Document:

Exhibit 10.33

 

 

Kemet Corporation

2835 Kemet Way

Simpsonville, South Carolina 29681

United States of America

 

Bologna, 3 April 2009

 

Dear Sirs,

 

We have today received your letter dated 3 April 2009,
which we have reproduced in its entirety and have signed same by way of our
unconditional and irrevocable acceptance thereof.

 

* * *

 

UniCredit Corporate Banking S.p.A.

Filiale di Casalecchio di Reno (BO)

Via Guglielmo Marconi n. 34/2

Casalecchio
di Reno (BO)

 

Bologna, 3 April 2009

 

Dear Sirs,

 

Re:                                                                            Extension of the credit line
granted by UniCredit Corporate Banking S.p.A. to Kemet Corporation on 3 October 2007
(hereinafter also “Letter of Extension”)

 

Further to our discussions, please find herein
below our proposal for the execution of the Letter of Extension of the Credit
Line Agreement (as defined below).

 

WHEREAS

 

(A)                             with agreement dated 3 October 2007
(the “Credit Line Agreement”), made in Casalecchio di Reno (BO) between
UniCredit Corporate Banking S.p.A. (also known as UniCredit Banca d’Impresa
S.p.A.) (“UniCredit”)
and Kemet Corporation (“Kemet”), UniCredit granted to Kemet a
credit line (register code no. 35017902 — account no. 30090427) for a total
amount of Euro 47,000,000.00= (the “Credit Line”);

 

(B)                             according to the Credit line
Agreement, the Credit Line is valid until the date of 18 (eighteen) months
minus one day from the date of funding by UniCredit and therefore until 9 April 2009;

 

(C)                            as of today, the outstanding sums
due by Kemet to UniCredit under the Credit Line amounts to Euro 35,000,000.00=;

 

(D)                            with
agreement dated 29 September 2008, having the signatures authenticated by
Notary Carlo Vico in Bologna, rep. no. 110199/29958, registered in Bologna on 7
October 2008 (with no. 11054 - serie 1T), between UniCredit and Kemet, as
amended from time to time (the “Senior
Facility Agreement”), UniCredit granted to Kemet a
facility for a total amount of Euro 60,000,000.00=;

 

(E)                             UniCredit and Kemet intend, inter
alia,
to extend the expiration of the Credit Line under the terms set forth below,
without any novation effect (effetto novativo).

 

UniCredit
and Kemet are hereinafter referred to, collectively, as the “Parties”, or, individually, the “Party”.

 

UniCredit Corporate Banking S.p.A.

Sede Legale e Direzione Generale: Verona, Via Garibaldi 1 – Capitale
Sociale € 6.604.173.696.00 –

Iscrizione al Registro delle Imprese di Verona – Codice Fiscale e P.
IVA no 03656170960 – Cod. ABI

03226.8 – Banca iscritta all’Albo delle Banche e appartenente al Gruppo
Bancario UniCredito Italiano

iscritto all’Albo dei Gruppi Bancari ino 3135.1 – Aderente al Fondo
Interbancario di Tutela dei Depositi.

 

 

Now therefore,
the Parties hereby acknowledge and agree as follows:

 

1.                                     Recitals and Definitions

 

1.1                              The
recitals form an integral and substantial part of this Letter of Extension.

 

1.2                              In
this Letter of Extension:

 

“Extension Date”
means the date on which the conditions precedent listed under Clause 4 (Conditions
Precedent)
are satisfied.

 

2.                                     Extension of the Credit Line

 

With effect from the Extension Date:

 

(A)                              the validity of the Credit Line
is extended until 1 July 2011 (the “Final Expiration Date”);

 

(B)                              the
interest rate to be paid by Kemet to UniCredit on the amounts disbursed and
still outstanding of the Credit Line shall be equal to Euribor 6 (six) months
plus a margin of 250 basis points. Kemet shall pay accrued interests on the
last day of each interest period. The first interest period will commence on
the Extension Date and will end on 1 January 2010 and each of the
subsequent interest periods shall have a term of 6 (six) months;

 

(C)                             the
principal outstanding amount of the Credit Line shall be repaid according to
the following amortization schedule:

 

	
  Date

  	
   

  	
  Amount to be
  repaid

  	
   

  
	
  1/01/2010

  	
   

  	
  Euro 2,000,000.00=

  	
   

  
	
  01/07/2010

  	
   

  	
  Euro 2,000.000.00=

  	
   

  
	
  01/01/2011

  	
   

  	
  Euro 2,000,000.00=

  	
   

  
	
  Final Expiration Date (01/07/2011)

  	
   

  	
  Euro 29,000,000.00=

  	
   

  

 

3.                                     Further Undertakings

 

3.1                              Kemet
hereby acknowledges and agrees that, in case the indebtedness of Kemet pursuant
to the Senior Facility Agreement is declared to be, or otherwise becomes, due
and payable prior to its specified maturity as a result of an Event of Default
(“Evento Rilevante” as defined in the Senior Facility Agreement), UniCredit, in
addition and without prejudice to any of its rights and remedies pursuant to
the Credit Line Agreement, shall be entitled to accelerate the Credit Line
Agreement, withdraw from the Credit Line Agreement or declare the Credit
Agreement terminated pursuant to the applicable provisions of the Italian Civil
Code.

 

3.2                              Kemet
hereby irrevocably waives to request UniCredit, or any companies of the Group
of UniCredit, the availability of any factoring credit line.

 

4.                                     Conditions Precedent

 

The provisions of Clause 2 (Extension
of the Credit Line) shall be binding and effective only if UniCredit
has received, in form and substance satisfactory to UniCredit:

 

(A)                              a legal opinion
of a primary law firm operating in the United States of America, as legal
advisor to Kemet, in form and substance reasonably satisfactory to UniCredit,
as to due
incorporation of Kemet and its capacity, power and authority to enter into this
Letter of Extension;

 

(B)                              evidence satisfactory to
UniCredit:

 

(1)                    with reference to the Receivables
(“Crediti” as defined in the Senior Facility Agreement)
capable of being assigned, of the notification of the Assignment of Receivables
(“Cessioni dei Crediti”, as defined in the Senior Facility Agreement) to
the European Debtors (“Debitori Europei”, as defined in the Senior Facility Agreement); or

 

UniCredit Corporate Banking S.p.A.

Sede Legale e Direzione Generale: Verona, Via Garibaldi 1 – Capitale
Sociale € 6.604.173.696.00 –

Iscrizione al Registro delle Imprese di Verona – Codice Fiscale e P.
IVA no 03656170960 – Cod. ABI

03226.8 – Banca iscritta all’Albo delle Banche e appartenente al Gruppo
Bancario UniCredito Italiano

iscritto all’Albo dei Gruppi Bancari ino 3135.1 – Aderente al Fondo
Interbancario di Tutela dei Depositi.

 

 

(2)                    of the communication of the
channelling of the cash flows relating the Receivables (“Crediti” as defined in the Senior
Facility Agreement) not capable of being assigned;

 

pursuant
to the Assignment of Receivables (“Cessione di Crediti” as defined in the Senior
Facility Agreement).

 

To
this end UniCredit hereby declares that (i) the receipt of sending of the
letter of notification of the assignment / of the channelling communication or (ii) the
delivery by Kemet (also on behalf of the other Assignors - “Società Cedenti”,
as defined in the Senior Facility Agreement) of the notice of assignement /
channelling communication duly signed by Kemet or by the relevant Assignors (“Società
Cedenti”, as defined in the Senior Facility Agreement) shall constitute
evidence of the notification of the Assignment of Receivables (“Cessione
di Crediti”
as defined in the Senior Facility Agreement) or of the channelling as the case
may be;

 

(C)                             stipulation
by Kemet of the amendment agreement to the Senior Facility Agreement with
separate deed agreed by the Parties and satisfactory to UniCredit;

 

as
soon as all the above documents, in form and substance satisfactory to UniCredit,
are delivered to UniCredit, the latter shall promptly notify Kemet that such
conditions precedent indicated above are satisfied.

 

5.                                     No Novation and Miscellanea

 

5.1                              The amendments made by means of
this Letter of Extension to the Credit Line Agreement are deemed to be
incorporated in the Credit Line Agreement.

 

5.2                              The provisions of the Credit Line
Agreement not amended by means of this Letter of Extension shall remain in full
force and effect as originally agreed.

 

5.3                              The Parties hereby expressly
acknowledge and agree that the amendments made to the Credit Line Agreement by
means of this Letter of Extension constitute ancillary (accessorie) and not substantial (sostanziali) amendments, and shall not
novate any of the provisions of the Credit Line Agreement.

 

5.4                              The Parties hereby acknowledge
and agree that each of the provisions of this Letter of Extension has been
specifically negotiated.

 

6.                                     Costs and Expenses

 

Kemet shall pay all costs and expenses (including
legal fees and any taxes or other duties) in connection with this Letter of
Extension, provided however that each Party shall pay the legal fees related to
their own advisors for the negotiation, execution and
conclusion of this Letter of Extension.

 

7.                                     Applicable Law and Jurisdiction

 

7.1                              This Letter of Extension is
governed by Italian law and shall be interpreted in accordance with Italian
law.

 

7.2                              Any dispute arising with respect
to the validity and/or effectiveness and/or the performance of this Letter of
Extension shall be submitted to the exclusive jurisdiction of the Courts of
Verona, without prejudice to the mandatory provisions set out in the Italian
Civil Procedural Code.

 

7.3                              Clause 7.2 is for the benefit of
UniCredit only. As a result, UniCredit shall not be prevented from taking
proceedings relating to any dispute arising with respect to the validity and/or
effectiveness and/or the performance of this Letter of Extension in any other
courts with jurisdiction. To the extent allowed by law, UniCredit may take
concurrent proceedings in any number of jurisdictions.

 

If you agree to the above, please kindly return the
same text of this Letter of Extension reproduced in your letterhead and dated,
initialled on each page and duly signed by you in sign of your
confirmation and unconditional and irrevocable acceptance.

 

Best
regards,

Kemet Corporation

 

 

	
  /s/ Michael W. Boone

  	
   

  
	
  Name: Michael W. Boone

  	
   

  
	
  Title: Vice President and Treasurer

  	
   

  

 

UniCredit Corporate Banking S.p.A.

Sede Legale e Direzione Generale: Verona, Via Garibaldi 1 – Capitale
Sociale € 6.604.173.696.00 –

Iscrizione al Registro delle Imprese di Verona – Codice Fiscale e P.
IVA no 03656170960 – Cod. ABI

03226.8 – Banca iscritta all’Albo delle Banche e appartenente al Gruppo
Bancario UniCredito Italiano

iscritto all’Albo dei Gruppi Bancari ino 3135.1 – Aderente al Fondo
Interbancario di Tutela dei Depositi.

 

 

As requested, by signing this letter we accept
all the terms and conditions of the letter indicated above

 

* *
*

 

UniCredit Corporate Banking
S.p.A.

 

 

	
  /s/ DANIELE DI ANSELMO

  	
   

  
	
  Name: DANIELE DI ANSELMO

  	
   

  
	
  Title: DIRIGENTE RESPONSIBLE

  	
   

  
	
  CONDIREZIONE BOLOGNA

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ CLAUDIO CHIOSI

  	
   

  
	
  QUADRO DIRETTIVO RESP. FIL
  CASALECCHIO

  	
   

  

 

UniCredit Corporate Banking S.p.A.

Sede Legale e Direzione Generale: Verona, Via Garibaldi 1 – Capitale
Sociale € 6.604.173.696.00 –

Iscrizione al Registro delle Imprese di Verona – Codice Fiscale e P.
IVA no 03656170960 – Cod. ABI

03226.8 – Banca iscritta all’Albo delle Banche e appartenente al Gruppo
Bancario UniCredito Italiano

iscritto all’Albo dei Gruppi Bancari ino 3135.1 – Aderente al Fondo
Interbancario di Tutela dei Depositi.Exhibit 10.45

 

July 28, 2008

 

Per Loof

1091 Hillsboro Mile

Hillsboro Beach,  FL 
33062

 

Re:  Change in Control Severance
Compensation Agreement

 

Dear Mr. Loof:

 

The board of directors (the “Board”) of KEMET
Corporation (the “Company”) has determined that it is in the best interests of
the Company and its shareholders to assure the continued dedication to the
Company of senior management personnel, notwithstanding any possibility, threat
or occurrence of a Change in Control of the Company (as defined below).  Accordingly, in order to encourage your
continued attention and dedication to your assigned duties regardless of any
such possibility, threat or occurrence, the Board has authorized the Company to
enter into this “Change in Control Severance Compensation Agreement” (the “Agreement”)
in order to provide you with certain compensation and other benefits in the
event that your employment with the Company is terminated as a result of a
Change in Control of the Company.

 

The terms and
conditions of this Agreement are as follows:

 

1.        Term
of the Agreement.  (A)  The Term
of this Agreement shall commence on the date first set forth above and shall
end on July 27, 2011; provided, that if a Change in Control of the Company
shall have occurred prior to July 27, 2011, the Term of this Agreement
shall end on the date that is the two year anniversary of the Change in
Control.  In addition, the Term of this
Agreement shall automatically end upon the occurrence of any of the following:

 

(i)       Your death or receipt of a Notice of
Termination due to Disability;

 

(ii)      Your attainment of your Retirement Date;
or

 

(iii)     A
determination by the Board that you are no longer eligible to receive the
benefits set forth in this Agreement and your receipt of notice of any such
determination; provided, that such a determination shall have no effect
if made after a Change in Control of the Company or as a result of negotiations
occurring in connection with a Change in Control of the Company.

 

(B)     In the
event of a Change in Control of the Company, subject to Paragraph 1(A), the
Term of this Agreement shall be automatically extended to the earlier of:  (i) the date that is two (2) years
from the date such Change in Control of the Company occurred; or (ii) the
occurrence of an event described in Paragraph 1(A)(i) or 1(A)(ii) above.

 

 

2.        Change
in Control of the Company.  For
purposes of this Agreement, a “Change in Control of the Company” shall mean any
of the following events:

 

(A)     The
acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or
14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of twenty-five
percent (25%) or more of either (i) the then outstanding shares of
common stock of the Company (the “Outstanding Company Common Stock”), or (ii) the
combined voting power of the then outstanding voting securities of the Company
entitled to vote generally in the election of directors (the “Outstanding
Company Voting Securities”); provided, however, that for purposes of
this subparagraph (A), the following acquisitions shall not constitute a Change
in Control of the Company:  (1) any
acquisition directly from the Company; (2) any acquisition by the Company;
(3) any acquisition by any employee benefit plan (or related trust)
sponsored or maintained by the Company or any corporation controlled by the
Company; or (4) any acquisition by any corporation pursuant to a
transaction which complies with clauses (1), (2) and (3) of
subparagraph (C) below;

 

(B)     Individuals
who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease
for any reason to constitute at least a majority of the Board; provided,
however, that any individual becoming a director subsequent to the date hereof
whose election, or nomination for election by the Company’s shareholders, was
approved by a vote of at least a majority of the directors then comprising the
Incumbent Board shall be considered as though such individual were a member of
the Incumbent Board, but excluding for this purpose any such individual whose
initial assumption of office occurs as a result of an actual or threatened
election contest with respect to the election or removal of directors or other
actual or threatened solicitation of proxies or consents by or on behalf of a
Person other than the Board;

 

(C)     Consummation
of a reorganization, merger or consolidation or sale or other disposition of
all or substantially all of the assets of the Company (a “Business Combination”),
in each case, unless, following such Business Combination, (1) all or
substantially all of the individuals and entities who were the beneficial
owners, respectively, of the Outstanding Company Common Stock and Outstanding
Company Voting Securities immediately prior to such Business Combination
beneficially own, directly or indirectly, more than fifty percent (50%) of,
respectively, the then outstanding shares of common stock and the combined
voting power of the then outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the corporation
resulting from such Business Combination (including, without limitation, a
corporation which as a result of such transaction owns the Company or all or
substantially all of the Company’s assets either directly or through one or
more subsidiaries) in substantially the same proportions as their ownership,
immediately prior to such Business Combination of the Outstanding Company Common
Stock and Outstanding Company Voting Securities, as the case may be, (2) no
Person (excluding any corporation resulting from such Business Combination or
any employee benefit plan (or related trust) of the Company or such corporation
resulting from such Business Combination) beneficially owns, directly or
indirectly, twenty-five percent (25%)
or more of, respectively, the then outstanding shares of common stock of the
corporation resulting from such Business Combination or the 

 

2

 

combined voting power of
the then outstanding voting securities of such corporation except to the extent
that such ownership existed prior to the Business Combination, and (3) at
least a majority of the members of the board of directors of the corporation
resulting from such Business Combination were members of the Board at the time
of the execution of the initial agreement, or of the action of the Board,
providing for such Business Combination;

 

(D)     Approval
by the shareholders of the Company of a complete liquidation or dissolution of
the Company.

 

3.        Termination of Employment Following
Change in Control of the Company.

 

(A)     Termination.  If a Change in Control of the Company occurs,
you shall be entitled, upon the subsequent termination of your employment with
the Company (“Termination”), to the benefits described in Paragraph 4 below,
unless such Termination is:  (i) by
you other than for Good Reason; (ii) by the Company for Cause or because
of your Disability; or (iii) because of your death or attainment of your
Retirement Date.  Any Termination (except
a Termination resulting from your death) shall be made by written Notice of
Termination from the party initiating such Termination to the other party to
this Agreement.

 

(B)     Notice
of Termination.  A Notice of
Termination shall mean a written document stating the specific provision in
this Agreement upon which a Termination is based and otherwise setting forth
the facts and circumstances which provide the basis for a Termination.

 

(C)     Date
of Termination.  The Date of
Termination shall mean:  (i) if the
Termination occurs as a result of Disability, thirty (30) days after a Notice
of Termination is given; (ii) if the Termination occurs for Good Reason,
the date specified in the Notice of Termination; and (iii) if the
Termination occurs for any other reason, the date on which the Notice of
Termination is given.

 

(D)     Good
Reason.  A Termination for Good
Reason shall mean a Termination as a result of:

 

(i)       The
assignment to you, without your express written consent, of any duties
inconsistent with your position, duties, responsibilities and status with the
Company immediately prior to a Change in Control of the Company, or a change in
your titles or offices (if any) in effect immediately prior to a Change in
Control of the Company, or any removal of you from, or any failure to reelect
you to, any of such positions, except in connection with your Termination for
Cause, death, Disability, or as a result of your attainment of your Retirement
Date.

 

(ii)      A
reduction by the Company in your base salary as in effect on the date hereof,
or as the same may be increased from time to time thereafter;

 

(iii)     The
failure of the Company to continue in effect any compensation, welfare or
benefit plan in which you are participating at the time of a Change in Control
of the Company, without substituting therefor plans providing you with
substantially similar benefits at 

 

3

 

substantially the same
cost to you; or the taking of any action by the Company which would adversely
affect your participation in or materially reduce your benefits or increase the
cost to you under any of such plans or deprive you of any material fringe
benefit enjoyed by you at the time of the Change in Control of the Company;

 

(iv)     Any
purported Termination for Cause or Disability without grounds therefor; or

 

(v)      The
relocation of your primary work location to a location that is more than 20
miles from your primary work location immediately prior to the Change in
Control of the Company.

 

(E)      Cause.  A Termination for Cause shall mean (i) a
Termination as a result of the willful and continued failure by you for a
significant period of time substantially to perform your duties with the Company
(other than any such failure resulting from your Disability), after a demand
for substantial performance is delivered to you in writing by the Board or its
designate which specifically identifies the manner in which the Board or its
designate believes that you have not substantially performed your duties, or (ii) the
willful engaging by you in gross misconduct materially and demonstrably
injurious to the Company.  No act, or
failure to act, on your part shall be considered “willful” unless done, or omitted
to be done, by you, not in good faith and without reasonable belief that your
action or omission was in the best interest of the Company.  The burden for establishing the validity of
any termination for Cause shall rest upon the Company.  No Termination shall be deemed to be for
Cause unless and until there shall have been delivered to you a copy of a
resolution duly adopted by the affirmative vote of not less than three-quarters
of the entire membership of the Board called and held for such purpose (after
reasonable notice is provided to you and you are given an opportunity, together
with counsel, to be heard before the Board), finding that, in the good faith
opinion of the Board, you are guilty of the conduct described in subclauses (i) or
(ii) above, and specifying the particulars thereof in detail.

 

(F)      Disability.  A Disability shall mean that, as a result of
your incapacity due to physical or mental illness, you shall have been unable
to perform your duties with the Company for a period of six (6) months,
and have no prospect of returning to employment with the Company within an
additional six (6) months; provided, that the Company shall have
made a reasonable accommodation of any such incapacity pursuant to, and shall
otherwise have complied in all respects with, the provisions of the Americans
with Disabilities Act of 1990.

 

(G)     Retirement
Date.  Your “Retirement Date” shall
mean the date on which you attain age 70-1/2, or the date you have informed the
Company of your intentions to retire after you attain the age of fifty-five
(55), but before the attainment of age 70-1/2.

 

4.        Benefits.  (A)  In the event of your Termination
for any reason except those set forth in Paragraphs 3(A)(i), 3(A)(ii) and
3(A)(iii) above, the Company shall pay to you the following amounts in a
lump sum payment on the Date of Termination:

 

4

 

(i)       An
amount that is thirty-six (36) times the sum of (x) your
monthly base salary at the rate in effect at the time a Notice of Termination
is given and (y) the monthly amount of your annual target incentive bonus,
determined by dividing the annual target incentive bonus by 12 for the year in
which the Change of Control occurs.

 

(ii)      The
Company shall maintain in full force and effect, for a period of thirty-six (36) months following your Date of Termination, all life insurance
and medical insurance plans and programs (the “Company Programs”) in which you
are entitled to participate immediately prior to the Date of Termination, provided
that your continued participation is possible under the terms and provisions of
such Company Programs.  In the event that
your participation in any Company Program is not permitted under the terms and
provisions thereof, the Company will use its reasonable best efforts to provide
you with, or arrange coverage for you which is substantially similar to
(including comparable terms), the coverage that you would have received under
the applicable Company Program. 
Notwithstanding the foregoing, the Company’s obligations under this
Paragraph 4(A)(ii) shall terminate with respect to any Company Program on
the date that you first become eligible, after your Date of Termination, for
the same type of coverage under another employer’s plan.

 

(iii)     The
Company shall pay all reasonable legal fees and expenses incurred by you as a
result of your Termination (including all such reasonable fees and expenses, if
any, incurred in contesting or disputing your Termination or in seeking to
obtain or enforce any rights or benefits provided by this Agreement).

 

(iv)     The
Company shall pay the costs of reasonable outplacement services until you are
employed on a full-time basis, provided that payment by the Company of
such costs shall not exceed $15,000.

 

(B)     Accelerated
Vesting under 2004 Long Term Incentive Compensation Plan.  For any performance awards made after the
date hereof under the Company’s 2004 Long Term Incentive Compensation Plan, in
the event of a Change in Control of the Company, the vesting of such awards
shall be accelerated to the next whole year following the date of the Change in
Control, and shall be payable in an amount equal to the greater of (x) the
actual performance of the Company through the date of the Change in Control
compared to the Plan target, up to the maximum amount payable under the Plan
and (y) the target amount payable under the Plan for such period.

 

(C)    No Mitigation Required.  You shall not be required to mitigate the
amount of any payment provided for in this Paragraph 4 by seeking other
employment or otherwise, nor shall the amount of any payment provided for in
this Paragraph 4 be reduced by any compensation earned by you as a result of
employment by another employer after the Date of Termination, or otherwise,
except as specifically provided in Paragraph 4(A)(ii).

 

(D)     Section 409A
Delay.  Notwithstanding the above and
unless exempt under Proposed Treasury Regulation §1.409A-1(b)(9), if you are a “specified
employee” within the meaning of Code §416(i) and Proposed Treasury
Regulation §1.409A-1(i), no payments may be 

 

5

 

made under this Agreement
before the date that is six months after the Termination (or, if earlier, the
date of death of the specified employee). 
In such case, all payments to which you are entitled during the first
six months shall be accumulated and paid on the first date of the seventh month
following Termination.

 

(E)      Section 280G  Payments. 
If it is determined that any payments hereunder, either separately or in
conjunction with any other payments, benefits and entitlements received by you
hereunder, would constitute an “excess parachute payment” within the meaning of
Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”),
and thereby be subject to the excise tax imposed by Section 4999 of the
Code (the “Excise Tax”), then in such event, the Company shall be obligated to
pay to you promptly following such determination and upon notice thereof a “gross-up”
payment in an amount equal to the amount of such Excise Tax, plus all federal
and state income or other taxes with respect to the payment of the amount of
such Excise Tax, including all such taxes (including any additional Excise Tax)
with respect to any such gross-up payment.

 

5.        Miscellaneous.

 

(A)     Limitation
of Effect.  This Agreement shall have
no effect on any termination of your employment prior to a Change in Control of
the Company, or upon any termination of your employment at any time as a result
of your Disability, attainment of your Retirement Date, or death; and upon the
occurrence of any such events, you shall receive only those benefits to which
you would have been otherwise entitled prior to a Change in Control of the
Company.

 

(B)     Successors.  (i)  The Company will require any
successor (whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business and/or assets of the
Company, to assume and agree to perform this Agreement in the same manner and
to the same extent that the Company would be required to perform this Agreement
if no such succession had taken place. 
Failure of the Company to obtain such assumption or agreement prior to
the effectiveness of any such succession shall be a breach of this Agreement.

 

(ii)      This
Agreement shall inure to the benefit of and be enforceable by your personal or
legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees.  If
you should die while any amounts would still be payable to you hereunder if you
had continued to live, all such amounts, unless otherwise provided herein,
shall be paid in accordance with the terms of this Agreement to your devisee,
legatee or other designee or, if there be no such designee, to your estate.

 

(C)     Notice.  Notices provided for in the Agreement shall
be in writing and shall be deemed to have been duly given when delivered in
person or mailed by United States registered mail, return receipt requested,
postage prepaid, to the respective addresses set forth on the first page of
this Agreement, or to such other address as either party may have furnished to
the other in writing, except that notices of change of address shall be
effective only upon receipt 

 

6

 

by the other party.  All notices to the Company shall be directed
to the attention of Larry McAdams, Vice President of Human Resources.

 

(D)     Modifications.  No provision of this Agreement may be
modified, waived or discharged unless such modification, waiver, or discharge
is agreed to in writing and is signed by you and the Company.  No waiver by either party hereto at any time
of any breach by the other party hereto of, or compliance with, any condition
or provision of this Agreement to be performed by such other party shall be deemed
a waiver of similar or dissimilar provisions or conditions at the same or at
any prior or subsequent time.

 

(E)      Interpretation.  The validity, interpretation, construction
and performance of this Agreement shall be governed by the laws of the State of
South Carolina.  The invalidity or
unenforceability of any provisions of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement, which
shall remain in full force and effect.

 

If you agree that the foregoing correctly sets forth
the agreement between us, please sign the enclosed copy of this Agreement in
the space indicated below and return it to the Company.

 

	
   

  	
  Very truly yours,

  
	
   

  	
  KEMET Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ LARRY C. MCADAMS

  
	
   

  	
  Name:

  	
  Larry McAdams

  
	
   

  	
  Title:

  	
  Vice President, Human
  Resources

  

 

Agreed to as of the day
and year first written above:

 

	
   

  	
  EMPLOYEE

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ PER LOOF

  
	
   

  	
  Per Loof

  	
   

  

 

Dated as of

July 28, 2008

 

7

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