Document:

Credit Agreement

 Exhibit 10.3 
  
 SECOND AMENDMENT AND CONSENT TO CREDIT AGREEMENT 
  
 SECOND AMENDMENT AND CONSENT TO CREDIT AGREEMENT (this “Amendment”), dated as of March 24, 2005, among
ENERSYS, a Delaware corporation (“Holdings”), ENERSYS CAPITAL INC., a Delaware corporation (the “Borrower”), various Lenders party to the Credit Agreement referred to below (the “Lenders”) and Bank
of America, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”). All capitalized terms used herein and not otherwise defined herein shall have the respective meanings provided such terms in the Credit
Agreement. 
  
 W I T N E
S S E T H: 
  
 WHEREAS,
Holdings, the Borrower, the lenders from time to time party thereto (the “Lenders”), the Administrative Agent, Morgan Stanley Senior Funding, Inc., as Syndication Agent, and Lehman Commercial Paper Inc., as Documentation Agent, are
parties to a Credit Agreement, dated as of March 17, 2004 (as amended, modified and/or supplemented to, but not including, the date hereof, the “Credit Agreement”); 
  
 WHEREAS, EnerSys S.p.A., a Wholly-Owned Subsidiary of the Borrower organized under the laws of Italy (the “Italian
Acquisition Subsidiary”), and certain other Wholly-Owned Foreign Subsidiaries of the Borrower (together with the Italian Acquisition Subsidiary, the “EnerSys FIAMM Acquisition Parties”) desire to acquire the motive power
battery business assets of FIAMM S.p.A., a company organized under the laws of Italy (“FIAMM”), and certain of its affiliates pursuant to, and in accordance with the terms of, a certain Quota and Business Transfer Agreement in the
form of the draft Quota and Business Transfer Agreement (dated March 24, 2005) delivered to the Agents (without giving effect to (x) any amendment or modification to such form and (y) after the execution and delivery of a definitive agreement in
such form, any amendment or modification thereof or waiver with respect thereto, unless, in the case of either clause (x) or (y), such amendment, modification or waiver could not reasonably be expected to be adverse to the interests of the Lenders,
the “FIAMM Purchase Agreement”), to be entered into by and among the EnerSys FIAMM Acquisition Parties, FIAMM and certain of FIAMM’s subsidiaries (the “FIAMM Acquisition”), which acquisition, after giving
effect to this Amendment, will constitute a Permitted Acquisition effected in accordance with the requirements of the Credit Agreement as amended by this Amendment; 
  
 WHEREAS, the Credit Agreement Parties have requested certain amendments and consents to the Credit Agreement in connection
with the FIAMM Acquisition and the financing thereof as described below; 
  
 WHEREAS, subject to the terms and conditions of this Amendment, the Lenders wish to grant certain consents to the Credit Agreement and the parties hereto wish to amend or otherwise modify certain provisions of the
Credit Agreement, in each case as herein provided; 
  
 NOW,
THEREFORE, IT IS AGREED: 
  

 I. Amendments and Consents to Credit Agreement. 
  
 1. Notwithstanding anything to the contrary contained in the Credit
Agreement, the Lenders hereby acknowledge and agree that the FIAMM Acquisition may be effected as a Permitted Acquisition under the Credit Agreement (and thereupon constitute a “Permitted Acquisition” for all purposes of the Credit
Agreement), so long as: 
  
 (i) the Aggregate
Consideration payable in respect of the FIAMM Acquisition shall consist solely of (x) cash in an amount not to exceed €32,000,000 and (y) the assumption of the “Assumed Liabilities” (as defined in the FIAMM Purchase Agreement) which
are permitted under Section 9.04 of the Credit Agreement; 
  
 (ii) except for the deviation from the requirements of a Permitted Acquisition contained in Section 8.14(a)(vi) of the Credit Agreement as set forth in clause (i) above, the FIAMM Acquisition shall otherwise be
effected as a “Permitted Acquisition” in accordance with all applicable terms of (and meet all applicable requirements for a Permitted Acquisition under) the Credit Agreement (including, without limitation, Sections 8.11, 8.14, 9.02(xi)
and 9.15 thereof, the definition of Permitted Acquisition contained therein and the delivery of the officer’s certificate required by Section 8.14(a)(xi) thereof); 
  
 (iii) on or prior to the date of the consummation of the FIAMM Acquisition (the “FIAMM Acquisition
Date”), there shall have been delivered to the Administrative Agent true and correct copies of the FIAMM Purchase Agreement and all other material documents entered into in connection with the FIAMM Acquisition (the “FIAMM
Acquisition Documents”), certified as such by an officer of Holdings; 
  
 (iv) on the FIAMM Acquisition Date, (w) all FIAMM Acquisition Documents shall have been duly executed and delivered by the parties thereto
and shall be in full force and effect, (x) all representations and warranties set forth in the FIAMM Acquisition Documents shall be true and correct in all material respects, (y) each of the material conditions precedent to the consummation of the
FIAMM Acquisition as set forth in the FIAMM Acquisition Documents shall have been satisfied and not waived, except with the consent of the Agents and (z) the FIAMM Acquisition shall have been consummated in all material respects in accordance with
applicable law and the FIAMM Acquisition Documents; 
  
 (v) on the FIAMM Acquisition Date, all necessary governmental (domestic and foreign), regulatory and third party approvals in connection with the FIAMM Acquisition, the transactions contemplated by this Amendment and the other FIAMM
Documents and otherwise referred to herein or therein, shall have been obtained and remain in effect, and all applicable waiting periods shall have expired without any action being taken by any competent authority which restrains, prevents or
imposes materially adverse conditions upon the consummation of the FIAMM Acquisition and the transactions contemplated by this Amendment; and 
  

 - 2 - 

 (vi) on the FIAMM Acquisition Date, there shall not exist any judgment, order, injunction
or other restraint issued or filed or a hearing seeking injunctive relief or other restraint pending or notified prohibiting or imposing materially adverse conditions upon, or materially delaying, or making economically unfeasible, the consummation
of the FIAMM Acquisition or the transactions contemplated by this Amendment. 
  
 2. Notwithstanding anything to the contrary contained in Section 8.14(a)(viii) or (ix) of the Credit Agreement or the definition of “Aggregate Consideration” contained in Section 11 of the Credit Agreement,
the parties hereto hereby acknowledge and agree that the aggregate amount of cash paid as consideration in connection with the FIAMM Acquisition as permitted by Section 1 of this Amendment shall not be included in any calculation of Aggregate
Consideration for purposes of compliance with Section 8.14(a)(viii) or (ix) of the Credit Agreement. 
  
 3. Section 1.08(f) of the Credit Agreement is hereby amended by inserting the following sentence after the first sentence appearing in said Section:

  
 “In any determination of the Eurodollar Rate for an
Interest Period constituting a Special Interest Period, the Administrative Agent shall be entitled to determine such Eurodollar Rate as if such Interest Period were three months in duration, notwithstanding that such Interest Period may in fact be
shorter or longer.” 
  
 4. Section 1.09 of the Credit
Agreement is hereby amended by (i) deleting the word “or” appearing immediately prior to sub-clause (y) of the first sentence of said Section and inserting a comma in lieu thereof, (ii) inserting the text “or (z) in the case of a
Borrowing of Term Loans to be maintained as, or converted into, Eurodollar Loans, a Special Interest Period” immediately prior to the period at the end of the first sentence of said Section, (iii) inserting the text “(other than a Special
Interest Period)” immediately after the text “if any Interest Period” appearing in clause (iii) of the second sentence of said Section and (iii) inserting the text “(other than a Special Interest Period)” immediately prior
to the text “if any Interest Period” appearing in clause (iv) of the second sentence of said Section. 
  
 5. Section 4.02(c) of the Credit Agreement is hereby amended by deleting the first parenthetical appearing in said Section in its entirety and inserting
the following new parenthetical in lieu thereof: 
  
 “(other
than (x) Accounts Receivable Facility Assets sold pursuant to Sections 9.02(xiii) and (xiv) and (y) any Excluded Italian Asset Sale)”. 
  
 6. Section 4.02(d) of the Credit Agreement is hereby amended by deleting the text “Effective Date” appearing in sub-clause (i) of said Section
and inserting the text “Second Amendment Effective Date” in lieu thereof. 
  
 7. Section 8.01(d) of the Credit Agreement is hereby amended by (i) deleting the word “and” appearing immediately prior to the text “(y) the calculation” appearing in said Section and inserting a
comma in lieu thereof and (ii) inserting the following new clause (z) prior to the period at the end of said Section: 
  
 “and (z) set forth (in reasonable detail) the type and amount of costs incurred during each fiscal quarter included in the Test Period then last
ended and added back to Consolidated EBITDA for such Test Period pursuant to subclause (x)(vi) of the definition of “Consolidated EBITDA”. 
  

 - 3 - 

 8. Section 9.02(xv) of the Credit Agreement is hereby amended by (i) deleting the word “and”
appearing prior to sub-clause (ii) of said Section and inserting a comma in lieu thereof and (ii) inserting the following new clause (ii) prior to the semi-colon at the end of said Section: 
  
 “and (iii) no Ring-Fenced Foreign Subsidiary may merge into, or
consolidate with, or be dissolved or liquidated into, or transfer any of its assets to, any Non-Ring-Fenced Foreign Subsidiary in reliance on this clause (xv)”. 
  
 9. Section 9.03 of the Credit Agreement is hereby amended by (i) inserting the text “(viii)” immediately after the
text “9.04” appearing in clause (xv) of said Section, (ii) deleting the word “and” appearing at the end of clause (xviii) of said Section, (iii) deleting the period at the end of clause (xix) of said Section and inserting the
text “; and” in lieu thereof and (iv) inserting the following new clause (xx) at the end of said Section: 
  
 “(xx) Liens on the capital stock of the Italian Acquisition Subsidiary held by EnerSys Luxco 1 securing the obligations of EnerSys
Luxco 1 under the Permitted EnerSys Luxco 1 Notes.”. 
  
 10.
Section 9.04(v) of the Credit Agreement is hereby amended by (i) deleting the word “and” appearing immediately prior to sub-clause (y) of said Section and inserting a comma in lieu thereof and (ii) inserting the text “and (z)
intercompany Indebtedness permitted pursuant to Section 9.05(xxi)” before the semi-colon at the end of such Section. 
  
 11. Section 9.04(xvii) of the Credit Agreement is hereby amended by inserting the text “Holdings or” immediately prior to the text “the
Borrower” appearing in said Section. 
  
 12. Section 9.04 of
the Credit Agreement is hereby further amended by (i) deleting the word “and” appearing at the end of clause (xvii) of said Section, (ii) deleting the period at the end of clause (xviii) of said Section and inserting the text “;
and” in lieu thereof and (iii) inserting the following new clauses (xix) and (xx) at the end of said Section: 
  
 “(xix) Indebtedness of EnerSys Luxco 1 incurred under the Permitted EnerSys Luxco 1 Notes in an aggregate outstanding principal
amount not to exceed €38,000,000 at any time (as reduced by the amount of repayments of principal thereunder), so long as (x) all such Indebtedness is incurred in accordance with the requirements of definition of Permitted EnerSys Luxco 1
Notes, (y) no Default or Event of Default exists at the time of incurrence thereof or would result from the incurrence thereof, and (z) 100% of the Net Cash Proceeds therefrom are used (i) first, to finance the FIAMM Acquisition (or, if the
FIAMM Acquisition has been consummated prior to the incurrence of such Indebtedness, to repay outstanding principal of the intercompany loans permitted pursuant to Section 9.05(xxi) and pay accrued but unpaid interest thereon), and (ii)
second, after application for the purposes described in preceding sub-clause (i), to finance FIAMM Restructuring Charges incurred in the one-year period following the consummation of the FIAMM Acquisition; 

  

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 (xx) Indebtedness of the Borrower evidenced by a guaranty of the obligations of EnerSys
Luxco 1 under the Permitted EnerSys Luxco 1 Notes permitted pursuant to Section 9.04(xix); provided that any such Indebtedness of the Borrower shall be unsecured and any such Indebtedness of EnerSys Luxco 1 may be secured only to the extent
permitted by Section 9.03(xx).”. 
  
 13. Section 9.05 of the
Credit Agreement is hereby amended by inserting the text “provided that no Ring-Fenced Foreign Subsidiary may make any Investment in any Non-Ring-Fenced Foreign Subsidiary in reliance on this clause (xviii)” immediately prior to the
semi-colon appearing in clause (xviii) of said Section. 
  
 14.
Section 9.05 of the Credit Agreement is hereby amended by further (i) deleting the word “and” appearing at the end of clause (xix) of said Section, (ii) deleting the period at the end of clause (xx) of said Section and inserting a
semi-colon in lieu thereof, (iii) inserting the text “, inclusive, and clauses (xxi) and (xxii)” immediately after the text “(xix)” appearing in clause (xx) of said Section and (iv) inserting the following new clauses (xxi) and
(xxii) at the end of said Section: 
  
 “(xxi) so long as no Indebtedness has theretofore been incurred in reliance on Section 9.04(xix) to finance the FIAMM Acquisition, (1) the Borrower may make an intercompany loan to the Cayman Partnership, (2) the Cayman Partnership
may, in turn, may make an intercompany loan to EnerSys Luxco 1, (3) EnerSys Luxco 1 may, in turn, may make an intercompany loan to EnerSys Luxco 2 and (4) EnerSys Luxco 2 may, in turn, may make intercompany loans to the EnerSys FIAMM Acquisition
Parties or, in the case of the Italian Acquisition Subsidiary, to EnerSys s.r.o. to be on-lent further to the Italian Acquisition Subsidiary, in each case for the sole purpose of financing the FIAMM Acquisition and the FIAMM Restructuring Charges;
provided that (I) the aggregate principal amount of each such intercompany loan pursuant to this clause (xxi) shall not exceed €38,000,000 at any time outstanding (determined without regard to any write-offs or write-downs thereof), (II)
no Default or Event of Default exists at the time of the making of any such intercompany loan or would result therefrom, and (III) each intercompany loan shall be evidenced by an Intercompany Note and, in the case of the Intercompany Note evidencing
any such intercompany loan made by the Borrower to the Cayman Partnership, pledged to the Collateral Agent pursuant to the Pledge Agreement; and 
  
 (xxii) (x) unsecured Contingent Obligations of the Borrower and EnerSys evidenced by guaranties of ordinary course obligations of any
Wholly-Owned Domestic Subsidiary of the Borrower, so long as such obligations do not constitute Indebtedness and (y) unsecured Contingent Obligations of any Foreign Subsidiary of the Borrower evidenced by guaranties of ordinary course obligations of
any other Foreign Subsidiary of the Borrower, so long as such obligations do not constitute Indebtedness.”. 
  

 - 5 - 

 15. Section 9.10 of the Credit Agreement is hereby amended by deleting the table appearing in said
Section in its entirety and inserting the following new table in lieu thereof: 
  

			
	 “Fiscal Quarter Ended Closest to

	  	Ratio

	 September 30, 2004
	  	3.90:1.00
	 December 31, 2004
	  	3.90:1.00
		
	 March 31, 2005
	  	3.90:1.00
	 June 30, 2005
	  	4.00:1.00
	 September 30, 2005
	  	4.00:1.00
	 December 31, 2005
	  	4.00:1.00
		
	 March 31, 2006
	  	3.80:1.00
	 June 30, 2006
	  	3.60:1.00
	 September 30, 2006
	  	3.60:1.00
	 December 31, 2006
	  	3.40:1.00
		
	 March 31, 2007
	  	3.00:1.00
	 June 30, 2007
	  	3.00:1.00
	 September 30, 2007
	  	3.00:1.00
	 December 31, 2007
	  	3.00:1.00
		
	 March 31, 2008
	  	2.40:1.00
	 June 30, 2008
	  	2.40:1.00
	 September 30, 2008
	  	2.40:1.00
	 December 31, 2008
	  	2.40:1.00
		
	 March 31, 2009 and each fiscal quarter thereafter
	  	2.00:1.00”.

  
 16. Section 9.12(i) of
the Credit Agreement is hereby amended by deleting said Section in its entirety and inserting the following new Section 9.12(i) in lieu thereof: 
  
 “(i) amend or modify, or permit the amendment or modification of, any provision of any Qualified Preferred Stock, any Permitted
EnerSys Luxco 1 Note or any agreement relating to the foregoing (including, without limitation, in the case of Qualified Preferred Stock, a certificate of designation) in a manner that is inconsistent with the requirements therefor set forth in the
definition “Qualified Preferred Stock” or “Permitted EnerSys Luxco 1 Notes”, as the case may be, or that could reasonably be expected to be adverse in any material respect to the interests of the Lenders;”. 
  

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 17. Section 9.12(ii) of the Credit Agreement is hereby amended by (i) inserting the text “any
Permitted EnerSys Luxco 1 Note,” immediately prior to the first reference to “Refinancing Senior Subordinated Notes” appearing in said Section, (ii) deleting the word “and” appearing prior to sub-clause (iv) of the proviso
of said Section and inserting a comma in lieu thereof and (iii) inserting the following new sub-clause (v) prior to the semi-colon at the end of said Section: 
  

“and (v) the Permitted EnerSys Luxco 1 Notes may be prepaid in accordance with the terms thereof”. 
  
 18. Section 9.14(a) of the Credit Agreement is hereby amended by inserting
the following proviso immediately prior to the period at the end of said Section: 
  
 “provided that, the Permitted EnerSys Luxco 1 Notes (and/or the documentation governing the same) may restrict the ability of the Italian Acquisition Subsidiary to transfer its properties or assets to
Holdings or any other Subsidiary of Holdings”. 
  
 19. The
definition of “Agents” appearing in Section 11 of the Credit Agreement is hereby amended by deleting said definition in its entirety and inserting the following new definition in lieu thereof: 
  
 “Agents” shall mean the Administrative
Agent, the Syndication Agent and the Documentation Agent. 
  
 20.
The definition of “Consolidated EBITDA” appearing in Section 11 of the Credit Agreement is hereby amended by (i) deleting the text “and” appearing immediately before the text “(iv)” in sub-clause (x) of said
definition and inserting a comma in lieu thereof and (ii) inserting the text the following text immediately before the text “and (y)” appearing in said definition: 
  
 “(v) in the case of any period which includes any portion of any fiscal quarter of Holdings set forth on Schedule XV,
an amount up to the amount set forth under the captions “Montecchio Start-Up Costs” and “FIAMM Corporate Fees” on Schedule XV hereto, to the extent (x) the respective charge was actually recorded or accrued during such period for
the purpose specified on Schedule XV for such charge and (y) the respective charge was deducted in the determination of Consolidated EBITDA for such period (directly or through reductions to Consolidated Net Income) and (vi) in the case of any
period including any fiscal quarter of Holdings ended on or prior March 31, 2006, one-time cash fees and expenses actually incurred by Holdings and any of its Subsidiaries during such fiscal quarter in an aggregate amount not to exceed the Dollar
Equivalent of €1,700,000, so long as (x) such fees and expenses were deducted in the determination of Consolidated EBITDA for such period (directly or through reductions to Consolidated Net Income) and (y) Holdings has at all times complied
with the requirements of clause (z) of Section 8.01(d), requiring Holdings to certify as to the amount and type of such costs incurred in any fiscal quarter of Holdings included in such period and added back to Consolidated EBITDA”. 

 

 - 7 - 

 21. The definition of “Intercompany Note” appearing in Section 11 of the Credit
Agreement is hereby amended by deleting the text “and (xiv)” appearing in said definition and inserting the text “, (xiv) and (xxi)” in lieu thereof. 
  
 22. Section 11 of the Credit Agreement is hereby further amended by inserting in the appropriate alphabetical order the
following new definitions: 
  
 “EnerSys
FIAMM Acquisition Parties” shall have the meaning provided in the Second Amendment. 
  
 “EnerSys Luxco 1” shall mean EnerSys Holdings (Luxembourg) Sarl, a Luxembourg company and an indirect Wholly-Owned
Subsidiary of the Borrower. 
  
 “EnerSys
Luxco 2” shall mean EnerSys Luxembourg Finance Sarl, a Luxembourg company and a Wholly-Owned Subsidiary of EnerSys Luxco 1. 
  
 “Excluded Italian Asset Sale” shall mean any sale, transfer or other disposition by the Italian Acquisition Subsidiary,
any of its Subsidiaries or any other Italian organized Subsidiary of Holdings to any Person (other than Holdings or any of its Wholly-Owned Subsidiaries) of any asset (other than inventory sold, transferred or disposed of in the ordinary course of
business), to the extent (x) the gross sale proceeds therefrom, when aggregated with the gross sale proceeds from all other such sales, transfers and dispositions by the Italian Acquisition Subsidiary and such other Subsidiaries described above
after the date of the consummation of the FIAMM Acquisition, do not exceed €16,000,000 and (y) the net sale proceeds therefrom are required to be applied as a mandatory repayment of principal of the Permitted EnerSys Luxco 1 Notes in accordance
with the documentation governing the same. 
  
 “FIAMM” shall have the meaning provided in the Second Amendment. 
  
 “FIAMM Acquisition” shall have the meaning provided in the Second Amendment. 
  
 “FIAMM Restructuring Charges” shall mean
non-recurring and other one-time costs incurred in connection with (i) plant closures and the consolidation, relocation or elimination of operations and (ii) related severance costs and other costs incurred in connection with the termination,
relocation and training of employees, in each case incurred in connection with the FIAMM Acquisition. 
  
 “Italian Acquisition Subsidiary” shall mean EnerSys S.p.A., a Wholly-Owned Subsidiary of the Borrower organized under the
laws of Italy, and any successor thereto by any merger or consolidation permitted hereunder. 
  
 “Non-Ring-Fenced Foreign Subsidiary” shall mean each Foreign Subsidiary of Holdings other than a Ring-Fenced Foreign
Subsidiary. 
  

 - 8 - 

 “Permitted EnerSys Luxco 1 Notes” shall mean senior notes issued by
EnerSys Luxco 1, so long as (a) such notes have a final stated maturity no earlier than five years following the date of issuance thereof, (b) such notes do not provide for guaranties by any Person, other than those permitted pursuant to Section
9.04(xx), (c) such notes and permitted guaranties thereof are not secured, except as expressly permitted by Section 9.03(xx) and (d) all other terms of such notes (including, without limitation, interest rate, amortization, redemption provisions,
maturities, covenants, defaults and remedies) are satisfactory to the Agents in their sole discretion, as the same may be amended, restated, modified and/or supplemented from time to time in accordance with the terms hereof and thereof. 

 
 “Ring-Fenced Foreign Subsidiary” shall
mean each Foreign Subsidiary of Holdings as of the Second Amendment Effective Date (other than the Cayman Partnership and any of its Foreign Subsidiaries), so long as same remains a Subsidiary of Holdings. 
  
 “Second Amendment” shall mean the Second
Amendment and Consent to this Agreement, dated as of March 24, 2005, among Holdings, the Borrower, various Lenders and the Administrative Agent. 
  
 “Second Amendment Effective Date” shall have the meaning provided in the Second Amendment. 
  
 “Special Interest Period” shall mean a
period with a duration of (i) not less than three months minus three days and (ii) not greater than three months plus three days, as set forth in the applicable Notice of Conversion/Continuation delivered by the Borrower to the Administrative Agent,
specifying, inter alia, the exact calendar day on which such period ends. 
  
 23. The Credit Agreement is hereby further amended by deleting Schedule XV thereto and adding new Schedule XV thereto in the form of Schedule XV hereto. 
  
 24. Exhibit A-2 to the Credit Agreement is hereby amended by inserting the following text at the end of footnote 2 appearing
in said Exhibit: 
  
 “The duration of any Interest Period
selected by the Borrower is subject to the requirements of Section 1.09 of the Credit Agreement. In the event the Borrower selects a Special Interest Period, the Borrower must specify herein the exact calendar day on which such Special Interest
Period ends.”. 
  
 II. Miscellaneous
Provisions. 
  
 1. In order to induce the Lenders to enter
into this Amendment, each Credit Agreement Party hereby represents and warrants that: 
  
 (a) no Default or Event of Default exists as of the Second Amendment Effective Date, both before and after giving effect to this
Amendment; and 
  

 - 9 - 

 (b) all of the representations and warranties contained in the Credit Agreement or the
other Credit Documents are true and correct in all material respects on the Second Amendment Effective Date both before and after giving effect to this Amendment, with the same effect as though such representations and warranties had been made on
and as of the Second Amendment Effective Date (it being understood that any representation or warranty made as of a specific date shall be true and correct in all material respects as of such specific date). 
  
 2. This Amendment is limited as specified and shall not constitute a
modification, acceptance, consent to deviation from or waiver of any other provision of the Credit Agreement or any other Credit Document. 
  
 3. This Amendment may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which counterparts
when executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. A complete set of counterparts shall be lodged with the Borrower and the Administrative Agent. 
  
 4. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER
SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK (WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES). 
  
 5. This Amendment shall become effective on the date (the “Second Amendment Effective Date”) when (i) Holdings, the Borrower and the
Lenders constituting the Required Lenders shall have signed a counterpart hereof (whether the same or different counterparts) and shall have delivered (including by way of facsimile transmission) the same to White & Case LLP, 1155 Avenue of the
Americas, New York, NY 10036 Attention: May Yip (facsimile number 212-354-8113) and (ii) the Borrower shall have paid to the Administrative Agent and the Lenders all costs, fees and expenses (including, without limitation, legal fees and expenses)
payable to the Administrative Agent and the Lenders to the extent then due. 
  
 6. So long as the Second Amendment Effective Date occurs, the Borrower shall pay to each Lender which has executed a counterpart hereof on or prior to 5:00 P.M. (New York time) on the later to occur of March 24, 2005
or the Second Amendment Effective Date, a consent fee equal to 0.10% of the sum of (x) its Revolving Loan Commitment as in effect on the Second Amendment Effective Date plus (y) the aggregate principal amount of its New Term Loans outstanding
on the Second Amendment Effective Date. All fees payable pursuant to the immediately preceding sentence shall be paid to the Administrative Agent within one Business Day after the later date specified in the immediately preceding sentence, which
fees shall be distributed by the Administrative Agent to the relevant Lenders in the amounts specified in the immediately preceding sentence. 
  
 7. From and after the Second Amendment Effective Date, all references in the Credit Agreement and each of the other Credit Documents to the Credit
Agreement shall be deemed to be references to the Credit Agreement as modified hereby. 
  

 - 10 - 

 IN WITNESS WHEREOF, the parties hereto have caused their duly authorized officers to execute and deliver
this Amendment as of the date first above written. 
  

			
	ENERSYS
		
	By:	 	 /s/ Richard W. Zuidema

	Title:	 	 Executive Vice President -
 Administration

	
	ENERSYS CAPITAL INC.
		
	By:	 	 /s/ Richard W. Zuidema

	Title:	 	 Executive Vice President -
 Administration

	
	 BANK OF AMERICA, N.A, as Administrative Agent

		
	By:	 	 /s/ Charles Graber

	Title:	 	Vice President
	
	BANK OF AMERICA, N.A., Individually
		
	By:	 	 /s/ Laura L. Clark

	Title:	 	Vice President
	
	 MORGAN STANLEY SENIOR FUNDING, INC.,
Individually and as Syndication Agent

		
	By:	 	  

	Name:	 	 
	Title:	 	 
	
	 LEHMAN COMMERCIAL PAPER INC.,
Individually and as Documentation Agent

		
	By:	 	 /s/ Ritam Bhalla

	Title:	 	Authorized Signatory

  

			
	SIGNATURE PAGE TO THE SECOND AMENDMENT AND CONSENT TO CREDIT AGREEMENT, DATED AS OF MARCH 24, 2005, AMONG ENERSYS, ENERSYS CAPITAL INC., VARIOUS LENDERS PARTY TO THE CREDIT
AGREEMENT, BANK OF AMERICA, N.A., AS ADMINISTRATIVE AGENT, MORGAN STANLEY SENIOR FUNDING, INC., AS SYNDICATION AGENT, AND LEHMAN COMMERCIAL PAPER INC., AS DOCUMENTATION AGENT
	
	JUPITER LOAN FUNDING LLC
		
	By:	 	 /s/ Meredith J. Koslick

	Title:	 	Assistant Vice President
	
	WINGED FOOT FUNDING TRUST
		
	By:	 	 /s/ Ann. E. Morris

	Title:	 	Authorized Agent
	
	 ECL FUNDING LLC, for itself or as agent for ECL2 Funding LLC

		
	By:	 	 /s/ Dominic Blea

	Title:	 	As Attorney-in-Fact
	
	 TRUMBULL THC2 FUNDING LLC, for itself or as agent for Trumbull THC2 Funding LLC

		
	By:	 	 /s/ Dominic Blea

	Title:	 	As Attorney-in-Fact
	
	 BUSHNELL CBNA FUNDING LLC, for itself or as agent for BUSHNELL CFPI Loan Funding LLC

		
	By:	 	 /s/ Dominic Blea

	Title:	 	As Attorney-in-Fact

  

					
	LANDMARK IV CDO LIMITED
	 	 	By:	 	Aladdin Capital Management LLC as Manager
		
	By:	 	 /s/ Joseph Moroney, CFA

	Title:	 	Authorized Signatory
	
	 ALLSTATE LIFE INSURANCE COMPANY

		
	By:	 	 /s/ Chris Goergen

	Title:	 	Authorized Signatory
		
	By:	 	 /s/ Jerry D. Zinkula

	Title:	 	Authorized Signatory
	
	AIMCO CDO SERIES 2000-A
		
	By:	 	 /s/ Chris Goergen

	Title:	 	Authorized Signatory
		
	By:	 	 /s/ Jerry D. Zinkula

	Title:	 	Authorized Signatory
	
	AIMCO CDO SERIES 2001-A
		
	By:	 	 /s/ Chris Goergen

	Title:	 	Authorized Signatory
		
	By:	 	 /s/ Jerry D. Zinkula

	Title:	 	Authorized Signatory
	
	 AMERICAN EXPRESS CERTIFICATE COMPANY

	 	 	By: American Express Asset Management Group, Inc. as Collateral Manager
		
	By:	 	 /s/ Yvonne E. Stevens

	Title:	 	Senior Managing Director

  

					
	IDS LIFE INSURANCE COMPANY
	 	 	By: American Express Asset Management Group, Inc. as Collateral Manager
		
	By:	 	 /s/ Yvonne E. Stevens

	Title:	 	Senior Managing Director
	
	CENTURION CDO VII, LTD.
	 	 	By: American Express Asset Management Group, Inc. as Collateral Manager
		
	By:	 	 /s/ Vincent P. Pham

	Title:	 	Director-Operations
	
	SEQUILS-CENTURION V, LTD.
	 	 	By: American Express Asset Management Group, Inc. as Collateral Manager
		
	By:	 	 /s/ Vincent P. Pham

	Title:	 	Director-Operations
	
	SEQUILS-CENTURION 9, LTD.
	 	 	By: American Express Asset Management Group, Inc. as Collateral Manager
		
	By:	 	 /s/ Vincent P. Pham

	Title:	 	Director-Operations
	
	CENTURION CDO II, LTD.
	 	 	By: American Express Asset Management Group, Inc., as Collateral Manager
		
	By:	 	 /s/ Vincent P. Pham

	Title:	 	Director-Operations
	
	CENTURION CDO VI, LTD.
	 	 	By: American Express Asset Management Group, Inc. as Collateral Manager
		
	By:	 	 /s/ Vincent P. Pham

	Title:	 	Director-Operations

  

					
	KZH CYPRESSTREE-1 LLC
		
	By:	 	 /s/ Dorian Herrera

	Title:	 	Authorized Agent
	
	KZH STERLING LLC
		
	By:	 	 /s/ Dorian Herrera

	Title:	 	Authorized Agent
	
	BABSON CLO LTD. 2003-I
	BABSON CLO LTD. 2004-I
	ELC (CAYMAN) LTD. 1999-II
	ELC (CAYMAN) LTD. 1999-III
	ELC (CAYMAN) LTD. 2000-I
	SEABOARD CLO 2000 LTD.
	TRYON CLO LTD. 2000-I
	SUFFIELD CLO, LIMITED
	 	 	By:	 	Babson Capital Management LLC as Collateral Manager
		
	By:	 	 /s/ Glenn P. Duffy, CFA

	Title:	 	Managing Director
	
	MAPLEWOOD (CAYMAN) LIMITED
	 	 	By:	 	Babson Capital Management LLC as Investment Manager
		
	By:	 	 /s/ Glenn P. Duffy, CFA

	Title:	 	Managing Director
	
	 MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY

	 	 	By:	 	Babson Capital Management LLC as Investment Advisor
		
	By:	 	 /s/ Glenn P. Duffy, CFA

	Title:	 	Managing Director

  

					
	SIMSBURY CLO, LIMITED
	 	 	By: Babson Capital Management LLC under delegated authority from Massachusetts Mutual Life Insurance Company
		
	By:	 	 /s/ Glenn P. Duffy, CFA

	Title:	 	Managing Director
	
	LOAN FUNDING VIII LLC
	 	 	By:	 	Babson Capital Management LLC as Investment Manager
		
	By:	 	 /s/ Glenn P. Duffy, CFA

	Title:	 	Managing Director
	
	 Sankaty Advisors, LLC as Collateral Manager for LOAN FUNDING XI LLC, as Term Lender

		
	By:	 	 /s/ Diane J. Exter

	Title:	 	 Managing Director
 Portfolio
Manager

	
	 Sankaty Advisors, LLC as Collateral Manager for CASTLE HILL II – INGOTS, LTD., as Term Lender

		
	By:	 	 /s/ Diane J. Exter

	Title:	 	 Managing Director
 Portfolio
Manager

	
	 Sankaty Advisors, LLC as Collateral Manager for CASTLE HILL III CLO, LIMITED, as Term Lender

		
	By:	 	 /s/ Diane J. Exter

	Title:	 	 Managing Director
 Portfolio
Manager

	
	 Sankaty Advisors, LLC as Collateral Manager for AVERY POINT CLO, LIMITED, as Term Lender

		
	By:	 	 /s/ Diane J. Exter

	Title:	 	 Managing Director
 Portfolio
Manager

  

					
	 Sankaty Advisors, LLC as Collateral Manager for RACE POINT II CLO, LIMITED, as Term Lender

		
	By:	 	 /s/ Diane J. Exter

	Title:	 	 Managing Director
 Portfolio
Manager

	
	BOSTON HARBOR CLO 2004-1, LTD.
		
	By:	 	 /s/ Beth Mazor

	Title:	 	Vice President
	
	 BANK OF TOKYO-MITSUBISHI TRUST COMPANY LIMITED

		
	By:	 	 /s/ Michael L. Zion

	Title:	 	Vice President
	
	GALLATIN FUNDING I LTD.
	 	 	By:	 	Bear Sterns Asset Management Inc. as its Collateral Agent
		
	By:	 	 /s/ Niell Rosenwig

	Title:	 	Managing Director
	
	GRAYSON CLO 2001-01 LTD.
	 	 	By:	 	Bear Sterns Asset Management Inc. as its Collateral Agent
		
	By:	 	 /s/ Niell Rosenwig

	Title:	 	Managing Director
	
	BRAYMOOR & CO.
	 	 	By:	 	Bear Sterns Asset Management Inc. as its Attorney - in - fact
		
	By:	 	 /s/ Niell Rosenwig

	Title:	 	Managing Director
	
	BIRCHWOOD FUNDING LLC
		
	By:	 	 /s/ Meredith J. Koslick

	Title:	 	Assistant Vice President

  

					
	BLACK DIAMOND CLO 2000-1, LTD.
		
	By:	 	 /s/ Alan Corkish

	Title:	 	Director
		
	By:	 	CALLIDUS DEBT PARTNERS CLO FUND III LTD.
	 	 	By:	 	Its Collateral Manager,
	 	 	 	 	Callidus Capital Management, LLC
		
	By:	 	 /s/ Mavis Taintor

	Title:	 	Senior Managing Director
	
	LCM I LIMITED PARTNERSHIP
	 	 	By:	 	Lyon Capital Management LLC, as Collateral Manager
		
	By:	 	 /s/ Alex Kenna

	Title:	 	Portfolio Manager
	
	LCM II LIMITED PARTNERSHIP
	 	 	By:	 	Lyon Capital Management LLC, as Collateral Manager
		
	By:	 	 /s/ Alex Kenna

	Title:	 	Portfolio Manager
	
	OLYMPIC CLO I
		
	By:	 	 /s/ John M. Casparian

	Title:	 	 Chief Operating Officer
 Centre Pacific,
Manager

	
	SIERRA CLO I
		
	By:	 	 /s/ John M. Casparian

	Title:	 	 Chief Operating Officer
 Centre Pacific,
Manager

	
	CSAM SLF
		
	By:	 	 /s/ David H. Learner

	Title:	 	Authorized Signatory

  

					
	CSAM FUNDING IV
		
	By:	 	 /s/ David H. Learner

	Title:	 	Authorized Signatory
	
	CSAM FUNDING II
		
	By:	 	 /s/ David H. Learner

	Title:	 	Authorized Signatory
	
	CSAM FUNDING I
		
	By:	 	 /s/ David H. Learner

	Title:	 	Authorized Signatory
	
	ATRIUM III
		
	By:	 	 /s/ David H. Learner

	Title:	 	Authorized Signatory
	
	ROSEMONT CLO, LTD.
	 	 	By:	 	Deerfield Capital Management LLC as its Collateral Manager
		
	By:	 	 /s/ Dan Hattori

	Title:	 	Senior Vice President
	
	BRYN MAWR CLO, LTD.
	 	 	By:	 	Deerfield Capital Management LLC as its Collateral Manager
		
	By:	 	 /s/ Dan Hattori

	Title:	 	Senior Vice President
	
	FOREST CREEK CLO, LTD.
	 	 	By:	 	Deerfield Capital Management LLC as its Collateral Manager
		
	By:	 	 /s/ Dan Hattori

	Title:	 	Senior Vice President

  

					
	LONG GROVE CLO, LIMITED
	 	 	By:	 	Deerfield Capital Management LLC as its Collateral Manager
		
	By:	 	 /s/ Dan Hattori

	Title:	 	Senior Vice President
	
	ACCESS INSTITUTIONAL LOAN FUND
	 	 	By:	 	Deerfield Capital Management LLC as its Portfolio Manager
		
	By:	 	 /s/ Dan Hattori

	Title:	 	Senior Vice President
	
	MUIRFIELD TRADING LLC
		
	By:	 	 /s/ Meredith J. Koslick

	Title:	 	Assistant Vice President
	
	 Denali Capital LLC, managing member of DC Funding Partners, portfolio manager for DENALI CAPITAL CLO IV, LTD., or an
affiliate

		
	By:	 	 /s/ David A. Tanny

	Title:	 	Vice President
	
	 Denali Capital LLC, managing member of DC Funding Partners, portfolio manager for DENALI CAPITAL CLO III, LTD., or an
affiliate

		
	By:	 	 /s/ David A. Tanny

	Title:	 	Vice President
	
	GRAYSON & CO
	 	 	By:	 	Boston Management and Research as Investment Advisor
		
	By:	 	 /s/ Craig P. Russ

	Title:	 	Vice President

  

					
	SENIOR DEBT PORTFOLIO
	 	 	By:	 	 Boston Management and Research
 as Investment
Advisor

		
	By:	 	 /s/ Craig P. Russ

	Title:	 	Vice President
	
	 EATON VANCE SENIOR FLOATING-RATE TRUST

	 	 	By:	 	 Eaton Vance Management
 as Investment
Advisor

		
	By:	 	 /s/ Craig P. Russ

	Title:	 	Vice President
	
	 EATON VANCE SENIOR INCOME TRUST

	 	 	By:	 	 Eaton Vance Management
 as Investment
Advisor

		
	By:	 	 /s/ Craig P. Russ

	Title:	 	Vice President
	
	 EATON VANCE FLOATING-RATE INCOME TRUST

	 	 	By:	 	 Eaton Vance Management
 as Investment
Advisor

		
	By:	 	 /s/ Craig P. Russ

	Title:	 	Vice President
	
	 EATON VANCE LIMITED DURATION INCOME FUND

	 	 	By:	 	 Eaton Vance Management
 as Investment
Advisor

		
	By:	 	 /s/ Craig P. Russ

	Title:	 	Vice President
	
	 EATON VANCE INSTITUTIONAL SENIOR LOAN FUND

	 	 	By:	 	 Eaton Vance Management
 as Investment
Advisor

		
	By:	 	 /s/ Craig P. Russ

	Title:	 	Vice President

  

					
	TOLLI & CO.
	 	 	By:	 	 Eaton Vance Management
 as Investment
Advisor

		
	By:	 	 /s/ Craig P. Russ

	Title:	 	Vice President
	
	BIG SKY SENIOR LOAN FUND, LTD.
	 	 	By:	 	 Eaton Vance Management
 as Investment
Advisor

		
	By:	 	 /s/ Craig P. Russ

	Title:	 	Vice President
	
	EATON VANCE CDO VI LTD.
	 	 	By:	 	 Eaton Vance Management
 as Investment
Advisor

		
	By:	 	 /s/ Craig P. Russ

	Title:	 	Vice President
	
	BIG SKY III SENIOR LOAN FUND TRUST
	 	 	By:	 	 Eaton Vance Management
 as Investment
Advisor

		
	By:	 	 /s/ Craig P. Russ

	Title:	 	Vice President
	
	EATON VANCE CDO III LTD.
	 	 	By:	 	 Eaton Vance Management
 as Investment
Advisor

		
	By:	 	 /s/ Craig P. Russ

	Title:	 	Vice President
	
	 COSTANTINUS EATON VANCE CDO V, LTD.

	 	 	By:	 	 Eaton Vance Management
 as Investment
Advisor

		
	By:	 	 /s/ Craig P. Russ

	Title:	 	Vice President

  

			
	 ERSTE BANK DER OESTERREICHISCHEN SPARKASSEN AG

		
	By:	 	 /s/ John Fay

	Title:	 	Director
		
	By:	 	 /s/ Bryan Lynch

	Title:	 	First Vice President
	
	Fidelity Advisors Series II:
	 	 	FIDELITY ADVISOR FLOATING RATE HIGH INCOME FUND
		
	By:	 	 /s/ John H. Costello

	Title:	 	Assistant Treasurer
	
	FLAGSHIP CAPITAL CLO 2001-1
	 	 	 By:   Flagship Capital Management, Inc.

		
	By:	 	 /s/ Mark S. Pelletier

	Title:	 	Director
	
	FLAGSHIP CAPITAL CLO II
	 	 	 By:   Flagship Capital Management, Inc.

		
	By:	 	 /s/ Mark S. Pelletier

	Title:	 	Director
	
	FLAGSHIP CAPITAL CLO III
	 	 	 By:   Flagship Capital Management, Inc.

		
	By:	 	 /s/ Mark S. Pelletier

	Title:	 	Director
	
	FLEET NATIONAL BANK
		
	By:	 	 /s/ Laura L. Clark

	Title:	 	Vice President
	
	FRANKLIN CLO I, LIMITED
		
	By:	 	 /s/ David Ardini

	Title:	 	Vice President

  

					
	FRANKLIN CLO II, LIMITED
		
	By:	 	 /s/ David Ardini

	Title:	 	Vice President
	
	 FRANKLIN FLOATING RATE DAILY ACCESS FUND

		
	By:	 	 /s/ Richard Hsu

	Title:	 	Vice President
	
	FRANKLIN FLOATING RATE TRUST
		
	By:	 	 /s/ Richard Hsu

	Title:	 	Vice President
	
	 FRANKLIN FLOATING RATE MASTER SERIES

		
	By:	 	 /s/ Richard Hsu

	Title:	 	Vice President
	
	 GULF STREAM-COMPASS CLO 2003-1 LTD.

	 	 	By:	 	 Gulf Stream Asset Management, LLC
 as Collateral
Manager

		
	By:	 	 /s/ Mark B. Mahoney

	Title:	 	President
	
	 GULF STREAM-COMPASS CLO 2004-1 LTD.

	 	 	By:	 	 Gulf Stream Asset Management, LLC
 as Collateral
Manager

		
	By:	 	 /s/ Mark B. Mahoney

	Title:	 	President
	
	IKB CAPITAL CORPORATION
		
	By:	 	 /s/ David Snyder

	Title:	 	President

  

					
	SEQUILS-PILGRIM I, LTD.
	 	 	By:	 	 ING Investments, LLC,
 as Collateral
Manager

		
	By:	 	 /s/ Mark F. Haak, CFA

	Title:	 	Vice President
	
	ING SENIOR INCOME FUND
	 	 	By:	 	 ING Investment Management, Co.,
 as its Investment
Manager

		
	By:	 	 /s/ Mark F. Haak, CFA

	Title:	 	Vice President
	
	ING PRIME RATE TRUST
	 	 	By:	 	 ING Investment Management, Co.,
 as its Investment
Manager

		
	By:	 	 /s/ Mark F. Haak, CFA

	Title:	 	Vice President
	
	ALZETTE EUROPEAN CLO S.A.
	 	 	By:	 	Invesco Senior Secured Management, Inc. as Collateral Manager
		
	By:	 	 /s/ Gregory Stoeckle

	Title:	 	Authorized Signatory
	
	AVALON CAPITAL LTD. 3
	 	 	By:	 	Invesco Senior Secured Management, Inc. as Asset Manager
		
	By:	 	 /s/ Gregory Stoeckle

	Title:	 	Authorized Signatory
	
	CHAMPLAIN CLO, LTD.
	 	 	By:	 	Invesco Senior Secured Management, Inc. as Collateral Manager
		
	By:	 	 /s/ Gregory Stoeckle

	Title:	 	Authorized Signatory

  

					
	CHARTER VIEW PORTFOLIO
	 	 	By:	 	 Invesco Senior Secured Management, Inc.
 as Investment
Advisor

		
	By:	 	 /s/ Gregory Stoeckle

	Title:	 	Authorized Signatory
	
	DIVERSIFIED CREDIT PORTFOLIO LTD.
	 	 	By:	 	 Invesco Senior Secured Management, Inc.
 as Investment
Advisor

		
	By:	 	 /s/ Gregory Stoeckle

	Title:	 	Authorized Signatory
	
	AIM FLOATING RATE FUND
	 	 	By:	 	 Invesco Senior Secured Management, Inc.
 as
Sub-Advisor

		
	By:	 	 /s/ Gregory Stoeckle

	Title:	 	Authorized Signatory
	
	INVESCO EUROPEAN CDO I S.A.
	 	 	By:	 	 Invesco Senior Secured Management, Inc.
 as Collateral
Manager

		
	By:	 	 /s/ Gregory Stoeckle

	Title:	 	Authorized Signatory
	
	 LOAN FUNDING IX LLC, for itself or as agent for Corporate Loan Funding IX LLC

	 	 	By:	 	 Invesco Senior Secured Management, Inc.
 as Portfolio
Manager

		
	By:	 	 /s/ Gregory Stoeckle

	Title:	 	Authorized Signatory
	
	SEQUILS-LIBERTY, LTD.
	 	 	By:	 	 Invesco Senior Secured Management, Inc.
 as Collateral
Manager

		
	By:	 	 /s/ Gregory Stoeckle

	Title:	 	Authorized Signatory

  

					
	SAGAMORE CLO LTD.
	 	 	By:	 	 Invesco Senior Secured Management, Inc.
 as Collateral
Manager

		
	By:	 	 /s/ Gregory Stoeckle

	Title:	 	Authorized Signatory
	
	SARATOGA CLO I, LIMITED
	 	 	By:	 	 Invesco Senior Secured Management, Inc.
 as Asset
Manager

		
	By:	 	 /s/ Gregory Stoeckle

	Title:	 	Authorized Signatory
	
	SKY CBNA LOAN FUNDING, LLC
		
	By:	 	 /s/ Karen Kwan

	Title:	 	Assistant Vice President
	
	KATONAH I, LTD.
		
	By:	 	 /s/ Ralph Della Rocca

	Title:	 	Authorized Officer
	 	 	Katonah Capital, L.L.C. as Manager
	
	KATONAH II, LTD.
		
	By:	 	 /s/ Ralph Della Rocca

	Title:	 	Authorized Officer
	 	 	Katonah Capital, L.L.C. as Manager
	
	KATONAH III, LTD.
		
	By:	 	 /s/ Ralph Della Rocca

	Title:	 	Authorized Officer
	 	 	Katonah Capital, L.L.C. as Manager
	
	KATONAH IV, LTD.
		
	By:	 	 /s/ Ralph Della Rocca

	Title:	 	Authorized Officer
	 	 	Katonah Capital, L.L.C. as Manager

  

			
	KATONAH V, LTD.
		
	By:	 	 /s/ Ralph Della Rocca

	Title:	 	Authorized Officer
	 	 	Katonah Capital, L.L.C. as Manager
	
	KZH PONDVIEW LLC
		
	By:	 	 /s/ Dorian Herrera

	Title:	 	Authorized Agent
	
	LEHMAN COMMERCIAL PAPER INC.
		
	By:	 	 /s/ Ritam Bhalla

	Title:	 	Authorized Signatory
	
	LIGHTPOINT CLO 2004-1, LTD.
		
	By:	 	 /s/ Thomas A. Kramer

	Title:	 	 Senior Managing Director & Chief
 Executive
Officer

	
	MERRILL LYNCH CAPITAL, a division of Merrill Lynch Business Financial Services
		
	By:	 	 /s/ Kelli O’ Connell

	Title:	 	Vice President
	
	METLIFE BANK NATIONAL ASSOCIATION
		
	By:	 	 /s/ Lawrence

	Title:	 	Director
	
	METROPOLITAN LIFE INSURANCE COMPANY
		
	By:	 	 /s/ Susan Garrett

	Title:	 	Director
	
	VENTURE III CDO LIMITED
	 	 	 By:   its investment advisor,
 MJX Asset Management LLC

		
	By:	 	 /s/ Martin Davey

	Title:	 	Managing Director

  

					
	VENTURE IV CDO LIMITED
	 	 	By:	 	its investment advisor,
	 	 	 	 	MJX Asset Management LLC
		
	By:	 	 /s/ Martin Davey

	Title:	 	Managing Director
	
	NATIONAL CITY BANK
		
	By:	 	 /s/ Gavin D. Young

	Title:	 	Assistant Vice President
	
	NATIONAL PENN BANK
		
	By:	 	 /s/ Brett A. Gibble

	Title:	 	Vice President
	
	NATIOWIDE MUTUAL INSURANCE CO.
		
	By:	 	 /s/ Thomas S. Leggett

	Title:	 	Associate Vice President, Public Bonds
	
	NATIOWIDE LIFE INSURANCE CO.
		
	By:	 	 /s/ Thomas S. Leggett

	Title:	 	Associate Vice President, Public Bonds
	
	NOMURA BOND & LOAN FUND
	 	 	By:	 	UFJ Trust Bank Limited as Trustee
	 	 	By:	 	Nomura Corporate Research and Asset Management Inc., Attorney in Fact
		
	By:	 	 /s/ Elizabeth Mack

	Title:	 	Authorized Officer
	
	CLYDESDALE CLO 2001-1, LTD.
	 	 	By:	 	Nomura Corporate Research and Asset Management Inc., as Collateral Manager
		
	By:	 	 /s/ Elizabeth Mack

	Title:	 	Authorized Officer

  

					
	CLYDESDALE CLO 2003, LTD.
	 	 	By:	 	 Nomura Corporate Research and Asset
 Management Inc.,
as Collateral Manager

		
	By:	 	 /s/ Elizabeth Mack

	Title:	 	Authorized Officer
	
	CLYDESDALE CLO 2004, LTD.
	 	 	By:	 	 Nomura Corporate Research and Asset
 Management Inc.,
as Collateral Manager

		
	By:	 	 /s/ Elizabeth Mack

	Title:	 	Authorized Officer
	
	ELF FUNDING TRUST III
	 	 	By:	 	New York Life Investment Management LLC, as Attorney-In-Fact
		
	By:	 	 /s/ Robert H. Dial

	Title:	 	Managing Director
	
	NYLIM FLATIRON CLO 2003-I LTD.
	 	 	By:	 	New York Life Investment Management LLC, as Collateral Manager and Attorney-In-Fact
		
	By:	 	 /s/ Robert H. Dial

	Title:	 	Managing Director
	
	NYLIM FLATIRON CLO 2004-I LTD.
	 	 	By:	 	New York Life Investment Management LLC, as Collateral Manager and Attorney-In-Fact
		
	By:	 	 /s/ Robert H. Dial

	Title:	 	Managing Director
	
	 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

	 	 	By:	 	New York Life Investment Management LLC, its Investment Manager
		
	By:	 	 /s/ Robert H. Dial

	Title:	 	Managing Director

  

					
	NEW YORK LIFE INSURANCE COMPANY
		
	By:	 	 /s/ Robert H. Dial

	Title:	 	Managing Director
	
	MOUNTAIN CAPITAL CLO 11 LTD.
		
	By:	 	 /s/ Chris Siddons

	Title:	 	Director
	
	PINEHURST TRADING, INC.
		
	By:	 	 /s/ Meredith J. Koslick

	Title:	 	Assistant Vice President
	
	PPM SPYGLASS FUNDING TRUST
		
	By:	 	 /s/ Ann E. Morris

	Title:	 	Assistant Vice President
	
	PPM MONARCH BAY FUNDING LLC
		
	By:	 	 /s/ Meredith J. Koslick

	Title:	 	Assistant Vice President
	
	PPM SHADOW CREEK FUNDING LLC
		
	By:	 	 /s/ Meredith J. Koslick

	Title:	 	Assistant Vice President
	
	LOAN FUNDING V, LLC
	 	 	By:	 	Loan Funding V, LLC, for itself or as agent for Corporate Loan Funding V LLC
	 	 	By:	 	Prudential Investment Management, Inc. as Portfolio Manager
		
	By:	 	 /s/ Martha Tuttle

	Title:	 	Principal

  

					
	DRYDEN III-LEVERAGED LOAN CDO 2002
	 	 	By:	 	 Prudential Investment Management, Inc.
 as Collateral
Manager

		
	By:	 	 /s/ Martha Tuttle

	Title:	 	Principal
	
	HUDSON STRAITS CLO 2004, LTD.
	 	 	By:	 	Royal Bank of Canada, as Collateral Manager
		
	By:	 	 /s/ Melissa Marano

	Title:	 	Authorized Signatory
	
	 SUN LIFE ASSURANCE COMPANY OF CANADA (US)

	 	 	By:	 	 Fairlead Capital Management, Inc.
 as
Sub-Advisor

		
	By:	 	 /s/ Melissa Marano

	Title:	 	Vice President & Senior Portfolio Manager
	
	FOXE BASIN CLO 2003, LTD.
	 	 	By:	 	Royal Bank of Canada, as Collateral Manager
		
	By:	 	 /s/ Melissa Marano

	Title:	 	Authorized Signatory
	
	REGIMENT CAPITAL, LTD
	 	 	By:	 	 Regiment Capital Management, LLC
 as its Investment
Advisor

	 	 	By:	 	 Regiment Capital Advisors, LLC
 its Manager and
Pursuant to delegated authority

		
	By:	 	 /s/ Timothy S. Peterson

	Title:	 	President

  

			
	RZB FINANCE LLC
		
	By:	 	 /s/ John A. Valiska

	Title:	 	First Vice President
		
	By:	 	 /s/ Christoph Hoedl

	Title:	 	Group Vice President

  

					
	SOVEREIGN BANK
		
	By:	 	 /s/ Kimberly Tavares

	Title:	 	Vice President
	
	STANWICH LOAN FUNDING LLC
		
	By:	 	 /s/ Meredith J. Koslick

	Title:	 	Assistant Vice President
	
	 THE SUMITOMO TRUST & BANKING CO., LTD. New York Branch

		
	By:	 	 /s/ Elizabeth A. Quirk

	Title:	 	Vice President
	
	GALAXY CLO 2003-1, LTD.
	 	 	By:	 	 AIG Global Investment Corp.
 Its Investment
Adviser

		
	By:	 	 /s/ W. Jeffrey Baxter

	Title:	 	Vice President
	
	 SUNAMERICA SENIOR FLOATING RATE FUND

	 	 	By:	 	 AIG Global Investment Corp.
 Its Investment
Adviser

		
	By:	 	 /s/ W. Jeffrey Baxter

	Title:	 	Vice President
	
	KZH SOLEIL LLC
		
	By:	 	 /s/ Dorian Herrera

	Title:	 	Authorized Agent
	
	KZH SOLEIL-2 LLC
		
	By:	 	 /s/ Dorian Herrera

	Title:	 	Authorized Agent

  

					
	TCW SELECT LOAN FUND, LIMITED
	 	 	By:	 	 TCW Advisors, Inc.
 its Collateral
Manager

		
	By:	 	 /s/ Matthew A. Miller

	Title:	 	Managing Director
		
	By:	 	 /s/ Jonathan R. Insull

	Title:	 	Managing Director
	
	FIRST 2004-I CLO, LTD.
	 	 	By:	 	 TCW Advisors, Inc.
 its Collateral
Manager

		
	By:	 	 /s/ Matthew A. Miller

	Title:	 	Managing Director
		
	By:	 	 /s/ Jonathan R. Insull

	Title:	 	Managing Director
	
	FIRST 2004-II CLO, LTD.
	 	 	By:	 	 TCW Advisors, Inc.
 its Collateral
Manager

		
	By:	 	 /s/ Matthew A. Miller

	Title:	 	Managing Director
		
	By:	 	 /s/ Jonathan R. Insull

	Title:	 	Managing Director
	
	 LOAN FUNDING I LLC
a wholly owned subsidiary of Citibank, N.A.

	 	 	By:	 	TCW Advisors, Inc., as portfolio Manager of Loan Funding I LLC
		
	By:	 	 /s/ Matthew A. Miller

	Title:	 	Managing Director
		
	By:	 	 /s/ Jonathan R. Insull

	Title:	 	Managing Director

  

					
	CELERITY CDO LTD.
	By:	 	TCW Advisors, Inc., as Agent
		
	By:	 	 /s/ Matthew A. Miller

	Title:	 	Managing Director
		
	By:	 	 /s/ Jonathan R. Insull

	Title:	 	Managing Director
	
	VELOCITY CLO, LTD.
	By:	 	TCW Advisors, Inc., its Collateral Manager
		
	By:	 	 /s/ Matthew A. Miller

	Title:	 	Managing Director
		
	By:	 	 /s/ Jonathan R. Insull

	Title:	 	Managing Director
	
	C-SQUARE CDO LTD.
	 	 	By:	 	TCW Advisors, Inc., as its Portfolio Manager
		
	By:	 	 /s/ Jonathan R. Insull

	Title:	 	Managing Director
	
	KZH CRESCENT-3 LLC
		
	By:	 	 /s/ Dorian Herrera

	Title:	 	Authorized Agent
	
	TORONTO DOMINION (NEW YORK) LLC
		
	By:	 	 /s/ Masson Fikree

	Title:	 	Authorized Signatory
	
	 CITIGROUP INVESTMENTS CORPORATE LOAN FUND INC.

	 	 	By:	 	Travelers Asset Management International Company LLC
		
	By:	 	 /s/ John O’Connell

	Title:	 	Vice President

  

			
	COLUMBUS LOAN FUNDING LTD.
	By:	 	Travelers Asset Management International Company LLC
		
	By:	 	 /s/ John O’Connell

	Title:	 	Vice President
	
	THE TRAVELERS INSURANCE COMPANY
		
	By:	 	 /s/ Allen R. Cantrell

	Title:	 	Investment Officer
	
	 CITICORP INSURANCE AND INVESTMENT TRUST

	By:	 	Travelers Asset Management International Company LLC
		
	By:	 	 /s/ Allen R. Cantrell

	Title:	 	Investment Officer
	
	SAWGRASS TRADING LLC
		
	By:	 	 /s/ Meredith J. Koslick

	Title:	 	Assistant Vice President
	
	 WACHOVIA BANK, NATIONAL ASSOCIATION

		
	By:	 	 /s/ Michael V. Petrine

	Title:	 	Vice President
	
	WHITEHORSE I LTD.
		
	By:	 	 /s/ Jay Carvell

	Title:	 	Portfolio Manager

  

 SCHEDULE XV 
  
 Montecchio Start-Up Costs (in 000s): 
  

									
	 FY’04
 Q4

	 	 FY’05
 Q1

	 	 FY’05
 Q2

	 	 FY’05
 Q3

	 	 FY’05
 Q4

	€877	 	€912	 	€850	 	€875	 	€500

  
 Include production overlap at the
Alismano plant, start-up overhead, training and hiring direct labor, material usage and scrap costs at the Montecchio plant. 
  
 FIAMM Corporate Fees (in 000s): 
  

																
	 FY’04
 Q4

	 	 FY’05
 Q1

	 	 FY’05
 Q2

	 	 FY’05
 Q3

	 	 FY’05
 Q4

	 	 FY’06
 Q1

	€293	 	€	288	 	€	240	 	€	279	 	€	293	 	€	288

  
 Includes FIAMM corporate staff costs
charged to the motive power battery business. 
  
 Dollar Equivalents of the
foregoing add-backs will be computed in accordance with the requirements of Section 13.21(b) of the Credit Agreement.Ericsson Inc. Stock Purchase Plan

 EXHIBIT 4.1 
  

ERICSSON INC. STOCK PURCHASE PLAN 
  
 The purpose of the Ericsson Inc. Stock Purchase Plan is to provide eligible employees of the United States affiliates of LM Ericsson Telephone Company;
Ericsson Inc. and its subsidiaries, an opportunity to purchase American Depository Receipts representing Series B Common Stock in LM Ericsson Telephone Company. The Board of Directors of LM Ericsson Telephone Company believes that employee
participation in stock ownership will be to the mutual benefit of the employees and the Employer. 
  
 ARTICLE I: DEFINITIONS 
  
 1.1 “Account” means the account(s) established and maintained for a Participant under this Plan. 
  
 1.2 “Administrator” means Citigroup, or such other third party administrator appointed by the Company to handle the day to day ministerial
operations of this Plan. 
  
 1.3 “ADR” means an American
Depository Receipt which represents ten shares of Stock. 
  
 1.4
“Alteration/Enrollment Period” means the first 15 days in May and November during the Contribution Period during which a Participant may alter (increase or decrease) his level of Contribution. 
  
 1.5 American Depository Receipt” means a type of security that
represents a specific number of shares of Stock on deposit with a custodian bank. American Depository Receipts are traded on the United States NASDAQ stock exchange. 
  
 1.6 “Board of Directors” means the Board of Directors of LM Ericsson Telephone Company. 
  
 1.7 “Cause” means the termination of a Participant’s
employment by the Company for: 
  

	 	(a)	any act or omission by a Participant constituting fraud, embezzlement or misappropriation of funds under the laws of any State or the United States of America;

  

	 	(b)	conviction of, or a plea of nolo contendere by, a Participant to a felony or other crime involving moral turpitude; 

  

	 	(c)	any breach of fiduciary duty owed by a Participant to Company; 

  

	 	(d)	the willful or reckless failure by a Participant to adhere to Company policies or the willful or reckless engaging by a Participant in misconduct which causes, or potentially
causes, a material monetary injury or other material harm to the Company; or 

  

	 	(e)	the negligent performance by a Participant to substantially perform material stated duties of his position with the Company (but only after receiving written notice thereof and
being given a reasonable period, not less than thirty (30) days, to cure said performance by taking such reasonable corrective action as shall be reasonably within his power at the time of reference). 

  
 1.8 “Code” means the Internal Revenue Code of 1986, as amended.
References to specific sections of the Code shall be taken to be references to corresponding sections of any successor statute. 
  

 1 

 1.9 “Company” means LM Ericsson Telephone Company, and all of its subsidiaries or affiliates.

  
 1.10 “Compensation” means a Participant’s gross
base wages before giving effect to any compensation reductions made in connection with plans described in sections 401(k) or 125 of the Code. For purposes of this Plan, Compensation does not include overtime pay, commissions, cash bonuses, premium
pay and/or shift differential amounts. 
  
 1.11
“Contribution” means the amount each Participant has elected to contribute in the form of an after-tax deduction from his Compensation pursuant to the provisions of Section 3.1 for the purchase of ADRs. 
  
 1.12 ‘“Contribution Account” means the Account of a
Participant which is credited with such Participant’s Contributions. 
  
 1.13 “Contribution Period” means, generally, the twelve (12) month period beginning August 1, 2005 and ending July 31, 2006 during which Contributions can be made to this Plan. The Contribution Period may be
shorter than twelve (12) months as described below: 
  

	 	(a)	In the event that the aggregate Contributions made to this Plan exceed the amount needed to purchase all ADRs reserved by the Company, as identified in Section 4.1, the Contribution
Period may be suspended until additional ADRs are allocated for use by this Plan. 

  

	 	(b)	The Contribution Period may be shortened or suspended as determined by the Local Plan Administrator, in its sole discretion. 

  
 1.14 “Contribution Share” means the ADRs purchased with a
Participant’s Contributions. 
  
 1.15 “Disability”
means a disability as determined pursuant to the terms of the Employer’s long term disability plan. 
  
 1.16 “Dividend Share” means the ADRs purchased by this Plan, and allocated to a Participant’s Share Account, using a cash dividend paid on
any ADR held in such Participant’s Share Account. Dividend Share may also refer to any in-kind dividends awarded to a Participant’s Share Account. 
  
 1.17 “Effective Date” shall mean August 1, 2005. 
  
 1.18 “Eligible Employee” means each employee of the Employer who performs thirty (30) hours of service a week. “Eligible Employee”
does not mean any Employees who are employed for “Freelance Long-Term Assignments,” as that term is defined by the Employer. 
  
 1.19 “Employee” means any person employed by the Employer. 
  
 1.20 “Employer” means Ericsson Inc., and any of its Subsidiaries located in the United States. 
  
 1.21 “Exchange Act” means the Securities Exchange Act of 1934, as
amended, and as the same may hereafter be amended. 
  
 1.22
“Initial Enrollment Period” means the period beginning June 20, 2005 and ending July 7, 2005 (or such other later date as extended by the Local Plan Administrator in its sole discretion) during which Eligible Employees may enroll in this
Plan for the entire Contribution Period. 
  
 1.23 “Investment
Date” means each quarterly date, or first possible trading date thereafter, beginning November 15, 2005 on which Participant Contributions are invested in Contribution Shares as described in Section 4.1. 
  
 1.24 “Leave of Absence” means an absence from the active employment
of the Employer by reason of an approved absence granted by the Employer on the basis of a uniform policy applied to each employee without discrimination. Such a Leave of Absence will not constitute a termination of employment, provided the Employee
returns to the active 
  

 2 

 employment of the Employer at or prior to the expiration of his leave, or if not specified therein, within the period of
time which accords with the Employer’s policy with respect to permitted absences. Notwithstanding the foregoing provisions of this Section, absence from the active service of the Employer because of military service will be considered a Leave
of Absence granted by the Employer and will not terminate the employment of an Employee if he returns to the active employment of the Employer within the period of time during which he has reemployment rights under any applicable Federal law or
within sixty (60) days from and after discharge or separation from such military service if no Federal law is applicable. However, no provision of this Section or of the remainder of this Plan shall require reemployment of any Employee whose active
service with the Employer was terminated by reason of military service. 
  
 1.25 “Local Plan Administrator” means the individual or individuals appointed by the Company to administer this Plan, as provided in Section 8.5. 
  
 1.26 “Market Value” means the last price for the ADRs as reported on the NASDAQ. If there was no such price
reported for the date of reference, “Market Value” means the last reported price for the ADR on the day next preceding the date of reference for which such price was reported. 
  
 1.27 “Matching Contribution” means a transfer to a Participant of one whole ADR or fractional portion of an ADR
for each Contribution Share or fraction of a Contribution Share held by such Participant in his Share Account. 
  
 1.28 “Matching Date” means the date on which a Matching Contribution is made to a Participant. The Matching Date for each Contribution Share
shall be the date that is three years after the Investment Date on which such Contribution Share was purchased. 
  
 1.29 “Matching Share” means an ADR (or fraction thereof) contributed to a Participant as a Matching Contribution and allocated to such
Participant’s Share Account. 
  
 1.30 “New Hire”
means any Eligible Employee who was hired by the Employer and is still within his sixty (60) day original entry period as described in Section 2.1(b). 
  
 1.31 “Participant” means each Eligible Employee who elects to participate in this Plan and completes a Stock Purchase Plan Participation
Agreement and a Stock Purchase Plan Account Agreement. 
  
 1.32
“Plan” means the Ericsson Inc. Stock Purchase Plan, as set forth herein and as hereafter amended. 
  
 1.33 “Plan Year” means the twelve (12) month period beginning August 1 and ending the following July 31. 
  
 1.34 “Purchase Price” means the purchase price for ADRs purchased
under this Plan, determined as set forth in Section 4.3. 
  
 1.35
“Retirement” means the Participant’s termination of employment: (i) on or after reaching his Retirement date as defined in the Retirement Plan for Employees of Ericsson Inc. (“Retirement Plan”) in which he is participating;
and (ii) such Participant’s commencement of distributions from the Retirement Plan. 
  
 1.36 “Share Account” means the Account of a Participant which is credited with his Contribution Shares, his Dividend Shares, and his Matching Shares. 
  
 1.37 “Stock” means the Series B Common Stock of the Company.

  
 1.38 “Stock Purchase Plan Account Agreement” means
the agreement entered into by the Participant with the Administrator to establish the Participant’s Account with such Administrator. 
  
 1.39 “Stock Purchase Plan Participation Agreement” means the instrument prescribed by the Local Plan Administrator pursuant to which an Eligible
Employee may enroll as a Participant and subscribe for the purchase of ADRs on the terms and conditions offered by the 
  

 3 

 Employer. The Stock Purchase Plan Participation Agreement is intended to evidence the Employer’s offer of an option
to the Eligible Employee to purchase ADRs on the terms and conditions set forth therein and herein. 
  
 1.40 “Stop Contribution Form” means the form filed with the Local Plan Administrator to cease Contributions under this Plan pursuant to Section
3.3(b). 
  

	 	1.41	“Subsidiary” means any present or future corporation which (i) constitutes a “subsidiary corporation” of the Employer as that term is defined in section 424 of
the Code and (ii) is designated as a participating entity in this Plan by the Local Plan Administrator [and has adopted this Plan]. Unless the Local Plan Administrator specifically designates otherwise, a Canadian or other foreign subsidiary shall
not be considered a Subsidiary for purposes of this Plan, and employees of such a subsidiary shall not be Eligible Employees. 

  
 ARTICLE II: ADMISSION TO PARTICIPATION 
  
 2.1 Initial Participation. 
  

	 	(a)	Effective Date. All Eligible Employees may elect to participate in this Plan and may become a Participant on the Effective Date by executing and filing with the Local Plan
Administrator a Stock Purchase Plan Participation Agreement and by executing and filing with the Administrator a Stock Purchase Plan Account Agreement, during the Initial Enrollment Period. Both the Stock Purchase Plan Participation Agreement and
the Stock Purchase Plan Account Agreement shall remain in effect until: (i) the Participant has a discontinuance of participation under Section 2.3, (ii) the Participant changes his Stock Purchase Plan Participant Agreement under Section 3.3; or
(iii) the occurrence of an event described in Section 5.2. 

  

	 	(b)	New Hires. Each New Hire may elect to participate in this Plan and may become a Participant in this Plan by executing and filing with the Local Plan Administrator a Stock Purchase
Plan Participation Agreement and by executing and filing with the Administrator a Stock Purchase Plan Account Agreement, within sixty (60) days of his hire date. Notwithstanding the above, any New Hire who is hired on or after the date that is two
months prior to the beginning of an Alteration/Enrollment Period must wait until such an Alteration/Enrollment Period to enroll in this Plan as a Participant. The Stock Purchase Plan Participation Agreement shall remain in effect until: (i) the
Participant has a discontinuance of participation under Section 2.3, (ii) the Participant changes his Stock Purchase Plan Participant Agreement under Section 3.3; or (iii) the occurrence of an event described in Section 5.2. Any New Hire who does
not elect to become a Participant and/or complete a Stock Purchase Plan Participation Agreement within sixty (60) days of his hire date may enroll as an Eligible Employee under Section 2.2. 

  
 2.2 Participation – After Initial Enrollment Period. An Eligible
Employee, who has not otherwise become a Participant pursuant to Section 2.1(a), may elect to participate in this Plan and become a Participant during any Alteration/Enrollment Period, by both executing and filing with the Local Plan Administrator a
Stock Purchase Plan Participation Agreement and executing and filing with the Administrator a Stock Purchase Plan Account Agreement, at such 
  

 4 

 time in advance of, or during, the Alteration/Enrollment Period as the Local Plan Administrator shall prescribe. The
Stock Purchase Plan Participation Agreement shall remain in effect until: (i) the Participant has a discontinuance of participation under Section 2.3, (ii) the Participant changes his Stock Purchase Plan Participant Agreement under Section 3.3; or
(iii) the occurrence of an event described in Section 5.2. 
  
 2.3
Discontinuance of Participation. 
  

	 	(a)	Voluntary Discontinuance. 

  

	 	(i)	A Participant may voluntarily cease his participation in this Plan and stop payroll deductions at any time by filing a Stop Contribution Form at such time in advance of the
Investment Date as the Local Plan Administrator shall prescribe. However, Stop Contribution Forms received after the date that is one week prior to the last day of the month before a scheduled Investment Date, shall be effective as soon as
administratively practicable following such Investment Date. 

  

	 	(ii)	At the direction of the Local Plan Administrator, the Administrator will refund any funds remaining in the Participant’s Contribution Account after he has discontinued his
participation pursuant to this Section 2.3(a) in a lump sum distribution. Notwithstanding the above, if a Participant ceases to be an Eligible Employee on any date between the date that is one week prior to an Investment Date and the Investment
Date, any amounts held in such Participant’s Contribution Account will be used to purchase ADRs on the Investment Date but such ADRs will not be eligible for Matching Contributions. Any amounts remaining in his Contribution Account after such
ADRs are purchased, will at the direction of the Local Plan Administrator, be refunded by the Administrator in a lump sum distribution. 

  

	 	(b)	Leave of Absence. A Participant who is on a Leave of Absence may continue to participate in this Plan so long as he continues to receive a paycheck from the Employer from which his
Contributions may be deducted. If, during his Leave of Absence, the Participant does not receive a paycheck [or does not receive a paycheck sufficient to cover his election Contribution for that payroll period] or, if at some point during his Leave
of Absence, he stops receiving a paycheck, such Participant will have a temporary break in participation which will result in no further Contributions being made to this Plan. Such Participant may again re-enroll under Section 2.4 upon his return to
employment with the Employer. 

  

	 	(c)	In-Eligible Employee. If a Participant ceases to be an Eligible Employee, his participation shall automatically cease, and no further purchase of ADRs shall be made for the
Participant. At the direction of the Local Plan Administrator, the Administrator will refund any funds remaining in the Participant’s Contribution Account after he has discontinued his participation pursuant to this Section 2.3(c) in a lump sum
distribution. Notwithstanding the above, if a Participant ceases to be an Eligible Employee on any date that between the date that is one week prior to an Investment Date and the Investment Date, any amounts held in such 

  

 5 

	 	    	Participant’s Contribution Account will be used to purchase ADRs on the Investment Date but such ADRs will not be eligible for Matching Contributions. Any amounts remaining in
his Contribution Account after such ADRs are purchased, will at the direction of the Local Plan Administrator, be refunded by the Administrator in a lump sum distribution. 

  
 2.4 Readmission to Participation. Any Eligible Employee who has discontinued participation, for any reason, may again
become a Participant by executing and filing with the Local Plan Administrator a new Stock Purchase Plan Participation Agreement and a new Stock Purchase Plan Account Agreement (if necessary) with the Administrator. Reinstatement to Participant
status shall be effective as of the next Alteration/Enrollment Period, provided the Participant files a new Stock Purchase Plan Participation Agreement with the Local Plan Administrator, and a new Stock Purchase Plan Account Agreement with the
Administrator, at such time in advance of, or during, the Alteration/Enrollment Period as the Local Plan Administrator shall prescribe. 
  
 ARTICLE III: CONTRIBUTIONS 
  
 3.1 Participant Contributions. Each Participant shall authorize payroll deductions from his Compensation for the purpose of funding the purchase of
ADRs pursuant to his Stock Purchase Plan Participation Agreement. Participants enrolling in this Plan pursuant to Section 2.1 may file their initial Stock Purchase Plan Participation Agreement with respect to the amount of Contributions at any time
during the Initial Enrollment Period. In the Stock Purchase Plan Participation Agreement, each Participant shall authorize an after-tax payroll deduction from each payment of Compensation during the Contribution Period. The first Contribution will
be deducted from paychecks received for the payroll period beginning August 1, 2005. All Participant Contributions shall be credited to such Participant’s Contribution Account under this Plan. 
  
 3.2 Contribution Limits. 
  

	 	(a)	Each Participant may elect to make a Contribution in an amount which shall be not less than one percent (1%) or more than seven and one-half percent (7 1/2%) of his Compensation, as calculated for the Contribution Period. 

  

	 	(b)	Any Employee who becomes a Participant after the first day of a Contribution Period will have his maximum Contribution for such Contribution Period determined by a fraction, the
numerator of which is seven and one-half percent (7 1/2%) of the Participant’s Compensation which would be
earned during the Contribution Period as determined based on his Compensation at the time of his enrollment in this Plan times the number of months left in the Contribution Period, and the denominator of which is the total number of months in the
Contribution Period. 

  

	 	(c)	Each Participant’s Contribution may be stopped or reduced by the Local Plan Administrator if the aggregate Contributions made under this Plan equal an amount that exceeds the
ADRs reserved by the Local Plan Administrator for purchase under Section 4.1. The Contribution limits may be reduced (temporarily or permanently) and the Local Plan Administrator may direct the Administrator to refund Contributions already made (but
not yet invested in Contribution Shares), entirely or partially (to the extent such Contributions cannot be used for investing in Contribution Shares), to the Participant in a single lump sum distribution. 

  

 6 

 Unless determined otherwise by the Local Plan Administrator, for purposes of this Section 3.2, the Contribution Period
shall be twelve (12) months long. 
  
 3.3 Change of
Election. 
  

	 	(a)	Change in Contribution Percentage. A Participant may change the percentage of his Contribution election to any permissible level during any Alteration/Enrollment Period by filing a
new Stock Purchase Plan Participation Agreement with the Local Plan Administrator in such form and at such time in advance of, or during, the Alteration/Enrollment Period during which the change is to be effective as the Local Plan Administrator
shall prescribe. 

  

	 	(b)	Cessation of Contributions. A Participant may stop his Contribution election at any time by filing a Stop Contribution Form at such time in advance of the Investment Date as the
Local Plan Administrator shall prescribe. However, no Stop Contribution Form will be accepted after the date that is one week prior to the last day of the month before a scheduled Investment Date through such Investment Date. Any Participant who
files a Stop Contribution Form pursuant to this Section 3.3 may again begin making Contributions by filing with the Local Plan Administrator a new Stock Purchase Plan Participation Agreement and a new Stock Purchase Plan Account Agreement (if
necessary) pursuant to Section 2.4. 

  
 3.4
Termination of Right to Make Contributions. The right to make any further Contributions during the Contribution Period will terminate upon the occurrence of any of the following events: 
  

	 	(a)	The Participant’s employment with the Company is terminated for any reason; 

  

	 	(b)	the Participant’s employment is either transferred to another entity within the Company or is terminated in connection with entering into new employment with another entity
within the Company, but the Participant does not agree to accept the Local Stock Purchase Plan Conditions applied by the new employer or the new employer has not launched the Plan, 

  

	 	(c)	the Participant is granted leave of absence for reasons other than those stated in the Local Stock Purchase Plan Conditions as acceptable reasons for continued Contributions,

  

	 	(d)	a termination of the Employee Share Purchase Account Agreement caused by the Participant, and 

  

	 	(e)	the Participant has committed a material breach of his/her obligations under the Stock Purchase Plan Participation Agreement and/or the Stock Purchase Plan Account Agreement.

  
 ARTICLE IV: STOCK PURCHASE AND
RESALE 
  
 4.1 Reservation of Shares. The
Company has reserved Five Million (5,000,000) shares of Stock for issuance of ADRs under this Plan and other similar plans. To the extent ADRs are purchased by Participants in this Plan, such ADRs will be transferred to such Participant’s Share
Account in the form of the appropriate number of ADRs, subject to adjustment in accordance with Section 4.02. Except as provided in Section 4.02, the aggregate number of ADRs that may be purchased under this Plan shall not exceed the number of ADRs
needed to cover the shares of Stock reserved under this Plan. 
  

 7 

 4.2 Limitation on Shares Available. The maximum number of ADRs that may be purchased for each
Participant on a Investment Date is the lesser of (a) the number of whole and fractional ADRs that can be purchased by applying the full balance of the Participant’s Contribution Account to the purchase of ADRs at the Purchase Price, or (b) if
an insufficient number of shares of Stock remain under 4.1 to allow all Participants in this Plan and other similar plans to purchase the number of ADRs as determined under (a), the Participant’s proportionate part of the maximum number of ADRs
available, as determined by the Local Plan Administrator in its sole discretion, under this Plan, as determined by the Local Plan Administrator pursuant to Section 4.1. 
  
 4.3 Purchase Price of Shares. The Purchase Price per ADR to be sold to Participants under this Plan shall be the
Market Value of such ADR on the Investment Date. 
  
 4.4
Purchase. 
  

	 	(a)	On each Investment Date, unless directed otherwise by the Local Plan Administrator, the Administrator shall purchase, for each Participant who has a balance in his Contribution
Account and is a Participant on such Investment Date, the largest number of whole ADRs and any fractional ADRs as can be purchased with the amounts held in such Participant’s Contribution Account. Each Participant’s Contribution Shares
will be held in his Share Account. 

  

	 	(b)	Any amounts that are held in a Participant’s Contribution Account that remain after the purchase of ADRs on an Investment Date will continue to be held in the
Participant’s Contribution Account, without interest, and applied on the Participant’s behalf to purchase ADRs on the next Investment Date. However, if such Participant terminates employment for reasons other than the events identified in
Section 5.2(b), the Local Plan Administrator shall direct the Administrator to refund all amounts held in such Participant’s Contribution Account in a single lump sum distribution. 

  
 4.5 Payment for Stock. The Purchase Price for all ADRs purchased by a
Participant under this Plan shall be paid out of the Participant’s Contribution Account. 
  
 4.6 Share Ownership; Issuance of Certificates. 
  

	 	(a)	The ADRs purchased by a Participant on a Investment Date shall, for all purposes, be deemed to have been issued or sold at the close of business on the Investment Date. Prior to
that time, none of the rights or privileges of a shareholder of the Company shall inure to the Participant with respect to such ADRs. All the ADRs purchased under this Plan shall be delivered by the Company in a manner as determined by the Local
Plan Administrator or the Administrator. 

  

	 	(b)	ADRs shall be delivered by issuing and delivering certificates for the number of ADRs purchased by Participants to the Administrator which shall be held in a separate Account
maintained by the Administrator for each Participant reflecting such Participant’s ADRs. 

  
 4.7 Distribution of Shares or Resale of Stock. 
  

	 	(a)	A Participant may request a distribution of ADRs purchased for the Participant under this Plan or order the sale of such ADRs at any time by making a request in such form and at
such time as the Local Plan Administrator shall prescribe. 

  

 8 

	 	(b)	If a Participant terminates his employment with the Employer or otherwise ceases to be an Eligible Employee, the Participant shall receive a distribution of his ADRs held in his
Share Account, unless the Participant elects to have the ADRs sold in accordance with such procedures as the Local Plan Administrator shall prescribe. 

  

	 	(c)	If a Participant is to receive a distribution of ADRs, or if ADRs are to be sold, the distribution or sale shall be made in whole ADRs, with fractional ADRs paid in cash. Any
brokerage commissions resulting from a sale of ADRs shall be deducted from amounts payable to the Participant. 

  
 For purposes of this Section 4.7, if a Participant decides to sell or transfer ADRs from his Share Account, such Participant will be deemed to have first sold or
transferred ADRs that: (i) are not entitled to receive a Matching Contribution (i.e., Dividend Shares or Matching Shares), or (ii) are Contribution Shares for which a Matching Contribution has already been made. If a Participant wishes to
sell or transfer ADRs from his Share Account in an amount that exceeds the number of ADRs described in (i) and (ii) above, then the additional ADRs so transferred and/or withdrawn shall be deemed to be those Contribution Shares acquired at the first
possible Investment Date. 
  
 ARTICLE V:
MATCHING CONTRIBUTIONS 
  
 5.1 Matching
Contribution. Subject to Section 5.2, each Contribution Share held in a Participant’s Share Account will qualify for a Matching Contribution on the Matching Date associated with such Contribution Share. On each Matching Date (or the first
possible bank day immediately subsequent to each Matching Date), unless otherwise directed by the Local Plan Administrator, the Administrator shall award one Matching Share for each Contribution Share that has been held in a Participant’s Share
Account for three years after the Investment Date on which such Contribution Share was purchased, to the extent not previously matched hereunder. All Matching Shares awarded pursuant to this Section 5.1 will be allocated to a
Participant’s Share Account. Regardless of any change of employment, Matching Contributions will still be made with respect to Contribution Shares held in a Participant’s Share Account in accordance with this Section 5.1 so long as:

  

	 	(a)	the Participant’s employment is either transferred to another entity within the Company or is terminated in connection with entering into new employment with another entity
within the Company, but the Participant does not agree to accept the Local Stock Purchase Plan Conditions applied by the new employer or the new employer has not launched the Plan; or 

  

	 	(b)	such Participant is granted a Leave of Absence. 

  
 5.2 Modification of the Matching Contributions. 
  

	 	(a)	No Matching Contributions will be made with respect to Contribution Shares held in a Participant’s Share Account if: 

  

	 	(i)	such Participant voluntarily terminates his employment with the Company; 

  

	 	(ii)	such Participant’s employment with the Company is terminated for Cause; 

  

	 	(iii)	such Participant revokes his consent to process personal data as described in his Stock Purchase Plan Participation Agreement; 

  

	 	(iv)	such Participant terminates his Stock Purchase Plan Account Agreement; 

  

 9 

	 	(v)	such Participant commits a material breach of his obligations under his Stock Purchase Plan Participation Agreement and/or his Stock Purchase Plan Account Agreement;

  

	 	(vi)	such Participant transfers ownership of, or interest in, the Contribution Share(s), other than transfers made pursuant to Section 8.1, eligible for a Matching Contribution prior to
such Contribution Share(s) Matching Date; or 

  

	 	(vii)	such Participant makes a withdrawal of the Contribution Share(s) eligible for a Matching Contribution prior to such Contribution Share(s) Matching Date. 

  

	 	    	For purposes of subsections (v), (vi), and (vii), if some but not all of the Contribution Shares held in a Participant’s Share Account are transferred and/or withdrawn, the
Contribution Shares so transferred and/or withdrawn shall be deemed to be those Contribution Shares acquired at the first possible Investment Date. 

  

	 	(b)	Notwithstanding Section 5.2(a) above, a Participant’s Matching Date will be accelerated to occur within thirty (30) days of the occurrence of the following events:

  

	 	(i)	such Participant’s employment with the Company terminates due to outsourcing, redundancy, or his being laid-off; 

  

	 	(ii)	such Participant’s employment is transferred to an entity that is not part of the Company; 

  

	 	(iii)	the entity where the Participant is employed ceases to be part of the Company; 

  

	 	(iv)	such Participant’s employment terminates due to Retirement, Disability, or death. 

  
 ARTICLE VI: DIVIDENDS 
  
 6.1 Dividend Contribution. Each Participant will be entitled to any dividends awarded with respect to shares
of Stock represented by the ADRs held in his Share Account. Any cash dividend paid on shares of Stock represented by the ADRs held in a Participant’s Share Account will be reinvested in whole or fractional ADRs. Any Dividend Shares awarded to a
Participant will be allocated to the Participant’s Share Account. 
  
 6.2 Eligibility for Matching. Dividend Shares shall not qualify for Matching and may be transferred from the Participant’s Share Account pursuant to Section 4.7 without affecting the Matching right of any other
Contribution Shares held in such Participant’s Share Account. 
  
 ARTICLE VII: SPECIAL ADJUSTMENTS 
  
 7.1 Share Adjustments. Each Participant will be entitled to receive any additional ADRs issued as a result of either (i) a bonus issue; or (ii) a Stock split. Any such additional ADRs will be allocated
to the Participant’s Share Account and will be treated as Contribution Shares for all purposes of this Plan, including being eligible for Matching Contributions. The Investment Date for any ADRs awarded pursuant to (i) or (ii) above shall be
the date such ADRs are allocated to the Participant’s Share Account. 
  

 10 

 7.2 Shares Unavailable. If, on any Investment Date, the aggregate funds available for the
purchase of Stock would purchase a number of shares in excess of the number of ADRs then available for purchase under this Plan, the following events shall occur: 
  

	 	(a)	The number of ADRs that would otherwise be purchased by each Participant shall be proportionately reduced on the Investment Date in order to eliminate such excess; and

  

	 	(b)	The Plan shall automatically terminate immediately after the Investment Date as of which the supply of available shares is exhausted. 

  
 7.3 Anti-Dilution Provisions. The aggregate number of ADRs
reserved for purchase under this Plan, as provided in Section 4.1 may be appropriately adjusted by the Local Plan Administrator to reflect any increase or decrease in the number of issued ADRs resulting from a subdivision or consolidation of shares
or other capital adjustment, or the payment of a stock dividend, or other increase or decrease in such shares, if effected without receipt of consideration by the Company. 
  
 7.4 Effect of Certain Transactions. Subject to any required action by the shareholders, if the Company shall be the
surviving corporation in any merger or consolidation, any offering hereunder shall pertain to and apply to the ADRs of the Company. However, in the event of a dissolution or liquidation of the Company, or of a merger or consolidation in which the
Company is not the surviving corporation, this Plan and any offering hereunder shall terminate upon the effective date of such dissolution, liquidation, merger or consolidation, unless the Board determines otherwise, and the balance of any amounts
held in a Participant’s Contribution Account which have not by such time been applied to the purchase of Stock shall be returned to the Participant. Amounts held in a Participant’s Share Account will receive a Matching Contribution in
accordance with Section 5.2(b)(v). 
  
 ARTICLE VIII:
MISCELLANEOUS 
  
 8.1
Non-Alienation. Except as set forth below, the right to purchase ADRs under this Plan is personal to the Participant and may not be assigned or otherwise transferred by the Participant. If a Participant dies, unless the executor,
administrator or other personal representative of the deceased Participant directs otherwise, any amounts held in the Participant’s Contribution Account during the Contribution Period in which the Participant dies shall be used to purchase
Stock on the Investment Date for the Contribution Period. After that Investment Date, there shall be delivered to the executor, administrator or other personal representative of the deceased Participant all ADRs and such residual amounts as may
remain to the Participant’s credit in his Contribution Account under this Plan. 
  
 8.2 Administrative Costs. The Employer or the Company shall pay the administrative expenses associated with the operation of this Plan (other than brokerage commissions resulting from sales of Stock directed by
Participants). 
  
 8.3 Fees. All transaction fees
for the purchase, selling, or transfer of any shares held in a Participant’s Share Account will be charged to the Account of the Participant. 
  
 8.4 No Interest. No interest shall be payable with respect to amounts withheld from Participant’s Compensation or deposited under this
Plan. 
  
 8.5 Local Plan Administrator. The Company
shall appoint the Local Plan Administrator, which shall have the authority and power to administer this Plan and to make, adopt, construe, and enforce rules and regulations not inconsistent with the provisions of this Plan. The Local Plan
Administrator shall adopt and prescribe the contents of all forms required in connection with the administration of this Plan, including, but not limited to, the Stock 
  

 11 

 Purchase Plan Participation Agreement, payroll withholding authorizations, requests for distribution of ADRs, and all
other notices required hereunder. The Local Plan Administrator shall have the fullest discretion permissible under law in the discharge of its duties. The Local Plan Administrator’s interpretations and decisions with respect to this Plan shall
be final and conclusive. The Local Plan Administrator may appoint an Administrator to: (i) on each Investment Date, purchase ADRs for each Participant with amounts held in such Participant’s Contribution Account; and (ii) on each Matching Date,
credit each Participant’s Account with the appropriate Matching Contribution. 
  
 8.6 Withholding of Taxes; Notification of Transfer. 
  

	 	(a)	All acquisitions of ADRs under this Plan shall be made with after-tax Contributions made by Participants to this Plan. 

  

	 	(b)	All acquisitions and sales of ADRs under this Plan shall be subject to applicable federal (including FICA), state and local tax withholding requirements if the Internal Revenue
Service or other taxing authority requires such withholding. The Employer may require that Participants pay to the Employer (or make other arrangements satisfactory to the Employer for the payment of) the amount of any federal, state or local taxes
that the Employer is required to withhold with respect to the purchase of ADRs or the sale of ADRs acquired under this Plan, or the Employer may deduct from the Participant’s wages or other compensation the amount of any withholding taxes dues
with respect to the purchase of ADRs or the sale of ADRs acquired under this Plan. 

  

	 	(c)	All Matching Contributions and Dividend Contributions of ADRs made to Participants under this Plan shall be subject to applicable federal (including FICA), state and local tax
withholding requirements if the Internal Revenue Service or other taxing authority requires such withholding upon such contribution. The Employer may require that: (i) Participants pay to the Employer (or make other arrangements satisfactory to the
Employer for the payment of) the amount of any federal, state or local taxes that the Employer is required to withhold with respect to the Matching Contribution or Dividend Contribution, (ii) the Employer may deduct from the Participant’s wages
or other compensation the amount of any withholding taxes dues with respect to such contributions as made under this Plan; or (iii) the Employer may offset the number of Matching Contributions and/or Dividend Contributions otherwise allocable to the
Participant by an amount equal to the amount of withholding taxes due thereon. 

  
 8.7 Amendment of this Plan. The Board of Directors may, at any time and from time to time, amend this Plan in any respect. 
  
 8.8 Expiration and Termination of this Plan. The Plan shall continue in effect for the duration of the
Contribution Period and then until all Matching Shares and Dividend Shares have been allocated to Participants’ Accounts, unless terminated prior to that date pursuant to the provisions of this Plan or pursuant to action by the Board of
Directors. The Board of Directors shall have the right to terminate this Plan at any time without prior notice to any Participant and without liability to any Participant. Upon the expiration or termination of this Plan, the balance, if any, then
standing to the credit of each Participant from amounts withheld from the Participant’s Compensation which has not, by such time, been applied to the purchase of Stock shall be refunded to the Participant. 
  

 12 

 8.9 No Employment Rights. Participation in this Plan shall not give an employee any right
to continue in the employment of an Employer, and shall not affect the right of the Employer to terminate the employee’s employment at any time, with or without cause. 
  
 8.10 Repurchase of Stock. The Employer shall not be required to purchase or repurchase from any Participant any of
the ADRs that the Participant acquires under this Plan. 
  
 8.11 Notice. A Stock Purchase Plan Participation Agreement, a Stock Purchase Plan Account Agreement, and any notice that a Participant files pursuant to this Plan shall be on the form prescribed by the Local Plan
Administrator, or, if applicable, the Administrator, and shall be effective only when received by the Local Plan Administrator, or, if applicable, the Administrator,. Delivery of such forms may be made by hand or by certified mail, sent postage
prepaid, to the Employer’s corporate headquarters, or such other address as the Local Plan Administrator, or, if applicable, the Administrator, may designate. Delivery by any other mechanism shall be deemed effective at the option and
discretion of the Local Plan Administrator, or, if applicable, the Administrator. 
  
 8.12 Government Regulation. The Company’s obligation to sell and to deliver the ADRs under this Plan is at all times subject to all approvals of any governmental authority required in connection with the
authorization, issuance, sale or delivery of such ADRs. 
  
 8.13
ERISA Considerations. The Plan is not intended and shall not be construed as constituting an “employee benefit plan,” within the meaning of section 3(3) of the Employee Retirement Income Security Act of 1974, as amended. 

 
 8.14 Exchange Act Considerations. Transactions under this Plan may
be subject to the provisions of section 16(b) of the Exchange Act, under which a purchase of ADRs within six months before or after a sale of ADRs can result in recovery by the Company of all or a portion of any amount by which the sale proceeds
exceed the Purchase Price. Rules adopted under section 16(b) of the Exchange Act, including Rule 16b-3, exempt purchases (but not sales) of stock under this Plan from these liability obligations. 
  
 8.15 Headings, Captions, Gender. The headings and captions herein are
for convenience of reference only and shall not be considered as part of the text. The masculine shall include the feminine, and vice versa. 
  
 8.16 Severability of Provisions, Prevailing Law. The provisions of this Plan shall be deemed severable. In the event any such provision is
determined to be unlawful or unenforceable by a court of competent jurisdiction or by reason of a change in an applicable statute, this Plan shall continue to exist as though such provision had never been included therein (or, in the case of a
change in an applicable statute, had been deleted as of the date of such change). The Plan shall be governed by the laws of the Texas to the extent such laws are not in conflict with, or superseded by, federal law. 
  
 IN WITNESS WHEREOF, this Plan is executed on the      day of June
to be effective of the      day of June. 
  

			
	EMPLOYER:
	
	  

	 By:
	 	  

	 Its:
	 	  

  

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