Document:

<PAGE>

                                                                   EXHIBIT 10.21

                                                                       EXHIBIT A

                               JA&A SERVICES, LLC
                                4000 Town Center
                                    Suite 500
                              Southfield, MI 48075

October 25, 2001

Mr. Craig H. Muhlhauser
President and Chief Executive Officer
Exide Technologies
210 Carnegie Center, Suite 500
Princeton, NJ 08540

Re: Interim Management and Restructuring Services

Dear Mr. Mulhauser:

This letter outlines the understanding between JA&A Services, LLC ("JAS") and
Exide Technologies, a Delaware corporation (the "Company"), for the engagement
of JAS to provide certain temporary employees to the Company to assist it in its
restructuring as described below. Generally, the engagement of JAS, including
any JAS employees who serve in Executive Officer positions, shall be under the
approval of the Board of Directors of the Company and the direct supervision of
you as President and CEO.

JAS will provide the individuals set forth on Exhibit A, herein referred to as
the temporary employees ("Temporary Employees"), subject to the terms and
conditions of this letter, with the titles, pay rates, and other descriptions
set forth therein.

Lisa J. Donahue will serve as the Company's Chief Financial Officer and Chief
Restructuring Officer, reporting to the Company's President and Chief Executive
Officer. Working collaboratively with the senior management team, the Board of
Directors and other case professionals, Lisa will assist the Company in
evaluating and implementing strategic and tactical options through the
restructuring process. Lisa's role will include the following:

..  Assist in managing the "working group" professionals who are assisting the
   Company in the reorganization process or who are working for the Company's
   various stakeholders to improve coordination of their effort and individual
   work product to be consistent with the Company's overall restructuring goals.

..  Work with you and your team to further identify and implement both short-term
   as well as long-term liquidity generating initiatives.

<PAGE>

Mr. Craig H. Muhlhauser
October 25, 200l
Page 2

 .   Assist in developing and implementing cash management strategies, tactics
     and processes. Work with the Company's treasury department and other
     professionals and coordinate the activities of the representatives of other
     constituencies in the cash management process.

 .   Assist management with the development of the Company's revised business
     plan, and such other related forecasts as may be required by the bank
     lenders in connection with negotiations or by the Company for other
     corporate purposes.

 .   Assist in communication and/or negotiation with outside constituents
     including the banks and its advisors.

 .   Assist with such other matters as may be requested that fall within our
     expertise and that are mutually agreeable.

Robert N. Dangremond will provide assistance to Lisa J. Donahue in her role as
the Chief Restructuring Officer.

We will assist in developing and implementing cash management strategies,
tactics and processes. We will work with the Company's treasury department and
other professionals involved in the matter and coordinate the activities of the
representatives of other constituencies in the cash management process.

JAS shall be compensated for its services under this agreement at the rates set
forth on Exhibit A. The Temporary Employees expected to be provided as of the
date of this letter along with the nature of their commitment to the Company is
set forth on Exhibit A, unless JAS and the Company agree to modify the terms of
this agreement.

We will keep you informed as to our staffing and will not add additional
Temporary Employees to the assignment without first consulting with you to
obtain your concurrence that such additional resources are required and do not
duplicate the activities of other employees or professionals.

We will commence this engagement immediately upon receipt of a signed engagement
letter and retainer.

The Temporary Employees may be assisted by other professionals at various
levels, as the tasks require, who would also become Temporary Employees. For
purposes of semi-monthly billings, our fees will be based on the hours charged
at our hourly rates, which are:

<PAGE>

Mr. Craig H. Muhlhauser
October 25, 200l
Page 3

                        Principals                      $500 - $620

                        Senior Associates               $385 - $495

                        Associates                      $285 - $375

                        Accountants and Consultants     $200 - $280

We review and revise our billing rates effective January 1 of each year.

In addition to the monthly fees and expenses, the Company agrees to pay JAS a
performance fee of: (i) $5,000,000 upon completion of an out-of-court
restructuring or sale of a majority of the assets of the company, or (ii)
$3,500,000 upon confirmation of a pre-packaged or pre-planned bankruptcy
proceeding or similar transaction including the closing of a sale of a majority
of the assets of the Company in a transaction contingent on a bankruptcy filing;
or, (iii) $3,000,000 upon confirmation of a Plan of Reorganization that is
neither pre-planned or pre-packaged or sale of a majority of the assets of the
Company arranged within a court proceeding.

In addition to the fees set forth above, the Company shall pay directly or
reimburse JAS upon receipt of periodic billings, for all reasonable
out-of-pocket expenses incurred in connection with this assignment such as
travel, lodging, postage, telephone and facsimile charges.

We will require a retainer of $500,000 to be applied against the time charges
and expenses specific to the engagement. We will submit semi-monthly invoices
for services rendered and expenses incurred as described above, and we will
offset such invoices against the retainer. Payment will be due upon receipt of
the invoices to replenish the retainer to the agreed upon amount. Any unearned
portion of the retainer will be returned to you at the termination of the
engagement.

The parties intend that an independent contractor relationship will be created
by this agreement. As an independent contractor, JAS will have complete and
exclusive charge of the management and operation of its business, including
hiring and paying the wages and other compensation of all its employees and
agents, and paying all bills, expenses and other charges incurred or payable
with respect to the operation of its business. Of course, as an independent
contractor, neither the Temporary Employees nor JAS will be entitled to receive
from the Company any vacation pay, sick leave, retirement, pension, or social
security benefits, workers' compensation, disability, unemployment insurance
benefits, or any other employee benefits. JAS will be responsible for all
employment, withholding, income and other taxes incurred in connection with the
operation and conduct of its business. Temporary Employees will not be
considered employees of the Company except for purposes of this agreement.

JAS agrees to keep confidential all information obtained from the Company, and
neither JAS nor the Temporary Employees will disclose to any other person or
entity, or use for any purpose other than specified herein, any information
pertaining to the Company which is either non-

<PAGE>

Mr. Craig H. Muhlhauser
October 25, 200l
Page 4

public, confidential, or proprietary in nature ("Information") which it obtains
or is given access to during the performance of the services provided hereunder.
The foregoing is not intended to nor shall be construed as prohibiting JAS or
the Temporary Employees from disclosure pursuant to a valid subpoena or court
order, but neither JAS nor such Temporary Employees shall encourage, suggest,
invite or request, or assist in securing, any such subpoena or court order, and
the Temporary Employees shall immediately give notice of any such subpoena or
court order by fax transmission to the Company. Furthermore, JAS and the
Temporary Employees may make reasonable disclosures of Information to third
parties in connection with their performance of their obligations and
assignments hereunder. In addition, JAS will have the right to disclose to
others in the normal course of business their involvement with the Company.

Information includes data, plans, reports, schedules, drawings, accounts,
records, calculations, specifications, flow sheets, computer programs, source or
object codes, results, models, or any work product relating to the business of
the Company, its subsidiaries, distributors, affiliates, vendors, customers,
employees, contractors and consultants.

The Company acknowledges that all information (written or oral) generated by the
Temporary Employees in connection with their engagement is intended solely for
the benefit and use of the Company (limited to its management, including its
Board of Directors) in considering the transactions to which it relates. The
Company agrees that no such information shall be used for any other purpose or
reproduced, disseminated, quoted or referred to with attribution to JAS at any
time in any manner or for any purpose other than accomplishing the tasks
referred to herein, without JAS's prior approval (which shall not be
unreasonably withheld) except as required by law. This agreement will survive
the termination of the engagement.

The Company acknowledges that it is hiring the Temporary Employees purely to
assist the Company and its Board of Directors in the management and
restructuring of the Company. This engagement shall not constitute an audit,
review or compilation, or any other type of financial statement reporting or
consulting engagement that is subject to the rules of the AICPA, the SSCS, or
other such state and national professional bodies.

JAS employees serving as officers of the Company will be entitled to the benefit
of the most favorable indemnities provided by the Company to its officers and
directors, whether under the Company's by-laws, certificates of incorporation,
by contract or otherwise. In the event that other JAS employees become officers
of the Company, such individuals will be entitled to the same benefit.

The Company agrees that it will use its best efforts to specifically include and
cover JAS employees serving as officers of the Company under the Company's
policy for directors' and officers' insurance. In the event that the Company is
unable to include JAS employees serving as officers of the Company under the
Company's policy or does not have first dollar coverage as outlined in the
preceding paragraph in effect for at least $10 million, it is agreed that JAS
will attempt to purchase a separate directors' and officers' policy that will
cover JAS

<PAGE>

Mr. Craig H. Muhlhauser
October 25, 200l
Page 5

employees serving as officers of the Company only and that the cost of same
shall be invoiced to the Company as an out-of-pocket cash expense. If JAS is
unable to purchase such directors' and officers' insurance, then we reserve the
right to terminate this agreememt. In the event that other Temporary Employees
become officers of the Company, such individuals will be entitled to the same
benefit. The obligations of the parties as reflected herein shall survive the
termination of the engagement.

JAS's engagement to provide Temporary Employees hereunder may be terminated at
any time by written notice by one party to the other; provided, however, that
notwithstanding such termination JAS will be entitled to any fees and expenses
due under the provisions of the agreement, including performance fees. Also, the
Company shall pay JAS a breakup fee of $500,000 (in addition to any fees that
may be owing to JAS pursuant to this agreement) if JAS is terminated without
cause within three months of the execution of this agreement. This breakup fee
is due and payable at the time of such termination unless such termination is
caused by completion of a transaction that entitles JAS to a performance fee
hereunder in which case no breakup fee shall be payable. Such payment obligation
shall inure to the benefit of any successor or assignee of JAS. The obligations
of the parties as reflected herein shall survive the termination of the
engagement.

Cause shall mean (i) a JAS representative acting on behalf of the Company is
convicted of a felony or, (ii) a JAS representative breeches any of his or her
material obligations under this agreement or, (iii) it is determined in good
faith by the Board of Directors of the Company, and after 30 days notice and
opportunity to cure, that either a JAS representative engages in misconduct
injurious to the Company or a JAS representative willfully disobeys or refuses
to perform a lawful direction of the Board of Directors of the Company.

This letter agreement is governed by and construed in accordance with the laws
of the State of Michigan with respect to contracts made and to be performed
entirely therein and without regard to choice of law or principles thereof.

If we have any dispute arising between us, including any dispute with respect to
this agreement, its interpretation, performance or breach, and are unable to
agree on a mutually satisfactory resolution with 30 days, either party may
require the matter to be settled by binding arbitration. If such arbitration
shall occur, it shall be in the city of Southfield, Michigan. We shall attempt
for two weeks to agree on a single arbitrator. If that effort shall fail, each
party shall appoint one arbitrator. The two arbitrators so chosen shall attempt
for two weeks to select a third. If they are unable to agree, the American
Arbitration Association in New York City shall choose the third. The arbitration
shall occur using the rules and procedures of the American Arbitration
Association. The decision of the arbitrator(s) shall be final, binding and
non-appealable. However, JAS agrees that this arbitration provision shall apply
only to the extent that the United States Bankruptcy Court, or the United States
District Court if the reference is withdrawn, does not retain jurisdiction over
a controversy or claim.

<PAGE>

Mr. Craig H. Muhlhauser
October 25, 200l
Page 6

We confirm that JAS, its employees, and its affiliates/1/ do not have any
financial interest or business connection with the Company other than as
contemplated by this agreement, and we know of no fact or situation that would
represent a conflict of interest for us with regard to the Company. While we are
not currently aware of any other relationships that connect us to any party in
interest, because JAS and its affiliates serve clients on a national basis in
numerous cases, both in and out of court, it is possible that JAS or its
affiliates may have rendered services to, or have business associations with,
other entities which had, or have, relationships with the Company, including
creditors of the Company. JAS and affiliates have not, and will not perform
services for, or have business connections with, any of these aforementioned
entities in this matter involving the Company.

The Company agrees to promptly notify JAS if it extends (or solicits the
possible interest in receiving) an offer of employment to an employee of JAS and
agrees that it will pay JAS a cash fee, upon hiring, equal to 150% of the
aggregate first year's annualized compensation, including any other
compensation, to be paid to any person working for the Company on behalf of JAS
that the Company or any of its subsidiaries or affiliates hires at any time up
to two years subsequent to the date of the final invoice rendered by JAS with
respect to this engagement. This agreement does not prohibit the Company from
making general solicitations for employment or from soliciting for employment
any individuals who have ceased to be employees or agents of JAS prior to such
solicitation.

If any portion of the letter agreement shall be determined to be invalid or
unenforceable, we each agree that the remainder shal1 be valid and enforceable
to the maximum extent possible.

All of the above contains the entire understanding of the parties relating to
the services to be rendered by JAS and may not be amended or modified in any
respect except in writing signed by the parties. JAS will not be responsible for
performing any services not specifically described in this letter or in a
subsequent writing signed by the parties.

All notices required or permitted to be delivered under this letter agreement
shall be sent, if to us, to the address set forth at the head of this letter, to
the attention of Mr. Melvin R. Christiansen, and if to you, to the address for
you set forth above, to the attention of your General Counsel, or to such other
name or address as may be given in writing to the other party. All notices under
the agreement shall be sufficient if delivered by facsimile or overnight mail.
Any notice shall be deemed to be given only upon actual receipt.

In the event of a filing, the Company agrees that it will promptly apply to the
Bankruptcy Court to obtain approval of our retention and retainer nunc pro tune
to the date of the filing.

-----------------------------
/1/ JAS is a company that provides temporary employees. Affiliates of JAS
include Jay Alix & Associates, a financial advisory and consulting firm. The
System Advisory Group, providing information technology services, and the
Questor funds, which are private equity funds that invest in special situations
and under-performing companies.

<PAGE>

Mr. Craig H. Muhlhauser
October 25, 2001
Page 7

If these terms meet with your approval, please sign and return the enclosed copy
of this proposal and wire transfer the amount to establish the retainer.

We look forward to working with you.

Sincerely yours,

JA&A SERVICES, LLC

/s/ Lisa J. Donahue
Lisa J. Donahue
Principal

Acknowledged and Agreed to:

EXIDE TECHNOLOGIES

By:          /s/ Craig H. Muhlhauser
             ------------------------------------------------

Its:         ________________________________________________

Dated:       ________________________________________________

<PAGE>

                                JA&A Services LLC
                        Employment by Exide Technologies

                                    Exhibit A

                               Temporary Employees
                  Individuals With Executive Officer Positions
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------
                                                      Hourly          Commitment
       Name                   Description              Rate      Full/1/ or Part Time
-------------------------------------------------------------------------------------
<S>                   <C>                          <C>           <C>
Lisa J. Donahue       Chief Financial Officer &      $  500            Full Time
                      Chief Restructuring Officer
-------------------------------------------------------------------------------------
</TABLE>

                         Additional Temporary Employees

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------
                                                      Hourly          Commitment
       Name                   Description              Rate      Full/1/ or Part Time
-------------------------------------------------------------------------------------
<S>                   <C>                          <C>           <C>
Greg  Presley                     TBD                $  430            Full Time
-------------------------------------------------------------------------------------
Jon Slatkin                       TBD                $  350            Full Time
-------------------------------------------------------------------------------------
Robert N. Dangremond              TBD                $  595            Part Time
-------------------------------------------------------------------------------------
</TABLE>

/1/ Full time is defined as substantially full time.

<PAGE>

                               JA&A SERVICE'S, LLC
                                4000 Town Center
                                   Suite 2400
                               Southfield, MI 48075

January 16, 2002

Mr. Craig. H. Muhlhauser
President & Chief Executive Officer
Exide Technologies
210 Carnegie Center
Suite 500
Princeton, NJ 08540

Re:  Interim Management and Restructuring Services-Amendment

Dear Mr. Muhlhauser:

The purpose of this letter is to amend Exhibit A ("Revised Exhibit A") of our
letter dated October 25, 2001 ("Agreement") between JA&A Services, LLC ("JAS")
and Exide Technologies.

JAS will provide the Temporary Employees set forth in Revised Exhibit A, subject
to the terms and conditions of the Agreement, with the titles, pay rates, and
other descriptions set forth therein.

Should you have any questions regarding the above, please contact me to discuss
your questions.

Sincerely yours,
JA&A Services, LLC

/s/ Lisa J. Donahue

Lisa J. Donahue
Principal

<PAGE>

                                JA&A Services, LLC
                        Employment by Exide Technologies

                                Revised Exhibit A

                               Temporary Employees
                  Individuals With Executive Officer Positions

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------
     Name                    Description                2002          Commitment
                                                       Hourly        Full/1/ or Part
                                                        Rate              Time
------------------------------------------------------------------------------------
<S>                   <C>                               <C>            <C>
Lisa J. Donahue       Chief Financial Officer &         $550           Full Time
                      Chief Restructuring Officer
------------------------------------------------------------------------------------
</TABLE>

                             Additional Temporary Employees

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------
     Name                    Description                2002          Commitment
                                                       Hourly        Full/1/ or Part
                                                        Rate              Time
------------------------------------------------------------------------------------
<S>                   <C>                               <C>            <C>
Kyle A. Braden        13-Week Rolling Operating         $235           Full Time
                      Cash Flow Model
------------------------------------------------------------------------------------
John P. Criso         European Accounts Receivable      $450           Full Time
                      and Accounts Payable
------------------------------------------------------------------------------------
Robert N. Dangremond  General Oversight and             $620           Full Time
                      Strategy
------------------------------------------------------------------------------------
Yair Klein            European Accounts Receivable      $235           Full Time
------------------------------------------------------------------------------------
Carter Pennington     North American Accounts           $420           Full Time
                      Receivable and Accounts
                      Payable
------------------------------------------------------------------------------------
Greg F. Presley       Overall Project Management        $470           Full Time
------------------------------------------------------------------------------------
William J. Seng       Inventory Maximazation and        $450           Full Time
                      Demand Planning Projects
------------------------------------------------------------------------------------
Jon A. Slatkin        12-Month Business Plan and        $400           Full Time
                      5-Year Business Plan
------------------------------------------------------------------------------------
Tamie Vitek           European Accounts Receivable      $300           Full Time
                      and Accounts Payable
------------------------------------------------------------------------------------
</TABLE>

1    Full time is defined as substantially full time.

<PAGE>

                               JA&A SERVICES, LLC
                                2000 Town Center
                                   Suite 2400
                              Southfield, MI 48075

April 1, 2002

Mr. Craig H. Muhlhauser
President & Chief Executive Officer
Exide Technologies
210 Carnegie Center, Suite 500
Princeton, NJ 08540

Re:   Interim Management and Restructuring Services - Supplement

Dear Mr. Muhlhauser:

The purpose of this letter is to supplement our letter dated October 25, 2001
("Agreement") between JA&A Services, LLC ("JAS") and Exide Technologies
("Company") regarding the disclosure of relationships and connections that JAS
has with other parties in interest for the Company.

In the Agreement, we stated the following:

"We confirm that JAS, its employees, and its affiliates/l/ do not have any
financial interest or business connection with the Company other than as
contemplated by this agreement, and we know of no fact or situation that would
represent a conflict of interest for us with regard to the Company. While we are
not currently aware of any other relationships that connect us to any party in
interest, because JAS and its affiliates serve clients on a national basis in
numerous cases, both in and out of court, it is possible that JAS or its
affiliates may have rendered services to, or have business associations with,
other entities which had, or have, relationships with the Company, including
creditors of the Company. JAS and affiliates have not, and will not perform
services for, or have business connections with, any of these aforementioned
entities in this matter involving the Company."

Subsequent to the preparation of the Agreement, we received information from the
Company to allow us to check our database for relationships that connect us to
any party in interest with regard to the Company. We have now completed our
review, the results of which are presented below.

------------------------

/1/ JAS is a Company that provides temporary employees. Affiliates of JAS
include Jay Alix & Associates, a financial advisory and consulting firm, The
System Advisory Group, providing information technology services, Partnership
Services, LLC, a company that provides temporary employees, and the Questor
funds, which are private equity funds that invest in special situations and
under-performing companies.

<PAGE>

Mr. Craig H. Muhlhauser
March 21, 2002
Page 2

While we know of no fact or situation which would represent a conflict of
interest for us with regard to the Company, we wish to disclose the following:

     . Questor Partners Fund, L.P. ("QPF") and Questor Partners Fund II, L.P.
       ("QPF II"), a $300 million fund and an $865 million fund, respectively,
       are private equity funds that invest in special situations and
       under-performing companies.

     . Mr. Jay Alix, a principal in Jay Alix & Associates ("JA&A"), is also the
       President and CEO of Questor Management Company, the entity that manages
       QPF and QPF II.

     . Questor and JA&A are separate companies. JA&A, pursuant to contract,
       performs certain accounting and back-room services for Questor. From time
       to time, Questor hires JA&A as a contractor to advise it regarding a
       potential acquisition, and occasionally investee companies of QPF and QPF
       II hire JA&A.

     . Mr. Jay Alix owns interests in the general partners of QPF and QPF II.
       Mr. Albert Koch and Mr. Michael Grindfors, Chairman and Managing
       Principal if JA&A, respectively, each own interest in the general partner
       of QPF II.

     . Substantially all of the other principals of JA&A own limited
       partnership interests in one or more of the following entities: Questor
       Side-by-Side Partners, L.P., Questor Side-by-Side Partners II, L.P., and
       Questor Side-by-Side Partners II 3(c)(l), L.P. JA&A principals, except
       for Mr. Alix and Mr. Koch, are passive investors and have no voice in
       approving Questor's investments.

     . Some of the limited partners of QPF and/or QPF II are affiliates of
       financial institutions that are also lenders to companies that may have
       retained JA&A. The affiliates of such financial institutions are passive
       investors in QPF and QPF II and have no voice in approving Questor's
       investments. Where such situations occur, the lending relationship and
       investment in QPF and/or QPF II is detailed in JA&A's disclosures.

     . QPF, QPF II, Questor Side-by-Side Partners, L.P., Questor Side-by-Side
       Partners II, L.P., and Questor Side-by-Side Partners II 3(c)(l), L.P.,
       are all related entities. The Side-by-Side funds contain, in the
       aggregate, 6.3% of the total Questor funds, which are in excess of $1.17
       billion.

     . Alliance Capital Fund, a lender to the Company, is affiliated with
       limited partners in QPF and/or QPF II.

     . Allstate Life Insurance, a lender to the Company, has previously employed
       a JA&A employee.

<PAGE>

Mr. Craig H. Muhlhauser
March 21, 2002
Page 3

..    Bank One (f/k/a/ National Bank of Detroit), a lender to the Company, is a
     current client of JA&A in matters unrelated to the Debtors. In addition,
     Bank One provides commercial banking services to JA&A, has previously
     employed a JA&A employee and is a lender to certain other current and/or
     former JA&A clients in matters unrelated to the Debtors.

..    Citicorp and its affiliated entities, lenders to the Debtors, are
     affiliated with limited partners in QPF and/or QPF II. Also, Citicorp and
     its affiliated entities are lenders, bondholders, and shareholders to
     certain other current and/or former JA&A clients in matters unrelated to
     the Company. JA&A was a client of Salomon Smith Barney in a matter
     unrelated to the Company that has been concluded.

..    Comerica, a lender to the Company, is a limited partner in QPF and QPF II,
     and is also a former JA&A client in matters unrelated to the Company.
     Comerica is a lender to certain other current and/or former JA&A clients
     and to QPF portfolio companies in matters unrelated to the Company. Also,
     Comerica is a lender to Mr. Jay Alix personally, and Mr. Koch maintains a
     banking relationship with Comerica and an investment, account with Comerica
     Securities.

..    Credit Agricole Indosuez, a lender to the Company, is a client through a
     bank group in a matter unrelated to the Company.

..    Dresdner Bank, a lender to the Company, has previously employed a JA&A
     employee.

..    Eaton Vance, a lender to the Company, is a client through a bank group in a
     matter unrelated to the Company.

..    First Union National Bank, a lender to the Company, is a current and former
     JA&A client in matters unrelated to the Debtors and is a lender or
     affiliated with lenders to certain other current and/or former JA&A clients
     in matters unrelated to the Debtors.

..    General Electric Capital Corporation, an affiliate of which is a lender to
     the Company, is a limited partner in QPF II.

..    General Motors Employees Pension, a lender to the Company, is an affiliate
     of the General Motors Corporation which has previously employed certain
     JA&A employees. Also, General Motors is affiliated with General Motors
     Acceptance Corporation, a former JA&A client in a matter unrelated to the
     Company and affiliated with a former client of The System Advisory Group
     ("SAG"), a subsidiary of JA&A, in a matter unrelated to the Company. Also,
     General Motors has entered into an indemnification agreement with another
     JA&A client in a matter unrelated to the Company and, in this unrelated
     matter, has agreed to indemnify certain JA&A employees acting on behalf of
     the client, as well as JA&A.

<PAGE>

Mr. Craig H. Muhlhauser
March 21, 2002
Page 4

     .    Kirkland & Ellis, a professional services provider to and large
          creditor of the Company, is also legal counsel on several JA&A client
          engagements and works with an opposing party to a JA&A client, all of
          which involve matters unrelated to the Company. Kirkland & Ellis also
          represents JA&A in an unrelated matter.

     .    Kmart Corporation recently hired JA&A to lead their bankruptcy and
          turnaround efforts. While Kmart Corporation's voluntary petition for
          bankruptcy protection did not list Exide as one of its top fifty (50)
          unsecured claims, JA&A received information that the Company was one
          of Kmart's top fifty (50) unsecured creditors. We wish to bring this
          fact to your attention and assure you that all communications,
          negotiations, and/or transactions between Kmart and the Company in
          which JA&A and its employees will be involved, will take place at arms
          length.

     .    KZH, a lender to the Company, is affiliated with an entity which is a
          client through a bank group in a matter unrelated to the Company.

     .    Mitsubishi Trust & Banking, a lender to the Company, is a client
          through a bank group in a matter unrelated to the Company.

     .    Morgan Stanley, a lender to the Company, is a vendor to JA&A and is a
          major bondholder and significant shareholder to various current and
          former JA&A clients in matters unrelated to the Company.

     .    Orix Finance Corporation, a lender to the Company, has previously
          employed a JA&A employee.

     .    Salomon Brothers Holdings, a lender to the Company, is affiliated with
          a limited partner in QPF.

     .    Societe Generale, a lender to the Company, is a major bondholder of a
          current client of JA&A and was a client of JA&A in matters unrelated
          to the Company.

     .    Textron Financial Corporation, a lender to the Company, is affiliated
          with a limited partner in QPF II.

     .    UBS AG, a lender to the Company, is affiliated with an entity which is
          a major bondholder in a current client of JA&A in matters unrelated to
          the Company.

While we are currently not aware of any other relationships that connect us to a
party in interest with respect to the Company, should other such relationships
develop or come to our attention, we will notify you promptly. JAS and
affiliates have not and will not represent the interests of

<PAGE>

Mr. Craig H. Muhlhauser
March 21, 2002
Page 5

any of these aforementioned entities in matters involving the Company relevant
to this Agreement.

In addition, this letter confirms that Mr. Robert Hecht has been added as the
interim Chief Information Officer of the Company. Attached is an amended Exhibit
A which details the titles, pay rates, and other descriptions of the temporary
employees which JAS will supply the Company in accordance with the terms of the
Agreement.

Should you have any questions regarding the above, please do not hesitate to
contact me.

Sincerely,
JA&A SERVICES, LLC

/s/ Lisa J. Donahue

Lisa J. Donahue
Principal

<PAGE>

                                                                       EXHIBIT A

                               JA&A SERVICES, LLC
                        Employment by Exide Technologies

                                Revised Exhibit A

<TABLE>
<CAPTION>
    -----------------------------------------------------------------------------------------------------
                   Temporary Employees - Individuals with Executive Officer Positions
    -----------------------------------------------------------------------------------------------------
                                                                                   Hourly
        Name of Professional           Description of Function                      Rate    Commitment
    -----------------------------------------------------------------------------------------------------
        <S>                         <C>                                            <C>      <C>
        Lisa J. Donahue             Chief Financial Officer & Chief                $550.00  Full Time
                                    Restructuring Officer
    -----------------------------------------------------------------------------------------------------
        Robert Hecht                Chief Information Officer                      $420.00  Full Time
    -----------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
    -----------------------------------------------------------------------------------------------------
                                    Additional Temporary Employees
    -----------------------------------------------------------------------------------------------------
                                                                                   Hourly
        Name of Professional           Description of Function                      Rate    Commitment
    -----------------------------------------------------------------------------------------------------
        <S>                         <C>                                            <C>      <C>
        Kyle A. Braden              13-Week Operating Cash Flow                    $235.00  Full Time
                                    Model and contingency planning
    -----------------------------------------------------------------------------------------------------
        John P. Criso               European Accounts Receivable and               $450.00  Full Time
                                    Accounts Payable - France, UK and
                                    as needed
    -----------------------------------------------------------------------------------------------------
        Robert N.                   General Oversight and Strategy                 $620.00  Part Time
        Dangremond
    -----------------------------------------------------------------------------------------------------
        Yair Klein                  European Accounts Receivable-                  $235.00  Full Time
                                    Spain, Italy and Portugal, and as
                                    needed
    -----------------------------------------------------------------------------------------------------
        Carter Pennington           North American Accounts                        $420.00  Full Time
                                    Receivable and Accounts Payable
    -----------------------------------------------------------------------------------------------------
        Greg F. Presley             Overall Project Management and                 $470.00  Full Time
                                    implementation of initiatives
    -----------------------------------------------------------------------------------------------------
        William J. Seng             Inventory Maximization and                     $450.00  Full Time
                                    Demand Planning Projects
    -----------------------------------------------------------------------------------------------------
        Jon A. Slatkin              12-Month Business Plan and 5-Year              $400.00  Full Time
                                    Business Plan
    -----------------------------------------------------------------------------------------------------
        Tamie Vitek                 European Accounts Receivable and               $300.00  Full Time
                                    Accounts Payable - Germany,
                                    Austria and Poland and as needed
    -----------------------------------------------------------------------------------------------------
</TABLE><PAGE>

                                                                   EXHIBIT 10.22

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

                                 NORTH AMERICAN

                                SUPPLY AGREEMENT

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

                                    RECITALS

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

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

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

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

     NOW THEREFORE, the parties agree as follows:

1.   Definitions

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

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

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

     "Effective Date" shall mean the date of this Agreement.

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

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

<PAGE>

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

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

     "Separator" shall mean polymeric, microporous and/or similar battery
separators for use in batteries and which are currently being manufactured by
Exide for its own use utilizing the manufacturing equipment and facilities
currently located at the Corydon, Indiana, facility. Current products which meet
this requirement are listed in Exhibit A attached hereto and made a part hereof.
New products with different widths, thicknesses, backweb thicknesses, etc. may
be added to Exhibit A from time to time, but only upon the mutual written
agreement of the parties.

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

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

2.   Purchase and Supply Commitments

     2.1  Each Contract Year during the Term of this Agreement, and subject to
the terms and conditions set forth below, Exide shall purchase from Daramic, and
Daramic agrees to supply to Exide, [*****] Separators for use in producing
batteries in Exide's North American manufacturing facilities, which requirements
shall be no less than [*****] of Separators (which will represent a total of
approximately [*****] of Separators), of which no less than [*****] of such
Separators will have [*****] (hereinafter referred to as Exide's "Minimum
Purchase Requirement"). Exide's purchases for use in producing batteries outside
of North America shall not count towards this Minimum Purchase Requirement. If,
at any time during the Term of this Agreement, Exide (a) acquires all or part
ownership of any of Daramic's Customers (as defined below) or (b) establishes a
partnership or other joint venture relationship with any of Daramic's Customers,
then and in such event(s), any purchases of Separators by Exide or these
partnership or joint venture entities up to but not in excess of the average
annual purchases by such Customers from Daramic over the two years prior to
Exide's purchase of or involvement with such entities shall not count toward the
Minimum Purchase Requirement. If, at any time during the Term of this Agreement,
Exide acquires substantially all of the assets of a battery manufacturing
facility owned by any of Daramic's Customers and such facility, at the time of
the acquisition thereof by Exide, was being supplied with Separators purchased
from Daramic, then purchases by Exide for use at such facility shall not count
toward the Minimum Purchase Requirement. For purposes of Sections 2.1 and 2.2,
Daramic's "Customers" shall mean the customers listed on Exhibit C attached
hereto; provided, however, that such customers are purchasing Separators from
Daramic at the time of the applicable transaction with Exide. Daramic
acknowledges and agrees that Exhibit C attached hereto contains a complete and
accurate listing of Daramic's current customers as of the date of this
Agreement.

                                       2

<PAGE>

     2.2  [*****]

     2.3  If Exide fails to meet its Minimum Purchase Requirement in any
Contract Year, then Exide agrees to pay Daramic, within two (2) months after the
close of the applicable Contract Year, an amount calculated as follows (the
"Deficit Amount"):

 ([*****] lineal feet minus the actual lineal feet purchased in that
                      -----
                                 Contract Year)

                                  multiplied by

                         [*****] (the "Base Multiplier")

                                     equals

                               the Deficit Amount.

     2.4  The parties acknowledge and agree that the underlying intent of
Sections 2.1 and 2.2 above is that Daramic should realize at least [*****]
(which will represent approximately [*****]) of incremental Separator sales
volume at contribution margins approximately equal to the Base Multiplier as a
result of this Agreement. The addition of this incremental sales volume is an
integral part of the consideration for the Purchase Agreement. This entire
Agreement, and particularly Sections 2.1 and 2.2 above, shall be interpreted
consistent with and in an effort to give effect to the parties' intent as
described in this Section 2.4.

     2.5  By April 1 of each Contract Year (and April 1, 2000 for the first
Contract Year), Exide shall provide Daramic with a written annual estimate of
its Separator requirements for the next succeeding twelve months. The estimate
shall indicate Exide's estimated requirements for Separators broken down by type
for each of Exide's locations for that calendar year. Commencing April 1, 2000,
Exide shall also provide Daramic with quarterly delivery forecasts for
Separators broken down by type for each of Exide's locations with appropriate
lead times. During the Term of this Agreement, Exide shall update such forecasts
on a rolling basis at least once every four weeks.

3.   Term of Agreement

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

                                       3

<PAGE>

4.   Prices

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

     4.2  Subject to the other terms of this Agreement, Prices shall remain firm
from the Effective Date to December 31, 2000 and are subject to annual revisions
thereafter by Daramic to reflect any Substantial Change (as defined below) in
Daramic's cost to manufacture Separators. These prices are based on [*****]
(collectively, "Manufacturing Costs"). In the event there is a Substantial
Change in Daramic's Manufacturing Costs, Daramic will adjust the Price for
Separators from time to time while this Agreement is in effect (but not more
often than once per year for each type of Separator) to reflect any such
Substantial Change provided that the cumulative effect of any such Price
adjustments shall not exceed the cumulative change in the Industrial Price Index
from the Effective Date. If an adjustment in Price for a type of Separator is
implemented by Daramic due to a Substantial Change, Daramic shall: (i) provide
Exide at least 90 days written notice prior to the effective date of such change
and (ii) make available to Exide documentation to substantiate the Substantial
Change. The term "Substantial Change" shall mean any change (upward or downward)
exceeding [*****] of Daramic's then-current Manufacturing Costs for any type of
Separator. Prices will also be adjusted based on cost reductions achieved as
contemplated by Sections 6 and 7.3 below.

     4.3  During the term of this Agreement, and for a period of two (2) years
thereafter, Daramic shall keep accurate and complete records of all data
necessary for the computation of its Manufacturing Costs. From time to time,
upon reasonable notice to Daramic, Exide's designated independent public
accountants shall have the right at reasonable times during normal business
hours to examine the records of Daramic applicable to the calculation of and for
the sole purpose of verifying the Prices charged Exide hereunder; provided,
however, that before obtaining access to and examining such records, Exide shall
cause its independent public accountants to execute and deliver a
confidentiality agreement in form and substance reasonably acceptable to Daramic
regarding Daramic's records and the information contained therein. If the
records show that Daramic has failed to adjust the Prices in accordance with
Section 4.2 and such adjustment would have reduced the Prices paid by Exide
during the applicable period by more than [*****], Daramic shall pay all costs
associated with the examination of the records. Otherwise, Exide shall bear all
costs of such examination. If Daramic disputes the calculation of any such
adjustment by Exide's independent public accountants, the parties shall agree on
the appointment of an independent third party arbitrator to resolve such
dispute. If such arbitrator determines that the calculation by Exide's
independent public accountants of the required Price adjustment is accurate,
Daramic shall pay all costs associated with the work performed by the third
party arbitrator. If such arbitrator determines that Daramic has complied with
Section 4.2, Exide shall pay all costs associated with the work performed by the
third party arbitrator. Otherwise, the arbitrator shall determine how such costs
shall be allocated between Daramic and Exide. Daramic will promptly refund to
Exide any overpayment made by Exide plus liquidated damages in an amount equal
to [*****] of such overpayment. The parties agree that the amount of liquidated
damages set forth in the immediately preceding sentence is a fair and
appropriate

                                        4

<PAGE>

estimation of the injury caused to Exide by Daramic's failure to adjust the
Prices in accordance with Section 4.2, and Daramic agrees not to contest or
object to Exide's right to such amount of liquidated damages.

     4.4  In the event that the volume of Separators purchased by Exide during
any Contract Year exceeds the Minimum Purchase Requirement, Exide shall be
entitled to receive a rebate from Daramic equal to [*****] of the Prices paid by
Exide for such Separators in excess of the Minimum Purchase Requirement;
provided, however, that Exide shall only be entitled to receive a rebate from
Daramic on up to a maximum of [*****] of Separators purchased by Exide. Daramic
shall, at Exide's option, either (a) pay such rebate to Exide within [*****] of
the date of receipt by Daramic of payment from Exide for any such excess
Separators, or (b) promptly apply such rebate against any outstanding or future
invoices payable to Daramic by Exide.

5.   Payment Terms

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

                                Exide Corporation
                                 645 Penn Street
                           Reading, Pennsylvania 19601
                           Attention: Accounts Payable

6.   Cost Reductions

     Daramic and Exide will use Customer-Supplier teams as a vehicle to identify
and implement cost reduction activities by Daramic associated with Separators.
Daramic will identify the implementation costs, including capital, and cost
savings associated with any proposed project. Implementation and the timing for
implementation of each project will be mutually agreed upon by the parties.
Price changes based on such projects will reflect [*****] sharing of the cost
savings actually accomplished. Both parties agree that if any capital expense
required to implement a particular cost reduction or production expansion
project does not support agreed upon payback expectations, then the project will
not be initiated.

7.   Research & Development

     7.1  Daramic shall continue to provide separator and battery testing
services to Exide such as are currently provided at its testing laboratories in
Owensboro, Kentucky, and Hamburg, Germany, or at such other laboratory as may be
mutually agreed upon by the parties.

                                       5

<PAGE>

     7.2  Daramic will provide equipment engineering services (enveloping and
assembly equipment) and consultation to Exide's plants as may be reasonably
requested by Exide. The exact nature and payment for such services and
consultation shall be mutually agreed upon in advance by the parties.

     7.3  The parties acknowledge that Daramic is a technology leader in the
battery separator industry, and Daramic agrees to use commercially reasonable
efforts to keep abreast of and promptly implement all technological
improvements, enhancements and/or advances in the manufacture of Separators. The
parties intend to [*****] in all benefits (including cost savings) achieved
through the efforts of Daramic or of both parties.

     7.4  [*****]

8.   Delivery

     8.1  Delivery of Separators shall be [*****], unless alternative terms are
agreed to by the parties in writing. Daramic reserves the right to supply
Separators from an alternate manufacturing facility and will bear any additional
delivery costs (or pass on to Exide any additional savings) resulting from such
a switch. Title to and risk of loss of Separators shall pass to Exide upon
delivery to the carrier, notwithstanding any prepayment or allowance of freight
by Daramic. Exide shall have the right to choose the mode of delivery and
carrier. It shall be Exide's responsibility to arrange for any insurance it
desires for the shipped Separators.

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

                                       6

<PAGE>

pursuant to this Agreement during such period as Daramic is unable to deliver
product ordered by Exide pursuant to this Agreement. [*****]

9.   QS9000 Certification

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

10.  Specifications

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

11.  Confidentiality

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

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

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

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

                                       7

<PAGE>

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

12.  Warranties, Remedies and Limitations

     12.1  Daramic warrants that the Separators used in the construction of
lead-acid batteries hereunder do not or will not infringe any patent of the
country of original manufacture by Daramic. Daramic shall defend and hold Exide
harmless from and against any and all claims, liabilities and costs (including
reasonable attorneys' fees) incurred by Exide as a result of any breach of this
non-infringement warranty. Daramic's liability under this warranty is
conditioned upon (i) Exide giving prompt written notice of any claim of patent
infringements made against Exide, (ii) Exide making available to Daramic all
information available to Exide in respect of the claim, and (iii) Exide's
granting Daramic control of its settlement and/or litigation, provided, however,
that Daramic shall not settle or compromise any claim in a matter that affects
the rights or interests of Exide without Exide's prior written consent and
further provided that if Exide's consent is not granted, then Daramic's
obligation to defend and hold Exide harmless shall cease and be of no further
force and effect as it relates to the particular claim in question. Daramic may
discontinue delivery of Separators if, in Daramic's opinion, its manufacture
would constitute patent infringement. Daramic makes no warranty against patent
infringement resulting from use of Separators in combination with other
materials or in the operation of any process or resulting from the production of
Separators using specifications approved, provided or required by Exide, and if
a claim, suit or action is based thereon, Exide shall defend, indemnify and hold
Daramic harmless therefrom.

     12.2  DARAMIC WARRANTS THAT IT WILL PRODUCE THE SEPARATORS IN A GOOD AND
WORKMANLIKE MANNER AND THAT THE SEPARATORS DELIVERED TO EXIDE WILL CONFORM TO
THE SPECIFICATIONS. WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR
PURPOSE ARE INCLUDED. DARAMIC ALSO WARRANTS TO EXIDE THAT IT WILL CONVEY GOOD
TITLE TO THE SEPARATORS SOLD AND DELIVERED HEREUNDER FREE OF ANY LIENS AND
ENCUMBRANCES. DARAMIC HEREBY EXCLUDES AND DISCLAIMS ALL WARRANTIES EXCEPT THOSE
EXPRESSLY SET FORTH IN THIS SECTION 12. THE REMEDIES OF EXIDE FOR ANY BREACH OF
THE WARRANTIES SET FORTH IN THIS SECTION 12 SHALL, SUBJECT TO THE OTHER TERMS OF
THIS AGREEMENT, BE THE REPLACEMENT OF THE NONCONFORMING PRODUCT OR, IN THE SOLE
DISCRETION OF EXIDE, REFUND FOR THE PRICE PAID FOR ANY NONCONFORMING PRODUCT, TO
THE EXCLUSION OF ANY AND ALL OTHER REMEDIES, INCLUDING, WITHOUT LIMITATION,
SPECIAL, PUNITIVE, INDIRECT OR CONSEQUENTIAL DAMAGES. NO AGREEMENT VARYING OR
EXTENDING THE

                                       8

<PAGE>

FOREGOING WARRANTIES WILL BE BINDING UPON DARAMIC UNLESS IN WRITING, SIGNED BY
AN OFFICER OF DARAMIC.

13.  Force Majeure

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

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

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

14.  Taxes, Duties and Excises

     In the absence of satisfactory evidence of exemption supplied to [*****],
all taxes, duties, excises or other charges for which [*****] may be responsible
for collection or payment to any government (national, state

                                       9

<PAGE>

or local) upon, measured by or relating to the importation, exportation,
production, or any phase or part of the production, storage, sale,
transportation and/or use of the Separators.

15.  Notices

     Notices, demands and communications hereunder to Exide or to Daramic shall
be deemed to have been duly given if in writing and delivered by overnight
delivery service or sent by registered or certified mail (postage prepaid) or by
facsimile (confirmed by delivery of the notice by mail or overnight delivery
service) as follows:

     If to Daramic:

      Daramic, Inc.
      20 Burlington Mall Road
      Suite 325
      Burlington, MA 01803
      Facsimile No:  617/273-1112
      Attention:  General Manager or Director Sales & Marketing

     with a copy to:

      Jerry Zucker or James G. Boyd
      Daramic, Inc.
      4838 Jenkins Avenue
      North Charleston, SC 29405
      Facsimile: (843) 747-4092

     If to Exide:

      Exide Corporation
      645 Penn Street
      Reading, PA 19601
      Facsimile No: 610/371-0462
      Attention: Vice President - Purchasing and Vice President - Manufacturing.

     with a copy to:

      Exide Corporation
      2901 Hubbard Road
      Ann Arbor, MI 48105
      Facsimile No.:  734/827-2575
      Attention:  General Counsel

     Any party may designate by notice in writing a new address to which any
notice, demand or communication may hereafter be given or sent.

                                       10

<PAGE>

16.  Orders

     Order releases for Separators will be provided in writing (or if by
telephone subsequently confirmed in writing) by Exide to the respective Daramic
manufacturing plant. Exide may use its standard release or purchase order form
to specify quantity, destination, requested delivery date and mode of
transportation of Separators; however, all terms and conditions of sale shall be
as specified in this Agreement and only amended or supplemented by a written
agreement signed by senior officers of both parties. To the extent inconsistent
with the terms of this Agreement, the terms of sale stated in either party's
invoice, purchase order, order acknowledgment, or similar document shall not
apply to sales of Separators under this Agreement.

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

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

     17.2  If any covenant, agreement, term or provision of this Agreement, as
from time to time amended, or the application thereof to any situation or
circumstance, shall be invalid or unenforceable, the remainder of this
Agreement, as from time to time amended, or the application of such covenant,
agreement, term or provision to situations or circumstances other than those as
to which it is invalid or unenforceable, shall not be affected and each other
covenant, agreement, term or provision of this Agreement, as from time to time
amended, shall be valid and enforceable to the fullest extent permitted by
applicable law.

18.  General

     18.1  If Daramic is in breach or violation of any term or condition
contained in this Agreement, and, if within thirty (30) days after Exide has
given written notice thereof, such breach or violation is not cured, then Exide
shall have the right to acquire Separators from any available source in such
quantities as are necessary to meet the manufacturing requirements of Exide. If
Exide purchases Separators from any third party in accordance with this Section
18.1, such purchases shall count towards satisfaction of Exide's Minimum
Purchase Requirement. The parties agree that they shall work together in good
faith to obtain for Exide battery separators which the parties mutually agree to
be the best available substitute for the Separators to be provided by Daramic
pursuant to this Agreement during such period as Daramic is unable to cure such
breach or violation. [*****] Once Daramic is able to cure such breach or
violation, Exide shall resume its purchases from Daramic in accordance with this
Agreement.

     18.2  This Agreement and the Exhibits hereto set forth the entire Agreement
and understanding of the parties with respect to the transactions contemplated
hereby and supersede

                                       11

<PAGE>

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

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

     18.4  In the event of any conflict between the terms of this document and
those contained in any Exhibits hereto, the terms of this document shall
control.

     18.5  This Agreement may be amended, modified, superseded or canceled, and
the terms or conditions hereof may be waived only by a written instrument
executed by authorized representatives of Exide and Daramic, or in the case of a
waiver by or on behalf of the party waiving compliance. The failure of either
party at any time or times to require performance of any provision hereof shall
in no manner affect the right at a later time to enforce the same. No waiver by
either party of any condition or breach of any term contained in this Agreement
in any one or more circumstances shall be deemed to be or be construed as
further or continuing waiver of any such condition or breach or a waiver of any
other condition or of any breach of any other term of this Agreement.

     18.6  The headings used in this Agreement are for reference only and shall
not in any way affect the meaning or interpretation of this Agreement. This
Agreement may be executed simultaneously in multiple counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and
the same instrument.

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

Daramic, Inc.

By: [ILLEGIBLE]
   --------------------------------------------------

Title: Secretary
      -----------------------------------------------

Exide Corporation

By: [ILLEGIBLE]
   --------------------------------------------------

Title: VICE PRESIDENT
      -----------------------------------------------

                                       12

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