Document:

Amendment No. 3 to the Amended and Restated Alloy Services Agreement

 Exhibit 10.1 

Amendment No. 3 to 

Amended and Restated Alloy Services Agreement 

This Amendment No. 3 to the Amended and Restated Alloy Services Agreement (The “Third Amendment”), effective as of the 15
th day of April, 2010, is made by and between AGY Holding
Corp, a Delaware corporation, with its principal office located at 2558 Wagener Road, Aiken South Carolina, 29801, as successor-in-interest to Advanced Glassfiber Yarns, LLC, (hereinafter “Buyer”); and Owens Corning Sales, LLC, a Delaware
Limited Liability Company, with its principal offices located at One Owens Corning Parkway, Toledo, Ohio 43659, as successor-in-interest to Owens Corning (hereinafter “OC”). 

RECITALS: 

WHEREAS, OC and Buyer entered into an Amended and Restated Alloy Services Agreement, made as of September 16, 2003, as amended by
Amendment No. 1, and Amendment No, 2. and which are collectively referred to herein as the “Amended Agreement”. 

WHEREAS, Buyer and OC have reached agreement on the terms of extending the term of the Amended Agreement through mutual consideration
granted to the parties and wish to amend the Amended Agreement; 
 NOW, THEREFORE, in consideration of these premises and other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree to amend the Amended Agreement as follows: 

1.       Definitions. Capitalized terms used herein and not otherwise defined shall have the
meanings as set forth in the Amended Agreement. 
 2.       Amendment to Paragraph 3.C.
Paragraph 3.C. of the Amended Agreement is hereby amended by adding the following to the end: 
 “In
addition to the price increases permitted hereunder, Effective April 15, 2010, prices charged to Buyer shall he increased by twenty-five percent (25%) above the current list price of Parts and services provided to Buyer hereunder.”

 3.       Amendment to Paragraph 3.D. Paragraph 3.D. of the Amended Agreement is hereby
amended by replacing: “0.45%” with “0.35%”. 
 4.       Amendment to
Paragraph 3.F. Paragraph 3.F. of the Amended Agreement is hereby amended by replacing, the entire paragraph with the following: 

“OC and Buyer agree that the Cycle Time for shipment of Parts from the date that an order is confirmed, shall be as set forth below:

 Paramelter Parts: three (3) weeks (twenty-one (21) days) 

Marble Melter Parts: three (3) weeks (twenty-one (21) days) 

All Other Parts: four (4) weeks (twenty-eight (28) days) 

 Each of the forgoing shall he deemed the “Committed Cycle Time”.

 Notwithstanding the foregoing, Buyer may place orders for Parts for shipment on an expedited basis subject to then current
price premiums for expedited orders. OC will guarantee delivery of up to four expedited Parts per month.” 

5.       Amendment to Section 3. Section 3 of the Amended Agreement is hereby amended by
adding following as a new paragraph 3.M.: 
 “M. Buyer commits to purchase 500 Major Parts during each period described
below (the “Purchase Commitment”) except for the Fourth Period, where the Purchase Commitment is reduced to 334. A “Major Part” is defined as a bushing, melter, liner, or heater. 

First Period: April 15, 2010 - April l4, 2011 

Second Period: April 15, 2011 - April 14, 2012 

Third Period: April 15, 2012 - April 14, 2013 

Fourth Period: April 15, 2013 - December 31, 2013. 

In the event that Buyer fails to meet its Purchase Commitment during any particular Period, Buyer shall pay to OC liquidated damages
corresponding to the volume shortfall in the amount of: (i) $3,000/Major Part during the First Period; (ii) $2,000/Major Part during the Second Period; and (iii) $1,000/Major Part during each of the Third and Fourth Periods. The
penalty payments shall be invoiced on the last day of each Period and paid within thirty days thereafter. Notwithstanding the foregoing, in the event that Buyer’s total requirements for Major Parts during a particular Period falls below the
Purchase Commitment, there shall be no penalty for failure to meet a Purchase Commitment during that period, provided that all Major Parts required by Buyer are made by and purchased from OC during that same Period (and Buyer is not fabricating
Parts for itself). 
 6.       Amendment to Paragraph 4.A. Paragraph 4.A. of the Amended
Agreement is hereby amended by replacing the first sentence with the following: 
 “With respect to the purchase orders
rendered hereunder, Buyer agrees that it is responsible to maintain at all times, a balance in the Account to cover: 
 95% of
the orders for all Direct Melt and Marble Melter Parts, not made with J metal; 
 100% of the orders for Paramelter Parts made
with U or H metal; and 
 110% of the orders for all Parts made with J metal or any other metal composition other than U or H.

 with each such percentage being the “Minimum Amount” for each category of Parts; provided that the Buyer shall only
be required to maintain the Minimum Amount during the committed Cycle Time of any such purchase order rendered hereunder.” 

 7.       Amendment to Paragraph 7.B.
Paragraph 7.B. of the Amended Agreement is hereby amended by replacing “thirteen years” with “fifteen years” and replacing “December 31, 2011” with “December 31, 2013”. 

8.       Amendment to Paragraph 8.A. Paragraph 8.A. of the Amended Agreement is
hereby amended by replacing it with the following: 
 “OC shall be the exclusive provider of alloy services
and fabrication and repair services with regard to Parts which are utilized by Buyer. This exclusivity shall not apply to: (i) Buyer’s own fabrication or supply of Parts, or (ii) to metal services for the Additional Metals described
in Amendment No. 2 to the Amended Agreement. However, in the event Buyer desires to utilize fabrication technology commercially available from a third party, OC will have the right of first refusal to acquire such technology and capability, and
provide, such new fabrication technology to Buyer at commercially reasonable terms. In the event that OC is unwilling to acquire such technology for the benefit of Buyer, or is unable to arrive at commercially reasonable terms with Buyer, Buyer
shall be excused from its Purchase Commitment, but only to the extent and for the number of Parts Buyer purchases which utilize the third party technology.” 

9.       Miscellaneous. Except as amended hereby, all the terms, and provision, of
the Amended Agreement shall remain in full force and effect and any references here or in the Amended Agreement shall hereafter be deemed to refer to the Amended Agreement as amended by this Amendment No 3. 

10.       Counterparts. This document may be executed in one or more counterparts,
each of which shall he deemed an original, but all of which together will constitute one and the same instrument. 

IN WITNESS WHEREOF, the parties hereto execute this Amendment No. 3 to the Amended Agreement effective as of
April 15, 2010. 
 AGY Holding Corp. 
  

			
	 By:
	 	 /s/ Douglas J. Mattscheck

	 Name:
	 	 DOUGLAS J. MATTSCHECK

	 Title:
	 	 CEO

	 Date:
	 	 5/2/10

	
	 Owens Corning Sales, LLC.

		
	 By:
	 	 /s/ Alan R. Foster

	 Name:
	 	 Alan R. Foster

	 Title:
	 	 VICE PRESIDENT, ALLOY & STRATEGIC OPS

	 Date:
	 	 5/2/2010Employment offer letter dated as of May 4, 2010 for C. Steven Smoot

 Exhibit 10.2 

 

 

 WORLD HEADQUARTERS 

2556 Wagener Road 

Aiken. SC 29801 

803.648 8351 tel 

803. 643. 1180 fax 

www. agy. com 

May 4, 2010 

Mr. Steven Smoot 

7220 New Forest Lane 

Wake Forest, NC 27587 

Dear Steve: 

On behalf of the Board of Directors of KAGY Holdings, Inc. (“AGY” or the “Company”), I am pleased to extend to you
this offer of employment on the following terms and conditions: 
 Title.   Chief Financial Officer.

 Base Salary.       Annual salary of $225,000, paid in accordance to the Company’s
customary payment schedule. The salary will be subject to annual review by the Compensation Committee of the Board. Recommendations for salary increases by the Compensation Committee will be based on measuring results against goals mutually agreed
upon by the Board and CEO. 
 Bonus.   Target annual bonus equal to 40% of base salary, with a range of 0% to
80% of base salary, subject to performance targets and other provisions of the Company’s management incentive plan (the “Bonus Plan”). Bonus plan years begin January 1 and end December 31. As such, for the first period of your
employment corresponding to the remaining plan year, you will be paid an amount based upon the salary earned for that period. 

Incentive Stock Option Plan.   You will be granted an option to acquire 70,000 shares of stock with an initial strike
price of approximately $6.70 per share, according to the terms of the Company’s Incentive Stock Option Plan (the “Option Plan”). The Option Plan calls for a three-year vesting schedule in equal annual installments, beginning on the
first anniversary of employment, and acceleration in the event of a change in control. The vesting is 50% performance-based according to pre-established EBITDA targets and 50% time based. We will confirm the precise strike price around the time of
your acceptance. 
 Health, Welfare and Retirement Benefits.   You will be entitled to participate in all the
Company’s Salaried benefits including medical, dental, 401K and insurance plans as described in materials sent to you under separate cover. 

Other Benefits.   AGY will reimburse you for the reasonable expenses of your relocation to the Aiken, SC vicinity. We
would ask that you develop a cost estimate and relocation plan for my approval within ninety days after you start your employment. You will be provided a monthly car allowance for a vehicle with a value of up to $30,000. 

Severance Plan.   You have been provided with a copy of AGY’s Severance Plan. We ask that you acknowledge your
acceptance of that Plan by signing the Confidentiality, Non-solicitation and Non-compete Agreement and the Release of Claims Agreement. 

 

 

 WORLD HEADQUARTERS 

2556 Wagener Road 

Aiken. SC 29801 

803.648 8351 tel 

803. 643. 1180 fax 

www. agy. com 

At Will Employment.   The terms of this letter notwithstanding, you will be an at will employee of the Company.

 Employment Date.   Your target employment date will be May 24, 2010, or such other date as we might
mutually agree. 
 If you are in agreement with the contents of this letter, please execute both
copies in the space below and return one copy to me, retaining the other copy for your files. Under separate cover, we will send you copies of the relevant other agreements, including the Stock Option Plan, the Bonus Plan, the Severance Policy and
the Benefit Plans. If you have any questions or comments, please do not hesitate to contact me. 
 Steve, we fully expect that
AGY is going to benefit from your results-driven leadership. I look forward to the opportunity to work together to accelerate the profitable growth of the company. 
  

									
	 Sincerely,
	  		  		  		  	
					
	 /s/ Douglas J. Mattscheck
	  		  		  		  	
	 Douglas J. Mattscheck
	  		  		  		  	
					
	 Agreed and Accepted:
	  		  		  		  	

  

									
	 /s/ Steven Smoot
	  		 	 5/17/10
	  		  	
	 Steven Smoot
	  	 Date

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]