Document:

Exhibit 10.1

ENERSYS 

AMENDED AND RESTATED 2000 MANAGEMENT EQUITY PLAN

1.               Purpose.

The EnerSys Amended and Restated 2000
Management Equity Plan (the “Plan”) is intended to provide an incentive
to certain officers and key employees of EnerSys, a Delaware corporation (the “Company”),
and its Subsidiaries to remain in the employ of the Company and its
Subsidiaries and to increase their interest in the success of the Company.  The Plan provides an opportunity for
participants to obtain a proprietary interest in the Company through the grant
of Options.  The Plan also provides for
participants to acquire Restricted Shares.

2.               Definitions.

For purposes of the Plan, the following terms
have the following meanings:

“Affiliate” means, with respect to any
Person, any other Person directly or indirectly controlling, controlled by or
under common control with, such Person. 
For purposes of this definition, “control” (including with
correlative meanings, the terms “controlling”, “controlled by” or
“under common control with”), as used with respect to any Person, shall
mean the possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of such Person, whether through
the ownership of voting securities or by contract or otherwise.

“Agreement” means an agreement between
the Company and an Eligible Person providing for (a) the grant or sale to such
Eligible Person of Restricted Shares or (b) the grant to such Eligible Person
of Options.

“Award” means an Option or a Restricted
Share.

“Beneficial owner” or “beneficially
own” has the meaning given such term in Rule 13d-3 under the 1934 Act.

“Beneficiary” or “Beneficiaries”
means the person(s) designated by a Participant or his Permitted Transferee in
writing to the Company to receive payments or other distributions or rights
pursuant to the Plan upon the death of such Participant or his Permitted
Transferee.  If no Beneficiary is so
designated or if no Beneficiary is living at the time a payment, distribution
or right becomes payable or distributable pursuant to the Plan, such payment,
distribution or right shall be made to the estate of the Participant or a
Permitted Transferee thereof.  The
Participant or Permitted Transferee, as the case may be, shall have the right
to change the designated Beneficiaries from time to time by written instrument
filed with the Compensation Committee in accordance with such rules as may be
specified by the Compensation Committee.

“Board of Directors” means the Board
of Directors of the Company.

 

 

“Cashless Exercise” means an exercise
of Vested Options outstanding under the Plan through (a) the delivery of
irrevocable instructions to a broker to make a sale of a number of Option
Shares that results in proceeds thereon in an amount required to pay the
aggregate exercise price for all the Option Shares underlying such Vested
Options being so exercised (and any required withholding tax) and to deliver
such proceeds to the Company in satisfaction of such aggregate exercise price
or (b) any other surrender to the Company of Option Shares or Vested Options
outstanding under the Plan to satisfy the applicable aggregate exercise price
(and any withholding tax) required to be paid upon such exercise.

“Cause” means, with respect to any
Participant, (a) “cause” as defined in an employment agreement applicable to
the Participant (so long as any act or omission constituting “cause” for such
purpose was willful), or (b) in the case of a Participant who does not have an
employment agreement that defines “cause”: (i) any act or omission that
constitutes a material breach by the Participant of any of his obligations
under his employment agreement (if any) with the Company or any of its
Subsidiaries, the applicable Agreement or any other agreement with the Company
or any of its Subsidiaries; (ii) the willful and continued failure or refusal
of the Participant substantially to perform the duties required of him as an
employee of the Company or any of its Subsidiaries, or performance
significantly below the level required or expected of the Participant, as
determined by the Company’s Chief Executive Officer; (iii) any willful
violation by the Participant of any federal or state law or regulation
applicable to the business of the Company or any of its Subsidiaries or Affiliates,
or the Participant’s commission of any felony or other crime involving moral
turpitude, or any willful perpetration by the Participant of a common law
fraud; or (iv) any other misconduct by the Participant that is materially
injurious to the financial condition or business reputation of, or is otherwise
materially injurious to, the Company or any of its Subsidiaries or Affiliates.

“Code” means the Internal Revenue Code
of 1986, as amended, including the rules and regulations promulgated
thereunder.

“Commission” means the Securities and
Exchange Commission.

“Common Stock” means Common Stock, par
value $0.01 per share.

“Compensation Committee”
means the Compensation Committee of the Board of Directors.

                “Competing Business” means a business or
enterprise (other than the Company and its direct or indirect Subsidiaries)
that is engaged in any or all of the manufacture, importing, development,
distribution, marketing or sale of:

                                                                (a)           motive power batteries and chargers
(including, without limitation, batteries and chargers for industrial forklift
trucks and other materials handling equipment;

                                                                (b)           stationary batteries and chargers
(including, without limitation, standby batteries and power supply equipment
for wireless and wireline telecommunications applications, such as central
telephone exchanges, microwave relay stations, and switchgear and other
instrumentation control systems); or

 

2

 

                                                                (c)           any other product the Company now
makes or is currently (or at a relevant time in the future) researching or
developing, such as lithium batteries. 
“Competing Business” also includes the design, engineering,
installation or service of stationary and DC power systems, and any consulting
and/or turnkey services relating thereto.

“Date of Grant” means the date of
grant (or sale with respect to Restricted Shares) of an Award as set forth in
the applicable Agreement.

“Eligible Persons” means officers and
key employees of the Company and its Subsidiaries.

“Fair Market Value” means, with
respect to a share of Common Stock on any relevant day, (a) if such Common
Stock is traded on a national securities exchange, the closing price on such
day, or if the Common Stock did not trade on such day, the closing price on the
most recent preceding day on which there was a trade, (b) if such Common Stock
is quoted on an automated quotation system, the closing price on such day, or
if the Common Stock did not trade on such day, the mean between the closing bid
and asked prices on such day, or (c) in all other cases, the “fair market
value” as determined by the Compensation Committee in good faith and using such
financial sources as it deems relevant and reliable.

“Good Reason” means, with respect to
any Participant, (a) “good reason” as defined in an employment agreement
applicable to such Participant, or (b) in the case of a Participant who does
not have an employment agreement that defines “good reason”, a failure by the
Company to pay material compensation due and payable to the Participant in
connection with his employment.

“Legended Certificate”
means a certificate evidencing a number of shares of Common Stock issued in
connection with an Award and imprinted with a legend to indicate that (a) such
shares are subject to the restrictions on transfer set forth in the Plan and
the applicable Agreement and, to the extent applicable, the Securityholder
Agreement, and (b) if the offer and sale of such shares have not been
registered under the 1933 Act, such shares may be sold only pursuant to a
registration statement under the 1933 Act or an exemption from registration
under the 1933 Act that the Company has determined is available for such sale.

                “Management Securityholder” means any of John
D. Craig, Michael T. Philion, Richard W. Zuidema, Charles K. McManus, John A.
Shea, Raymond Kubis and Cheryl Diuguid, and such other Persons as are
designated as “Management Securityholders” by the Compensation Committee in
consultation with the Chief Executive Officer of the Company from time to time,
whether or not any such Securityholder is then employed by the Company (and
excluding any such person as is designated from time to time by such
Compensation Committee in consultation with such Chief Executive Officer).

“MSCP” means Morgan Stanley Dean
Witter Capital Partners IV, L.P., a Delaware limited partnership, and its
Affiliated partnerships.

“1933 Act” means the Securities Act of
1933, as amended, and the rules and regulations of the Commission thereunder.

“1934 Act” means the Securities
Exchange Act of 1934, as amended, and the rules and regulations of the
Commission thereunder.

 

3

 

“Option” means a nonqualified option
to purchase shares of Common Stock, subject to the terms and conditions of the
Plan.

“Option Price” means, with respect to
any Option, the exercise price per share of Common Stock to which it relates.

“Option Shares” means the shares of
Common Stock acquired by a Participant upon exercise of an Option.

“outstanding”, with respect to any
share of Common Stock, means, as of any date of determination, all shares that
have been issued on or prior to such date, other than shares repurchased or
otherwise reacquired by the Company or any Affiliate thereof, on or prior to
such date.

“Participant” means any Eligible
Person who has been granted an Award.

“Performance Options” means Options
having an initial Option Price greater than the Fair Market Value of a share of
Common Stock as of the Date of Grant.

“Permanent Disability”, with respect
to any Participant who is an employee of the Company or any of its
Subsidiaries, shall be defined in the same manner as such term or a similar
term is defined in an employment agreement applicable to the Participant or, in
the case of a Participant who does not have an employment agreement that
defines such term or a similar term, means that the Participant is unable to
perform substantially all his duties as an employee of the Company or any of
its Subsidiaries by reason of illness or incapacity for a period of more than
six months, or six months in the aggregate during any 12-month period,
established by medical evidence reasonably satisfactory to the Company.

“Permitted Transferee” means, (A) with
respect to outstanding shares of Common Stock held by any Participant, (i) any
Person that is treated as a “Permitted Transferee” under the Securityholder
Agreement or (ii) any Person with respect to which the Board of Directors shall
have adopted a resolution stating that the Board of Directors has no objection
if a transfer of shares is made to such Person, and (B) with respect to Options
or outstanding shares of Common Stock held by any Participant, (i) any Person
to whom such shares or Options are transferred by will or the laws of descent
and distribution or (ii) the Company.

“Person” means an individual, a
partnership, a joint venture, a corporation, an association, a trust, an estate
or other entity or organization, including a government or any department or
agency thereof.

“Predecessor Plan” means the Yuasa,
Inc. Omnibus Stock Plan.

“Public Offering” means an
underwritten public offering of equity securities of the Company pursuant to an
effective registration statement under the 1933 Act.

 

4

 

“Restricted Shares” means shares of
Common Stock awarded to or sold to a Participant subject to the terms and
conditions of the Plan, consisting of shares issued to a Participant in
connection with the merger and related transactions by which MSCP initially
acquired a majority of the capital stock of the Company.

“Retirement”, with respect to any
Participant who is an employee of the Company or any of its Subsidiaries, means
resignation or termination of employment on or after the Participant’s 65th
birthday (other than termination for Cause); provided, however,
that the Compensation Committee may determine in its sole discretion that a
resignation or termination of employment under other circumstances shall be
considered “Retirement” for purposes of the Plan.

“Roll-Over Options” means Options
awarded as of the 2000 Closing Date in exchange for vested stock options held
by a Participant under the Predecessor Plan immediately prior to the 2000
Closing.

“Sale of Assets” means a sale by the
Company of all or substantially all its assets to a third party that is not an
Affiliate of the Company for cash.

“Sale of Common Stock” means the sale
by way of merger or otherwise by the Company’s stockholders of more than
two-thirds of the outstanding Common Stock of the Company to a third party not
Affiliated with the Company (i) for cash, or (ii) for common stock that is
listed for trading on a national securities exchange or quoted on an automated
quotation system, provided that the Company’s stockholders hold, in the
aggregate, less than 40% of the pro forma outstanding common stock of the
acquiror immediately upon consummation of the transaction, or (iii) for a
combination of cash and common stock that is listed for trading on a national
securities exchange or quoted on an automated quotation system, provided
that the Company’s stockholders hold, in the aggregate, less than 40% of the
pro forma outstanding common stock of the acquiror immediately upon
consummation of the transaction.

“Securityholder Agreement” means the
Stockholder Agreement dated as of November 9, 2000, among the Company and each
of the other parties signatory thereto, as amended from time to time.

“Service Options” means Options having
an initial Option Price equal to the Fair Market Value of a share of Common
Stock on the Date of Grant and whose vesting is conditioned only upon continued
employment with the Company and its Subsidiaries.

“Stock” means Common Stock.

“Subsidiary” means any corporation in
which 50% or more of the total combined voting power of all classes of stock is
owned, either directly or indirectly, by the Company or another Subsidiary.

“2000 Closing” means the consummation
of the transactions by which MSCP acquired a majority of the capital stock of
the Company.

“2000 Closing Date” November 9, 2000.

 

5

 

“2002 Closing Date” means March 22,
2002.

“2004 Closing” means the closing of
the Company’s initial Public Offering.

“2004 Closing Date” means the time of
the 2004 Closing.

“2004 Effective Date” means the time
immediately prior to the time at which the Form S-1 registration statement for
the Company’s initial Public Offering is declared effective by the Commission.

“2004 Effective Date Award Summary”
means the summary of outstanding Awards dated the 2004 Effective Date approved
by the Compensation Committee.

“Vested Options” means, as of any date
of determination, Options that by their terms have vested and are exercisable
on such date.

“Vested Restricted Shares” means, as
of any date of determination, Restricted Shares that by their terms have vested
as of such date.

A “Wrongful Solicitation” shall be
deemed to occur when a Participant or former Participant directly or indirectly
(except in the course of his employment with the Company), for the purpose of
conducting or engaging in a Competing Business, calls upon, solicits, advises
or otherwise does, or attempts to do, business with any Person who is, or was,
during the then most recent 12-month period, a customer of the Company or any
of its Affiliates, or takes away or interferes or attempts to take away or
interfere with any custom, trade, business, patronage or affairs of the Company
or any of its Affiliates, or hires or attempts to hire any Person who is, or
was during the most recent 12-month period, an employee, officer,
representative or agent of the Company or any of its Affiliates, or solicits,
induces, or attempts to solicit or induce any person who is an employee,
officer, representative or agent of the Company or any of its Affiliates to
leave the employ of the Company or any of its Affiliates, or violate the terms
of their contract, or any employment agreement, with it.

3.               Administration
of the Plan.

(a)           Members of the Compensation
Committee.  The Plan shall be
administered, and Awards shall be granted hereunder, by the Compensation
Committee; provided, however, that for all purposes of the Plan
all actions of the Compensation Committee shall require the prior approval of
the Board of Directors.

(b)           Authority of the Compensation
Committee.  Subject to Section 3(a),
the Compensation Committee shall adopt such rules as it may deem appropriate in
order to carry out the purpose of the Plan; all questions of interpretation,
administration and application of the Plan shall be determined in good faith by
a majority of the members of the Compensation Committee then in office, except
that the Compensation Committee may authorize any one or more of its members,
or any officer of the Company, to execute and deliver documents on behalf of
the Compensation Committee; and the determination of such majority shall be
final and binding in all matters relating to the Plan.

 

6

 

4.               Number of
Shares Issuable in Connection with Awards.

(a)           Shares Available for Awards.  As of the 2004 Effective Date, the maximum
aggregate number of shares of Common Stock that were issued or available to be
issued in connection with Awards granted under the Plan is:

(i)                             284,998 shares available for Restricted Shares;

(ii)                          4,106,969 shares available for Service Options;

(iii)                       2,939,888
shares available for Performance Options, which were divided into three
tranches as follows: (A) 1,985,345 Performance Options shall constitute Tranche
1, (B) 786,650 Performance Options shall constitute Tranche 2, and (C) 167,893
Performance Options shall constitute Tranche 3;

(iv)                      357,377
shares of Common Stock available for Roll-Over Options.

(b)           No Additional Awards.  No additional Awards shall be granted under
the Plan after the 2004 Closing.

(c)           Adjustments.  The limits provided for in this Section 4
shall be subject to adjustment as provided in Section 11.

5.               Eligible
Persons.

Awards may be granted or offered only to
Eligible Persons.  The Compensation
Committee shall have the authority to select the individual Participants to
whom Awards may be granted from among such class of Eligible Persons and to
determine the number and form of Awards to be granted to each Participant.

6.               Agreement.

The terms and conditions of each grant or
sale of Awards shall be embodied in an Agreement in a form approved by the
Compensation Committee, which shall contain terms and conditions not
inconsistent with the Plan and which shall incorporate the Plan by
reference.  Each Agreement shall: (a)
state the date as of which the Award was granted or sold, and (i) in the case
of Options, set forth the number and type of Options (Roll-Over, Service or
Performance) being granted to the Participant and the applicable Option Price
or Option Prices and expiration date(s), and (ii) in the case of Restricted
Shares, set forth the number of Restricted Shares being granted or offered to
the Participant and, if applicable, the purchase price or other consideration
for such Restricted Shares; (b) set forth the vesting schedule; (c) be signed
by the recipient of the Award and a person designated by the Compensation
Committee; and (d) be delivered to the recipient of the Award.

7.               Certain
Covenants and Restrictions.

(a)           Securityholder Agreement.  Each Participant who is a Management
Securityholder and who is granted or purchases any Restricted Shares or is
granted any Options

 

7

 

shall,
as a condition to the grant or purchase of such Restricted Shares or the grant
of any Options, execute an agreement pursuant to which he shall become a party
to the Securityholder Agreement and shall be bound by the terms and conditions
thereof.

(b)           Restrictions on Transfer.  No Restricted Share or Option Share may be
sold, transferred, assigned, pledged, or otherwise encumbered or disposed of
(or made the subject of any derivative transaction) to or with any third party
other than a Permitted Transferee, except as provided, to the extent
applicable, in the Securityholder Agreement; provided, however,
that such restriction on transfer shall terminate with respect to Participants
other than Management Securityholders on the one hundred eightieth day after
the 2004 Closing.  No Option may be
sold, transferred, assigned, pledged, or otherwise encumbered or disposed of
(or made the subject of any derivative transaction) to or with any third party
other than a Permitted Transferee.  Each
Permitted Transferee (other than the Company) by will or the laws of descent
and distribution or otherwise, of any Restricted Shares, Options or Option Shares
shall, as a condition to the transfer thereof to such Permitted Transferee,
execute an agreement pursuant to which it shall become a party to the Agreement
applicable to the transferor.

(c)           No Participant will, directly or
indirectly, offer, sell, assign, transfer, grant or sell a participation in,
create any encumbrance on or otherwise dispose of any Restricted Shares or
Option Shares (or solicit any offers to buy or otherwise acquire, or take a
pledge of, any Restricted Shares or Option Shares), in any manner that would
conflict with or violate the 1933 Act.

8.               Options.

(a)           Terms of Options Generally.  Three types of Options may be awarded under
the Plan: Roll-Over Options, Service Options and Performance Options.  Roll-Over Options will be awarded exclusively
as of the 2000 Closing Date to Participants who hold vested stock options (“Predecessor
Options”) under the Predecessor Plan immediately prior to the 2000
Closing.  Service Options and
Performance Options may be granted to any Eligible Person.

Each Roll-Over Option shall entitle the
Participant to whom such Roll-Over Option was granted to purchase, upon payment
of the relevant Option Price, one share of Common Stock.  Each Service Option and each Performance
Option shall entitle the Participant to whom such Service Option or Performance
Option was granted to purchase, upon payment of the relevant Option Price, one
share of Common Stock.

Payment of the Option Price shall be made in
cash, or, in the sole discretion of the Compensation Committee, in shares of
Common Stock already owned by the Participant, in other property acceptable to
the Compensation Committee, or in any combination of cash, shares of Common
Stock or such other property; provided, however, that any
Participant may, at any time, exercise any Vested Option (or portion thereof)
owned by him pursuant to a Cashless Exercise without any prior approval or
consent of the Compensation Committee.

Options granted under the Plan shall comply
with the following terms and conditions:

 

8

 

(i)            Option Price.  Each Agreement relating to an Option shall
specify the relevant Option Price.  The
Option Prices of all Options outstanding at the 2004 Effective Date are as set
forth in the 2004 Effective Date Award Summary.

(ii)           Vesting.

A.            Vesting Schedule.  Roll-Over Options shall be vested upon
grant.  Unless the Compensation
Committee in its sole discretion determines otherwise and so sets forth in the
applicable Agreement, and except as vesting may be accelerated pursuant to the
terms of the Plan or the applicable Agreement, Service Options and Performance
Options shall vest and become exercisable in 25% installments on each of the
first four anniversaries of the Date of Grant.

B.            Acceleration of Vesting.  In the event that the 2004 Closing occurs
and at such time there remain Service Options and/or Performance Options held
by a Participant that have not yet fully vested, then an additional 30% of such
Service Options and Performance Options held by such Participant shall vest as
of the 2004 Closing.  In the event of a
Sale of Common Stock or Sale of Assets, all of a Participant’s unvested Options
shall vest and become exercisable immediately prior to the consummation of such
transaction.

(iii)          Duration of Options.  Subject to earlier termination as provided
herein or in the applicable Agreement, all Options shall terminate upon the
consummation of a Sale of Common Stock or Sale of Assets and otherwise:

A.            Roll-Over Options shall expire, to
the extent not previously exercised, on October 30, 2008;

B.            Service Options and Performance
Options granted on November 9, 2000, shall expire, to the extent not previously
exercised, on October 30, 2010, except that Performance Options Tranche 1 shall
expire, to the extent not previously exercised, on October 30, 2007; and

C.            Service and Performance Options
granted on and after March 22, 2002, shall expire, to the extent not previously
exercised, on March 22, 2012, except that Performance Options Tranche 1 shall
expire, to the extent not previously exercised, on March 22, 2009.

(iv)          Termination of
Employment.  Upon termination of a
Participant’s employment with the Company and its Subsidiaries, the following
terms and conditions shall apply:

A.            Regardless of the circumstances of
the termination of the Participant’s employment, the Participant (or, in the
case of the Participant’s death, his Beneficiary) may exercise any Roll-Over
Options, subject to Section 8(b), at any time until the 365th day following the
date of such termination of employment (or, if a Vested Option may not be
exercised on the date of such termination of employment because the conditions
to exercise set forth in Section

 

9

 

8(b) are not satisfied, the 365th day following the date on which the
Company notifies the Participant that such conditions have been satisfied and
that the Option may be exercised), but in no event after the expiration of the
Option under the provisions of clause (iii) above;

B.            If the Participant’s employment is
terminated by the Company other than for Cause, or as a result of the
Participant’s resignation for Good Reason, or as a result of death, Permanent
Disability or Retirement, the Participant (or, in the case of the Participant’s
death, his Beneficiary) may exercise any Service Options and any Performance
Options, to the extent vested as of the date of such termination and subject to
Section 8(b), at any time until the 60th day following the date of such
termination of employment (or, if a Vested Option may not be exercised on the
date of such termination of employment because the conditions to exercise set
forth in Section 8(b) are not satisfied, the 60th day following the date on
which the Company notifies the Participant that such conditions have been
satisfied and that the Option may be exercised), but in no event after the
expiration of the Option under the provisions of clause (iii) above;

C.            If the Participant’s employment is
terminated by the Company for Cause, or as a result of the Participant’s
resignation other than for Good Reason, all of the Participant’s Service
Options and Performance Options (whether or not vested) shall expire and be
canceled without any payment therefor as of the date of such termination.

Any Options not exercised within the
applicable time period specified above shall expire at the end of such period
and be canceled without any payment therefor.

(v)           Certain
Restrictions.  Options granted
hereunder shall be exercisable during the Participant’s lifetime only by the
Participant or a Permitted Transferee.

(vi)          Nonqualified
Options.  All Options shall be
“nonqualified” stock options for purposes of the Code .

(vii)         Stockholder
Rights; Option and Share Adjustments. 
A Participant shall have no rights as a stockholder with respect to any
shares of Common Stock issuable upon exercise of an Option until a certificate
or certificates evidencing such shares shall have been issued to such
Participant.  Except as otherwise provided
by the Board of Directors, no adjustment (including an adjustment of an
Option’s exercise price) shall be made with respect to (A) outstanding Options
for dividends or other distributions, whether made with respect to Common Stock
or otherwise, or (B) dividends, distributions or other rights in respect of any
share of Common Stock for which the record date is prior to the date upon which
the Participant shall become the holder of record thereof.

(viii)        Dividends and
Distributions.  Any shares of Common
Stock or other securities of the Company received by the Participant as a
result of a stock dividend or

 

10

 

other distribution in respect of Option Shares shall be subject to the
same restrictions as such Option Shares.

(ix)           Future Awards.  Notwithstanding the other provisions of this
Section, any Options awarded other than in connection with the 2000 Closing
shall be subject to the following terms:

A.            such Options shall have the vesting
schedule, duration and other terms and conditions determined by the
Compensation Committee at the time of grant, provided, however,
that the duration of any such Option shall not exceed the applicable date as
set forth under “Duration of Options” above and provided, further,
that such Options shall be subject to the other terms and conditions of the
Plan.

(x)            Additional Terms
and Conditions.  Each Option granted
hereunder, and any shares of Common Stock issued in connection with such
Option, shall be subject to such additional terms and conditions not
inconsistent with the Plan as are prescribed by the Compensation Committee and
set forth in the applicable Agreement.

(b)           Limitation on Exercise.  An Option shall not be exercisable unless
the offer and sale of the shares of Common Stock subject to the Option have
been registered under the 1933 Act and qualified under applicable state “blue
sky” laws, or the Company has determined that an exemption from registration
under the 1933 Act and from qualification under such state “blue sky” laws is
available.

(c)           Issuance of Certificate.  As soon as practicable following the
exercise of any Options, a Legended Certificate evidencing the number of Option
Shares issued in connection with such exercise shall be issued in the name of
the Participant.

(d)           Unvested Options.  Upon termination of a Participant’s
employment with the Company and its Subsidiaries, all Options granted to such
Participant that have not theretofore vested (and which do not vest by reason
of such termination of employment) shall terminate and be canceled without any
payment therefor.

9.               Restricted
Shares.

(a)           Terms of Restricted Shares
Generally.

(i)            Restricted Shares
awarded by the Compensation Committee as of the 2000 Closing Date shall not
require payment of any consideration by Participants.

(ii)           Restricted Shares
awarded other than in connection with the 2000 Closing may be granted for no
consideration or offered for sale to any Eligible Person at a purchase price
determined by the Compensation Committee in its sole discretion at the time of
offering.  The purchase price for any
such Restricted Shares shall be payable in cash, or, in the sole discretion of
the Compensation Committee and to the extent provided in the applicable
Agreement, in shares of Common Stock already owned by the

 

11

 

Participant, in other property acceptable to the Compensation Committee
or in any combination of cash, shares of Common Stock or such other property.

(b)           Restricted Shares shall comply with
the following terms and conditions:

(i)            Vesting.  Restricted Shares issued in connection with
the 2000 Closing shall be vested upon grant.

(ii)           Stockholder Rights.  A Participant shall have all rights of a
stockholder as to the Restricted Shares, including the right to receive
dividends and the right to vote in accordance with the Company’s Certificate of
Incorporation, subject to the restrictions set forth in the Plan, the
applicable Agreement and, to the extent applicable, the Securityholder
Agreement.

(iii)          Dividends and
Distributions.  Any shares of Common
Stock or other securities of the Company received by a Participant as a result
of a stock distribution to holders of Restricted Shares or as a stock dividend
on Restricted Shares shall be subject to the same restrictions as such Restricted
Shares and all references to Restricted Shares hereunder shall be deemed to
include such shares of Common Stock or other securities.

(iv)          Additional Terms
and Conditions.  Each Restricted
Share granted or offered for sale hereunder shall be subject to such additional
terms and conditions not inconsistent with the Plan as are prescribed by the
Compensation Committee and set forth in the applicable Agreement.

(c)           Issuance of Certificate.  At the time of grant or sale of Restricted
Shares to a Participant, a Legended Certificate evidencing the appropriate
number of shares of Common Stock granted or sold to the Participant as
Restricted Shares shall be issued in the name of the Participant.

(d)           Unvested Restricted Shares.  Upon termination of a Participant’s employment
with the Company and its Subsidiaries, all Restricted Shares granted or sold to
such Participant that have not theretofore vested (and that do not vest by
reason of such termination of employment) shall terminate and be canceled
without any payment therefor.

10.                                 Certain
Forfeitures.

                In the event a Participant or
former Participant engages in a Competing Business or in Wrongful Solicitation
while in the employ of the Company or a Subsidiary, or during the period of 13
months immediately following termination of such employment, the following
rules shall apply:

(a)           except
in the case of Roll-Over Options or Option Shares derived from the exercise
thereof, all Restricted Shares, Option Shares and Options (whether such Options
are otherwise vested or not) then held by such Person shall be forthwith
forfeited without payment or other compensation of any kind; provided, however,
that the Company shall remit to the Participant the lesser of (1) the amount
(if any) he paid for forfeited Restricted Shares and (2) the Fair Market Value
of such Restricted Shares as of the date of termination;

 

12

 

(b)           in the event
Vested Restricted Shares were disposed of (for or without receipt of value)
during the period commencing one year prior to the initial engagement in a
Competing Business or in Wrongful Solicitation through the 13-month anniversary
of his termination of employment with the Company or a Subsidiary, then, upon
written demand by the Company, the Participant
or former Participant, as the case may be, shall forthwith remit to the Company
the Fair Market Value of such Vested Restricted Shares, as determined on the
date of disposition, less the amount (if any) paid by the Participant for such
shares; and

(c)           in the event Option Shares (other than shares
derived from the exercise of Roll-Over Options) were disposed of (for or
without receipt of value) during the period commencing one year prior to the
initial engagement in a Competing Business or in Wrongful Solicitation through the 13-month anniversary of his
termination of employment with the Company or a Subsidiary, then, upon written
demand by the Company, the Participant or former Participant, as the case may
be, shall forthwith remit to the Company the Fair Market Value of such Option
Shares, as determined on the date of disposition, less the Option Price paid
therefor.

11.                                 Effect of
Certain Corporate Changes and Changes in Control.

(a)           Dilution and Other Adjustments.  In the event of a stock dividend or split,
the Compensation Committee shall make any, all or any combination of the
following adjustments as are necessary or advisable (the form of which shall be
determined by the Compensation Committee in its sole discretion) so that each
Participant shall be economically indifferent to such event: (i) adjust the
number of Awards granted to each Participant and the number of Awards that may
be granted generally pursuant to the Plan, (ii) adjust the Option Price of any
Options, and (iii) make any other adjustments, or take such action, as the
Compensation Committee, in its discretion, deems appropriate.  Such adjustments shall be conclusive and
binding for all purposes.  In the event
of a change in the Common Stock that is limited to a change in the designation
thereof to “Capital Stock” or other similar designation, or to a change
in the par value thereof, or from par value to no par value, without increase
or decrease in the number of issued shares of Common Stock, the shares
resulting from any such change shall be deemed to be Common Stock within the
meaning of the Plan.

(b)           Effect of Reorganization.  In the event that (i) the Company is merged
or consolidated with another corporation, (ii) all or substantially all the
assets of the Company are acquired by another corporation, person or entity,
(iii) the Company is reorganized, dissolved or liquidated (each such event in
(i), (ii) or (iii) being hereinafter referred to as a “Reorganization Event”)
or (iv) the Board of Directors shall propose that the Company enter into a
Reorganization Event, then the Compensation Committee shall make upon
consummation of such Reorganization Event any or all of the adjustments
described in Section 11(a) as are necessary or advisable in the sole discretion
of the Compensation Committee.

12.                                 Miscellaneous.

(a)           No Rights to Grants or Continued
Employment or Engagement.  No
Participant shall have any claim or right to receive grants of Awards under the
Plan.  Neither the Plan nor

 

13

 

any
action taken or omitted to be taken hereunder shall be deemed to create or
confer on any Participant any right to be retained in the employ or as an
independent contractor of the Company or any Subsidiary or other Affiliate
thereof, or to interfere with or to limit in any way the right of the Company
or any Subsidiary or other Affiliate thereof to terminate the employment or
engagement of such Participant at any time.

(b)           Right of Company to Assign Rights
and Delegate Duties.  The Company
shall have the right to assign any of its rights and delegate any of its duties
hereunder to any of its Affiliates.  The
terms and conditions of any Award under the Plan shall be binding upon and
shall inure to the benefit of the personal representatives, heirs, legatees and
permitted successors and assigns of the relevant Participant and the Company.

(c)           Tax Withholding.  The Company and its Subsidiaries shall have
the right to require any individual entitled to receive shares of Common Stock
pursuant to an Award to remit to the Company, prior to the delivery of any
certificates evidencing such shares, any amount sufficient to satisfy any
federal, state, local or other tax withholding requirements.  Prior to the Company’s determination of such
withholding liability, such individual may make an irrevocable election to
satisfy, in whole or in part, such obligation to remit taxes by directing the
Company to withhold or sell shares of Common Stock that would otherwise be
received by such individual.  Such
election may be denied by the Compensation Committee in its sole discretion, or
may be made subject to certain conditions specified by the Compensation
Committee, including, without limitation, conditions intended to avoid the
imposition of liability against the individual under Section 16(b) of the 1934
Act.  The Company and its Subsidiaries
shall also have the right to deduct from any and all cash payments otherwise
owed to a Participant any federal, state, local or other taxes required to be
withheld with respect to the Participant’s participation in the Plan.

(d)           No Restriction on Right of Company
to Effect Corporate Changes.  The
Plan shall not affect in any way the right or power of the Company or its
stockholders to make or authorize any or all adjustments, recapitalizations,
reorganizations or other changes in the Company’s capital structure or its
business, or any merger or consolidation of the Company, or any issue of stock
or of options, warrants or rights to purchase stock or of bonds, debentures,
preferred or prior preference stocks whose rights are superior to or affect the
Common Stock or the rights thereof or which are convertible into or
exchangeable for Common Stock, or the dissolution or liquidation of the
Company, or any sale or transfer of all or any part of its assets or business,
or any other corporate act or proceeding, whether of a similar character or
otherwise.

(e)           1934 Act.  Notwithstanding anything contained in the
Plan or any Agreement to the contrary, if the consummation of any transaction
under the Plan would result in the possible imposition of liability on a
Participant pursuant to Section 16(b) of the 1934 Act, the Compensation
Committee shall have the right, in its sole discretion, but shall not be
obligated, to defer such transaction to the extent necessary to avoid such
liability, but in no event for a period in excess of 180 days.

13.                                 Amendment.

The Board of Directors may at any time and
from time to time alter, amend, suspend or terminate the Plan in whole or in
part.  No termination or amendment of
the Plan may, without

 

14

 

the consent of the
Participant to whom any Awards shall previously have been granted, adversely
affect the rights of such Participant in such Awards; provided, however,
that the Participant Committee (as defined below) shall have the authority to
approve (without any further consent) any such alteration, amendment,
suspension, termination or waiver of any of the rights of the Participants
under the Plan or any Agreement or any outstanding Awards so long as such
alteration, amendment, suspension, termination or waiver is uniformly
applicable to all Participants.  As used
herein, the “Participant Committee” means John Craig and any additional
and successor members of such committee (who shall be Participants and senior
executives of the Company) appointed by him or (if Craig is no longer the Chief
Executive Officer of the Company) the Board of Directors.  Mr.
Craig and any such additional or successor members shall not have any liability
to any other Participant for any of his acts or omissions as a member of the
Participant Committee, unless such act or omission resulted from the fraud,
willful misconduct or gross negligence of such Person.

14.                                 Termination of
the Plan.

The Plan shall continue until terminated by the
Board of Directors pursuant to Section 13 or as otherwise set forth in this
Plan, and no further Awards shall be made hereunder after the date of such
termination.

15.                                 Headings;
Number; Gender.

The headings of sections and subsections
herein are included solely for convenience of reference and shall not affect
the meaning of any of the provisions of the Plan.

Words used herein in the singular form shall
be construed as being used in the plural form, as appropriate in the relevant
context, and vice versa.  Pronouns used herein of one gender shall be
construed as referring to either or both genders, as appropriate in the
relevant context.

16.                                 Limited Waiver.

The waiver by the Company of any of its
rights under the Plan with respect to any Participant, whether express or
implied, shall not operate or be construed as a waiver of any other rights the
Company has with respect to such Participant or of any of its rights with
respect to any other Participant.

17.                                 Governing Law.

The Plan and all rights hereunder shall be
governed by and construed in accordance with the laws of the State of New York
without reference to rules relating to conflicts of law.

18.                                 Effective Date.

The EnerSys Amended and Restated 2000
Management Equity Plan shall become effective as of the 2004 Effective
Date.  In the event the 2004 Closing
shall not occur, this amended and restated Plan shall no longer be in effect
and the Company’s Management Equity Plan as in effect prior to the 2004
Effective Date shall remain in full force and effect thereafter.

 

15QuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 10.18  

        INDEMNIFICATION AGREEMENT dated as of
                        ,             , between ENERSYS,
a Delaware
corporation (the "Company"), and                          (the "Indemnitee"). 

        WHEREAS,
the Company has adopted provisions in its Certificate of Incorporation and Bylaws providing for indemnification of its officers and directors to the fullest extent permitted by
the DGCL, and the Company wishes to clarify and enhance the rights and obligations of the Company and the Indemnitee with respect to indemnification; 

        NOW,
THEREFORE, in consideration of the Indemnitee's service or continued service as a director or officer of the Company, the parties hereto agree as follows: 

        1.    Service by Indemnitee.    The Indemnitee agrees to serve or continue to serve as a director or officer of the
Company so long as the Indemnitee is duly elected and qualified or appointed and until such time as the Indemnitee resigns or fails to stand for reelection or is removed from his position. The
Indemnitee may at any time and for any reason resign or be removed from such position in the sole discretion of the Company (subject to any other contractual obligation or any obligation or
restriction imposed by the Certificate of Incorporation or Bylaws or otherwise by operation of law), in which event the Company shall have no obligation hereunder to continue the Indemnitee in any
such position. 

        2.    Indemnification.    The Company shall indemnify the Indemnitee as provided in this Agreement and to the fullest
extent permitted by the DGCL in effect on the date hereof and as amended from time to time (but, in the case of any such amendment, only to the extent that such amendment permits the Company to
provide broader indemnification rights than such law permitted the Company to provide prior to such amendment). Without limiting the scope of the indemnification provided by this Section 2, the
right to indemnification of the Indemnitee provided hereunder shall include, but shall not be limited to, those rights hereinafter set forth; provided,
however, that no indemnification shall be paid to the Indemnitee: 

	(a)
	to
the extent prohibited by the DGCL, the Certificate of Incorporation or the Bylaws;

	(b)
	to
the extent payment with respect to any indemnifiable matter is actually made to the Indemnitee under a valid and collectible insurance policy or under a valid and enforceable
indemnity clause, bylaw or other agreement of the Company or any other Person on whose board the Indemnitee serves at the request of the Company; or

	(c)
	in
connection with an action, suit or proceeding, or part thereof (including claims and counterclaims) initiated by the Indemnitee, except a judicial proceeding or arbitration
pursuant to Section 10 to enforce the rights under this Agreement, unless the action, suit or proceeding (or part thereof) was authorized by the Board. 

        3.    Indemnification in Proceedings other than Proceedings by or in the Right of the Company.    Subject to
Section 2, the Indemnitee shall be entitled to the indemnification rights provided in this Section 3 if the Indemnitee was, is, or is threatened to be made, a party to or a participant
in any Proceeding (other than a Proceeding by or in the right of the Company) by reason of the Indemnitee's Corporate Status, or by reason of anything done or not done by the Indemnitee in any such
capacity. Pursuant to this Section 3, the Indemnitee shall be indemnified against all costs, judgments, penalties, fines, liabilities, amounts paid in settlement by or on behalf of the
Indemnitee, and Expenses (including all interest, assessments and other charges paid or payable in connection with or in respect of such Expenses) actually and reasonably incurred by or on behalf of
the Indemnitee in connection with such Proceeding or any claim, issue or matter therein, if the Indemnitee acted in good faith and in a manner the Indemnitee reasonably believed to be in or not
opposed to the best interests of the Company, and with respect to any criminal Proceeding, had no reasonable cause to believe the Indemnitee's conduct was unlawful. 

        4.    Indemnification in Proceedings by or in the Right of the Company.    Subject to Section 2, the Indemnitee
shall be entitled to the indemnification rights provided in this Section 4 if the Indemnitee 

 

was,
is, or is threatened to be made, a party to or participant in any Proceeding brought by or in the right of the Company to procure a judgment in its favor by reason of the Indemnitee's Corporate
Status, or by reason of anything done or not done by the Indemnitee in any such capacity. Pursuant to this Section 4, the Indemnitee shall be indemnified against all costs, judgments,
penalties, fines, liabilities, amounts paid in settlement by or on behalf of the Indemnitee, and Expenses (including all interest, assessments and other charges paid or payable in connection with or
in respect of such Expenses) actually and reasonably incurred by or on behalf of the Indemnitee in connection with such Proceeding or any claim, issue or matter therein, if the Indemnitee acted in
good faith and in a manner the Indemnitee reasonably believed to be in or not opposed to the best interests of the Company; provided, however, that no
such indemnification shall be made in respect of any claim, issue or matter as to which applicable law expressly prohibits such indemnification by reason of any adjudication of liability of the
Indemnitee to the Company, unless and only to the extent that the Court of Chancery of the State of Delaware or the court in which such action or suit was brought shall determine upon application
that, despite the adjudication of liability but in view of all the circumstances of the case, the Indemnitee is entitled to indemnification for such costs, judgments, penalties, fines, liabilities and
Expenses as such court shall deem proper. 

        5.    Indemnification for Costs, Charges and Expenses of Successful Party.    Notwithstanding the limitations of
Sections 3 and 4, to the extent that the Indemnitee is successful, on the merits or otherwise, in whole or in part, in defense of any Proceeding or in defense of any claim, issue or matter therein,
including, without limitation, the dismissal of any action without prejudice, or if it is ultimately determined that the Indemnitee is otherwise entitled to be indemnified against Expenses, the
Indemnitee shall be indemnified against all Expenses actually and reasonably incurred by the Indemnitee in connection therewith. 

        6.    Partial Indemnification.    If the Indemnitee is entitled under any provision of this Agreement to
indemnification by the Company for some or a portion of the costs, judgments, penalties, fines, liabilities or Expenses actually and reasonably incurred in connection with any Proceeding, but not,
however, for the total amount thereof, the Company shall nevertheless indemnify the Indemnitee for the portion of such costs, judgments, penalties, fines, liabilities and Expenses actually and
reasonably incurred to which the Indemnitee is entitled. 

        7.    Indemnification for Expenses of a Witness and Additional Expenses.    Notwithstanding any other provision of
this Agreement, to the maximum extent permitted by applicable law, the Indemnitee shall be entitled to indemnification against all Expenses actually and reasonably incurred or suffered by the
Indemnitee or on the Indemnitee's behalf if the Indemnitee appears as a witness or otherwise incurs legal expenses as a result of or related to the Indemnitee's service as a director or officer of the
Company, in any threatened, pending or completed legal, administrative, investigative or other proceeding or matter to which the Indemnitee neither is, nor is threatened to be made, a party. 

        8.    Determination of Entitlement to Indemnification.    Upon written request by the Indemnitee for indemnification
pursuant to Sections 3, 4, 5, 6 or 7, the entitlement of the Indemnitee to indemnification, to the extent not expressly provided for pursuant to the terms of this Agreement, shall be determined by the
following person or persons, who shall be empowered to make such determination: (a) if a Change of Control shall have occurred, by Independent Counsel in a written opinion to the Board, a copy
of which shall be delivered to the Indemnitee; and (b) if a Change of Control shall not have occurred, (i) by the Board by a majority vote of Disinterested Directors, whether or not such
majority constitutes a quorum; (ii) by a committee of Disinterested Directors designated by a majority vote of such directors, whether or not such majority constitutes a quorum; (iii) if
there are no Disinterested Directors, or if the Disinterested Directors so direct, by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to the Indemnitee; or
(iv) the stockholders of the Company. Such Independent Counsel shall be selected by the Board and approved by the Indemnitee. Upon any failure of the Board so to select such Independent Counsel
or upon the 

2

 

failure
of the Indemnitee so to approve, such Independent Counsel shall be selected upon application to a court of competent jurisdiction. Such determination of entitlement to indemnification shall be
made not later than 30 days after receipt by the Company of a written request for indemnification. Such request shall include documentation or information that is necessary for such
determination and which is reasonably available to the Indemnitee. Any Expenses incurred by the Indemnitee in connection with a request for indemnification or payment of Expenses hereunder, under any
other agreement, any provision of the Certificate of Incorporation, Bylaws or any directors' and officers' liability insurance of the Company, shall be borne by the Company. The Company shall
indemnify the Indemnitee for any such Expense and agrees to hold the Indemnitee harmless therefrom irrespective of the outcome of the determination of the Indemnitee's entitlement to indemnification.
If the person or persons making such determination shall determine that the Indemnitee is entitled to indemnification as to part (but not all) of the application for indemnification, such person or
persons shall reasonably prorate such partial indemnification among the claims, issues or matters at issue at the time of the determination. If it is determined that the Indemnitee is entitled to
indemnification, payment to the Indemnitee shall be made within seven days after such determination. 

        9.    Presumptions and Effect of Certain Proceedings.    The Secretary of the Company shall, promptly upon receipt of
the Indemnitee's request for indemnification, advise in writing the Board or such other person or persons empowered to make the determination as provided in Section 8 that the Indemnitee has
made such request for indemnification. Upon making such request for indemnification, the Indemnitee shall be presumed to be entitled to indemnification hereunder and the Company shall have the burden
of proof in making any determination contrary to such presumption. If the person or persons so empowered to make such determination shall have failed to make the requested determination with respect
to indemnification within 30 days after receipt by the Company of such request, a requisite determination of entitlement to indemnification shall be deemed to have been made and the Indemnitee
shall be absolutely entitled to such indemnification, absent actual and material fraud in the request for indemnification. The termination of any Proceeding described in Sections 3 or 4 by judgment,
order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, (a) create a presumption that the
Indemnitee did not act in good faith and in a manner that the Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, or, with respect to any criminal Proceeding,
that the Indemnitee had reasonable cause to believe that the Indemnitee's conduct was unlawful; or (b) otherwise adversely affect the rights of the Indemnitee to indemnification except as may
be provided herein. 

        10.    Remedies of the Indemnitee in Cases of Determination not to Indemnify or to pay Expenses.    In the event that
a determination is made that the Indemnitee is not entitled to indemnification hereunder or if payment has not been timely made following a determination of entitlement to indemnification pursuant to
Sections 8 and 9, or if Expenses are not paid pursuant to Section 15, the Indemnitee shall be entitled to final adjudication in a court of competent jurisdiction of entitlement to such
indemnification or payment. Alternatively, the Indemnitee, at the Indemnitee's option, may seek an award in an arbitration to be conducted by a single arbitrator pursuant to the rules of the American
Arbitration Association, such award to be made within 60 days following the filing of the demand for arbitration. The Company shall not oppose the Indemnitee's right to seek any such
adjudication or award in arbitration or any other claim. The determination in any such judicial proceeding or arbitration shall be made de novo and the
Indemnitee shall not be prejudiced by reason of a determination (if so made) pursuant to Section 8 or 9 that the Indemnitee is not entitled to indemnification. If a determination is made or
deemed to have been made pursuant to the terms of Section 8 or 9 that the Indemnitee is entitled to indemnification, the Company shall be bound by such determination and is precluded from
asserting that such determination has not been made or that the procedure by which such determination was made is not valid, binding and enforceable. The Company further agrees to stipulate in any
such court or before any such arbitrator that the Company is bound by all the provisions of this Agreement and is precluded from making any assertions to the contrary. If 

3

 

the
court or arbitrator shall determine that the Indemnitee is entitled to any indemnification or payment of Expenses hereunder, the Company shall pay all Expenses actually and reasonably incurred by
or on behalf of the Indemnitee in connection with or in relation to such adjudication or award in arbitration (including, but not limited to, any appellate Proceedings). 

        11.    Non-Exclusivity.    Indemnification and payment of Expenses provided by this Agreement shall not be
deemed exclusive of any other rights to which the Indemnitee may now or in the future be entitled under any provision of the Bylaws of the Company or other organizational documents of the Company,
vote of stockholders or resolution of directors, provision of law, agreement or otherwise. 

        12.    Expenses to Enforce Agreement.    In the event that the Indemnitee is subject to or intervenes in any
Proceeding in which the validity or enforceability of this Agreement is at issue or seeks an adjudication or award in arbitration to enforce the Indemnitee's rights under, or to recover damages for
breach of, this Agreement, the Indemnitee, if the Indemnitee prevails in whole or in part in such action, shall be entitled to recover from the Company and shall be indemnified by the Company against
any actual Expenses incurred by the Indemnitee. 

        13.    Continuation of Indemnity.    All agreements and obligations of the Company contained herein shall continue
during the period the Indemnitee is a director, officer, employee, fiduciary or agent of the Company or is serving at the request of the Company as a director, officer, employee, fiduciary or agent of
any other entity (including, but not limited to, another corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise) and shall continue
thereafter with respect to any possible claims based on the fact that the Indemnitee was a director, officer, employee, fiduciary or agent of the Company or was serving at the request of the Company
as a director, officer, employee, fiduciary or agent of any other entity (including, but not limited to, another corporation, partnership, limited liability company, joint venture, trust, employee
benefit plan or other enterprise). This Agreement shall be binding upon all successors and assigns of the Company (including any transferee of all or substantially all its assets and any successor by
merger or operation of law) and shall inure to the benefit of the heirs, personal representatives and estate of the Indemnitee. 

        14.    Notification and Defense of Claim.    Promptly after receipt by the Indemnitee of notice of any Proceeding, the
Indemnitee will, if a claim in respect thereof is to be made against the Company under this Agreement, notify the Company in writing of the commencement thereof; but the omission so to notify the
Company will not relieve it from any liability that it may have to the Indemnitee. Notwithstanding any other provision of this Agreement, with respect to any such Proceeding of which the Indemnitee
notifies the Company: 

	(a)
	the
Company shall be entitled to participate therein at its own expense; and

	(b)
	except
as otherwise provided in this Section 14(b), to the extent that it may wish, the Company, jointly with any other indemnifying party similarly notified, shall be entitled
to assume the defense thereof, with counsel satisfactory to the Indemnitee. After notice from the Company to the Indemnitee of its election so to assume the defense thereof, the Company shall not be
liable to the Indemnitee under this Agreement for any expenses of counsel subsequently incurred by the Indemnitee in connection with the defense thereof except as otherwise provided below. The
Indemnitee shall have the right to employ the Indemnitee's own counsel in such Proceeding, but the fees and expenses of such counsel incurred after notice from the Company of its assumption of the
defense thereof shall be at the expense of the Indemnitee unless, (i) the employment of counsel by the Indemnitee has been authorized by the Company, (ii) the Indemnitee shall have
reasonably concluded that there may be a conflict of interest between the Company and the Indemnitee in the conduct of the defense of such action, or (iii) the Company shall not within
15 days of receipt of notice from the Indemnitee in fact have employed counsel to assume the defense of the action, in each of 

4

 

which
cases the fees and expenses of the Indemnitee's counsel shall be at the expense of the Company. The Company shall not be entitled to assume the defense of any Proceeding brought by or on behalf
of the Company or as to which the Indemnitee shall have made the conclusion provided for in (ii) above; and 

	(c)
	if
the Company has assumed the defense of a Proceeding, the Company shall not be liable to indemnify the Indemnitee under this Agreement for any amounts paid in settlement of any
Proceeding effected without the Company's prior written consent. The Company shall not settle any Proceeding in any manner that would impose any penalty or limitation on or disclosure obligation with
respect to the Indemnitee without the Indemnitee's prior written consent. Neither the Company nor the Indemnitee will unreasonably withhold its consent to any proposed settlement. 

        15.    Payment of Expenses.    All Expenses incurred by the Indemnitee in advance of the final disposition of any
Proceeding shall be paid by the Company at the request of the Indemnitee, each such payment to be made within seven days after the receipt by the Company of a statement or statements from the
Indemnitee requesting such payment or payments from time to time, whether prior to or after final disposition of such Proceeding. The Indemnitee's entitlement to such Expenses shall include those
incurred in connection with any Proceeding by the Indemnitee seeking a judgment in court or an adjudication or award in arbitration pursuant to this Agreement (including the enforcement of this
provision). Such statement or statements shall reasonably evidence the expenses and costs incurred by the Indemnitee in connection therewith and shall include or be accompanied by an undertaking, in
substantially the form attached as Exhibit A, by or on behalf of the Indemnitee to reimburse such amount if it is finally determined, after all appeals by a court of competent jurisdiction,
that the Indemnitee is not entitled to be indemnified against such Expenses by the Company as provided by this Agreement or otherwise. The payment of Expenses shall be made without regard to the
Indemnitee's ability to repay the Expenses and without regard to the Indemnitee's ultimate entitlement to indemnification under the other provisions of this Agreement. The payment of Expenses shall be
unsecured and interest-free. 

        16.    Severability; Prior Indemnification Agreements.    If any provision or provisions of this Agreement shall be
held to be invalid, illegal or unenforceable for any reason whatsoever (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including without limitation,
all portions of any paragraphs of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that are not by themselves invalid, illegal or unenforceable) shall not in
any way be affected or impaired thereby, and (b) to the fullest extent possible, the provisions of this Agreement (including, without limitation, all portions of any paragraph of this Agreement
containing any such provision held to be invalid, illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall be construed so as to give effect to the intent of the
parties that the Company provide protection to the Indemnitee to the fullest enforceable extent. This Agreement shall supersede and replace any prior indemnification agreements entered into by and
between the Company and the Indemnitee and any such prior agreements shall be terminated upon execution of this Agreement. 

        17.    Headings; References; Pronouns.    The headings of the sections of this Agreement are inserted for convenience
only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof. References herein to section numbers are to sections of this Agreement. All pronouns and any
variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural as appropriate. 

        18.    Definitions.    For purposes of this Agreement: 

        "Beneficial Owner" shall have the meaning set forth in Rule 13d-3 under the Securities Exchange Act of 1934. 

5

 

        "Board" means the Board of Directors of the Company. 

        "Bylaws" means the Bylaws of the Company. 

        "Certificate of Incorporation" means Certificate of Incorporation of the Company. 

        "Change in Control" means the occurrence of any one of the following: 

	(a)
	any
Person, including any "group", as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, (other than any shareholders at the 2004 Closing or Metalmark Capital
LLC, a Delaware limited liability company) is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing a majority of the combined voting power of the
Company's then outstanding securities, excluding any Person who becomes such a Beneficial Owner in connection with a Qualifying Business Combination described in paragraph (c) below or who
becomes such a Beneficial Owner as a result of a change in ownership percentage resulting solely from an acquisition of securities by the Company; or

	(b)
	the
following individuals cease for any reason to constitute a majority of the number of directors then serving on the Board: individuals who, as of the 2004 Closing, constitute the
Board and any new director whose appointment or election by the Board or nomination for election by the Company's shareholders was approved or recommended by a vote of at least 662/3%
of the directors then still in office who either were directors at the 2004 Closing or whose appointment, election or nomination for election was previously so approved or recommended; or

	(c)
	there
is consummated a reorganization, merger or consolidation of the Company with, or sale or other disposition of at least 80% of the assets of the Company in one or a series of
related transactions to, any other Person (a "Business Combination"), other than a Business Combination that would result in the voting securities of
the Company outstanding immediately prior to such Business Combination continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or
any parent thereof) more than 50% of the combined voting power of the securities of the Company or such surviving entity or any parent thereof outstanding immediately after such Business Combination
(a "Qualifying Business Combination"); or

	(d)
	the
shareholders of the Company approve a plan of complete liquidation or dissolution of the Company or there is consummated an agreement for the sale or disposition by the Company of
all or substantially all the Company's assets, other than a sale or disposition by the Company of all or substantially all the Company's assets to an entity, more than 50% of the combined voting power
of the outstanding securities of which is owned by shareholders of the Company in substantially the same proportions as their ownership of the Company immediately prior to such sale. 

        "Corporate Status" means the status of a person who is or was a director, officer, employee, fiduciary or agent of the Company or of any
other entity including, but not limited to, another corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was
serving at the request of the Company. 

        "DGCL" means the Delaware General Corporation Law. 

        "Disinterested Director" means a director of the Company who is not or was not a party to the Proceeding in respect of which
indemnification is being sought by the Indemnitee. 

        "Expenses" includes, without limitation, expenses incurred in connection with the defense or settlement of any and all investigations,
judicial or administrative proceedings or appeals, court 

6

 

costs,
transcript costs, attorneys' fees, witness fees and expenses, fees and expenses of accountants and other advisors, expert fees and expenses, duplication costs, printing and binding costs,
telephone charges, postage, delivery service fees, retainers and disbursements and advances thereon, the premium, security for, and other costs relating to any bond (including cost bonds, appraisal
bonds or their equivalents), and any expenses of establishing a right to indemnification under Sections 8, 10 and 12 but shall not include the amount of judgments, fines or penalties actually levied
against the Indemnitee. 

        "Independent Counsel" means a law firm or a member of a law firm that is experienced in matters of corporation law and neither currently
is nor in the past three years has been retained to represent: (a) the Company (or any majority stockholder thereof) or the Indemnitee or any affiliate of either thereof in any matter material
to either such party, or (b) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term "Independent Counsel" shall not
include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or the Indemnitee in an action to
determine the Indemnitee's right to indemnification under this Agreement. The Company agrees to pay the reasonable fees of the Independent Counsel referred to above and to fully indemnify such counsel
against any and all Expenses, claims, liabilities and damages arising out of or in relation to this Agreement or its engagement pursuant hereto. 

        "Person" means an individual, a partnership, a joint venture, a corporation, an association, a trust, an estate or other entity or
organization, including a government or any department or agency thereof. 

        "Proceeding" includes any threatened, pending or completed investigation, action, suit, arbitration, alternate dispute resolution,
mechanism, inquiry, administrative hearing or any other proceeding, whether brought by or in the right of the Company or otherwise, against the Indemnitee, for which indemnification is not prohibited
under Sections 2(a), (b), (c) and (d) and whether of a civil, criminal, administrative or investigative nature, including, but not limited to, actions, suits or proceedings in which the
Indemnitee may be or may have been involved as a party or otherwise, by reason of the fact that the Indemnitee is or was a director, officer, employee, fiduciary or agent of the Company, or is or was
serving, at the request of the Company, as a director, officer, employee, fiduciary or agent of any other entity, including, but not limited to, another corporation, partnership, limited liability
company, joint venture, trust, employee benefit plan or other enterprise, or by reason of anything done or not done by the Indemnitee in any such capacity, whether or not the Indemnitee is acting or
serving in such capacity at the time any liability or expense is incurred for which indemnification, reimbursement or advancement of expenses can be provided under this Agreement. 

        "2004 Closing" means the closing of the Company's initial public offering. 

        19.    Miscellaneous.    (a) This Agreement shall be governed by, and construed in accordance with, the laws
of the State of Delaware. 

	(b)
	This
Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the
same agreement. Only one such counterpart signed by the party against whom enforceability is sought need be produced as evidence of the existence of this Agreement.

	(c)
	This
Agreement shall not be deemed an employment contract between the Company and the Indemnitee who is an officer of the Company.

	(d)
	Upon
a payment to the Indemnitee under this Agreement, the Company shall be subrogated to the extent of such payment to all the rights of the Indemnitee to recover against any Person 

7

 

for
such liability, and the Indemnitee shall execute all documents and instruments required and shall take such other actions as may be necessary to secure such rights, including the execution of such
documents as may be necessary for the Company to bring suit to enforce such rights. 

	(e)
	No
supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both parties hereto. No waiver of any of the provisions of this Agreement
shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

	(f)
	The
Company shall not be liable under this Agreement to make any payment which is prohibited by applicable law, including, without limitation, any liability of the Indemnitee to the
Company under Section 16(b) of the Securities Exchange Act of 1934. 

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

	 	 	ENERSYS
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:
	

 	
 	

INDEMNITEE
	

 	
 	

 Name:

Title:

8

 
EXHIBIT A  

 
 

UNDERTAKING TO REPAY INDEMNIFICATION EXPENSES    
    

        I,                         , agree to reimburse the Company
for all Expenses paid by the Company in connection with any Proceeding, upon the
terms and subject to the conditions set forth in Section 15 of the Indemnification Agreement dated as of                 , 2004, between the Company and me
(the
defined terms herein being as defined in such agreement). 

	 	 	Signature	 
	 	 	 	

	 	 	Name:	 
	 	 	 	

9

QuickLinks

UNDERTAKING TO REPAY INDEMNIFICATION EXPENSES

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}]]