price that is equal to or less
than the price then being paid by Exide for such a product, then Daramic may
present such Replacement Product to Exide for qualification.  Exide agrees to use its best commercial
efforts to fully cooperate and support Daramic’s efforts to produce or qualify
such a Replacement Product as quickly as possible.  Upon qualification, such Replacement Product
shall be added to the list of Qualified Products on Exhibit A, and Exide will
purchase from Daramic [*****] of said qualification and for the remaining Term
of this Agreement.  Pricing for such a
Replacement Product will initially be at the level most recently paid by Exide
to its primary third party supplier for the product being replaced.  However, if such Replacement Product utilizes
a different technology such that the Replacement Product is substantially less
costly to produce than the product it replaces, then Daramic will make a fair
adjustment in the initial pricing level as described in Section 6 below.  Once the initial Price for a Replacement
Product is established, then the price for such a Replacement Product will be
subject to change adjustments based on cost reductions achieved as contemplated
by Sections 6 and 7.2 below and on changes in Daramic’s Manufacturing Costs
pursuant to Section 4.2 below.  After
initial qualification of a Replacement Product, Daramic shall only be required
to continue to meet prices offered by third parties as described in section
4.4.

4.             Prices

4.1           Initial Prices for Qualified Products
supplied pursuant to this Agreement shall be as set forth on Exhibit A attached
hereto.

4.2           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 Qualified Products, including,
without limitation any changes in Daramic’s Manufacturing Costs since January
1, 2001.  These prices are based on
prices of raw material, utilities, labor and insurance as of January 1, 2001
(collectively, “Manufacturing Costs”). 
In the event there is a Substantial Change in Daramic’s Manufacturing
Costs, Daramic will have the right to make an appropriate

 

 

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adjustment in the
Price for Qualified Products from time to time while this Agreement is in
effect (but not more often than once per year for each type of Qualified
Product) to reflect any such Substantial Changes.  Daramic shall provide Exide at least 90 days
written notice prior to the effective date of such change.  During this 90 days, Daramic shall consult
with Exide to insure that Daramic’s current Prices reflect prevailing economic
and market conditions for both Exide and Daramic.  If Exide or Daramic believe in good faith
that any such Price adjustment does not reflect prevailing market conditions,
then the Parties shall negotiate in good faith the possibility of deferring,
retracting or accelerating all or part of the proposed Price adjustment as the
circumstances may merit.  Such
discussions shall not in any way interfere with or postpone Daramic’s proposed
effective date for the Price adjustment, except with the mutual consent of both
Parties.  Regardless of the prevailing
market conditions, such Price adjustments shall always reflect no less than 50%
of the increase in the actual change in Daramic’s Manufacturing Costs, and the
cumulative effect of any such Price adjustments shall not exceed the cumulative
change in the Industrial Price Index from January 1, 2001.  If an adjustment in Price for a type of Qualified
Product is implemented by Daramic due to a Substantial Change, Daramic shall
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 Qualified Product.  Prices will also be adjusted based on cost
reductions achieved as contemplated by Sections 6 and 7.2 below.

4.3           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 4.2 and such adjustment would
have reduced the Prices paid by Exide during the applicable period by more than
four percent (4%), 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
4.2, 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 15% 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 injury caused to
Exide by Daramic’s failure to adjust the Prices in accordance with Section 4.2,
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

 

 

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shall also pay
Daramic liquidated damages of 15% of the alleged overcharge amount as
compensation for the business distraction incurred by Daramic.

4.4           Exide may receive an actual offer by
a Comparable Supplier to immediately begin supplying Exide with comparable
products (defined as meeting the same Specifications and same standards of
quality as the Qualified Products) and services, at comparable annual volumes,
with comparable allocation among all product profiles supplied under this
Agreement, over a long term basis at a substantially lower price than the
Prices determined under this Agreement (a “Lower Priced Offer”).  A Comparable Supplier means a competitor of
Daramic that is not in any way affiliated with, controlled or owned by Exide,
and that has reached the same level of international quality certification
(such as ISO or similar) for all of its manufacturing facilities as Daramic’s
plant in Selestat, France.  Exide must
immediately provide Daramic with written proof of any such Lower Priced Offer
(including price, volumes, product standards, terms and long term commitment to
supply at the price offered).  Daramic
shall have [*****] from receiving such notice to elect whether to adjust its
Prices under this Agreement to remain competitive.  It is understood that a Lower Priced Offer
shall not include spot purchase prices, or lower prices offered for only one or
a small number of product profiles or categories, or prices for products that
do not meet all of the Specifications, or prices for smaller volumes, or for
shorter periods of time than expected under this Agreement.  It is also understood that speculative offers
to suppply Comparable Products at some future date that are to be produced on
production equipment that is not currently installed or operational will not
qualify as a Lower Priced Offer.  If
Daramic chooses in its sole discretion not to adjust its Prices to remain
competitive, Exide shall have the right to purchase from another supplier until
Daramic’s Prices are again competitive with the Lower Priced Offer or the third
party ceases to be a Comparable Supplier. 
If Daramic elects to meet the qualified Lower Priced Offer, then Exide
shall continue purchasing all Qualified Products from Daramic at the lower
price.  Daramic and Exide shall review
these lower matching prices at least once each year to determine if the Lower
Priced Offer is still in effect.  If upon
review the third party has ceased to be a Comparable Supplier, or the Lower
Priced Offer is for any reason no longer valid, then Prices shall revert to the
level in effect immediately prior to Daramic having matched the Lower Priced
Offer.  Thereafter Prices shall be as
determined under this Section 4.

4.5           Notwithstanding the provisions of
Sections 4.2, 4.3 and 4.4 the ex-works prices charged to Exide and its
Affiliates by Daramic or its Affiliates for Separators will be no higher than
the prices for Separators having substantially similar attributes, standards
and qualities offered by Daramic or any of its Affiliates to any other customer
purchasing volumes substantially similar to those volumes purchased by Exide or
any of its Affiliates.

5.             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:

 

 

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Exide Corporation

12600 Deerfield Parkway

Alpharetta, GA 30004

Attention:  Accounts Payable

6.             Cost Reductions

Daramic and
Exide will use Customer-Supplier teams as a vehicle to identify and implement
cost reduction activities by Daramic associated with Qualified Products.  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.

7.             Research & Development

7.1           Daramic shall continue to provide
Qualified Product and battery testing services to Exide such as are currently
provided at its testing laboratories in Owensboro, Kentucky, and Hamburg,
Germany, or at such other laboratory as may be mutually agreed upon by the
parties.

7.2           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 Qualified Products.  The parties
intend to [*****] in all benefits (including cost savings) achieved through the
efforts of Daramic or of both parties.

7.3           When and if during the Term, Daramic,
through its sole efforts and without agreements of confidentiality or
exclusivity with a third party, develops a new separator for lead-acid
batteries and if such new separator is not subject to agreements with a third
party restricting the sale, use or disclosure of such new separator, Exide
shall have exclusive purchase rights for a period of six (6) months after
sample qualification and commercial availability to use such separator material
in commercial applications.  Said six (6)
month exclusive period shall commence after an Exide qualification period of
not more than six (6) months commencing on receipt of the first Daramic sample
material.  If within the six (6) month
qualification period,  Exide determines
it has no significant interest in said sample, Exide shall waive any
exclusivity of the sampled material.  A
lack of response by the end of the six (6) month period shall in and of itself
indicate Exide’s lack of interest and shall waive any rights.

8.             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,

 

 

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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.

9.             Forecasts

By October 1
of each calendar year (and July 1, 2001 for the first calendar year), Exide shall
provide Daramic with a written annual estimate of its Qualified Product
requirements for the next succeeding calendar year.  The estimate shall indicate Exide’s estimated
requirements for Qualified Product broken down by type for each of Exide’s locations
for that calendar year.  Commencing July
1, 2001, Exide shall also provide Daramic with quarterly delivery forecasts for
Qualified Products 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.

10.           Delivery

10.1         Delivery terms for Qualified Products
supplied under this Agreement shall be as follows:

a.                                       Qualified Products supplied to any Exide plant in
North, South or Central America shall be shipped [*****];

b.                                      Qualified Products supplied to any Exide plant in the
European Community (as of April 1, 2001), plus Norway or Poland, shall be
delivered [*****];

c.                                       Qualified Products shipped to other points shall be
supplied [*****] which shall be determined by Daramic in its reasonable
discretion.

Daramic
reserves the right to temporarily supply Qualified Products from alternate
manufacturing facilities should the need arise to ensure continuity of supply.

10.2         Provided that Exide’s actual orders
submitted are within ten percent (10%) above or below the quarterly forecasts
provided by Exide pursuant to Section 9, Daramic undertakes to deliver ordered
Qualified Products 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 Qualified Products, 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 Qualified Products 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 Qualified Products 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.  Exide can obtain these
undelivered quantities of Separators from a third party.  If Daramic notifies Exide of an ongoing

 

 

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inability to meet the
timely delivery requirements set forth in this section 10.2, then Exide can
make short term arrangements (not to exceed 30 days) to obtain only the
affected volume of Qualified Products from a third party.  However, once Daramic is again capable of
producing and supplying the required volumes on a timely basis, Exide shall resume
its purchases from Daramic in accordance with this Agreement.

11.           Warranties, Remedies and Limitations

11.1         Daramic warrants that the Qualified
Products used in the construction of lead-acid 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 Qualified Products if, in Daramic’s
opinion, its manufacture would constitute patent infringement.  Daramic makes no warranty against patent
infringement resulting from use of Qualified Products in combination with other
materials or in the operation of any process or resulting from the production
of Qualified Products 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 QUALIFIED PRODUCTS IN A GOOD AND WORKMANLIKE MANNER AND THAT THE QUALIFIED
PRODUCTS 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
QUALIFIED PRODUCTS 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.

 

 

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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 they 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 Daramic by Exide, Exide shall
pay, in addition to the Price of the Qualified Products, all taxes, duties,
excises or other charges for which Daramic 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 Qualified Products.

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

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

 

 

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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 Qualified Products 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 Qualified Products; 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
Qualified Products 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
not cured, then Exide shall have the right to acquire Separators from any

 

 

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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
shall be substituted for the “Agreement for the Supply of Battery Separators
for Lead Acid Starter and Industrial Batteries” of January 1, 1996, and amended
on December 15, 1999, by and between Exide and Daramic.  This Agreement now sets forth the entire
Agreement and understanding of the parties with respect to the transactions
contemplated hereby and supersedes all prior agreements or understandings
between the parties with respect thereto. 
However, this Agreement does not replace or affect the GCS 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.  If Exide desires to sell, assign
or otherwise transfer any of the assets or Affiliates that purchase Separators
under this Agreement, such transaction shall be subject to the prior written
approval of Daramic.  Daramic shall not
unreasonably withhold its consent provided that due consideration is given to
the current buying relationship between Daramic and the acquiring entity to
insure that Daramic continues to enjoy the incremental volume of business which
formed the basis for this Agreement over and above any volumes being purchased
by the acquiring entity or its Affiliates, and reasonable contracts are in
place to guarantee that Daramic will retain this incremental business throughout
the Term of this and any related Agreements.

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         During the Term of this Agreement,
Exide agrees not to manufacture Separators for its own internal use, and not to
manufacture Separators for or sell Separators to any third party.

 

 

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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:

  	
  [ILLEGIBLE]

  
	
   

  	
  Title:

  

 

 

11EXHIBIT 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 but will cooperate with Daramic in an effort to convince the
customer to accept a Daramic product or to qualify a Daramic product as soon as
practicable.  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 prices of raw
material, utilities, labor and insurance as of May 1, 2001 (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 

 

2

 

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
four percent (4%), 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 15% 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 15% of the alleged
overcharge amount as compensation for the business distraction incurred by
Daramic.

3.4           In case a competitor of Daramic of
equal qualification and offering comparable products and services offers a
lower price than Daramic’s Price for comparable products (defined as meeting the
same specifications and the same standards of quality as of the Golf Cart
Separators) at comparable annual volumes over a long term basis as contemplated
under this Agreement (a “Lower Priced Offer”), Exide will notify Daramic and
provide written proof of any such Lower Priced Offer (including price, volumes,
product standards, terms and long term commitment to supply at the price
offered).  Daramic shall have the option
within [*****] from receiving such notice to adjust its Price for Golf Cart
Separators to remain competitive with this Lower Priced Offer.  (It is understood that Daramic shall not be
required to continuously meet spot purchase prices or prices for products not
comparable or prices for smaller volumes or for shorter periods of time than expected
under this Agreement.)  It is also
understood that speculative offers to supply products at some future date that
are to be produced on production equipment that is not currently installed or
operational will not qualify as a Lower Priced Offer.  If Daramic chooses in its sole discretion not
to adjust its Prices to remain competitive, Exide shall have the right to
purchase from the offering third party supplier at the prices contained in the
Lower Priced Offer until Daramic’s Prices are again competitive with the Lower
Priced Offer.  If Daramic elects to meet
the qualified Lower Priced Offer, then Exide shall continue purchasing all Golf
Cart Separators from Daramic at the lower Price.  (However, any purchases at these lower
matched prices or below [*****] per square meter shall not count in
calculation of the GCS Credit under the North American Supply Agreement.)  Daramic and Exide shall review these lower
matching Prices at least once each year to determine if the Lower Priced Offer
is still in effect.  If upon review the
Lower Priced Offer is for any reason no longer valid, then Prices shall revert
to the level in effect immediately prior to Daramic having matched the Lower
Priced Offer.  Thereafter Prices shall be
as determined under this Section 3.

 

3

 

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           When and if during the Term, Daramic,
through its sole efforts and without agreements of confidentiality or
exclusivity with a third party, develops a new Golf Cart Separator and if such
new Separator is not subject to agreements with a third party restricting the
sale, use or disclosure of such new Separator, Exide shall have exclusive
purchase rights for a period of six (6) months after sample qualification and
commercial availability to use such Separator material in commercial
applications.  Said six (6) month
exclusive period shall commence after an Exide qualification period of not more
than six (6) months commencing on receipt of the first Daramic sample
material.  If within the six (6) month
qualification period,  Exide determines
it has no significant interest in said sample, Exide shall waive any
exclusivity of the sampled material.  A
lack of response by the end of the six (6) month period shall in and of itself
indicate Exide’s lack of interest and shall waive any rights.

 

4

 

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 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 

 

5

 

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 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 

 

6

 

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 Daramic by Exide, Exide shall
pay, in addition to the Price of the Golf Cart Separators, all taxes, duties,
excises or other charges for which Daramic 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

  
	
   

  	
   

  	
  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

  

 

7

 

	
   

  	
   

  	
  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.

 

8

 

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
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.  If Exide desires to sell, assign
or otherwise transfer any of the assets or Affiliates that purchase Separators
under this Agreement, such transaction shall be subject to the prior written
approval of Daramic.  Daramic shall not
unreasonably withhold its consent provided that due consideration is given to
the current buying relationship between Daramic and the acquiring entity to
insure that Daramic continues to enjoy the incremental volume of business which
formed the basis for this Agreement over and above any volumes being purchased
by the acquiring entity or its Affiliates, and reasonable contracts are in
place to guarantee that Daramic will retain this incremental business
throughout the Term of this and any related Agreements.

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.

 

9

 

17.8         During the term of this Agreement,
Exide agrees not to manufacture Separators for its own internal use, and not to
manufacture Separators for or sell Separators to any third party.

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:

  	
  [ILLEGIBLE]

  
	
   

  	
   

  	
  Title:

  

 

 

10

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