Document:

exv10w2

EXHIBIT 10.2

AMENDMENT NUMBER TWO TO

CHANGE IN CONTROL SEVERANCE AGREEMENT

     THIS AMENDMENT to the Change in Control Severance Agreement (“Amendment”) is made and entered
into as of the ___day of                     , 2010, by and between COUSINS PROPERTIES INCORPORATED, a
Georgia corporation (“Company”) and                      (“Executive”).

W I T N E S S E T H:

     WHEREAS, Executive and the Company entered into a Change in Control Severance Agreement dated
the ___day of                     , 2007, as amended by Amendment Number One to the Change in Control
Severance Agreement (“Agreement”);

     WHEREAS, the Company wishes to amend the Agreement to make certain clarifications in light of
Internal Revenue Code § 409A and certain other changes, including to the Protective Covenant
Agreement which is Exhibit A to the Agreement;

     NOW, THEREFORE, in consideration of the mutual agreements of the parties set forth in this
Amendment and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereby agree as follows:

§ 1.

     By amending the second sentence of Section 2.1(i) to read as follows and by substituting
“such” for “each” whenever “each” appears in the third sentence of Section 2.1(i):

Such payment shall (subject to Section 4) be made in full in accordance with the provisions
of this Agreement on the date set forth in Section 2.2.

§ 2.

     By amending Section 2.2, Protective Covenant Agreement; Waiver and Release, to add the
following language at the end of such section:

The Company shall provide such Protective Covenant Agreement and Waiver and Release within
the five day period immediately following the date Executive separates from service (within
the meaning of Section 409A of the Code). The payment and benefits under the Agreement
shall (subject to the six month and one day rule in Section 4) be made on or commence (as
applicable) on the sixtieth (60th) day after the date Executive separates from
service (unless an earlier date is permissible under Section 409A of the Code) provided the
Protective Covenant Agreement and the Waiver and Release have been executed and become
irrevocable on or before such date. If the Protective Covenant Agreement is not executed or
the Waiver and Release is not
executed and irrevocable on or before the end of the sixty (60) day period immediately
following Executive’s separation from service (within the meaning of Section 409A of

 

 

the
Code), Executive’s right to all such payments and benefits shall be immediately forfeited.

§ 3.

     By amending Section 2.6, Transfer of Employment, to clarify any ambiguity in such
section and to read as follows:

2.6 Transfer of Employment. If Executive transfers employment between the Company
and a subsidiary or affiliate of the Company or any successor hereto, the Company shall
assign this Agreement to such subsidiary, affiliate or successor, which shall become the
“Company” for all purposes hereunder, and such transfer of employment shall not be treated
as a termination of Executive’s employment by the Company under this Agreement.

§ 4.

By adding a new Section 2.8, Clawback, to read as follows:

2.8 Clawback. The Company has the right to take any action which the Compensation
Committee reasonable determines is required for the Company to comply with the clawback
provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

§ 5.

     By amending the first sentence of Section 4, Section 409A Deferral, to read as
follows:

To the extent that Executive is a “specified employee” within the meaning of Section 409A of
the Code, any payment or benefit (or portion thereof, if applicable) under this Agreement,
including, but not limited to, any payment under Section 3, shall be deferred to the first
pay date following the date which is six (6) months and one (1) day after the Executive has
a “separation of service” within the meaning of Section 409A.

§ 6.

     By replacing Exhibit A, Protective Covenant Agreement, with a new Protective Covenant
Agreement, to read as set forth on Exhibit A to this Amendment.

     IT WITNESS WHEREOF, the parties hereto have executed this Amendment to be effective as of the
            day of                  
               , 20       .

“Company”

	 	 	 	 	 
	 	COUSINS PROPERTIES INCORPORATED

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

- 2 -

 

	 	 	 	 	 

	 	 	 	 	 
	 	“Executive”

 	 
	 	  	 	 
	 	 	Name:  	 	 
	 	 	 	 

- 3 -

 

	 	 	 	 	 

Exhibit A

Protective Covenant Agreement

     The attached Protective Covenant Agreement is to be given to [                                        ] (“Executive”)
upon the occurrence of an event that triggers eligibility for severance benefits following a Change
in Control, as defined and described in that certain Change in Control Severance Agreement, dated
as of the             day of                     , 20            , by and between Executive and Cousins Properties Incorporated.

 

 

PROTECTIVE COVENANT AGREEMENT

     THIS PROTECTIVE COVENANT AGREEMENT (this “Protective Covenant Agreement”) is made and entered
into as of the                      day of                     , 20___ by and between COUSINS PROPERTIES INCORPORATED, a
Georgia corporation (the “Company”), and [                                        ] (“Executive”).

W I T N E S S E T H:

     WHEREAS, Executive is a party to that certain Change in Control Severance Agreement (the
“Severance Agreement”), dated as of the                      day of                     , 20 ___, by and between Executive
and the Company;

     WHEREAS, pursuant to the Severance Agreement, Executive is entitled to receive certain
benefits in the event of a termination of Executive’s employment with the Company following a
“change in control,” as defined in the Severance Agreement;

     WHEREAS, Executive’s employment with the Company has terminated in accordance with the
provisions of the Severance Agreement and Executive desires to elect to accept the benefits
described therein;

     WHEREAS, a condition to Executive’s receipt of the full benefits provided under the Severance
Agreement is Executive’s execution and delivery of this Protective Covenant Agreement imposing
certain reasonable restrictions on Executive’s activities;

     WHEREAS, the benefits Executive will receive under the Severance Agreement are in excess of
those benefits Executive would receive from the Company if Executive elected not to execute and
deliver this Protective Covenant Agreement; and

     WHEREAS, Executive and the Company desire to execute and deliver this Protective Covenant
Agreement in accordance with the Severance Agreement;

     NOW, THEREFORE, in consideration of the premises, Ten Dollars ($10.00) in hand paid, the
mutual promises, covenants and agreements contained herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:

	1.	 	Definitions. For the purposes of this Protective Covenant Agreement, the following
terms shall have the following meanings:

	 	(a)	 	“Company’s Business” shall mean the business of the development,
acquisition, financing, management, leasing and sale of real estate properties,
including office, multi-family, retail, industrial and land development.

 

 

	 	(b)	 	“Confidential Information” shall mean any non-public information
concerning the business of the Company that is or has been disclosed to Executive or of
which Executive became aware as a consequence of Executive’s relationship with the
Company and which has value to the Company and is not generally known to the Company’s
competitors, including its financial performance, results or prospects, and any
non-public information provided by a third party with the expectation that the
information will be kept confidential and used solely for the business purpose for
which it was conveyed. “Confidential Information” may include, but is not limited to:
(i) information about the Company’s employees, customers, clients, tenants, buyers
and/or sellers; (ii) business and employment policies, marketing methods and the
targets of those methods, finances, business plans, promotional materials and price
lists; (iii) the terms upon which the Company obtains products or information from its
suppliers and sells them to or utilizes them on behalf of or in service of its
customers, clients, tenants, buyers and/or sellers; (iv) the nature, origin,
composition and development of the Company’s products or services; (v) the manner in
which the Company provides products and services to its customers, clients, tenants,
buyers and/or sellers; and (vi) the terms and conditions of this Protective Covenant
Agreement and the Severance Agreement. Confidential Information shall not include any
data or information that has been voluntarily disclosed to the public by the Company
(except where such public disclosure was made by the Executive without authorization)
or that has been independently developed and disclosed by others, or that otherwise
enters the public domain through lawful means.
	 
	 	(c)	 	“Protective Covenants” shall mean those covenants set forth in
Paragraphs 2, 3, 4 and 5 of this Protective Covenant Agreement.
	 
	 	(d)	 	“Protective Period” shall mean a period equal to the shorter of (i) two
years or (ii) the number of years, or portion thereof, used as a multiplier to
determine Executive’s benefit under the Change in Control Severance Agreement;
provided, however, if Executive is the owner of or a “Seller” within the meaning of
O.C.G.A. § 13-8-17 of all or a material part of (1) the assets of the Company, (2)
shares of the Company, (3) a partnership interest, (4) a limited liability company
membership, or (5) an equity interest or profit participation, of any type, in the
Company following the termination of his employment and the period in Section 1(d)(ii)
is longer than two years, ‘Protective Period” shall mean the period described in
Section 1(d)(ii).
	 
	 	(e)	 	“Restricted Territory” shall mean a fifteen (15) mile radius from any
and all of the Company’s projects set forth on the list attached hereto as Schedule
1 and incorporated herein by reference. Schedule 1 shall be prepared by
the Company in its sole discretion.
	 
	 	(f)	 	“Trade Secrets” shall mean any technical or non-technical data,
formula, pattern, compilation, program, device, method, technique, drawing, process,
financial data, financial plan, product plan, list of actual or potential customers or
suppliers or other information similar to any of the foregoing, which (i) derives
economic

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	 	 	 	value, actual or potential, from not being generally known to, and not
being readily ascertainable by proper means by, other persons who can derive economic
value from its disclosure or use and (ii) is the subject of efforts that are
reasonable under the circumstances to maintain its secrecy.

	2.	 	Confidentiality.
	 
	 	 	Executive agrees that Executive will not (without the prior written consent of the Company)
directly or indirectly use, copy, disclose or otherwise distribute to any other person or
entity: (i) any Confidential Information for so long as such information remains
Confidential Information. or (ii) any Trade Secret at any time such information constitutes
a trade secret under applicable law. Executive shall promptly return to the Company all
documents and items in Executive’s possession or control which contain any Confidential
Information or Trade Secrets. Executive further agrees that if Executive is questioned
about information subject to this Protective Covenant Agreement by anyone not authorized to
receive such information, Executive will promptly notify Executive’s former supervisor or an
officer of the Company.
	 
	3.	 	Non-Competition.
	 
	 	 	Executive agrees that for the Protective Period Executive will not (without the prior
written consent of the Company), either on Executive’s behalf or on behalf of any other
legal entity, compete with the Company’s Business within the Restricted Territory by
performing executive leadership and management activities substantially similar to those
performed by Executive for the Company within two (2) years prior to the termination of
Executive’s employment.
	 
	4.	 	Non-Solicitation.

	 	(a)	 	Executive agrees and covenants that for the Protective Period Executive shall
not solicit or attempt to solicit, directly or by assisting others, any business from
any of the Company’s customers, including actively sought prospective customers, with
whom Executive has material contact during Executive’s employment for purposes of
providing development, acquisition, financing, management, leasing and sale of real
estate properties, including office, multi-family, retail, industrial and land
development, products or services that are competitive with those provided by the
Company.
	 
	 	(b)	 	For purposes of this paragraph, products or services shall be considered
competitive with those provided by the Company if products or services are of the type
conducted, authorized, offered or provided by the Company within two (2) years prior to
the termination of Executive’s employment.
	 
	 	(c)	 	For purposes of this Agreement, the term “material contact” shall mean contact
between Executive and each customer or potential customer (1) with whom Executive dealt
on behalf of the Company, (2) whose dealings with the Company were coordinated or
supervised by Executive, (3) about whom the Executive obtained Confidential Information
in the ordinary course of business as a result of

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	 	 	 	Executive’s association with the Company or (4) who receives products or services
authorized by the Company, the sale or possession of which results or resulted in
compensation, commissions, or earnings for Executive within two (2) years prior to
the termination date of Executive’s employment.

	5.	 	Non-Recruitment of Employees.
	 
	 	 	Executive agrees that for the Protective Period Executive will not (without the prior
written consent of the Company) directly or indirectly solicit or attempt to solicit any
employee of the Company with whom Executive had direct personal contact during Executive’s
employment with the Company to terminate or lessen that party’s affiliation with the Company
or to violate the terms of any agreement or understanding between such employee and the
Company.
	 
	6.	 	Acknowledgments.
	 
	 	 	[Section 6 may be tailored by the Company in its discretion for the Executive prior to
execution of the Protective Covenant Agreement.]

	 	(a)	 	Executive hereby acknowledges and agrees that the Protective Covenants are
reasonable as to time, scope and territory given the Company’s need to protect its
business, personnel, Trade Secrets and Confidential Information. Executive
acknowledges and represents that Executive has substantial experience and knowledge and
that Executive can readily obtain subsequent employment without violating the
Protective Covenants. In the event any of the Protective Covenants shall be determined
by any court having proper jurisdiction to be unenforceable by reason of its extending
for too great a period of time or over too great a geographical area or by reason of
its being too extensive in any other respect, it shall be interpreted to extend only
over the maximum period of time for which it may be enforceable and/or over the maximum
geographical area as to which it may be enforceable and/or to the maximum extent in all
other respects as to which it may be enforceable, all as determined by such court in
such action.

	 	(b)	 	Executive acknowledges and agrees that during the Term of Executive’s
employment with the Company Executive has and will continue to have access to
Confidential Information (as defined below) and Trade Secrets (as defined below) and
that unauthorized or improper use or disclosure by Executive of such Confidential
Information or Trade Secrets will cause serious and irreparable harm to the Company.
Executive acknowledges that an important part of Executive’s duties have been and will
continue to be to advance the business of the Company by directly or through the
supervision of others, developing and maintaining substantial relationships with
prospective or existing customers, patients, vendors or clients of the Company and/or
developing and maintaining the goodwill of the Company associated with an (1) ongoing
business, commercial or professional practice, including but not limited to a trade
name, trademarks, service marks, or trade dues, or (2) a specific geographic location,
or (3) a specific marketing or

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	 	 	 	trade area. Executive acknowledges that Executive has and will continue to be
provided extensive/specialized training as a part of Executive’s employment.

	 	(c)	 	Executive acknowledges and agrees that during the Term of Executive’s
employment with the Company, Executive has and will continue to in the course of
Executive’s employment customarily and regularly solicit for the Company customers or
prospective customers and/or customarily and regularly engage in making sales or
obtaining orders or contracts for products or services to be performed by others,
and/or perform each of the following duties: (1) have the primary duty of managing the
business in which the Executive is employed or of a customarily recognized department
of subdivision thereof; (2) customarily and regularly direct the work of two or more
employees; and (3) have the authority to hire or fire other employees or have
particular weight given to Executive’s suggestions and recommendations as to the
hiring, firing, advancement, promotion, or any other change of status of other
employees and/or by reason of the Company’s investment of time, training, money, trust,
exposure to the public, or exposure to customers, vendors, or other business
relationships, (1) gain a high level of notoriety, fame, reputation, or public persona
as the Company’s representative or spokesperson or (2) a high level of influence or
credibility with the Company’s customers, vendors, or other business relationships
and/or be intimately involved in the planning for or direction of the business of the
Company or a defined unit of the business of the Company and/or obtain selective or
specialized skills, knowledge, abilities, or customer contacts or information.
Executive and the Company recognize, acknowledge and agree that Executive’s primary
duties for the Company have and will continue to be the performance of work requiring
knowledge of an advanced type in a field of science or learning customarily acquired by
a prolonged course of specialized intellectual instruction or requiring invention,
imagination, originality, or talent in a recognized field of artistic or creative
endeavor.

	7.	 	Specific Performance.
	 
	 	 	Executive acknowledges and agrees that any breach of the Protective Covenants by Executive
will cause irreparable damage to the Company, the exact amount of which will be difficult to
determine, and that the remedies at law for any such breach will be inadequate.
Accordingly, Executive agrees that, in addition to any other remedy that may be available at
law, in equity, under the Severance Agreement, or hereunder, the Company shall be entitled
to specific performance and injunctive relief, without posting bond or other security to
enforce or prevent any violation of any of the Protective Covenants by Executive. The
existence of any claim or cause of action by Executive against the Company, including any
dispute relating to the termination of the Severance Agreement, shall not constitute a
defense to enforcement of any of the Protective Covenants by injunction.

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	8.	 	Indemnification.
	 
	 	 	Executive hereby indemnifies and agrees to defend and hold harmless the Company and its
employees, officers, directors, agents, representatives, affiliates and independent
contractors from and against any and all damages, losses, costs (including, without
limitation, court costs and attorneys’ fees), settlements, suits, actions, expenses,
liabilities and claims of any kind caused by or resulting from any breach of this Protective
Covenant Agreement by Executive

	9.	 	Construction.
	 
	 	 	The Protective Covenants shall be presumed to be enforceable, and any reading causing
unenforceability shall yield to a construction permitting enforcement. If any one of the
Protective Covenants shall be found unenforceable, it shall be severed and the remaining
Protective Covenants enforced in accordance with the tenor thereof.
	 
	10.	 	Miscellaneous.

	 	(a)	 	Assignment. Executive shall not assign this Protective Covenant
Agreement, in whole or in part, without the prior written consent of the Company, and
any attempted assignment not in accordance herewith shall be null and void and of no
force or effect. The Company may assign this Protective Covenant Agreement to any of
its subsidiaries or affiliates or to its successor following a Change in Control.
	 
	 	(b)	 	Binding Effect. This Protective Covenant Agreement shall inure to the
benefit of and shall be binding upon the parties hereto and their respective successors
and assigns.
	 
	 	(c)	 	Survival. This Protective Covenant Agreement and all covenants and
agreements made herein shall survive the execution and delivery hereof.
	 
	 	(d)	 	Amendment and Termination. This Protective Covenant Agreement,
including all exhibits, may be amended or terminated only by a writing executed by the
parties hereto.
	 
	 	(e)	 	Construction. This Protective Covenant Agreement shall be construed in
accordance with and governed by the laws of the State of Georgia, to the extent not
preempted by federal law, disregarding any provision of law which would require the
application of the law of another state. No provision of this Protective Covenant
Agreement or any related document shall be construed against or interpreted to the
disadvantage of any party by reason of such party having, or having deemed to have,
structured or drafted such provision.
	 
	 	(f)	 	Headings. The section and paragraph headings contained herein are for
reference purposes only and shall not affect in any way the meaning or interpretation
of this Protective Covenant Agreement.
	 
	 	(g)	 	Notices. Except as otherwise expressly provided herein, all notices,
requests, comments and other communications under this Protective Covenant Agreement

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	 	 	shall be in writing and shall be deemed to be given when delivered personally or
mailed first class, registered or certified mail, postage prepaid, in any case,
addressed as follows:

(i) If to Executive:

 

 

 

(ii) If to the Company:

Cousins Properties Incorporated

191 Peachtree Street, Suite 3600

Atlanta, GA 30303-1740

Attention: Corporate Secretary

With a copy to:

Cousins Properties Incorporated

191 Peachtree Street, Suite 3600

Atlanta, GA 30303-1740

Attention: Senior Human Resources Officer

	(h)	 	Counterparts. This Protective Covenant Agreement may be executed in
multiple counterparts, each of which shall constitute an original, but all of which
together shall constitute one and the same instrument.
	 
	(i)	 	Severability. In the event that any provision or portion of this
Protective Covenant Agreement shall be determined to be invalid or unenforceable for
any reason, in whole or in part, the remaining provisions hereof shall be unaffected
thereby and shall remain in full force and effect to the fullest extent permitted by
law.
	 
	(j)	 	No Waiver. No waiver by any party hereto of any breach by any party of
any condition or provision contained herein shall be deemed a waiver of any other
condition or provision hereof. Any waiver must be in writing and signed by Executive
or an authorized officer of the Company, as the case may be.
	 
	(k)	 	Attorneys’ Fees and Costs. Should Executive or the Company be required
to commence an action in any court of competent jurisdiction to enforce this Protective
Covenant Agreement, such party shall be entitled to recover its attorneys’ fees and
costs, to the extent that such party is the prevailing party.

[Remainder of page intentionally left blank]

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     IN WITNESS WHEREOF, the parties hereto have executed this Protective Covenant Agreement to be
effective as of the day and year first above written.

	 	 	 	 	 
	 	“Company”

COUSINS PROPERTIES INCORPORATED

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	“Executive”	 
	 	 	 
	 	 	 
	 	Name:	 
	 	 	 

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Schedule 1

to

Protective Covenant Agreement

COMPANY PROJECTSexv10w57

Exhibit 10.57

CONFIDENTIAL TREATMENT REQUESTED BY EXIDE TECHNOLOGIES —

CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND

HAVE BEEN SEPARATELY FILED WITH THE COMMISSION

SUPPLY AGREEMENT

     This Supply Agreement (“Agreement”) is between Daramic, LLC (together with all of its
Affiliates, “Daramic” or “Supplier”) and Exide Technologies (together with its Affiliates,
“Buyer”). In Buyer’s case “Affiliates” shall mean any person or entity that manufactures lead acid
batteries and in which Buyer owns greater than a 50% share or ownership interest. In Supplier’s
case, “Affiliates” shall mean any person or entity that manufactures lead acid battery separators
and in which Supplier owns greater than a 50% share or ownership interest. In consideration of the
mutual promises, covenants, and obligations in this Agreement, the receipt and sufficiency of which
are hereby acknowledged, and with full authority to enter into the Agreement, the parties agree as
follows:

	1.	 	Headings: The captions and headings herein are for convenience and reference only and in no
way define or limit the scope or content of this Agreement or in any way affect its
provisions.
	 
	2.	 	Term: The term of this Agreement shall commence on January 1, 2010 (the “Effective Date”) and
shall continue until December 31, 2012, unless terminated pursuant to the terms of this
Agreement. This contract shall automatically be extended thereafter, one year at a time, for
subsequent Contract Years unless Buyer or Daramic gives *** months prior written
notice of termination by non-renewal to the other party not later than *** in the
first instance (to avoid a Contract Year 2013) and thereafter by *** of each
successive year. “Contract Year” means each calendar year that this Agreement is in effect.
At least *** months prior to expiration of this Agreement, the parties will meet
to discuss *** any contract extension. If for any reason whatsoever the parties
do not agree on any ***, then either party can issue ***. As a result, there will
not be a *** unless the parties agree on all ***.
	 
	3.	 	Supply of products: Buyer agrees to purchase from Supplier, subject to the terms of this
Agreement, and Supplier agrees to sell to Buyer, the following:

	 	a)	 	Transportation PE Separators: During each Contract Year, a Volume of ***%
of Buyer’s global demand for polyethylene separators for use in the manufacture of
automotive / SLI lead acid batteries (hereinafter, “Transportation PE Separators”).
	 
	 	b)	 	Industrial PE Separators: During each Contract Year, a Volume of ***% of
Buyer’s global demand for polyethylene separators for use in the manufacture of lead acid
batteries for industrial applications (hereinafter, “Industrial PE Separators”). For extra
clarification, purchases of *** separators are considered to be Industrial PE
Separators for purposes of this Agreement and will count toward Volumes as defined in this
Agreement.
	 
	 	c)	 	Other Separators: During each Contract Year, a Volume of ***% of Buyer’s
global demand for *** separators (hereinafter, “Other Separators”).
	 
	 	d)	 	Excluded Products: *** are specifically excluded from the Volumes required
to be purchased or supplied under this Agreement.
	 
	 	e)	 	Volumes: Buyer will purchase from Daramic in each Contract Year the above-stated
Volumes (“Volumes”). These Volumes represent a percentage of Buyer’s global demand, if
any, and do not constitute minimum purchase Volumes or a guarantee of Buyer’s global demand
levels. Buyer will have the option of purchasing up to *** percent of the
Volumes as inventory of Separators in any Contract Year.

*** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION ***

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	 	f)	 	Regional Allocation of Purchases: Buyer agrees to purchase no less than
***% of its Regional demand Volumes for Transportation and Industrial PE
Separators in each of three Regions. “Regions” are defined as (1) The Americas; (2) Europe
/ Middle East and Africa; and (3) Asia Pacific.
	 
	 	g)	 	Manufacturing Relocation

	 	i)	 	If Daramic elects to relocate manufacturing of a separator product during the
term of this Agreement, Daramic’s costs associated with such manufacturing relocation
shall be borne by ***.
	 
	 	ii)	 	Daramic must give Buyer *** days advance written notice of any
manufacturing relocation pursuant to 3(g)(i) above; and *** days advance
written notice if the products to be transitioned are not qualified at the new
location. Buyer and Daramic agree to work together in good faith to transition to the
new manufacturing location as soon as reasonably possible.

	4.	 	Pricing: Buyer agrees to pay prices for the separator products and Supplier agrees to sell
the separator products at the prices set forth in Exhibit A. The following special pricing
conditions are applicable during the term of this Agreement: (a) a *** will apply
to all orders of Industrial PE Separators and Other Separators (but not Transportation PE
Separators) at quantities ordered in greater than *** square meters by part number
/ Stock Keeping Unit or “SKU”. To qualify for this ***, the entire order must be
shipped complete unless otherwise mutually agreed (i.e., no blanket PO’s). This ***
does not apply for products withdrawn from or orders into consigned inventory. (b) (i)
in ***, a *** will apply to incremental orders of Transportation PE
Separators for incremental volumes greater than *** pure square meters once Buyer
purchases a total of at least *** pure square meters of Transportation PE and
Industrial PE Separators in ***; (ii) in *** and thereafter, a
*** will apply to incremental orders of Transportation PE Separators for
incremental volumes greater than *** pure square meters once Buyer purchases a
total of at least *** pure square meters of Transportation PE and Industrial PE
Separators in a ***; and (c) a *** on all SKU’s will apply after SKU’s
are ***. The prices set forth in Exhibit A ***. New separator products with
different widths, thicknesses, ***, etc. may be added to Exhibit A from time to
time by mutual written agreement of the parties. Prices set forth in Exhibit A
hereto are *** . After ***, any price adjustments will be according
to the Raw Materials Adjustment (“RMA”) set forth in Exhibit A hereto. By *** of each
Contract year, Daramic will provide *** for *** in the form set forth on Exhibit A. Prior to
*** of each Contract Year, Buyer shall have the right to verify the documentation *** and to
verify ***. Any price adjustments implemented on *** will be ***.
	 
	5.	 	Terms of Payment: Invoices are to be issued by Supplier upon shipment. All invoices must
reference applicable Buyer purchase order/contract release numbers and be sent to the Buyer’s
designated address. Payment terms shall be *** days after the date of invoice by
electronic funds transfer. Payments not received by Daramic within *** calendar
days (not counting holidays) after the due date shall incur a monthly fee of ***%
for any month they are past due.
	 
	6.	 	Credit: If Buyer fails to pay invoices timely pursuant to Paragraph 5 above, then Daramic may
require Buyer to make cash payment(s) within *** business days after receipt of
written notice from Daramic to resolve the outstanding balance owed to Daramic. If Buyer’s
Corporate Credit Rating drops to *** or below, or liquidity (defined as cash on
hand, plus unused credit facilities, including then existing factoring) level drops below
$***, then Daramic has the right to request credit enhancement reasonably
acceptable to Daramic. If Buyer is more than *** for undisputed amounts in excess
of $***, and fails to cure such delinquency within *** business days
after receipt of formal written notice under this Agreement, then Daramic has the right to
***.
	 
	7.	 	Operations & Logistics:

*** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION ***

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	 	a)	 	Forecasts: Buyer shall provide written forecasts, updated monthly, for future shipments
*** days and *** months in advance for separator products. All
forecasts provided by Buyer are estimates only and do not constitute a representation or
guarantee of purchases to be made by Buyer. However, to the extent that Daramic produces
products in reasonable reliance on those forecasts, then Buyer agrees to purchase this
inventory within *** of its production, within the terms of this Agreement.
	 
	 	b)	 	Delivery and Lead-times: Average lead times for shipment by Daramic for forecasted
orders shall be no more than *** days (not counting holidays) from the date of
acknowledgement. Daramic will send acknowledgement of orders within ***
business days after receipt. Specialty products and orders exceeding forecasts will
be handled on a case by case basis.
	 
	 	c)	 	Inventory/Security of Supply: Daramic agrees to maintain minimum inventory quantities
capable of meeting Buyer’s forecasted demand. Upon the expiration or termination of this
Agreement for any reason, Buyer shall purchase up to a *** day supply of all
separator products Daramic has in stock for Buyer pursuant to this Section.
	 
	 	d)	 	Consignment Inventory in Europe: Daramic shall provide inventory on a consignment basis
for Buyer’s European facilities listed on Schedule B-1 pursuant to the consignment terms
and conditions attached as Exhibit B. A fee of $*** will be paid by ***
representing the *** of such consigned inventory over the life of this
Agreement. Buyer shall also have the option to place direct orders (non-consignment) in
Europe for Industrial PE and Other Separators. These European direct orders will be
shipped ***.
	 
	 	e)	 	Quality: All materials are to be compliant with agreed specifications and drawings (the
“Specifications”). The Specifications will be kept in a mutually-agreeable location and
format, and can be modified and amended only by mutual written agreement of the parties.
	 
	 	f)	 	Freight Terms: *** for all worldwide Buyer sites, except for consignment
shipments in 7(d) above. Title to the separator products purchased hereunder and risk of
loss shall pass to Buyer upon delivery to the carrier. Daramic agrees to use Buyer’s
designated carrier.
	 
	 	g)	 	Electronic Transactions: Supplier and Buyer shall endeavor to implement electronic
transactional and communication tools to improve efficiencies and reduce costs. These
tools may include EDI, electronic invoicing, email, efax and the like.

	8.	 	Product Discontinuation: If Daramic intends to cease production of a particular type of
separator product supplied under this Agreement, Daramic agrees as follows:

	 	a)	 	To give Buyer at least *** advance written notice of its intent to cease
production; and
	 
	 	b)	 	Buyer has the right to submit a final order for quantities of the discontinued
separator product up to the total of Buyer’s orders of this separator type in the ***
prior to the announcement; and
	 
	 	c)	 	If Daramic has available an alternate separator product that could serve as a
substitute for the discontinued product, Daramic agrees to make such alternate separator
product available to Buyer for a period no shorter than *** on terms to be
negotiated by both parties in good faith.

	9.	 	Product Enhancements / Cost Reductions:

	 	a)	 	Product Enhancements: Unless restricted by contractual or confidentiality obligations,
Daramic will offer Buyer access to any new lead acid battery separator technology developed
by Daramic during the term of this Agreement.
	 
	 	b)	 	Cost Reductions: Buyer and Daramic will *** identify and implement cost
reduction opportunities associated with the procurement, manufacture and delivery of
separator products, including the

*** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION ***

3

 

	 	 	 	creation of an *** in the first Contract Year. *** applicable to *** are set
forth in Section 4(c) herein and Exhibit A hereto.
	 
	 	c)	 	If, during the term of this Agreement, a *** becomes available on the
market that is an improvement on existing technology used in separator products purchased
under this Agreement, and within *** under Section 3 above will be ***.

	10.	 	Acquisition of New Entity / Sale of Business: If, during the term of this Agreement, Buyer
acquires an entity that is in the *** business, then for a period of *** after
closing Daramic and Buyer will use their best efforts *** set forth in Paragraph 3 above.
However, this paragraph does not obligate *** under this Agreement. Any transaction (such as
a joint venture, new investments in existing joint ventures, and the like) that occurs *** is
specifically excluded from this effort and from the definition of “Affiliates” under this
Agreement. If, during the term of this Agreement, Buyer sells all or a significant part of
its business to a third party, then Buyer shall use its best efforts to *** under the terms of
this Agreement for *** after the sale is closed. Likewise, if Daramic sells all or a
significant part of its business to a third party, then Daramic shall use its best efforts to
*** the terms of this Agreement *** after the sale is closed. The efforts to be undertaken
by either party under this Paragraph 10 are not ***.
	 
	11.	 	Limited Warranty and Remedies: DARAMIC WARRANTS THAT IT WILL PRODUCE THE SEPARATORS IN A
GOOD AND WORKMANLIKE MANNER AND THAT THE SEPARATORS DELIVERED TO BUYER WILL CONFORM TO THE
SPECIFICATIONS. ***. DARAMIC ALSO WARRANTS TO BUYER THAT IT WILL CONVEY GOOD
TITLE TO THE SEPARATOR 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. THE REMEDIES OF BUYER FOR ANY BREACH OF THE WARRANTIES SET FORTH IN
THIS SECTION SHALL, SUBJECT TO THE OTHER TERMS OF THIS AGREEMENT, BE THE REPLACEMENT OF THE
NONCONFORMING PRODUCT OR, IN THE SOLE DISCRETION OF BUYER, REFUND FOR THE PRICE PAID FOR ANY
NONCONFORMING PRODUCT, TO THE EXCLUSION OF ANY AND ALL OTHER REMEDIES, INCLUDING, WITHOUT
LIMITATION, SPECIAL, PUNITIVE, INDIRECT OR CONSEQUENTIAL DAMAGES. NO AGREEMENT VARYING OR
EXTENDING THE FOREGOING WARRANTIES WILL BE BINDING UPON DARAMIC UNLESS IN WRITING, SIGNED BY
AN OFFICER OF DARAMIC.
	 
	12.	 	Insurance:
	 
	 	 	Daramic shall, at its own expense, provide satisfactory evidence of the following valid and
in-force policies of insurance with the terms and at least the coverage limits set forth below:

     (i) Commercial General Liability Insurance with limits of liability for bodily injury and
property damage (combined single limit) not less than $***.

     (ii) Workers’ Compensation Insurance, in an amount as required by law.

     (iii) Business Auto Liability Insurance, including coverage for all owned, non-owned and
leased or hired vehicles, with coverage limits of liability for bodily injury and property
damage (combined single limit) of not less than $*** per accident.

     (iv) Umbrella Coverage (Excess Liability) with coverage limits of $***.

Such policies of insurance shall provide that they shall not be canceled nor the coverage
modified nor the limits changed without the Carrier first endeavoring to give thirty (30) days’
prior written notice thereof to Buyer. No such cancellation, modification or change shall
affect Daramic’s obligation to maintain the insurance coverage required by this Agreement. Buyer
shall be named as an additional insured on such policies ***. All such insurance
coverage shall be written on an “occurrence” policy form and by insurance companies that have an
A.M. Best’s rating of not less than ***. Daramic shall provide Buyer with a
certificate of insurance evidencing the insurance coverages.

*** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION ***

4

 

	13.	 	Force Majeure: A party is excused from performing its obligations under this Agreement if,
to the extent, and for so long as:

               a) such party’s performance is prevented or delayed by an act or event (other than economic
hardship, changes in market conditions or insufficiency of funds) that is beyond its reasonable
control and could not have been prevented or avoided by its exercise of due diligence; and

               b) such party gives written notice to the other party, as soon as practicable under the
circumstances, of the act or event that so prevents such party from performing its obligations.

By way of illustration, and not by limitation, acts or events that may prevent or delay performance
(as contemplated by this Section) include: acts of God or the public enemy, acts of civil or
military authority, terrorist acts, embargoes, epidemics, war, riots, insurrections, fires,
explosions, earthquakes, floods, strikes and/or lockouts.

If *** is the party whose performance is prevented or delayed:

	 	i)	 	*** may elect to suspend this Agreement and the affected order or any part
thereof for the duration of the delay; and, at *** option, ***.
	 
	 	ii)	 	*** agrees to *** products to *** set forth in Paragraph 3 above.

	14.	 	Confidential Information: Daramic agrees that it and its employees will maintain in
confidence all of Buyer’s data, summaries, reports, or information of a proprietary or
confidential nature. Buyer agrees that it and its employees will maintain in confidence all
of Daramic’s data, summaries, reports, or information of a proprietary or confidential nature.
Neither party hereto will disclose the terms of this Agreement publicly or to any third party
without the prior written consent of the other. The foregoing restrictions shall not apply to
such information (i) that has become public knowledge through no fault of the party receiving
such information, (ii) that comes to such party from a third party under no obligation of
confidentiality with respect to such information, (iii) that was in the possession of such
party prior to the date of disclosure or is independently developed by such party, or (iv)
provided to a government regulatory or enforcement agency or to a trustee appointed pursuant
to any order by such agency. In the event that either party is required to disclose the other
party’s confidential information by law or court order or in order to comply with any
government regulatory requirement or any independent corporate auditing requirement, the party
required to make such disclosure shall notify the other party and cooperate in attempting to
receive confidential treatment for the information prior to disclosure.
	 
	15.	 	Successors and Assignment: This Agreement will be binding upon and inure to the benefit of
the permitted successors and assigns of the parties hereto. Neither party may delegate,
transfer or assign any of its rights or obligations hereunder without the prior written
consent of the other party, which consent shall not be unreasonably withheld. If *** as the
result of the ***, Buyer and Daramic will reasonably cooperate to *** the products purchased
from those facilities to the ***; and Buyer’s and Daramic’s obligations under Section 3 above
for any Volumes of such purchases ***.
	 
	16.	 	Governing Law: This Agreement shall be construed, governed by and enforced in accordance
with the laws of the State of *** without giving effect to any choice of law or
conflict of law provision or rule (whether of the State of *** or any other
jurisdiction) that would cause the application of the law of any jurisdiction other than the
State of ***. In no event shall the United Nations Convention on Contracts for
the International Sale of goods apply to sales hereunder.
	 
	17.	 	Notices: All notices required under this Agreement shall be provided by certified mail,
confirmed overnight mail, or hand delivery at the following addresses unless and until written
notice of a change thereof is delivered:

	 	 	 

	Exide Technologies (“Buyer”) 

13000 Deerfield Parkway 

200

Milton, GA 30004

	 	Daramic, LLC (“Daramic”) 

11430 North Community House Road, Building 

Suite 350

Charlotte, NC 28277

 *** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION ***

5

 

	 	 	 

	Attention: VP Global Procurement

	 	Attention: VP of Sales and Marketing With a Copy 
	to: General Counsel

	 	With a Copy to: General Counsel

	18.	 	Amendments: No changes or additions to this Agreement shall be valid unless the same shall
be in writing and signed by all parties.
	 
	19.	 	Complete Agreement: On the Effective Date, this Agreement, including the Exhibits attached
hereto, will constitute the entire and integrated agreement between the parties and supersede
all prior and contemporaneous communications, representations, and agreements, whether oral or
written, relating to the subject matter hereof. Any additional terms and conditions of
purchase orders, purchase order acknowledgements and other ordering documents (other than
quantity of the particular order and delivery location) shall have no force or effect unless
the parties specifically agree in writing to give effect to such terms.
	 
	20.	 	Termination and Remedies: This Agreement may be terminated by either party in the event of a
material breach of this Agreement by the other party. In the case of a material breach, the
aggrieved party must give written notice to the defaulting party specifying the nature and
extent of the default and demand for cure, and if such default is not cured within ***
calendar days following the date of such notice, then the aggrieved party may terminate
the Agreement for default by written notice at the end of such *** day period.
This Agreement can also be terminated by either party if the other party becomes insolvent, is
adjudged bankrupt, makes any assignment for the benefit of creditors, has a receiver appointed
for it or is dissolved; and the party not affected by such event shall have the right to
terminate this Agreement immediately upon written notice to the other party.
	 
	21.	 	Non-Severability: If any of the provisions hereof including any exhibit hereto shall be
deemed invalid or unenforceable, the validity and enforceability of the remaining provisions
shall not in any way be affected or impaired thereby. The parties shall endeavor in good
faith to replace the invalid or unenforceable provisions with valid provisions that preserve
the intent of the invalidated provision.
	 
	22.	 	Non Waiver: Except as otherwise expressly provided herein, no failure on the part of any
party to exercise and no delay in exercising, any right, power or privilege conferred by this
Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any
right, power or privilege conferred by this Agreement preclude any other or further exercise
thereof or the exercise of any other right, power or privilege.
	 
	23.	 	Government Contract Provisions: To the extent that either party hereto is or becomes subject
to government contract requirements or provisions that impact the supply or use of separator
products provided hereunder, the parties agree to reasonably cooperate to amend this Agreement
to add any provisions necessary to cover such events.
	 
	24.	 	Counterparts: This Agreement may be executed by the parties hereto in separate counterparts
which together shall constitute one and the same instrument.

The above terms have been read and accepted by:

	 	 	 	 	 
	DARAMIC, LLC

 	 	 
	By:  	 	 	 
	 	Its: 	 	 
	 	 	 	 

Date:

*** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION ***

6

 

	 	 	 	 	 
	EXIDE TECHNOLOGIES

 	 	 
	By:  	 	 	 
	 	Its: 	 	 
	 	 	 	 

Date:

*** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION ***

7

 

Exhibit A

Prices

Exide *** Prices

	 	 	 	 	 	 	 	 	 	 	 	 	 
	ProductType	 	Region	 	 	***	 	 	Price/sqm	 
	***
	 	 	***	 	 	 	***	 	 	$	***	 
	 
	 	 	 	 	 	 	***	 	 	$	***	 
	 
	 	 	 	 	 	 	***	 	 	$	***	 
	 
	 	 	 	 	 	 	 	 	 
	***
	 	 	***	 	 	 	***	 	 	$	***	 
	 
	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	ProductType	 	Region	 	 	***	 	 	Price/sqm	 
	`
***
	 	 	***	 	 	 	***	 	 	$	***	 
	 
	 	 	 	 	 	 	***	 	 	$	***	 
	 
	 	 	 	 	 	 	***	 	 	$	***	 
	 
	 	 	 	 	 	 	***	 	 	$	***	 
	 
	 	 	 	 	 	 	***	 	 	$	***	 
	 
	 	 	 	 	 	 	 	 	 
	***
	 	 	***	 	 	 	***	 	 	$	***	 
	 
	 	 	 	 	 	 	***	 	 	$	***	 
	 
	 	 	 	 	 	 	***	 	 	$	***	 
	 
	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	ProductType	 	Region	 	 	***	 	 	Price/sqm	 
	***
	 	 	***	 	 	 	***	 	 	€	***	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	***	 	 	 	***	 	 	€	***	 
	 
	 	 	 	 	 	 	***	 	 	€	***	 
	 
	 	 	 	 	 	 	***	 	 	€	***	 
	 
	 	 	 	 	 	 	***	 	 	€	***	 
	 
	 	 	 	 	 	 	***	 	 	€	***	 
	 
	 	 	 	 	 	 	***	 	 	€	***	 
	 
	 	 	 	 	 	 	 	 	 	 
	***
	 	 	 	 	 	 	***	 	 	€	***	 
	 
	 	 	 	 	 	 	***	 	 	€	***	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	***	 	 	€	***	 
	 
	 	 	 	 	 	 	 	 	 	 

*** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION ***

8

 

Exhibit A

Prices

 

			
	***

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Total Sales
	Daramic #	 	Customer #	 	Dimension	 	Base Price	 	***	 	Price/1,000
	***

	 	***
	 	*** x *** x ***
	 	$***
	 	$***
	 	$***
	***
	 	***
	 	*** x *** x ***
	 	$***
	 	$***
	 	$***
	***
	 	***
	 	*** x *** x ***
	 	$***
	 	$***
	 	$***
	***
	 	***
	 	*** x *** x ***
	 	$***
	 	$***
	 	$***
	***
	 	***
	 	*** x *** x ***
	 	$***
	 	$***
	 	$***

 

			
	***

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Total Sales
	Daramic #	 	Customer #	 	Dimension	 	Base Price	 	***	 	Price/1,000
	***
	 	***
	 	*** x *** x ***
	 	$***
	 	$***
	 	$***
	***
	 	***
	 	*** x *** x ***
	 	$***
	 	$***
	 	$***
	***
	 	***
	 	*** x *** x ***
	 	$***
	 	$***
	 	$***
	***
	 	***
	 	*** x *** x ***
	 	$***
	 	$***
	 	$***
	***
	 	***
	 	*** x *** x ***
	 	$***
	 	$***
	 	$***

 

			
	***

*** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION ***

9

 

Exhibit A

Prices

Exide *** Prices

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Product Type	 	Region	 	 	Profile	 	 	***	 	 	Family	 	 	Price/sqm	 
	***
	 	 	***	 	 	 	***	 	 	 	***	 	 	 	***	 	 	$	***	 
	 
	 	 	 	 	 	 	***	 	 	 	***	 	 	 	***	 	 	$	***	 
	 
	 	 	 	 	 	 	***	 	 	 	***	 	 	 	***	 	 	$	***	 
	 
	 	 	 	 	 	 	***	 	 	 	***	 	 	 	***	 	 	$	***	 
	 
	 	 	 	 	 	 	***	 	 	 	***	 	 	 	***	 	 	$	***	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	***	 	 	 	***	 	 	 	***	 	 	$	***	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

			
	***

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Product Type	 	Region	 	 	Profile	 	 	***	 	 	Family	 	 	Price/sqm	 
	***
	 	 	***	 	 	 	***	 	 	 	***	 	 	 	***	 	 	€	***	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	***	 	 	 	***	 	 	 	***	 	 	€	***	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	***	 	 	 	***	 	 	 	***	 	 	€	***	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	***	 	 	 	***	 	 	 	***	 	 	€	***	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	€	***	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	***	 	 	 	***	 	 	€	***	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	***	 	 	 	***	 	 	€	***	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	***	 	 	 	***	 	 	€	***	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	***	 	 	 	***	 	 	 	***	 	 	€	***	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	***	 	 	 	***	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	***	 	 	 	***	 	 	 	***	 	 	€	***	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	***	 	 	 	***	 	 	€	***	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	***	 	 	€	***	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	***	 	 	€	***	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	***	 	 	 	***	 	 	 	***	 	 	€	***	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	***	 	 	 	***	 	 	 	***	 	 	€	***	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	***	 	 	 	***	 	 	 	***	 	 	 	***	 	 	€	***	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	***	 	 	 	***	 	 	 	***	 	 	€	***	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

*** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION ***

10

 

Exhibit A

Prices

Exide *** Pricing

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	2010
	 	 	 	 	 	 	 	 	Price/1,000
	Location	 	Item	 	Description	 	Exide Part #	 	pieces
	 
	***
	 	 	 	 	 	 	 	 	 	 
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**

*** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION ***

11

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	2010
	 	 	 	 	 	 	 	 	Price/1,000
	Location	 	Item	 	Description	 	Exide Part #	 	pieces
	 
	***
	 	 	 	 	 	 	 	 	 	 
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	 	 	 	 	 	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	***
	 	 	 	 	 	 	 	 	 	 
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	***
	 	 	 	 	 	 	 	 	 	 
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	***
	 	 	 	 	 	 	 	 	 	 
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**

*** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION ***

12

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	2010
	 	 	 	 	 	 	 	 	Price/1,000
	Location	 	Item	 	Description	 	Exide Part #	 	pieces
	 
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	***
	 	 	 	 	 	 	 	 	 	 
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	***
	 	 	 	 	 	 	 	 	 	 
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**
	 
	 	***	 	***	 	***	 	€	*	**

 

			
	_ ***
	 
	_ ***
	 
	_ ***
	 
	_ ***
	 
	_ ***

*** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION ***

13

 

Exhibit A

Prices

Exide *** Prices

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	O/A	 	 	 	 	 	 
	Part Number	 	Profile	 	***	 	Thickness	 	Height	 	Width	 	Price/1,000 Pieces
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	***
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	***
	 	***	 	***”	 	***”	 	***”	 	***”	 	$	*	**
	***
	 	***	 	***”	 	***”	 	***”	 	***”	 	$	*	**
	***
	 	***	 	***”	 	***”	 	***”	 	***”	 	$	*	**
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	***
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	***
	 	***	 	***”	 	***”	 	***”	 	***”	 	$	*	**
	***
	 	***	 	***”	 	***”	 	***”	 	***”	 	$	*	**

 

			
	***

Price List for ***

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Battery Type	 	Profile	 	Width	 	Thickness	 	***	 	Price
	 
	***, ***
	 	***	 	***	 	***	 	***	 	 	*	**
	***
	 	***	 	***	 	***	 	***	 	 	*	**
	***
	 	***	 	***	 	***	 	***	 	 	*	**
	***, ***, ***
	 	***	 	***	 	***	 	***	 	 	*	**
	***, ***
	 	***	 	***	 	***	 	***	 	 	*	**
	***
	 	***	 	***	 	***	 	***	 	 	*	**
	***
	 	***	 	***	 	***	 	***	 	 	*	**
	***
	 	***	 	***	 	***	 	***	 	 	*	**

 

			
	***
	 
	***

*** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION ***

14

 

Exhibit A

Raw Materials Adjustment

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Invoice Price (TBD	 	Invoice Price (TBD	 	Percent Change	 	Equivalent Effect on
	Automotive Polyethylene	 	 	 	 	 	before***)	 	before***)	 	***	 	***
	 
	Material Cost Component	 	 	*	**	 	 	*	**	 	 	*	**	 	 	 	 	 	 	*	**
	***
	 	 	 	 	 	$	 	 	 	$	 	 	 	 	*	**%	 	 	*	**%
	***
	 	 	 	 	 	$	 	 	 	$	 	 	 	 	*	**%	 	 	*	**%
	***
	 	 	 	 	 	$	 	 	 	$	 	 	 	 	*	**%	 	 	*	**%
	***, ***, ***
	 	 	 	 	 	$	 	 	 	$	 	 	 	 	*	**%	 	 	*	**%
	***, ***
	 	 	 	 	 	$	 	 	 	$	 	 	 	 	*	**%	 	 	*	**%

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Invoice Price (TBD	 	Invoice Price (TBD	 	Percent Change	 	Equivalent Effect on
	Industrial Polyethylene	 	 	 	 	 	before***)	 	before***)	 	***	 	***
	 
	Material Cost Component	 	 	*	**	 	 	*	**	 	 	*	**	 	 	 	 	 	 	*	**
	***
	 	 	 	 	 	$	 	 	 	$	 	 	 	 	*	**%	 	 	*	**%
	***
	 	 	 	 	 	$	 	 	 	$	 	 	 	 	*	**%	 	 	*	**%
	***
	 	 	 	 	 	$	 	 	 	$	 	 	 	 	*	**%	 	 	*	**%
	***
	 	 	 	 	 	$	 	 	 	$	 	 	 	 	*	**%	 	 	*	**%
	***
	 	 	 	 	 	$	 	 	 	$	 	 	 	 	*	**%	 	 	*	**%

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Invoice Price (TBD	 	Invoice Price (TBD	 	Percent Change	 	Equivalent Effect on
	***	 	 	 	 	 	before***)	 	before***)	 	***	 	***
	 
	Material Cost Component	 	 	*	**	 	 	*	**	 	 	*	**	 	 	 	 	 	 	*	**
	***
	 	 	 	 	 	$	 	 	 	$	 	 	 	 	*	**%	 	 	*	**%
	***
	 	 	 	 	 	$	 	 	 	$	 	 	 	 	*	**%	 	 	*	**%
	***, ***, ***
	 	 	 	 	 	$	 	 	 	$	 	 	 	 	*	**%	 	 	*	**%
	***, ***
	 	 	 	 	 	$	 	 	 	$	 	 	 	 	*	**%	 	 	*	**%

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Invoice Price (TBD	 	Invoice Price (TBD	 	Percent Change	 	Equivalent Effect on
	*** /***	 	 	 	 	 	before***)	 	before***)	 	***	 	***
	 
	Material Cost Component	 	 	*	**	 	 	*	**	 	 	*	**	 	 	 	 	 	 	*	**
	***
	 	 	 	 	 	$	 	 	 	$	 	 	 	 	*	**%	 	 	*	**%
	***, ***, ***
	 	 	 	 	 	$	 	 	 	$	 	 	 	 	*	**%	 	 	*	**%
	***, ***
	 	 	 	 	 	$	 	 	 	$	 	 	 	 	*	**%	 	 	*	**%

*** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION ***

15

 

Exhibit B

Consignment Inventory Agreement — Europe

CONSIGNMENT TERMS AND CONDITIONS

These terms and conditions will cover separator products supplied under the Agreement to the
facilities, if any, referenced in Schedule 1 of this Exhibit B (the “Facilities”). Facilities may
be added to Schedule 1 by mutual written agreement of the parties. For the separator products
supplied to the Facilities, the following terms shall apply:

	1.	 	Shipments On Consignment. All separator products supplied by Daramic to the Facilities
(except for those limited exceptions agreed to by the parties) subject to and during the term
of this Agreement will be supplied on consignment (“Consigned Products”) as described in this
Exhibit B.
	 
	2.	 	Full Pallet Quantities. All orders by Buyer for Consigned Products shall be in full pallet
quantities and shall be clearly marked as a “Consigned Order.”
	 
	3.	 	Buyer’s Usage Reports, Changes, Forecasts.
	 
	 	 	a) Once a day during the term of this Agreement, or next workday should one day be a legal
holiday, Buyer will send to Daramic (using the Daramic IT System) the pallet numbers from
the pallets of Consigned Products used during the previous day (the “Usage Reports”). Buyer
agrees that no partial pallet usage reporting shall be permitted and billing by Daramic
shall be based on full pallet quantities. Buyer shall submit to Daramic a firm request for
shipment of Consigned Products for the *** following weeks, on every Thursday,
stating the quantity, delivery destination and requested delivery date. These requests for
shipment shall be in addition to and not in place of the forecasts required by the
Agreement.
	 
	 	 	b) Daramic will use commercially reasonable efforts to notify Buyer by fax or e-mail of the
scheduled manufacturing and shipment dates within *** hours after receipt of
Buyer’s Weekly Report and will confirm acceptance of Buyer’s orders in accordance with the
Agreement. Any change orders requested by Buyer must be sent to Daramic by facsimile or
e-mail and are subject to confirmation by Daramic, as provided for hereunder.
	 
	 	 	c) Frequency and exact method of forecasting and information flow may be changed at a local
plant level in order to support specific operating needs, if both parties are in agreement
and the revised process is documented in writing.

	4.	 	Shipment and Storage of Inbound Products.

     (a) Shipping and delivery terms will be as described in the Agreement. Buyer will promptly
notify Daramic of any Consigned Products it receives that have been damaged in transit. Any claim
against a carrier for Consigned Products damaged in transit will be made by Daramic, provided,
however, that Buyer will cooperate with Daramic to the reasonable extent needed in order for
Daramic to make and pursue any such claim.

     (b) Buyer shall at no cost to Daramic receive, hold, store, insure and safeguard all Consigned
Products shipped to Buyer on consignment hereunder at Buyer or joint venture partner location. All
such Consigned Products shall be segregated from Buyer’s goods, and the storage area where they are
kept shall be clearly labeled to indicate that the Consigned Products belong to Daramic. Buyer’s
inventory records must also clearly reflect that the Consigned Products belong to Daramic.

*** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION ***

16

 

     (c) Buyer will bear the risk of loss or damage to the Consigned Products which occurs while in
its possession. Buyer will insure the Consigned Products, with an insurer selected by Buyer in its
sole discretion, for their full value against all loss and will name Daramic as an additional
insured under its policies covering such Consigned Products. Buyer will provide Daramic, upon its
reasonable request, with current proof of such insurance.

	5.	 	Daramic’s Invoice Covering Purchases Of Consigned Products. Upon receipt of the Usage
Reports under Section 3, Daramic will prepare and send to Buyer Daramic’s invoice covering the
Consigned Products withdrawn by Buyer from consigned inventory. Daramic’s invoices shall
reference the Usage Reports and/or time period to which they relate. Billing will be at the
price in effect at the time of shipment by Daramic as determined in the Agreement. Buyer will
pay for Consigned Products within *** days from the date of invoice.
	 
	 	 	All materials not reported on a daily Usage Report, after *** days from the date
of shipment to Buyer will be deemed to have been withdrawn and shall be invoiced by Daramic
immediately thereafter, and all such invoices will be due and payable within ***
days. Withdrawal of Consigned Products as confirmed in Usage Reports, shall
constitute a sale by Daramic to Buyer of such Consigned Products in accordance with the
Agreement and title to such Consigned Products shall pass from Daramic to Buyer at the time
of withdrawal. Such Consigned Products will be deleted from the inventory of Consigned
Products. The parties agree to confer and cooperate from time to time to resolve any
reporting errors made by Buyer in its daily reports and any billing errors made by Daramic.
	 
	6.	 	Inventory Management. Buyer will withdraw Consigned Products on a first in, first out basis
and will endeavor to withdraw Consigned Products within *** days of delivery.
Daramic shall have the right, upon reasonably adequate advanced notice to Buyer, to reasonably
reduce shipments to control the quantity of Consigned Products so as not to exceed a
***day supply of Consigned Products based on Buyer’s forecast for the Facilities.
Daramic’s Customer Care Team and Buyer’s Production and Inventory Control Department shall
jointly manage the consignment inventory program.
	 
	7.	 	Physical Audits. Daramic may require and arrange for periodic physical inspection and audit
of the Consigned Product, during Buyer’s regular business hours and upon reasonable notice to
Buyer, typically *** a year, but more often if Daramic so reasonably determines.
Daramic may at its discretion forego such inspection and audit in any year if upon Daramic’s
request Buyer provides a satisfactory accounting and certifies the accuracy thereof by a
responsible officer of Buyer; however, failure to conduct an inspection and audit in any given
period will not constitute a waiver of Daramic’s right hereunder to inspect and audit.
	 
	8.	 	Title And Access. Title to Consigned Products shall remain in Daramic until withdrawal is
reported in Usage Reports (or deemed reported pursuant to Section 5) by Buyer. Either party
may terminate this Consignment arrangement immediately if it determines, in its sole
discretion, *** or that the other party has not honored the terms of this
Consignment arrangement. Buyer will be responsible for any and all loss or damage while
handling or storing the Consigned Products hereunder. Buyer shall not permit the Consigned
Products to be subject to any charges, encumbrances, liens and security interests of others,
unless consented to by Daramic.
	 
	9.	 	Returned materials. Buyer shall not be entitled to return any material consigned hereunder
to Daramic unless such return is allowed under the Agreement.

*** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION ***

17

 

	10.	 	Uniform Commercial Code. Daramic shall be responsible for preparing and filing with the
appropriate office or agency any Uniform Commercial Code statements and other instruments as
Daramic shall reasonably deem necessary under the laws of the local jurisdictions where the
Consigned Products are located in order to reflect Daramic’s title in said Consigned Products.
Buyer shall provide reasonable assistance with such filings
	 
	11.	 	Termination. During the term of the Agreement, Buyer and Daramic may mutually agree in
writing to remove Facilities from Exhibit A. Upon termination of the Agreement or the removal
of a Facility from this consignment program, Buyer shall take title to and Daramic will
generate invoices for any unused Consigned Products not previously withdrawn. Such invoices
shall thereafter be payable within *** days from the date that the Consigned
Products in question were originally shipped to Buyer. The termination of the Agreement shall
automatically terminate this consignment arrangement.
	 
	12.	 	Entire Agreement. The provisions of the Agreement shall control over conflicting provisions
in these terms and conditions to the extent inconsistent herewith. No modifications of these
terms and conditions shall be binding on the parties unless in writing and signed by both
parties hereto.
	 
	13.	 	*** will incur administrative costs and expenses associated with providing
separator products on a consignment basis. ***.

*** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION ***

18

 

Schedule B-1

European Consigned Inventory Facilities

***

***

***

***

***

***

***

***

*** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION ***

19

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