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Exhibit 4.5  

 
 

REGISTRATION RIGHTS AGREEMENT    
    

        THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement") is made as of June 25, 2007, by and among Huntsman
Corporation, a Delaware corporation (the "Corporation"), The Jon and Karen Huntsman Foundation, a Utah nonprofit corporation (the
"Foundation"), and Jon M. Huntsman, an individual ("JMH"). Capitalized terms used in this Agreement and
not otherwise defined shall have the meanings ascribed to such terms in that certain Registration Rights Agreement dated as of February 10, 2005 by and among the Corporation and the other
parties thereto (as amended, supplemented or otherwise modified from time to time, the "Registration Agreement"). 

        WHEREAS,
JMH plans to make a charitable contribution of up to 21,782,000 shares of the common stock (the "Contribution Shares") of the
Corporation to the Foundation (the "Contribution"); 

        WHEREAS,
each of JMH and the Foundation has rights to demand the registration of Registrable Securities pursuant to the Registration Agreement, and the parties desire to clarify such
rights pursuant to this Agreement; and 

        WHEREAS,
JMH and the Foundation have requested that the Corporation file a Registration Statement on Form S-3 to cover the potential resale of the Contribution
Shares by the Foundation (the "Contribution Resale Registration Statement"). 

        NOW,
THEREFORE, the Corporation, the Foundation and JMH hereby agree as follows: 

        Section 1.    Definition    

        "Filing Deadline" is the first time the Corporation may file the Contribution Resale Registration Statement under the applicable rules and
regulations of the U.S. Securities and Exchange Commission
("SEC") without violating any such applicable rules or regulations and without, in the discretion of the Corporation, creating any unreasonable risk of
a liability to the Corporation. 

        Section 2.    Registration Rights    

        The
Corporation shall prepare, and, as soon as practicable but in no event later than the Filing Deadline, file with the SEC the Contribution Resale Registration Statement covering the
resale of the Contribution Shares. 

        Section 3.    Other Matters    

        All
other matters relating to the Contribution Resale Registration Statement, including, without limitation, registration expenses, indemnification, contribution and miscellaneous, shall
be governed by the terms and conditions of the Registration Agreement. This Agreement may be executed in identical counterparts, each of which shall be deemed an original but all of which shall
constitute one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile transmission of a copy of this Agreement bearing the signature
of the party so delivering this Agreement. 

[signature page follows]

 

        IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above. 

	 	 	HUNTSMAN CORPORATION
	

 	
 	

By:	

/s/  SEAN DOUGLAS      
 Sean Douglas
	 	 	Its:	Vice President and Treasurer
	

 	
 	

THE JON AND KAREN HUNTSMAN

FOUNDATION
	

 	
 	

By:	

/s/  PAUL C. HUNTSMAN      
 Paul C. Huntsman
	 	 	Its:	Vice President
	

 	
 	

By:	

/s/  JON M. HUNTSMAN      
 Jon M. Huntsman, an individual

2

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REGISTRATION RIGHTS AGREEMENTEXHIBIT
10.20

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

NORTH
AMERICAN

SUPPLY AGREEMENT

This Supply Agreement (“Agreement”)
made and entered into as of the 15th of December, 1999, by and between Daramic,
Inc., a Delaware corporation (hereinafter called “Daramic”), and Exide
Corporation, a Delaware corporation (hereinafter called “Exide”).

RECITALS

A.            Exide is in the business of
manufacturing batteries and Daramic is in the business of manufacturing battery
separators.

B.            Daramic manufactures and sells
separators from various facilities, including a facility in Corydon, Indiana,
that Daramic is today acquiring from Exide and an affiliate of Exide pursuant
to an Asset Purchase Agreement dated as of November 3, 1999, between Exide, an
affiliate of Exide and Daramic (the “Purchase Agreement”).  Capitalized terms not otherwise defined in
this Agreement will have the meanings given to them in the Purchase Agreement.

C.            Pursuant to Section 2.2(e) of the
Purchase Agreement, Exide and Daramic agreed to enter into a Supply Agreement
pursuant to which Exide would agree to purchase from Daramic, and Daramic would
agree to sell to Exide, separators for use in Exide’s North American production
facilities.

D.            Exide and Daramic wish to enter into
this Agreement to set forth the terms and conditions of the Supply Agreement
contemplated by Section 2.2(e) of the Purchase Agreement.

NOW THEREFORE,
the parties agree as follows:

1.                                       Definitions

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

“Affiliates”
shall mean any entity in which either Daramic or Exide, directly or indirectly,
owns or controls fifty percent (50%) or more of the ownership indicia.

“Contract
Year” shall mean each successive twelve (12) month period during the Term
hereof, commencing on the Effective Date.

“Effective
Date” shall mean the date of this Agreement.

“Industrial
Price Index” shall mean the Industrial Price Index published by the Journal of
Commerce.

“North
America” shall mean the United States and its territories and Canada.

 

 

 

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

“Prices”
shall mean the initial prices for Separators as set forth in Exhibit A attached
hereto, as adjusted from time to time as set forth in Section 4.2 hereof.

“Separator”
shall mean polymeric, microporous and/or similar battery separators for use in
batteries and which are currently being manufactured by Exide for its own use
utilizing the manufacturing equipment and facilities currently located at the
Corydon, Indiana, facility.  Current
products which meet this requirement 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.

“Specifications”
shall mean the specifications for the Separators set forth in Exhibit B
attached hereto which may be amended from time to time only by mutual written
agreement of the parties.

“Term” shall
mean the term of this Agreement pursuant to Article 3 hereof.

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, [*****] of Exide’s requirements
for Separators for use in producing batteries in Exide’s North American
manufacturing facilities, which requirements shall be no less than [*****] of
Separators (which will represent a total of approximately [*****] of
Separators), of which no less than [*****] of such Separators will have a back
web thickness of 7 mils (.007”) (hereinafter referred to as Exide’s “Minimum
Purchase Requirement”).  Exide’s
purchases for use in producing batteries outside of North America 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;
provided, however, that such customers are purchasing Separators from Daramic
at the time of the applicable transaction with Exide.  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 Agreement.

 

2

 

2.2.          If Exide sells all or substantially all of its assets to
any of Daramic’s Customers, only purchases for use at the Exide battery
manufacturing facilities existing at the time of the sale will count toward
satisfying the Minimum Purchase Requirement. 
Other purchases by or on behalf of Exide’s new owner shall not count
toward the Minimum Purchase Requirement.

2.3.          If Exide fails to meet its Minimum Purchase Requirement in
any Contract Year, then Exide agrees to pay Daramic, within two (2) months
after the close of the applicable Contract Year, 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.

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
[*****] (which will represent 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 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 April 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 twelve
months.  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 four weeks.

3.                                       Term of Agreement

The Term of
this Agreement shall be from the Effective Date through December 15, 2009.

4.                                       Prices

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

 

3

 

4.2.          Subject to the other terms of this Agreement, Prices shall
remain firm from the Effective Date to December 31, 2000 and are subject to
annual revisions thereafter by Daramic to reflect any Substantial Change (as
defined below) in Daramic’s cost to manufacture Separators.  These prices are based on current prices of
raw material, utilities, labor and insurance (collectively, “Manufacturing
Costs”).  In the event there is a
Substantial Change in Daramic’s Manufacturing Costs, Daramic will adjust the
Price for Separators from time to time while this Agreement is in effect (but
not more often than once per year for each type of 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 the Effective Date.  If an
adjustment in Price for a type of 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 Separator. 
Prices will also be adjusted based on cost reductions achieved as
contemplated by Sections 6 and 7.3 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.

4.4.          In the event that the volume of Separators purchased by
Exide during any Contract Year exceeds the Minimum Purchase Requirement, Exide
shall be entitled to receive a rebate from Daramic equal to [*****] of the
Prices paid by Exide for such Separators in excess 

 

4

 

of the Minimum Purchase Requirement; provided,
however, that Exide shall only be entitled to receive a rebate from Daramic on
up to a maximum of [*****] of Separators purchased by Exide.  Daramic shall, at Exide’s option, either (a)
pay such rebate to Exide within five (5) business days of the date of receipt
by Daramic of payment from Exide for any such excess Separators, or (b)
promptly apply such rebate against any outstanding or future invoices payable
to Daramic by Exide.

5.                                       Payment Terms

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

Exide Corporation

645 Penn Street

Reading, Pennsylvania
19601

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 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 [*****] sharing of the cost savings actually accomplished.  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 separator 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.          Daramic will provide equipment engineering services
(enveloping and assembly equipment) and consultation to Exide’s plants as may
be reasonably requested by Exide.  The
exact nature and payment for such services and consultation shall be mutually
agreed upon in advance by the parties.

7.3.          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
Separators.  The parties intend to
[*****] in all benefits (including cost savings) achieved through the efforts
of Daramic or of both parties.

 

5

 

7.4.          Daramic agrees to make available to Exide any product
enhancement that is developed solely by and originates solely with Daramic at
no later than the same time it is offered by Daramic to any third party and on
terms no less favorable than those offered to any third party.  However, Daramic shall not be required to
offer any product enhancements that are developed by Daramic to Exide if doing
so would violate any contractual obligation of Daramic to any third party.  Daramic agrees to make available to Exide any
product enhancement jointly developed by the parties before it is offered to
any third party and on terms no less favorable than those offered to any third
party; provided, however, that such jointly-developed enhancements will not be
offered to any third party if doing so would violate any agreement between
Daramic and Exide.

8.                                       Delivery

8.1.          Delivery of 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.

8.2.          Provided that Exide’s actual orders submitted are within
ten percent (10%) above or below the quarterly forecasts provided by Exide
pursuant to Section 2.5, Daramic undertakes to deliver ordered 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 will be no
less than seven (7) days and no more than fourteen (14) days after submission
of a firm order by Exide.  If Daramic is
unable to deliver product ordered by Exide within fourteen (14) business days
after the mutually agreed delivery date, then Daramic will provide Exide with
as much notice as possible of its inability to do so, and Exide will have the
right to buy the affected volumes from an alternative source.  These outside purchases will be counted
toward satisfaction of Exide’s Minimum Purchase Requirement.  The parties agree that they shall work
together in good faith to obtain for Exide battery separators which the parties
mutually agree to be the best available substitute for the Separators to be
provided by Daramic pursuant to this Agreement during such period as Daramic is
unable to deliver product ordered by Exide pursuant to this Agreement.  In the event that the cost of such substitute
separators is greater than the Prices for the Separators, Daramic will promptly
reimburse Exide for the amount of such difference.  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.

9.                                       QS9000
Certification

Daramic will
use reasonable good faith efforts to obtain QS9000 certification for the
Corydon facility (and/or any other facility or facilities at which Separators
are produced for Exide) within two (2) years of the Effective Date.  If, despite such efforts by Daramic, it is
unable to obtain certification within the proscribed time period, Exide may not
cancel or 

 

6

 

terminate
this Agreement, so long as Daramic continues to use its reasonable good faith
efforts to obtain certification.

10.                                 Specifications

Specifications
may not be modified, superseded or otherwise altered except by written
agreement signed by authorized representatives of Daramic and Exide.  No standard shall be ascribed beyond the
manufacturing capabilities of the equipment and facilities being purchased by Daramic
from Exide pursuant to the Purchase Agreement unless mutually agreed to in
writing by both parties.

11.                                 Confidentiality

11.1.        The term “Confidential Information” as used herein means any
and all information, know-how, data, specifications, formulae, techniques,
processes and business information concerning Daramic’s Separators or battery
manufacturing equipment provided by Daramic or concerning Exide’s batteries,
their manufacture or use, disclosed by one party to the other and identified as
confidential to the receiving party or its affiliates, except that Confidential
Information shall not include:

(a)           Information which at the time of disclosure is in the
public domain or which after disclosure is published or otherwise becomes part
of the public domain through no fault of the receiving party;

(b)           Information which the receiving party can document as
having been in its possession at the time of its disclosure by the other party
under this Agreement; and

(c)           Information which the receiving party can document as
having been in its possession after the time of its disclosure by the other
party under this Agreement from a third party who did not acquire it directly
or indirectly under an obligation of confidence.

11.2.        The parties agree that during the term of this Agreement, and
for a period of ten (10) years subsequent to the termination or expiration of
this Agreement (regardless of the cause of termination), they and/or any of
their Affiliates will not use Confidential Information for any purpose other
than for the purpose of this Agreement and will not disclose or otherwise
publish Confidential Information to third parties without the other party’s
express prior written consent, except as is required to be disclosed by
applicable law, rule or regulation or by court order.  The terms and conditions of this Agreement
shall be kept confidential, except as may be required by applicable law.

12.                                 Warranties,
Remedies and Limitations

12.1.        Daramic warrants that the Separators 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 

 

7

 

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
Separators if, in Daramic’s opinion, its manufacture would constitute patent
infringement.  Daramic makes no warranty
against patent infringement resulting from use of Separators in combination
with other materials or in the operation of any process or resulting from the
production of Separators using specifications approved, provided or required by
Exide, and if a claim, suit or action is based thereon, Exide shall defend,
indemnify and hold Daramic harmless therefrom.

12.2.        DARAMIC WARRANTS THAT IT WILL PRODUCE THE SEPARATORS IN A
GOOD AND WORKMANLIKE MANNER AND THAT THE 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 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 12. 
THE REMEDIES OF EXIDE FOR ANY BREACH OF THE WARRANTIES SET FORTH IN THIS
SECTION 12 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.

13.                                 Force Majeure

13.1.        Exide acknowledges that the Separators are to be specially
manufactured by Daramic to fulfill this Agreement and delivery dates are based
on the assumption that there will be no delay due to causes beyond the
reasonable control of Daramic.  Daramic
shall not be charged with any liability for delay or nondelivery when due to
delays of suppliers, acts of God or the public enemy, compliance with any
applicable foreign or domestic court order, law or governmental rule or
regulation, whether or not it proves to be invalid, fires, riots, labor
disputes, unusually severe weather, or any other cause similar or dissimilar
beyond the reasonable control of Daramic (“Force Majeure Event”).

13.2.        During the period when deliveries are affected by the Force
Majeure Event, Daramic may suspend or reduce the quantities to be delivered,
but this Agreement shall remain otherwise in effect unless such Force Majeure
Event substantially affects delivery for over 90 consecutive days.  Daramic shall endeavor to allocate any
available Separators among all buyers including its own divisions and
affiliates in such manner as it considers fair.

 

8

 

13.3.        Any other provisions contained in this Section 13 to the
contrary notwithstanding, in the event that Daramic fails due to a Force
Majeure Event to supply the necessary quantity of Separators which conform to
the Specifications to Exide to meet the battery manufacturing requirements of
Exide without interruption of such manufacturing (and provided that Exide has
reasonably forecast demand under Section 2.5 above), or if such a failure is
reasonably likely to occur, Daramic shall promptly notify Exide of such failure
and Exide shall have the right to acquire substitute Separators from any
available source in such quantities as are necessary to meet the manufacturing
requirements of Exide until Daramic is able to supply the requisite quantity of
Separators to Exide.  If Exide submits a
firm purchase order, but Daramic fails or appears reasonably likely to fail to
deliver, and Exide purchases the ordered quantity from a third party, then such
quantity shall count toward satisfaction of Exide’s Minimum Purchase
Requirement.  The parties agree that they
shall work together in good faith to obtain for Exide battery separators which
the parties mutually agree to be the best available substitute for the Separators
to be provided by Daramic pursuant to this Agreement during such period as
Daramic fails or appears reasonably likely to fail to supply the necessary
quantity of Separators which conform to the Specifications to Exide to meet the
battery manufacturing requirements of Exide without interruption of such
manufacturing.  Once Daramic is again
capable of producing and supplying the necessary quantity of Separators which
conform to the Specifications, Exide shall resume its purchases from Daramic in
accordance with this Agreement.

14.                                 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 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 production, storage, sale, transportation and/or use of the Separators.

15.                                 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:

 

9

 

Jerry Zucker
or James G. Boyd

Daramic,
Inc.

4838 Jenkins
Avenue

North
Charleston, SC 29405

Facsimile:
(843) 747-4092

 

If to Exide:

Exide
Corporation

645 Penn
Street

Reading, PA
19601

Facsimile
No: 610/371-0462

Attention:
Vice President - Purchasing and Vice President - Manufacturing.

 

with a copy
to:

Exide
Corporation

2901 Hubbard
Road

Ann Arbor,
MI 48105

Facsimile
No.: 734/827-2575

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.

16.                                 Orders

Order
releases for 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 mode of transportation of 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 Separators under this Agreement.

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

17.1.        This Agreement and all sales made hereunder shall be deemed
to be made under the laws of the State of Delaware and shall be construed in
accordance therewith and all provisions hereof shall be interpreted in
accordance with the plain English meaning of its words, all local customs and
usages of trade to be excluded.

17.2.        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 

 

10

 

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.

18.                                 General

18.1.        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 manufacturing requirements of Exide.  If Exide purchases Separators from any third
party in accordance with this Section 18.1, such purchases shall count towards
satisfaction of Exide’s Minimum Purchase Requirement.  The parties agree that they shall work
together in good faith to obtain for Exide battery separators which the parties
mutually agree to be the best available substitute for the Separators to be
provided by Daramic pursuant to this Agreement during such period as Daramic is
unable to cure such breach or violation. 
In the event that the cost of such substitute separators is greater than
the Prices for the Separators, Daramic will promptly reimburse Exide for the
amount of such difference.  Once Daramic
is able to cure such breach or violation, Exide shall resume its purchases from
Daramic in accordance with this Agreement.

18.2.        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.  In
particular, this Agreement supersedes and replaces that certain contract
between the parties dated June 28, 1991. 
However, this Agreement does not replace or affect the Agreement for the
Supply of Battery Separators for Lead-Acid Starter and Industrial Batteries
between the parties dated September 29, 1995, as amended simultaneously
herewith.

18.3.        This Agreement is not assignable or transferable by either
party except to its successor or the transferee of all or substantially all of
said party’s business and assets to which this Agreement relates, and shall be
binding upon and inure to the benefit of the parties, their respective
Affiliates and their successors and permitted assigns.  Each party will cause its Affiliates to abide
by the terms and conditions of this Agreement.

18.4.        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.

18.5.        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.

 

11

 

18.6.        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.

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

	
  Daramic, Inc.

  	
   

  
	
   

  
	
  By:

  	
  [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  Secretary

  	
   

  
	
   

  
	
  Exide Corporation

  	
   

  
	
   

  
	
  By:

  	
  [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  VICE PRESIDENT

  	
   

  

 

 

 

12

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