Document:

EX-4.2 SUBSCRIPTION AGENT AGREEMENT

 

SUBSCRIPTION AGENT AGREEMENT

August 23, 2006

American Stock Transfer & Trust Company

59 Maiden Lane

New York, New York 10038

Ladies and Gentlemen:

In connection with your appointment as Subscription Agent in the transaction described herein,
Exide Technologies (the Company), hereby confirms its arrangements with you as follows:

	1.	 	Rights Offering — The Company is offering
(the “Rights Offering”) to the holders of shares of its Common Stock, par value $0.01 per share (“Common Stock”), as of 5:00 p.m.
Eastern Daylight Time on August 23, 2006 (the “Record Date”), the right (“Rights”) to
subscribe for additional shares of Common Stock. Except as set forth below, Rights shall
cease to be exercisable at 5:00 p.m., Eastern Daylight Time, on September 14, 2006 or such
later date of which the Company notifies you orally and confirms in writing (the “Expiration
Date”). 0.85753 of a Right is being issued for each share of Common Stock held on the Record
Date. One Right and payment in full of the subscription price of $3.50 (the “Subscription
Price”) is required to subscribe for one share of Common Stock. Rights are evidenced by
non-transferable subscription certificates in registered form (“Subscription Certificates”).
The Rights Offering will be conducted in the manner and upon the terms set forth in the
Company’s Prospectus dated on or about August 28, 2006 (the “Prospectus”), which is
incorporated herein by reference and made a part hereof as if set forth in full herein.
	 
	2.	 	Appointment of Subscription Agent — You are hereby appointed as Subscription Agent to
effect the Rights Offering in accordance with the Prospectus. Each reference to you in this
letter is to you in your capacity as Subscription Agent unless the context indicates
otherwise.
	 
	3.	 	Delivery of Documents — Enclosed herewith are the following, the receipt of which you
acknowledge by your execution hereof:

	 	(a)	 	a copy of the Prospectus;
	 	(b)	 	the form of Subscription Certificate (with instructions);
	 	(c)	 	form of Notice of Guaranteed Delivery;
	 	(d)	 	form of Instructions for Use of Exide Subscription Rights;
	 	(e)	 	form of Letter to Shareholders who are Record Holders; and
	 	(f)	 	Substitute Form W-9 for use with Rights Offering.
	 
	 	As soon as is reasonably practical, you shall mail or cause to be mailed to each holder of
Common as of 5:00 p.m. Eastern Daylight Time on the Record Date a Subscription

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	 	 	Certificate evidencing the Rights to which such holder is entitled, a Notice of Guaranteed
Delivery, a Prospectus, such of the documents listed in (d), (e) and (f) above as is
appropriate and an envelope addressed to you. Prior to mailing, the Company will provide you
with blank Subscription Certificates which you will prepare and issue in the names of
holders of Common Stock of record at the close of business on the Record Date and for the
number of Rights to which they are entitled. The Company will also provide you with a
sufficient number of copies of each of the documents to be mailed with the Subscription
Certificates.
	 
	4.	 	Subscription Procedure —

(a) Upon your receipt prior to 5:00 p.m., Eastern Daylight Time, on the Expiration Date (by
mail or delivery), as Subscription Agent, of (i) any Subscription Certificate completed and
endorsed for exercise, as provided on the reverse side of the Subscription Certificate
(except as provided in below), and (ii) payment in full of the Subscription Price in U.S.
funds by check, bank draft or money order payable at par (without deduction for bank service
charges or otherwise) to the order of American Stock Transfer & Trust Company, you shall as
soon as practicable after the Expiration Date, mail to the subscriber’s registered address
on the books of the Company certificates representing the securities duly subscribed for and
furnish a list of all such information to the Company.

(b) Funds received by you pursuant to the Rights Offering shall be held by you in a
segregated account. Upon mailing certificates representing the securities subscribed you
shall promptly remit to the Company all funds received in payment of the Subscription Price
for shares sold in the Rights Offering.

	5.	 	Defective Exercise of Rights; Lost Subscription Certificates — The Company shall have
the absolute right to reject any defective exercise of Rights or to waive any defect in
exercise. Unless requested to do so by the Company, you shall not be under any duty to give
notification to holders of Subscription Certificates of any defects or irregularities in
subscriptions. Subscriptions will not be deemed to have been made until any such defects or
irregularities have been cured or waived within such time as the Company shall determine. You
shall as soon as practicable return Subscription Certificates with the defects or
irregularities which have not been cured or waived to the holder of the Rights. If any
Subscription Certificate is alleged to have been lost, stolen or destroyed, you should follow
the same procedures followed far lost stock certificates representing Common Stock you use in
your capacity as transfer agent for the Company’s Common Stock.
	 
	6.	 	Late Delivery —  If prior to 5:00 p.m., Eastern Daylight Time, on the Expiration Date
you receive (i) payment in full of the Subscription Price for the Units being subscribed for
and (ii) a guarantee notice substantially in the form of the Notice of Guaranteed Delivery
delivered with the Subscription Certificate, from a financial institution having an office or
correspondent in the United States, or a member firm of any registered United States national
securities exchange or of the National Association of Securities Dealers, Inc. stating the
certificate number of the Subscription Certificate relating to the Rights, the name and
address of the exercising subscriber, the number of Rights represented by the Subscription
Certificate held by such exercising subscriber, the number of shares of Common Stock being
subscribed for pursuant to the Rights and guaranteeing the delivery to you of the Subscription
Certificate evidencing such Rights within three NASDAQ Global Market (“NGM”) trading days
following the date of the Notice of

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	 	 	Guaranteed Delivery, then the Rights may be exercised even though the Subscription
Certificate was not delivered to you prior to 5:00 p.m., Eastern Daylight Time, on the
Expiration Date, provided that within three NGM trading days following the date of the
Notice of Guaranteed Delivery you receive the properly completed Subscription Certificate
evidencing the Rights being exercised, with signatures guaranteed if required.
	 
	7.	 	Delivery — You shall deliver to the Company the exercised Subscription Certificates
in accordance with written directions received from the Company and shall deliver to the
subscribers who have duly exercised Rights at their registered addresses certificates
representing the securities subscribed for as instructed on the reverse side of the
Subscription Certificates.
	 
	8.	 	Reports — You shall notify the Company by telephone on an before the close of
business an each business day during the period commencing 5 business days after the mailing
of the Rights and ending at the Expiration Date (and in the case of guaranteed deliveries
ending three NGM trading days after the Expiration Date) (a “daily notice”), which notice
shall thereafter be confirmed in writing, of (i) the number of Rights exercised an the day
covered by such daily notice, (ii) the number of Rights subject to guaranteed exercises on the
day covered by such daily notice, (iii) the number of Rights for which defective exercises
have been received on the day covered by such daily notice, and (iv) the cumulative total of
the information set forth in clauses (i) through (iv) above. At or before 5:00 p.m., Eastern
Daylight Time, on the first NGM trading day following the Expiration Date you shall certify in
writing to the Company the cumulative total through the Expiration Date of all the information
set forth in clauses (i) through (iii) above. At or before 10:00 a.m., Eastern Daylight Time,
on the fifth NGM trading day following the Expiration Date you will execute and deliver to the
Company a certificate setting forth the number of Rights exercised pursuant to a Notice of
Guaranteed Delivery and as to which Subscription Certificates have been timely received. You
shall also maintain and update a listing of holders who have fully or partially exercised
their Rights, and holders who have not exercised their Rights. You shall provide the Company
or its designees with such information compiled by you pursuant to this paragraph 8 as any of
them shall request.
	 
	9.	 	Future Instructions — With respect to notices or instructions to be provided by the
Company hereunder, you may rely and act on any written instruction signed by any one or more
of the following authorized officers or employees of the Company:

Barbara A. Hatcher — Executive Vice President and General Counsel

Brad S. Kalter — Deputy General Counsel and Corporate Secretary

	10.	 	Payment of Expenses — The Company will pay you compensation for acting in your
capacity as Subscription Agent hereunder in the amount of $50,000 plus your reasonable
out-of-pocket expenses. The Company will pay an additional fee equal to one-third of the
Subscription Agent fee for each extension of the Offering, plus any out-of-pocket expenses
associated with such extension.
	 
	11.	 	Counsel — You may consult with counsel satisfactory to you, which may be counsel to
the Company, and the advice or opinion of such counsel shall be full and complete
authorization and protection in respect of any action taken, suffered or omitted by you
hereunder in good faith and in accordance with such advice an opinion of such counsel. Except
with regard to the provision of paragraph 12 herein, the Company shall only be
responsible for the payment of fees for Kirkland & Ellis LLP, the Company’s counsel.

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	12.	 	Indemnification — The Company covenants and agrees to indemnify and hold you
harmless against any costs, expenses (including reasonable fees of legal counsel), losses or
damages, which may be paid, incurred or suffered by or to which you may become subject
arising from or out of, directly or indirectly, any claim or liability resulting from your
actions as Subscription Agent pursuant hereto; provided that such covenant and agreement
does not extend to such costs, expenses, losses and damages incurred or suffered by you as a
result of, or arising out of, your own gross negligence, misconduct or bad faith or that of
any employees, agents or independent contractors used by you in connection with performance
of your duties as Subscription Agent hereunder.
	 
	13.	 	Notices —  Unless otherwise provided herein, all reports, notices and other
communications required or permitted to be given hereunder shall be in writing and delivered
by hand or confirmed telecopy or by first class U.S. mail, postage prepaid, shall be deemed
given if by hand or telecopy, upon receipt or if by U.S. mail, three business days after
deposit in the U.S. mail and shall be addressed as follows

	 	(a)	 	If to the Company, to:

Exide Technologies

13000 Deerfield Parkway

Building 200

Alpharetta, GA 30004

Attention: Barbara A. Hatcher, General Counsel

Telephone (678) 566-9000

Telecopy (678) 566-9229

	 	(b)	 	If to you, to:

American Stock Transfer & Trust Company

59 Maiden Lane

New York, N.Y. 10038

Attention: George Karfunkel

Telephone: (718) 921-8200

Telecopy: (718) 236-4588

	 	 	 	 	 
	Yours truly,	 	EXIDE TECHNOLOGIES
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Barbara A. Hatcher
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	Name: Barbara A. Hatcher
	 
	 	 	 	 
	 	 	Title: E.V.P. and General Counsel

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	Agreed & Accepted:
	AMERICAN STOCK TRANSFER & TRUST COMPANY
	 
	 	 	 	 
	By:

	 	/s/ Isaac Freilich
	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Name:Isaac Freilich
	 
	 	 	 	 
	Title:V.P.

Fee Schedule

Flat fee of $50,000

Plus reasonable out-of-pocket expenses.

5EX-10.1

 

Exhibit 10.1

REYNOLDS AMERICAN INC. [Letterhead]

August 18, 2006

Mrs. E. Julia (Judy) Lambeth

Dear Judy:

It is my pleasure to confirm our offer to you to join Reynolds American, Inc. (“RAI”) as Executive
Vice President & General Counsel. We would like for you to begin work as soon as practical.
Following your acceptance of this offer, a starting date will be quickly confirmed. Your job level
will be executive Job Level 13.

As Executive Vice President & General Counsel, your new base salary will be $482,000 (or $40,166.67
per month). Your target bonus under our Annual Incentive Award Plan (AIAP) will be 75%. For 2006,
your bonus will be prorated based upon your total number of months employed by RAI.

In addition, as soon as practical following your employment, you will be paid a “sign-on” bonus
totaling $100,000 (less applicable withholding amounts). In the event that you voluntarily resign
before completing two years of employment with RAI, you agree to provide RAI a prorated
reimbursement of this “sign-on” bonus amount.

Under our Company’s Long-Term Incentive Plan (LTIP), you will be eligible for a 2006 grant with an
estimated target value of $1.2 million (3 times your base salary and prorated for 30 of 36 months
of employment during the 3-year cliff vesting which will occur in 2009). You will receive this
grant following your employment date, contingent upon approval by the Board of Directors. In the
future, you will be eligible to receive LTIP grants under the same circumstances and LTIP
provisions as other senior executives at your same level in the company. LTIP grants typically
include a 3-year cliff vesting requirement among its provisions. The multiple of base salary may
change in 2007.

 

 

Mrs. E. Julia (Judy) Lambeth

August 18, 2006

Page 2

Upon employment, you will be eligible for immediate coverage under our Company’s Benefits Plans
(waiting periods are waived). Also, as a senior executive, you are eligible to receive one
Company-sponsored club membership. This involves a one-time payment of initiation fees up to
$30,000. Our Company will provide you substantial support under the provisions of our relocation
program (see attachment). You will be eligible for 4 weeks (20 days) of paid vacation each year
under the terms of our current vacation plan. For 2006, you will have a prorated amount of 7
vacation days.

In consideration of this offer of employment, you will be expected to sign a Non-Compete,
Non-Disclosure of Confidential Information, and Commitment to Provide Assistance Agreement.

The Company’s current executive severance and change of control program is currently under review.
You will be eligible for coverage under the executive severance and change of control program that
is adopted by the Company following this review on the same conditions as other senior executives
at your same level in the Company. If you are involuntarily terminated without cause prior to the
effective date of the adoption of this new executive severance program, you will receive 6 months
of continued pay and benefits consistent with Section 409A regulatory requirements.

This offer of employment is contingent upon successful completion of our customary background check
and a post-offer, pre-employment medical examination, which includes testing for substance abuse.

The role that you have been offered represents a unique and significant opportunity for you to
positively impact the future of Reynolds American, Inc. We have great confidence that you are well
suited for this role and that you will make an outstanding contribution to our business.

	 	 	 	 	 
	 	 	 
	 	     /s/  Ann A. Johnston
 	 
	 	Ann A. Johnston 	 
	 	Executive Vice President

Human Resources 	 
	 

Acknowledged and Accepted:

	 	 	 
	/s/  E. Julia (Judy) Lambeth
 

Judy Lambeth	 	
August 19, 2006
 

Date

cc: Ms. Susan M. Ivey (w/o attachments)

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