Document:

EXHIBIT 10.23

 

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

 

AMENDMENT TO SUPPLY CONTRACTS

 

                This
Agreement (the “Amendment”) is entered into this
      day of July, 2001 by and between
Daramic, Inc. (“Daramic”) and Exide Corporation and all of its worldwide
Affiliates (“Exide”).

 

R E C I T A L S:

 

                A.            On December 15, 1999, Exide and
Daramic entered into a North American Supply Agreement for the supply of
Separators (the “Exide-NA Agreement”). All capitalized terms used but not
defined in this Amendment shall have the meaning described in the Exide-NA
Agreement.

 

                B.            On January 1, 1997, Daramic
entered into a worldwide Purchase and Sale Agreement with GNB
Technologies, Inc. (“GNB”) for the supply of certain products to GNB and
its subsidiaries (the “GNB Agreement”).

 

                C.            On January 1, 1996, Daramic and
Exide entered into an Agreement for the Supply of Battery Separators for Lead
Acid Starter and Industrial Batteries to Exide’s facilities located outside of
North America (the “Exide-Europe Agreement”). On December 15, 1999,
Exide and Daramic entered into a First Amendment to Supply Agreement by which
they extended the term of the Exide-Europe Agreement through
December 31, 2003. The Exide-NA Agreement, GNB Agreement and Exide-Europe
Agreement may be referred to collectively as the “Supply Contracts.”

 

                D.            On or about September 29, 2000,
Exide acquired substantially all of the assets and liabilities of GNB,
including, without limitation, GNB’s rights and obligations under the GNB
Agreement. Because of this acquisition, Exide and Daramic now wish to clarify
and amend certain of their obligations and rights under the Supply Contracts.

 

                NOW,
THEREFORE, the parties agree as follows:

 

Golf Cart Separators

 

                1.             GCS Supply Agreement. Exide and
Daramic agree to enter into an agreement, in the form attached as Attachment 1,
for the supply of separators to be used in golf cart batteries (the “GCS Supply
Agreement”).

 

GNB Agreement

 

                2.             Termination of GNB Agreement. The
parties agree that the GNB Agreement is cancelled as of the date of this
Amendment. Automotive battery separator (defined as polymeric, microporous
separators) volume previously purchased under the GNB Agreement is included in
the new Minimum Purchase Requirement described below for the amended Exide-NA
Agreement.

 

                3.             GNB Rebate.  Under the GNB Agreement, GNB would have been
entitled to certain rebates described in Section 4.3 of the GNB Agreement
had they purchased certain agreed volumes of separators under that Agreement in
2000. However, GNB’s actual purchases in 2000 did not reach these levels, and
therefore neither Exide nor GNB is entitled to claim any such rebate under the
GNB Agreement.

 

Exide-Europe
Agreement

 

                4.             Amendment  of Exide-Europe Agreement. The parties
hereby agree that the Exide-Europe Agreement will be terminated and
replaced by the execution of a revised Automotive and Industrial Supply
Contract in the form attached hereto as Attachment 2 (the “AI Supply
Agreement”).

 

Exide-NA Agreement

 

                5.             Title.  The title of the Exide-NA Agreement is hereby
changed to “North American, Australian and New Zealand Supply Agreement for
Automotive Separators”.

 

 

 

                6.             2000 Deficit Amount.  The parties agree that the Deficit Amount due
and payable by Exide to Daramic under the Exide-NA Agreement for calendar year
2000 is [*****]. This amount was due and payable on or before February 15,
2001. On February 28, 2001, Exide made a partial payment of [*****]
towards satisfaction of this Deficit Amount. The balance of the Deficit Amount
will be repaid as follows: Exide will amortize [*****](which amount includes
the balance of the 2000 Deficit Amount, plus an interest charge of [*****]) by
an up-charge of [*****] per thousand lineal feet of Separators purchased in
2001, with a minimum amortization of [*****] per month, beginning April 1,
2001. Daramic will invoice Exide for these up-charge amounts over the balance
of calendar year 2001. If for any reason the full [*****] has not been paid on
or before January 15, 2002, Exide will make a lump sum payment to Daramic
on or before that date to repay this amount in full.

 

                7.             Exide-NA Agreement—Amendments  Exide and Daramic agree to the following
amendments to the Exide-NA Agreement:

 

                a.             Definitions  The following definitions and amendments are
hereby added or made to the Exide-NA Agreement:

 

                The
definition of “Contract Year” shall be revised to mean each calendar year
during the Term of the Exide-NA Agreement.

 

                Exhibit A
containing the “Prices” is amended to include the prices for Separators
previously purchased by GNB. The revised Price list is attached to this
Amendment as Attachment 3. Prior to the date of this Amendment, Daramic
has incurred Substantial Changes in its Manufacturing Costs (all as defined in
Section 4 of the Exide-NA Agreement) which would have otherwise resulted
in Price increases under the Exide-NA Agreement. However, as part of this
Amendment, Daramic has agreed to hold in abeyance any such price increases and
to retain pricing at the levels described in Attachment 3 until
January 1, 2002. On or after January 1, 2002, Daramic may adjust all
Prices as described in Sections 4.2 and 4.3 of the Exide-NA Agreement to
reflect changes in its Manufacturing Costs incurred since January 1, 2001.

 

                “Separator”
shall mean polymeric, microporous and/or similar battery separators for use in
automotive (starting, lighting and ignition) batteries which were previously
manufactured by Exide for its own use utilizing the manufacturing equipment and
facilities currently located at the Corydon, Indiana facility, or by Daramic at
its Owensboro, Kentucky facility. Current products which meet these
requirements 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.

 

                Exhibit B
containing the “Specifications” is amended to include the specifications for
Separators previously purchased by GNB. The revised Specifications are attached
to this Amendment as Attachment 4. The parties will cooperate together and
will use their reasonable commercial efforts to standardize the Specifications
for both the Exide and former GNB Separators purchased under the Exide-NA
Agreement as soon as practicable, provided that Exide shall have the final say
as to the acceptability of the standardized Specifications.

 

                The
“Term” of this Agreement shall be extended from the Effective Date through
December 31, 2009.

 

                b.             Minimum Purchase Requirement
Section 2 of the Exide-NA Agreement is amended to read as follows:

 

                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,[*****] of
Exide’s requirements for Separators listed on Exhibit A in Exide’s North
American, Australian and New Zealand manufacturing facilities, which
requirements shall be no less than [*****] lineal feet of Separators, of which
no less than [*****]of such Separators will have a back web thickness of 7 mils
(.007”) (for a total of approximately [*****] of Separators) (hereinafter
referred to as Exide’s “Minimum Purchase Requirement”). Exide’s purchases for
use in producing batteries of any type outside of North America, Australia or
New Zealand, or for producing non-automotive batteries within North America,
Australia and New Zealand, 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, 

 

 

2

 

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 or their successors; provided, however, that such customers are
purchasing Separators from Daramic at the time of the applicable transaction
with Exide. Exide warrants that it will not cause or influence any Customer of
Daramic to stop purchasing from Daramic in anticipation of a potential
acquisition by or of Exide with the objective of avoiding the intent of this
section 2. 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 Amendment.

 

                2.2           If Exide sells all or substantially
all of its assets to any of Daramic’s Customers, only purchases for use at the
Exide battery manufacturing facilities existing at the time of the sale will
count towad satisfying the Minimum Purchase Requirement.  Other purchases by or on behalf of Exide’s
new owner shall not count toward the Minimum Purchase Requirement.

 

                2.3           If Exide fails to meet its Minimum
Purchase Requirement in any Contract Year, then Exide agrees to pay Daramic,
(in accordance with Section 2.8 below), 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, provided, however, that in no event shall the Deficit Amount
exceed [*****] in any Contract Year.

 

                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 [*****] [*****] (and 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 October 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 calendar year. 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 month.

 

                2.6           When and if Exide begins purchasing a
polymer based battery separator for golf cart batteries (“Golf Cart Separators”)
from Daramic pursuant to the GCS Supply Agreement, such purchases of Golf Cart
Separators shall not count toward satisfaction of Exide’s Minimum Purchase
Requirement. However, [*****] of the actual, final net invoiced and collected
sales price for all Golf Cart Separators purchased by Exide from Daramic under
the GCS Supply Agreement at a minimum average price of [*****], will be treated
as a credit to offset any Deficit Amount otherwise payable by Exide under this
Agreement, up to a maximum setoff of [*****] in any calendar year (the “GCS Credit”).
Exide will not receive any GCS Credit for Golf Cart Separators purchased at an
average price less than [*****] or that are priced to match “Lower Priced
Offers” as defined in section 3.4 of the GCS Supply Agreement. The GCS
Credit is nonrefundable and must be used to offset Deficit Amounts that accrue
within the same calendar year during which the Golf Cart Separators are
purchased. It cannot be carried forward nor can it be carried back to offset
previous Deficit Amounts. In no event will the GCS Credit have any cash value.
Further, the GCS Credit is nonrefundable and results in no other cash benefit
other than for use as a setoff against any Deficit Amount which might otherwise
be payable by Exide under this Agreement that may have accrued during the same
calendar year. If GCS Credits are unused because there is not a resulting
Deficit Amount sufficient to absorb the credit amount, the credit is lost. The
GCS Credit is only accrued for sales by Daramic to Exide of polymer based Golf
Cart Separators.

 

                2.7           In addition to the GCS Credit, Exide
shall receive an additional credit of [*****] for calendar year 2001, and a
credit of [*****] per calendar year for 2002 through 2009 to offset any Deficit
Amount otherwise payable by Exide under this Agreement (“Lump Sum Credits”).
These Lump Sum Credits are nonrefundable and must be used to offset Deficit
Amounts that accrue within the same calendar year during which the Lump Sum
Credits accrue. They cannot be carried forward nor can they be carried back to
offset previous Deficit Amounts. In no event will these credits have any cash
value. They are nonrefundable 

 

 

3

 

and result in no other cash benefit other than for
use as a setoff against any Deficit Amount which might otherwise be payable by
Exide under this Agreement that may have accrued during the same calendar year.
If Lump Sum Credits are unused because there is not a resulting Deficit Amount
sufficient to absorb the credit amount, the credit is lost.

 

                2.8           After application of the GCS and Lump
Sum Credits, if there is a remaining Deficit Amount, this amount, up to a
maximum of [*****], can be paid in arrears via an up-charge on Separator
purchases in the subsequent Contract Year. Any Deficit Amount in excess of
[*****] due after application of the GCS and Lump Sum Credits must be paid by
Exide within two (2) months after the close of the applicable Contract
Year. Any Deficit Amount less than [*****], plus a 5% installment fee, will be
repaid ratably over Separator purchases in the next Contract Year. The actual
up-charge will be ratably applied on the lower of: (i) Exide’s actual
purchases; or (ii) the first one billion lineal feet of Separators
purchased in the subsequent Contract Year. If Exide’s actual purchases fall
below the amounts necessary to fully amortize the remaining Deficit Amount plus
the 5% installment fee, then Exide must make whole this amount with a lump-sum
payment within 15 calendar days after the end of that same Contract Year in
which payments were to be fully amortized. Upon expiration or termination of
this Agreement, any Deficit Amounts then outstanding must be paid in full
within thirty (30) days after such termination or expiration. Any Deficit
Amount payment that is not paid when due, other than amounts disputed by Exide
in good faith, shall accrue interest at the rate of [*****] per month.

 

                c.             Payment Terms. Section 5 of
the Exide-NA Agreement is amended to read as follows:

 

                5.             Payment Terms

 

                Invoices
are to be issued by Daramic upon shipment and are due and payable [*****] days
after date of invoice. Any amounts due by Exide to Daramic, which amounts are
not paid when due shall accrue interest at a rate of [*****] per month, or
portion thereof, from the due date until the date paid. All invoices must
reference applicable Exide purchase order/contract release numbers or the
special terms of this Agreement, and shall be sent to:

 

Exide Corporation

12600 Deerfield Parkway

Alpharetta, GA 30004

Attention: Accounts Payable

 

                d.             Research and Development.
Section 7.4 of the Exide-NA Agreement is amended to read as follows:

 

                7.4           When and if during the Term of this
Agreement, Daramic or any of its Affiliates through its sole efforts and
without agreements of confidentiality or exclusivity with a third party,
develops a new separator for lead-acid automotive batteries and if such new
separator is not subject to agreements with a third party restricting the sale,
use or disclosure of such new separator, Exide shall have exclusive purchase
rights for a period of three (3) months after receipt by Exide of the first
Daramic sample material.  If within this
three (3) month period, Exide determines it has no significant interest in said
sample, Exide shall have waived its rights under this Section 7.4 with regard
to that sampled material.

 

                8.             Miscellaneous Except as modified by
this Amendment, the Exide-NA Agreement shall remain in full force and effect.

 

 

4

 

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

 

                Exide
Corporation, for itself, and on behalf of all of its present and future, direct
and indirect, parent, subsidiary, and affiliated entities on a worldwide basis.

 

	
   

  	
   

  	
  [ILLEGIBLE
  SIGNATURE]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
  Daramic, Inc.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  Jerry Zucker

  	
   

  	
   

  
	
  Title:

  	
  Chairman, President & CEO

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

5EXHIBIT 10.24

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

AMENDMENT NO. 2 TO SUPPLY CONTRACTS

This
Agreement (“Amendment No. 2”) is entered into this 11th day of July,
2002 by and between Daramic, Inc. (“Daramic”) and Exide Technologies (formerly
known as Exide Corporation) and all of its worldwide Affiliates (“Exide”).

RECITALS:

A.            Exide and Daramic are parties to a Supply Agreement known
as the North American, Australian and New Zealand Supply Agreement for
automotive separators (the “NA Agreement”), the Automotive and Industrial
Supply Agreement and the Golf Cart Separator Supply Agreement.  The NA Agreement was amended the first time
on the      day of July, 2001 pursuant to an
amendment agreement between the parties.

B.            Exide and Daramic now desire to further amend the terms
and conditions of the NA Agreement.

NOW, THEREFORE, the parties
agree as follows:

1.             Delivery Terms.

(A)          Section 8.2 of the NA Agreement is amended by deleting
that section and substituting the following subparagraph therefor:

Daramic will use its
commercially reasonable efforts to ensure that all domestic, North American,
Austral-Asian, and European orders, scheduled for pick up or delivery, will be
available for pick up or delivered on the dates reasonably requested by
Exide.  Further, Daramic will use its
commercially reasonable efforts to continue to maintain inventories of Exide
specific products in order to meet the delivery schedules reasonably requested
by Exide.  Exide shall make required
forecasts and shall order product in amounts reasonably consistent with prior
ordering volumes and Exide’s business requirements.  However, in no event shall the above
standards be construed to be at a level greater than historically practiced by
Daramic on behalf of Exide.  Further, any
inventory produced by Daramic on behalf of Exide which is reasonably consistent
with Exide’s prior ordering volumes and Exide’s forecasts will be purchased by
Exide pursuant to the payment terms of this Agreement, should Exide discontinue
the need for any such specific product(s) maintained in inventory by Daramic on
behalf of Exide.  Exide shall promptly
notify Daramic upon Exide’s discontinuing the need for any such specific
product(s).  However, in no event shall
Exide be required to purchase any inventory maintained by Daramic on Exide’s
behalf, after 

 

 

such notification by Exide,
in excess of a thirty (30) day supply of any product type, which shall be
determined by taking the average monthly actual purchases by Exide over the
previous six-month period or the average forecasts by Exide over the previous
six-month period, whichever is greater. 
If Daramic is unable to deliver product ordered by Exide pursuant to
this Agreement, 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 pursuant to this
Agreement during such period as Daramic is unable to deliver product ordered by
Exide pursuant to this Agreement.  In the
event that the cost of such substitute separators is greater than the Prices for
the Separators, Daramic will promptly reimburse Exide for the amount of such
difference.  Once Daramic is again
capable of producing and supplying the required volumes on a timely basis,
Exide shall resume its purchases from Daramic in accordance with this
Agreement.

(B)           Section 10.2 of the Automotive and Industrial Supply
Agreement is amended by deleting the first two sentences therein and
substituting the following subparagraph therefor:

Daramic will use its
commercially reasonable efforts to ensure that all domestic, North American,
Austral-Asian, and European orders, scheduled for pick up or delivery, will be
available for pick up or delivered on the dates reasonably requested by
Exide.  Further, Daramic will use its
commercially reasonable efforts to continue to maintain inventories of Exide
specific products in order to meet the delivery schedules reasonably requested
by Exide.  Exide shall make required
forecasts and shall order product in amounts reasonably consistent with prior
ordering volumes and Exide’s business requirements.  However, in no event shall the above
standards be construed to be at a level greater than historically practiced by
Daramic on behalf of Exide.  Further, any
inventory produced by Daramic on behalf of Exide which is reasonably consistent
with Exide’s prior ordering volumes and Exide’s forecasts will be purchased by
Exide pursuant to the payment terms of this Agreement, should Exide discontinue
the need for any such specific product(s) maintained in inventory by Daramic on
behalf of Exide.  Exide shall promptly
notify Daramic upon Exide’s discontinuing the need for any such specific
product(s).  However, in no event shall
Exide be required to purchase any inventory maintained by Daramic on Exide’s
behalf, after such notification by Exide, in excess of a thirty (30) day supply
of any product type, which shall be determined by taking the average monthly
actual purchases by Exide over the previous six-month period or the 

 

 

2

 

average forecasts by Exide
over the previous six-month period, whichever is greater.

Also,
Section 10.2 of the Automotive and Industrial Supply Agreement is further
amended by deleting the fourth sentence therein (beginning with “If Daramic is
unable....”) and substituting the following therefor:

If Daramic is unable to
deliver Qualified Products ordered by Exide pursuant to this Agreement, then
Daramic will within 24 hours provide Exide with notice of its inability to
do so.

(C)           Section 9.2 of the Golf Cart Separator Supply Agreement is
hereby amended by deleting the first two sentences therein and substituting the
following subparagraph therefor:

Daramic will use its
commercially reasonable efforts to ensure that all domestic, North American,
Austral-Asian, and European orders, scheduled for pick up or delivery, will be
available for pick up or delivered on the dates reasonably requested by
Exide.  Further, Daramic will use its
commercially reasonable efforts to continue to maintain inventories of Exide
specific products in order to meet the delivery schedules reasonably requested
by Exide.  Exide shall make required
forecasts and shall order product in amounts reasonably consistent with prior
ordering volumes and Exide’s business requirements.  However, in no event shall the above
standards be construed to be at a level greater than historically practiced by
Daramic on behalf of Exide.  Further, any
inventory produced by Daramic on behalf of Exide which is reasonably consistent
with Exide’s prior ordering volumes and Exide’s forecasts will be purchased by
Exide pursuant to the payment terms of this Agreement, should Exide discontinue
the need for any such specific product(s) maintained in inventory by Daramic on
behalf of Exide.  Exide shall promptly
notify Daramic upon Exide’s discontinuing the need for any such specific
product(s).  However, in no event shall
Exide be required to purchase any inventory maintained by Daramic on Exide’s
behalf, after such notification by Exide, in excess of a thirty (30) day supply
of any product type, which shall be determined by taking the average monthly
actual purchases by Exide over the previous six-month period or the average
forecasts by Exide over the previous six-month period, whichever is greater.

Also,
Section 9.2 of the Golf Cart Separator Supply Agreement is further amended by
deleting the fourth sentence therein (beginning with “If Daramic is unable . .
..”) and substituting the following therefor:

If Daramic is unable to
deliver Separators ordered by Exide pursuant to this Agreement, then Daramic
will within 24 hours provide Exide with notice of its inability to do so.

 

 

3

 

2.             Lump Sum Credits. 
Section 2.7 of the NA Agreement is amended as follows: The Lump Sum
Credit for calendar year 2002 shall be [*****]. 
The Lump Sum Credits for each of calendar years 2003 through 2009 shall
be [*****].  The balance of Section 2.7
shall remain unchanged.

3.             Payment
Terms.  Section 5 of the NA
Agreement shall be amended by adding the following: Exide’s total global
worldwide credit limit for all products purchased and other sums due to Daramic
under both the NA Agreement and any other supply relationship, including
without limitation, the Golf Cart Separator Supply Contract dated      day
of July, 2001 between Daramic and Exide (the “Golf Cart Agreement”) and the
Automotive and Industrial Supply Contract dated      day
of July 2001 by and between Daramic and Exide (the “AI Agreement”), shall not
exceed [*****] U.S. Dollars (“Credit Line Cap”) during the period that Exide is
operating pursuant to and under Title 11 of the United States Bankruptcy
Code.  This Credit Line Cap shall include
an estimate of any Deficit Amount (reduced by applicable Lump Sum Credits under
Section 2.7) payable under Section 2.3 of the NA Agreement, based upon Exide’s
good faith current forecasts.  The
forecasts and the estimate of an anticipated Deficit Amount shall be based upon
Exide’s actual historic and realistic product needs.  If and to the extent that Exide’s total
credit exposure to Daramic on a worldwide basis equals or exceeds this Credit
Line Cap, then Exide’s payment terms shall be reduced and cash payments will be
required until such time as the maximum Credit Line Cap is no longer exceeded.
Once Exide is no longer operating pursuant to and under Title 11 of the
United States Bankruptcy Code, the Credit Line Cap shall be increased from
[*****] U.S. Dollars to [*****] U.S. Dollars.

                As an example of how this Credit Line Cap will work
during the period Exide is operating pursuant to and under Title 11 of the
United States Bankruptcy Code, consider the following:  Assume that Exide had an outstanding balance payable
to Daramic under the AI Supply Agreement and Golf Cart Separator Supply
Agreement totaling $6 Million.  Also
assume that Exide carried forward a $2 Million shortfall based on last
year’s purchases and is amortizing this amount over purchases in 2002.  Additionally, based upon Exide’s current
forecast and year-to-date purchases under the NA Agreement, the parties
anticipated a total Deficit Amount payable of approximately [*****] (which sum
in this example has already been reduced by the appropriate Lump Sum Credit)
for calendar year 2002.  Even though this
Deficit Amount would not become due and payable until two months after close of
the calendar year, the anticipated Deficit Amount would be considered for
purposes of the Credit Line Cap.  In this
example, to the extent that Exide’s outstanding balance under the NA Agreement
exceeded [*****] that would require Exide [*****] to remain under the [*****]
Credit Line Cap on a global basis.

4.             Miscellaneous. 
Capitalized forms used in this Amendment but not defined herein shall
have the meanings set forth in the NA Agreement, the Automotive and Industrial
Supply Agreement and the Golf Cart Separator Supply Agreement.  Except as modified by this Amendment
No. 2, the NA Agreement, the Automotive and Industrial Supply Agreement,
and the Golf Cart Separator Supply Agreement shall remain in full force and effect
as modified previously.

 

 

4

 

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

	
  EXIDE TECHNOLOGIES, for itself and on

  behalf of all of its present and future, direct and

  	
   

  	
  DARAMIC, INC.

  
	
  indirect, parent, subsidiary, and affiliated entities

  on a worldwide basis

  	
   

  	
  

  By:

  	
  

  [Illegible]

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  [Illegible]

  	
   

  	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Its:

  	
   

  	
   

  	
   

  	
   

  

 

 

5

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