**Exhibit 10.3**

 

ROCKWOOD HOLDINGS, INC.

 

ROCKWOOD SPECIALTIES GROUP, INC.

 

ROCKWOODSPECIALTIES GROUP GMBH

 

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SACHTLEBENCHEMIE GMBH

 

DEUKALIONEINHUNDERTVIERUNDZWANZIGSTE VERMÖGENSVERWALTUNGS-GMBH

 

WHITE PIGMENTS HOLDINGS OY

 

KEMIRA PIGMENTS OY

 

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KEMIRA GERMANY GMBH

 

KEMIRA OYJ

 

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AGREEMENT REGARDING THEIMPLEMENTATIONOF THE TITANIUM DIOXIDE JOINT VENTURE

 

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**Table of Contents**

 
| **Section** | ** **                                            | **Page** |
|-------------|-------------------------------------------------------|----------|
|        |                                                  |     |
| 1.          | Preamble                                              |     | 15 |
|        |                                                  |     |   |
| 2.          | Sale and Transfer                                     |     | 18 |
|        |                                                  |     |   |
| 3.          | Consideration                                         |     | 19 |
|        |                                                  |     |   |
| 4.          | Kemira Oberhausen Assets                              |     | 23 |
|        |                                                  |     |   |
| 5.          | Intellectual Property Rights                          |     | 26 |
|        |                                                  |     |   |
| 6.          | Shareholding in Pohjolan Voima Oy                     |     | 28 |
|        |                                                  |     |   |
| 7.          | Business Documents                                    |     | 29 |
|        |                                                  |     |   |
| 8.          | Transitional Services                                 |     | 30 |
|        |                                                  |     |   |
| 9.          | Warranties                                            |     | 31 |
|        |                                                  |     |   |
| 10.         | Supplementary Provisions Regarding the Warranties     |     | 47 |
|        |                                                  |     |   |
| 11.         | Remedies                                              |     | 48 |
|        |                                                  |     |   |
| 12.         | Tax Warranties and Remedies                           |     | 50 |
|        |                                                  |     |   |
| 13.         | Environmental Warranties and Remedies                 |     | 53 |
|        |                                                  |     |   |
| 14.         | Further Indemnities and Carve-Out of Closed Landfills |     | 57 |
|        |                                                  |     |   |
| 15.         | Third-Party Claims                                    |     | 60 |
|        |                                                  |     |   |
| 16.         | Locked-Box Concept                                    |     | 62 |
|        |                                                  |     |   |
| 17.         | Transfer of Employees                                 |     | 63 |
|        |                                                  |     |   |
| 18.         | Trademarks and Company Name “Kemira”        |     | 67 |
|        |                                                  |     |   |
| 19.         | Confidentiality                                       |     | 67 |
|        |                                                  |     |   |
| 20.         | Miscellaneous                                         |     | 68 |
|        |                                                  |     |   |
| 21.         | Authorized Agent                                      |     | 71 |
|        |                                                  |     |   |
| 22.         | Severability                                          |     | 72 |
|             |                                                       |          |  |  |

 

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**List of Annexes**

 
| **Annex 2.1(a)**          |   | Short-form purchase and transfer agreement regarding TiO2 Shares;                   |
|---------------------------|--------|-------------------------------------------------------------------------------------|
| ** **                |   |                                                                                |
| **Annex 2.1(e)**          |   | Form of US Transfer Agreement                                                  |
| ** **                |   |                                                                                |
| **Annex 4.1(a)**     |   | List of Kemira Oberhausen Assets;                                                   |
| ** **                |   |                                                                                |
| **Annex 4.1(b)(ii)** |   | List of excluded assets;                                                            |
| ** **                |   |                                                                                |
| **Annex 4.1(d)(i)**       |   | List of liabilities;                                                                |
| ** **                |   |                                                                                |
| **Annex 4.3**             |   | Transferred Contracts                                                               |
| ** **                |   |                                                                                |
| **Annex 5.1.3(a)**   |   | List of Nanotechnology IP Rights                                                    |
| ** **                |   |                                                                                |
| **Annex 5.2.1(a)**   |   | List of Oberhausen IP Rights;                                                       |
| ** **                |   |                                                                                |
| **Annex 5.2.2**           |   | Form of Oberhausen IP Rights Transfer Agreement;                               |
| ** **                |   |                                                                                |
| **Annex 5.3.1**           |   | Form of license to certain other IP Rights and Know-How not  transferred;      |
| ** **                |   |                                                                                |
| **Annex 5.3.2-1**    |   | Form of back-license agreement;                                                |
| ** **                |   |                                                                                |
| **Annex 5.3.2-2**    |   | IP Rights subject to back-license;                                                  |
| ** **                |   |                                                                                |
| **Annex 8.1-1**      |   | Term sheets for the transitional services to be provided by Kemira to  Kemira TiO2; |
| ** **                |   |                                                                                |
| **Annex 9.2.6**      |   | List of participations in the Company;                                              |
| ** **                |   |                                                                                |
| **Annex 9.2.7**      |   | List of interests held by the Company;                                              |
| ** **                |   |                                                                                |
| **Annex 9.4.2-1**    |   | List of  security interests, charges, encumbrances of third parties in Assets;      |

 

2

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| **Annex 9.4.2-2**       |   | List of obligations to grant security interests, charges,  encumbrances;                                                                                                  |
|-------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ** **              |   |                                                                                                                                                                      |
| **Annex 9.5.1-1**  |   | List of Owned Properties;                                                                                                                                                 |
| ** **              |   |                                                                                                                                                                      |
| **Annex 9.5.1-2**  |   | List of Used Properties;                                                                                                                                                  |
| ** **              |   |                                                                                                                                                                      |
| **Annex 9.5.2-1**       |   | List of security interests, charges etc. in Owned Properties;                                                                                                             |
| ** **              |   |                                                                                                                                                                      |
| **Annex 9.5.2-2**       |   | List of obligations to grant security interests, charges etc. in  Owned Properties;                                                                                       |
| ** **              |   |                                                                                                                                                                      |
| **Annex 9.5.3-1**  |   | List of particulars of all Leases;                                                                                                                                        |
| ** **              |   |                                                                                                                                                                      |
| **Annex 9.5.3-2**  |   | Description of default payments or other obligations under the  Leases;                                                                                                   |
| ** **              |   |                                                                                                                                                                      |
| **Annex 9.6.2**    |   | List of Registered IP Rights;                                                                                                                                             |
| ** **              |   |                                                                                                                                                                      |
| **Annex 9.6.4**    |   | List of Licensed IP Rights;                                                                                                                                               |
| ** **              |   |                                                                                                                                                                      |
| **Annex 9.6.5**    |   | List of Challenged IP Rights;                                                                                                                                             |
| ** **              |   |                                                                                                                                                                      |
| **Annex 9.6.7**    |   | Employee invention compensations;                                                                                                                                         |
| ** **              |   |                                                                                                                                                                      |
| **Annex 9.7.2**    |   | List of claims for defective products;                                                                                                                                    |
| ** **              |   |                                                                                                                                                                      |
| **Annex 9.9.1**         |   | List of subsidies;                                                                                                                                                        |
| ** **              |   |                                                                                                                                                                      |
| **Annex 9.10.1**   |   | List of service contracts of managing directors, supervisory board  and holders of a registered commercial power of representtation, additional  agreements and benefits; |
| ** **              |   |                                                                                                                                                                      |
| **Annex 9.10.2**        |   | List of executives and foreign employees;                                                                                                                                 |
| ** **              |   |                                                                                                                                                                      |
| **Annex 9.10.3-1**      |   | List of employees laid off;                                                                                                                                               |
| ** **              |   |                                                                                                                                                                      |
| **Annex 9.10.3-2** |   | List of liabilities towards retired members of corporate bodies and  employees;                                                                                           |

 

3

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| **Annex 9.10.4**   |   | List of agreements or promises regarding special rights in regard of  a change of shareholders;                                                                         |
|-------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ** **              |   |                                                                                                                                                                    |
| **Annex 9.10.5**   |   | List of membership of employers’ associations and collective  bargaining agreements;                                                                               |
| ** **              |   |                                                                                                                                                                    |
| **Annex 9.10.6-1**      |   | List of shop agreements;                                                                                                                                                |
| ** **              |   |                                                                                                                                                                    |
| **Annex 9.10.6-2**      |   | List of reconcilements of interests and social plans;                                                                                                                   |
| ** **              |   |                                                                                                                                                                    |
| **Annex 9.10.7**   |   | List of agreements and promises regarding benefits from pension  scheme;                                                                                                |
| ** **              |   |                                                                                                                                                                    |
| **Annex 9.10.8**   |   | List of obligations based on customary business practice;                                                                                                               |
| ** **              |   |                                                                                                                                                                    |
| **Annex 9.10.9**   |   | List of collective and individual promises, agreements, plans,  schemes, regulations, arrangements that restrict the right of termination  beyond statutory regulation; |
| ** **              |   |                                                                                                                                                                    |
| **Annex 9.10.10**  |   | List of stock options;                                                                                                                                                  |
| ** **              |   |                                                                                                                                                                    |
| **Annex 9.10.12**  |   | List of court, arbitration, public authority proceedings regarding employment  matters;                                                                                 |
| ** **              |   |                                                                                                                                                                    |
| **Annex 9.10.13**  |   | Employee benefit plans;                                                                                                                                                 |
| ** **              |   |                                                                                                                                                                    |
| **Annex 9.10.18**  |   | List of benefit payments;                                                                                                                                               |
| ** **              |   |                                                                                                                                                                    |
| **Annex 9.11.1**   |   | List of Material Agreements;                                                                                                                                            |
| ** **              |   |                                                                                                                                                                    |
| **Annex 9.12**     |   | List of ten largest suppliers and customers in 2007, list of  suppliers without alternative;                                                                            |
| ** **              |   |                                                                                                                                                                    |
| **Annex 9.13.1-1** |   | List of Insurance Policies;                                                                                                                                             |

 

4

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| **Annex 9.13.1-2** |   | List of Insurance Policies that must be replaced after the  consummation of the Transaction;                                     |
|-------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------|
| ** **              |   |                                                                                                                             |
| **Annex 9.13.2**        |   | Notices of termination or cancellation of Insurance Policies, effects  of consummation of the Transaction on Insurance Policies; |
| ** **              |   |                                                                                                                             |
| **Annex 9.13.3**   |   | Outstanding claims under Insurance Policies;                                                                                     |
| ** **              |   |                                                                                                                             |
| **Annex 9.14**     |   | List of court, arbitration or public authority proceedings the Company  is party to;                                             |
| ** **              |   |                                                                                                                             |
| **Annex 9.15.2**   |   | Trading with certain designated countries;                                                                                       |
| ** **              |   |                                                                                                                             |
| **Annex 10.1-1**   |   | List of Company’s consolidated Affiliates;                                                                                  |
| ** **              |   |                                                                                                                             |
| **Annex 10.1-2**   |   | List of Company’s non-consolidated Affiliates;                                                                              |
| ** **              |   |                                                                                                                             |
| **Annex 12.2.4**   |   | List of Tax audits, assessments or deficiencies pending against the  Company;                                                    |
| ** **              |   |                                                                                                                             |
| **Annex 14.1.1-1** |   | Description of Sachtleben Landfills;                                                                                             |
| ** **              |   |                                                                                                                             |
| **Annex 14.1.1-2** |   | Description of Kemira Closed Landfills;                                                                                          |
| ** **              |   |                                                                                                                             |
| **Annex 14.1.2**   |   | Description of transfer of Sachtleben and Kemira Closed Landfill;                                                                |
| ** **              |   |                                                                                                                             |
| **Annex 14.1.4**   |   | Services for Kemira Closed Landfill;                                                                                             |
| ** **              |   |                                                                                                                             |
| **Annex 17.1(a)**  |   | List of Oberhausen Transferred Employees;                                                                                        |
| ** **              |   |                                                                                                                             |
| **Annex 17.1(b)**  |   | List of Sales Network Employees;                                                                                                 |
| ** **              |   |                                                                                                                             |
| **Annex 17.7.2**   |   | Information letter pursuant to sec. 613a BGB; and                                                                                |
| ** **              |   |                                                                                                                             |
| **Annex 17.11**    |   | US Transition Services Agreement.                                                                                                |

 

5

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**DEFINITIONS**

 

In this Agreement

 
| “**Accounting Principles**”                   |   | shall have the meaning given to it in section 9.3.1;      |
|---------------------------------------------------------|--------|----------------------------------------------------------------|
|                                                    |   |                                                           |
| “**Affected Party**”                          |   | shall have the meaning given to it in section 11.1;       |
|                                                    |   |                                                           |
| “**Affiliate** “                              |   | shall have the meaning given to it in section 4.2.2;           |
|                                                    |   |                                                           |
| “**Agreement**”                               |   | shall mean this agreement;                                     |
|                                                    |   |                                                           |
| “**Asset**” and “**Assets**”        |   | shall have the meaning given to it in section 9.4.1;      |
|                                                    |   |                                                           |
| “**Audited Annual Accounts**”                 |   | shall have the meaning given to it in section 9.3.1;      |
|                                                    |   |                                                           |
| “**Balance Sheet Date**”                      |   | shall have the meaning given to it in section 9.3.1;      |
|                                                    |   |                                                           |
| “**Breaching Party**”                         |   | shall have the meaning given to it in section 11.1;       |
|                                                    |   |                                                           |
| “**Breach  of the****No Leakage Provisions”** |   | shall have the meaning given to it in section 16.1(a);         |
|                                                    |   |                                                           |
| “**Business**”                                |   | shall have the meaning given to it in section 9.1(d)(ii);      |
|                                                    |   |                                                           |
| “**Business Day**”                            |   | shall have the meaning given to it in section 4.2.1;      |
|                                                    |   |                                                           |
| “**Business Documents**”                      |   | shall have the meaning given to it in section 7.1;        |
|                                                    |   |                                                           |
| “**Closed Landfills**”                        |   | shall have the meaning given to it in section 13.1;       |
|                                                    |   |                                                           |
| “**Closing Date**”                            |   | shall have the meaning given to it in section 2.2;        |
|                                                    |   |                                                           |
| “**Company**” and “**Companies**”   |   | shall have the meaning given to it in the deed caption;        |
|                                                    |   |                                                           |
| “**Comprehensive  Environmental Permit**”     |   | shall have the meaning given to it in section 13.5;       |
|                                                    |   |                                                           |
| “**Covenants**”                               |   | shall have the meaning given to it in section 16.1(a)(i); |
|                                                    |   |                                                           |
| “**Effective Date**”                          |   | shall have the meaning given to in section 2.2;           |

 

6

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| “**Energy Agreements**”                                       |   | shall have the meaning given to in section 6.2;        |
|-------------------------------------------------------------------------|--------|-------------------------------------------------------------|
|                                                                    |   |                                                        |
| “**Environmental  Contamination**”                            |   | shall have the meaning given to it in section 13.1;    |
|                                                                    |   |                                                        |
| “**Environmental Laws**”                                      |   | shall have the meaning given to it in section 13.1;    |
|                                                                    |   |                                                        |
| “**Environmental Liabilities**”                               |   | shall have the meaning given to it in section 13.6;    |
|                                                                    |   |                                                        |
| “**Environmental Matters**”                                   |   | shall have the meaning given to it in section 13.1;    |
|                                                                    |   |                                                        |
| “**ERISA**”                                                   |   | shall have the meaning given to it in section 9.10.13;      |
|                                                                    |   |                                                        |
| “**Exit Event**”                                              |   | shall have the meaning given to it in section 11.6;    |
|                                                                    |   |                                                        |
| “**Financial  Information and Valuation”**                    |   | shall have the meaning given to it in section 8.2(c);       |
|                                                                    |   |                                                        |
| “**Finnish HoldCo**”                                          |   | shall have the meaning given to it in the deed caption;     |
|                                                                    |   |                                                        |
| “**Former Sites**”                                            |   | shall have the meaning given to it in section 13.8;    |
|                                                                    |   |                                                        |
| “**Functional  Additive Business**”                           |   | shall have the meaning given to it in section 1.1;     |
|                                                                    |   |                                                        |
| “**G6 Shares**”                                               |   | shall have the meaning given to it in section 6.1;     |
|                                                                    |   |                                                        |
| “**Insurance Policy**” and “**Insurance Policies**” |   | shall have the meaning given to it in section 9.13.1;  |
|                                                                    |   |                                                        |
| “**IP Rights**”                                               |   | shall have the meaning given to it in section 5.1.1;   |
|                                                                    |   |                                                        |
| “**IRC**”                                                     |   | shall have the meaning given to it in section 9.10.13; |
|                                                                    |   |                                                        |
| “**JV Agreement**”                                            |   | shall have the meaning given to it in section 1.2;     |
|                                                                    |   |                                                        |
| “**JV Europe**”                                               |   | shall have the meaning given to it in the deed caption;     |
|                                                                    |   |                                                        |
| “**JV Europe Share**”                                         |   | shall have the meaning given to in section 1.3(a);     |
|                                                                    |   |                                                        |
| “**JV Europe Share A**”                                  |   | shall have the meaning given to in section 1.5(c)(i);  |

 

7

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| “**JV Europe Share B**”                                       |   | shall have the meaning given to in section 1.5(c)(ii);    |
|-------------------------------------------------------------------------|--------|----------------------------------------------------------------|
|                                                                    |   |                                                           |
| “**JV  Europe Share Transfer Receivable**”                    |   | shall have the meaning given to in section 3.3;           |
|                                                                    |   |                                                           |
| “**JV Group Company**” and “**JV Group Companies**” |   | shall have the meaning given to in section 4.2.2(a);      |
|                                                                    |   |                                                           |
| “**JV US**”                                                   |   | shall have the meaning given to in section 1.3(g)(i);     |
|                                                                    |   |                                                           |
| “**JV US Benefit Plans** “                                    |   | shall have the meaning given to it in section 17.10;      |
|                                                                    |   |                                                           |
| “**JV US Interests**”                                         |   | shall have the meaning given to in section 1.3(g)(i);     |
|                                                                    |   |                                                           |
| “**Kemira**”                                                  |   | shall have the meaning given to it in the deed caption;        |
|                                                                    |   |                                                           |
| “**Kemira Germany**”                                          |   | shall have the meaning given to it in the deed caption;        |
|                                                                    |   |                                                           |
| “**Kemira Closed Landfill**”                                  |   | shall have the meaning given to it in section 14.1.1;     |
|                                                                    |   |                                                           |
| “**Kemira Inc.**”                                             |   | shall have the meaning given to it in section 1.3(g)(ii); |
|                                                                    |   |                                                           |
| “**Kemira Inc. Shares**”                                      |   | shall have the meaning given to it in section 1.3(g)(ii); |
|                                                                    |   |                                                           |
| “**Kemira Oberhausen Assets**”                                |   | shall have the meaning given to it in section 1.3(f);     |
|                                                                    |   |                                                           |
| “**Kemira  Share Transfer Receivable**”                       |   | shall have the meaning given to it in section 3.1.1;      |
|                                                                    |   |                                                           |
| “**Kemira TiO2**”                                             |   | shall have the meaning given to it in the deed caption;        |
|                                                                    |   |                                                           |
| “**Kemira  TiO2 Pigments Business**”                          |   | shall have the meaning given to it in section 1.1;        |
|                                                                    |   |                                                           |
| “**Kemira TiO2 Shares**”                                      |   | shall have the meaning given to it in section 1.3(e);     |
|                                                                    |   |                                                           |
| “**Kemira Trademarks**”                                       |   | shall have the meaning given to it in section 18.1;       |
|                                                                    |   |                                                           |
| “**Know-How**”                                                |   | shall have the meaning given to it in section 5.1.2;      |

 

8

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| “**Landfills**”                               |   | shall have the meaning given to it in section 13.1;       |
|---------------------------------------------------------|--------|----------------------------------------------------------------|
|                                                    |   |                                                           |
| “**Law**”                                     |   | shall have the meaning given to it in section 7.1(b);     |
|                                                    |   |                                                           |
| “**Lease**” and “**Leases**”        |   | shall have the meaning given to it in section 9.5.3;      |
|                                                    |   |                                                           |
| “**Master Agreement**”                        |   | shall have the meaning given to it in section 1.2;        |
|                                                    |   |                                                           |
| “**Material Agreements**”                     |   | shall have the meaning given to it in section 9.11.1;     |
|                                                    |   |                                                           |
| “**Material IP Rights**”                      |   | shall have the meaning given to it in section 9.6.1;      |
|                                                    |   |                                                           |
| “**Maybrook**”                                |   | shall have the meaning given to it in section 1.3(g)(ii); |
|                                                    |   |                                                           |
| “**Maybrook Shares**”                         |   | shall have the meaning given to it in section 1.3(g)(ii); |
|                                                    |   |                                                           |
| “**Nanotechnology  IP Rights**”               |   | shall have the meaning given to it in section 5.1.3;      |
|                                                    |   |                                                           |
| “**Nanotechnology  Know How**”                |   | shall have the meaning given to it in section 5.1.3(b);   |
|                                                    |   |                                                           |
| “**Oberhausen  Business Unit**”               |   | shall have the meaning given to it in section 1.3(f);     |
|                                                    |   |                                                           |
| “**Oberhausen IP Rights**”                    |   | shall have the meaning given to it in section 5.2.1;      |
|                                                    |   |                                                           |
| “**Oberhausen IP Rights Transfer Agreement**” |   | shall have the meaning given to it in section 5.2.2       |
|                                                    |   |                                                           |
| “**Oberhausen Transfer Receivable**”          |   | shall have the meaning given to it in section 3.1.2;      |
|                                                    |   |                                                           |
| “**Oberhausen  Transferred Employees**”       |   | shall have the meaning given to in section 17.1(a);       |
|                                                    |   |                                                           |
| “**Owned Properties**”                        |   | shall have the meaning given to it in section 9.5.1;      |
|                                                    |   |                                                           |
| “**Party**” and “**Parties**”       |   | shall have the meaning given to it in the deed caption;        |
|                                                    |   |                                                           |
| “**Permits**”                                 |   | shall have the meaning given to it in section 9.8.1;      |

 

9

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| “**Permitted Liens**”                         |   | shall have the meaning given to it in section 9.4.2;         |
|---------------------------------------------------------|--------|--------------------------------------------------------------|
|                                                    |   |                                                         |
| “**Pori Landfill**”                           |   | shall have the meaning given to it in section 13.1           |
|                                                    |   |                                                         |
| “**PPV**”                                     |   | shall have the meaning given to it in section 6.1;      |
|                                                    |   |                                                         |
| “**Pre-Effective-Date Period**”               |   | shall have the meaning given to it in section 12.3.2;   |
|                                                    |   |                                                         |
| “**Properties**” and “**Property**” |   | shall have the meaning given to it in section 9.5.1;    |
|                                                    |   |                                                         |
| “**PVO**”                                     |   | shall have the meaning given to it in section 6.1;      |
|                                                    |   |                                                         |
| “**Registered IP Rights**”                    |   | shall have the meaning given to it in section 9.6.2;    |
|                                                    |   |                                                         |
| “**Rockwood**”                                |   | shall have the meaning given to it in the deed caption;      |
|                                                    |   |                                                         |
| “**Rockwood Germany**”                        |   | shall have the meaning given to it in the deed caption;      |
|                                                    |   |                                                         |
| “**Rockwood Holdings**”                       |   | shall have the meaning given to it in the deed caption;      |
|                                                    |   |                                                         |
| “**Rockwood****TiO2 Pigments Business**”      |   | shall have the meaning given to it in section 1.1;      |
|                                                    |   |                                                         |
| “**Rockwood****Water Business**”              |   | shall have the meaning given to it in section 1.1;      |
|                                                    |   |                                                         |
| “**Sachtleben**”                              |   | shall have the meaning given to it in the deed caption;      |
|                                                    |   |                                                         |
| “**Sachtleben  Closed Landfill**”             |   | shall have the meaning given to it in section 14.1.1;   |
|                                                    |   |                                                         |
| “**Sachtleben Corp**”                         |   | shall have the meaning given to it in section 1.1;      |
|                                                    |   |                                                         |
| “**Sachtleben Corp Shares**”                  |   | shall have the meaning given to it in section 1.3(g)(i);     |
|                                                    |   |                                                         |
| “**Sachtleben Shares**”                       |   | shall have the meaning given to it in section 2.1(c);   |
|                                                    |   |                                                         |
| “**Sachtleben  Share Transfer Receivable**”   |   | shall have the meaning given to it in section 3.2.1(a); |

 

10

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| “**Sachtleben Water**”                                                      |   | shall have the meaning given to it in section 1.4;        |
|---------------------------------------------------------------------------------------|--------|----------------------------------------------------------------|
|                                                                                  |   |                                                           |
| “**Sales  Network Employees**”                                              |   | shall have the meaning given to it in section 17.1(b);    |
|                                                                                  |   |                                                           |
| “**Subordinated Note**”                                                     |   | shall have the meaning given to it in section 3.2.2;      |
|                                                                                  |   |                                                           |
| “**Subordinated  Note Amount**”                                             |   | shall have the meaning given to it in section 3.2.1(b);   |
|                                                                                  |   |                                                           |
| “**Tax**” or “**Taxes**”                                          |   | shall have the meaning given to it in section 12.1;       |
|                                                                                  |   |                                                           |
| “**TiO2  Pigments Business**” and “**TiO2  Pigments Businesses**” |   | shall have the meaning given to it in section 1.1;        |
|                                                                                  |   |                                                           |
| “**Third Party Claim**”                                                     |   | shall have the meaning given to it in section 15.1;       |
|                                                                                  |   |                                                           |
| “**Transaction**”                                                           |   | shall mean the transactions contemplated by this Agreement;    |
|                                                                                  |   |                                                           |
| “**Transferred Company**”                                                   |   | shall have the meaning given to in section 9.1(d)(iii);        |
|                                                                                  |   |                                                           |
| “**Transferred Employees**”                                                 |   | shall have the meaning given to in section 17.2;          |
|                                                                                  |   |                                                           |
| “**Transferred Liabilities**”                                               |   | shall refer to the liabilities listed in section 4.4;     |
|                                                                                  |   |                                                           |
| “**Transitional  Service Agreements**”                                      |   | shall have the meaning given to it in section 8.1;        |
|                                                                                  |   |                                                           |
| “**US Benefit Plans**”                                                      |   | shall have the meaning given to it in section 9.10.13;         |
|                                                                                  |   |                                                           |
| “**US  Company**” and “**US Companies**”                          |   | shall have the meaning given to it in section 1.3(g)(ii); |
|                                                                                  |   |                                                           |
| “**US Transfer Agreement**”                                                 |   | shall have the meaning given to it in section 2.1(e);     |
|                                                                                  |   |                                                           |
| “**US  Transferred Company**”                                               |   | shall have the meaning given to it in section 9.1(d)(iv);      |

 

11

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| “**US  Transferred Employees**”               |   | shall have the meaning given to it in section 17.10;    |
|---------------------------------------------------------|--------|--------------------------------------------------------------|
|                                                    |   |                                                         |
| “**US  Transition Services Agreement**”       |   | shall have the meaning given to it in section 17.11;    |
|                                                    |   |                                                         |
| “**Used Properties**”                         |   | shall have the meaning given to it in section 9.5.1;    |
|                                                    |   |                                                         |
| “**VAT**”                                     |   | shall have the meaning given to it in section 12.3.6;   |
|                                                    |   |                                                         |
| “**Warranty**” and “**Warranties**” |   | shall have the meaning given to it in section 9.1;      |
|                                                    |   |                                                         |
| “**Warranting Party**”                        |   | shall have the meaning given to it in section 9.1(d)(v); and |
|                                                    |   |                                                         |
| “**Water Carve-Out**”                         |   | shall have the meaning given to it in section 1.4.      |

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

12

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**SHARE AND ASSET PURCHASE AND TRANSFERAGREEMENT**

 

THIS AGREEMENT IS MADE ON 21 MAY 2008 BY AND AMONG

 
| (a)    | Rockwood Holdings Inc., 100 Overlook Center, Princeton, NJ 08540, USA                                                                                                                                                                                                                                                            |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                             |
|   | hereinafter referred to as “**Rockwood Holdings**”;                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                             |
| (b)    | Rockwood Specialties Group, Inc., 100 Overlook Center,  Princeton, NJ 08540, USA                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                             |
|   | hereinafter referred to as “**Rockwood**”;                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                             |
| (c)    | Rockwood Specialties Group GmbH, Königsberger Straße 1, 60487  Frankfurt am Main, Germany, registered in the commercial register of the  lower court of Frankfurt am Main under registration number HR B 5 79 24                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                             |
|   | hereinafter referred to as “**Rockwood Germany**”;                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                             |
| (d)    | Sachtleben Chemie GmbH, Dr.-Rudolf-Sachtleben-Straße 4, 47189  Duisburg, Germany, registered in the commercial register of the lower court  of Duisburg under registration number HR B 1 96 69                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                             |
|   | hereinafter referred to as “**Sachtleben**”;                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                             |
| (e)    | Deukalion Einhundertvierundzwanzigste Vermögensverwaltungs-GmbH,  Königsberger Straße 1, 60487 Frankfurt am Main, Germany, registered in the  commercial register of the lower court of Frankfurt am Main under  registration number HR B 8 05 60, to be renamed after signing into White  Pigments Holdings GmbH |
|   |                                                                                                                                                                                                                                                                                                                             |
|   | hereinafter referred to as “**JV Europe**”;                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                             |
| (f)    | White Pigments Holding Oy, a limited liability company under  establishment, Finland,                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                             |
|   | hereinafter referred to as “**Finnish HoldCo**”;                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                             |
| (g)    | White Pigments LLC, a Delaware limited liability company with  business address at 100 Overlook Center, Princeton, NJ 08540, USA,                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                             |
|   | hereinafter referred to as “**JV US**”;                                                                                                                                                                                                                                                                                |

 

13

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| (h)    | Kemira Pigments Oy, Porkkalankatu 3, FI-00180 Helsinki, Finland with  business identification number 0948159-2                                                                                   |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                             |
|   | hereinafter referred to as “**Kemira TiO2**”;                                                                                                                                          |
|   |                                                                                                                                                                                             |
| (i)    | Kemira Germany GmbH, Marie-Curie-Straße 10, 51377 Leverkusen,  Germany, registered in the commercial register of the lower court of Cologne  under registration number HR B 57319 |
|   |                                                                                                                                                                                             |
|   | hereinafter referred to as “**Kemira Germany**”;                                                                                                                                       |
|   |                                                                                                                                                                                             |
|   | and                                                                                                                                                                                              |
|   |                                                                                                                                                                                             |
| (j)    | Kemira Oyj, Porkkalankatu 3, FI-00101 Helsinki, Finland, with  business identification number 0109823-0                                                                                          |
|   |                                                                                                                                                                                             |
|   | hereinafter referred to as “**Kemira**”.                                                                                                                                               |

 

Rockwood Holdings, Rockwood, Rockwood Germany, Sachtleben, JV Europe,Finnish HoldCo, Kemira TiO2, Kemira Germany and Kemira each a “**Party**” and collectively the “**Parties**” (Kemira TiO2 and JV Europe arealso each referred to hereinafter as a “**Company**”and collectively the “**Companies**”).

 

**NOW IT IS HEREBY AGREED**

 
| 1.     | **PREAMBLE**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 1.1    | Rockwood and Kemira are both companies active in a variety of  business fields in the specialty chemicals sector. Both Parties are, amongst  other businesses, engaged in the titanium dioxide business (i.e. the sale and  manufacturing of titanium dioxide and related co-products and services),  provided that (i) Rockwood’s titanium dioxide business also includes  the manufacturing of barium-based and zinc-based inorganic fine white  pigments and additives (the “**Functional  Additive Business**”) but excludes the manufacturing of  polyaluminium chloride and polyaluminium nitrate-based flocculants (collectively  the “**Rockwood****Water Business**”) as currently conducted  by Sachtleben and Sachtleben Corporation (“**Sachtleben  Corp**”) (Rockwood’s titanium dioxide business so defined, the “**Rockwood TiO2 Pigments Business**”); and  (ii) Kemira’s titanium dioxide business also includes sales and  manufacturing of certain other than titanium dioxide based products and  services to the cosmetics industry (the “**Kemira  TiO2 Pigments Business**”). The Rockwood TiO2 Pigments Business and  the Kemira TiO2 Pigments Business are each also referred to as a “**TiO2 Pigments Business**” and collectively  as the “**TiO2 Pigments Businesses**”. |

 

14

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| 1.2    | In order to jointly pursue future business opportunities in the field  of the production and marketing of pigments, the Parties intend to combine  their respective TiO2 Pigments Businesses by forming a joint venture. In  connection therewith, Rockwood Holdings, Rockwood, Rockwood Germany,  Sachtleben, JV Europe, Sachtleben Corp, Finnish HoldCo, JV US, Kemira, Kemira  TiO2, Kemira Inc. (as defined below) and Kemira Germany have today entered  into a master agreement (the “**Master  Agreement**”) and a shareholders and joint venture agreement (the “**JV Agreement**”) regarding the titanium  dioxide joint venture. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 1.3    | The TiO2 Pigments Businesses include the following shareholdings and  assets owned (directly or indirectly) by Rockwood and Kemira, respectively:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Rockwood Germany owns all shares in JV Europe (“**JV Europe Share**”). |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Rockwood Germany owns all shares in Sachtleben. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Sachtleben owns |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | (i) | a share in the nominal amount of EUR 12,800.00 in Alberti &  Co GmbH, Germany, registered in the commercial register of the lower court of  Göttingen under HR B 120005, representing 25 per cent of the entire share  capital; |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | (ii) | a share in the nominal amount of EUR 51,129.19 in Pigment-Chemie  GmbH, Germany, registered in the commercial register of the lower court of  Duisburg under HR B 7018, representing 100 per cent of the entire share  capital; |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | (iii) | a limited partnership interest in the amount of EUR 576,000.00  in Deutsche Baryt-Industrie Dr. Rudolf Alberti GmbH & Co. KG,  Germany, registered in the commercial register of the lower court of  Göttingen under HR A 121227; |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | (iv) | a share in the nominal amount of RMB 54,900,000.00 in Guangzhou  Huali Sachtleben Chemicals Company, Limited, 238 Nangang West Rd., Huangpu  District, Guangzhou 510760, China, registered with the National Industrial  and Commercial Administration Bureau of the People’s Republic of China for  the Guangdong Province under the license number 004714, representing 40 per  cent of the entire share capital; and |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | (v) | a share in the nominal amount of RMB 3,000,000.00 in Sachtleben  Trading (Shanghai) Company Limited, 2272 Hongqiao Road, Shanghai 200336,  China, registered with the National Industrial and Commercial |

 

15

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                    | Administration Bureau of the People’s Republic of China for Shanghai  under the license number 1137603 representing 100 per cent of the entire  share capital.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | (d)                                                                                                                                                                                                                                                                                                                                                                                                                    | JV Europe owns all shares in Finnish HoldCo.                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                    |
|   | (e)                                                                                                                                                                                                                                                                                                                                                                                                                    | Kemira owns 8,300,000 issued and outstanding shares representing 100  per cent of the issued and outstanding shares in Kemira TiO2 (“**Kemira TiO2 Shares**”).                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                    |
|   | (f)                                                                                                                                                                                                                                                                                                                                                                                                                    | Kemira Germany owns and operates the Oberhausen Technology Center  business unit (the “**Oberhausen Business  Unit**”), which consists of the assets and intellectual property  rights as further defined in section 4.1 (the “**Kemira Oberhausen Assets**”). |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                    |
|   | (g)                                                                                                                                                                                                                                                                                                                                                                                                                    | Furthermore, Rockwood and Kemira hold the following shareholdings and  limited liability interests in certain companies in the US:                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                   | (i)                                                                                                                                                                                                                                                                                     | Rockwood owns all issued and outstanding shares in Sachtleben  Corporation (the “**Sachtleben Corp Shares**”)  and all of the limited liability interests in White Pigments LLC, a  newly-formed Delaware limited liability company (all limited liability  company interests in JV US, the “**JV US  Interests**”); and                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                   | (ii)                                                                                                                                                                                                                                                                                    | Kemira owns all issued and outstanding shares in Kemira Specialty, Inc.  (“**Kemira Inc.**”, the shares in  Kemira Inc., the “**Kemira Inc. Shares**”),  having its principal place of business at 151 Veterans Drive, Northvale, NJ  07647, USA. Kemira Inc. owns all issued and outstanding shares in Maybrook, Inc.  (the “**Maybrook Shares**”), having  its principal place of business at 570 Broadway, Lawrence, Massachusetts, USA  (“**Maybrook**”, and together with  Kemira Inc. and, together with Sachtleben Corp, collectively, the “**US Companies**” and each a “**US Company**”). |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 1.4    | The Rockwood Water Business will be carved out prior to the Closing  Date into a company held by Rockwood Germany outside the joint venture (such  company “**Sachtleben Water**”) as  further set out in the Master Agreement, after an existing profit and loss  transfer agreement between MIWAC Mitteldeutsche Wasserchemie GmbH and  Sachtleben has been terminated (“**Water  Carve-Out**”). |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 1.5    | Pursuant to the Master Agreement, the Parties have agreed that                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                    | Kemira shall transfer the Kemira TiO2 Shares to Finnish HoldCo;                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                    |
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                    | Kemira shall transfer or cause the transfer of the Kemira Oberhausen  Assets to JV Europe;                                                                                                                                                                                              |

 

16

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|   | (c)                                                                        | the share in JV Europe representing 100 per cent of JV Europe’s  entire share capital shall be split into,                                                                                                                                                                                                                                                                                                   |
|--------|----------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                       | (i)                                                                                                                                                                                                                                                                                                                                                                                                               | one share with the nominal value of EUR 15,250.00, representing  61 per cent of JV Europe’s entire share capital (“**JV Europe Share A**”); and |
|   |                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                              |   |
|   |                                                                       | (ii)                                                                                                                                                                                                                                                                                                                                                                                                              | one share with the nominal value of EUR 9,750.00, representing  39 per cent of JV Europe’s entire share capital (“**JV Europe Share B**”), which will be  transferred by Rockwood Germany to Kemira pursuant to this Agreement; |
|   |                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                              |   |
|   |                                                                       | following which (i) Rockwood Germany will own 61 per cent of the  shares in JV Europe; and (ii) Kemira will own 39 per cent of the  shares in JV Europe; and                                                                                                                                                                                                                                       |
|   |                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                              |   |
|   | (d)                                                                        | additionally, with respect to the joint venture in the United States                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                              |   |
|   |                                                                       | (i)                                                                                                                                                                                                                                                                                                                                                                                                               | Rockwood shall transfer the Sachtleben Corp Shares and Kemira shall  transfer the Kemira Inc. Shares to JV US, |
|   |                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                              |   |
|   |                                                                       | (ii)                                                                                                                                                                                                                                                                                                                                                                                                              | in exchange for |
|   |                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                              |   |
|   |                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                              | (1) | Rockwood receiving 61 per cent of the limited liability interest  in JV US; and |
|   |                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |
|   |                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                              | (2) | Kemira receiving a combination of 39 per cent of the limited  liability interest in JV US and an Intercompany Receivable (as defined in the  Master Agreement) in a principal amount of approximately  EUR 6,400,000.00 against JV US; |
|   |                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |
|   |                                                                       | following which (i) Rockwood will own 61 per cent of the issued  and outstanding limited liability interest in JV US; and (ii) Kemira  will own 39 per cent of the issued and outstanding limited liability interest  in JV US.                                                                                                                                                                         |
|   |                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                              |   |
| 2.     | **SALE AND TRANSFER**                                                      |
|   |                                                                       |
| 2.1    | Upon the terms and subject to the conditions set forth in this  Agreement, |
|   |                                                                       |
|   | (a)                                                                        | Kemira hereby sells and transfers (*tritt  ab*) the Kemira TiO2 Shares to Finnish HoldCo which transfer shall  further be subject to the terms of a short-form share purchase and transfer  agreement regarding the TiO2 Shares attached as **Annex 2.1(a) **between Kemira and Finnish HoldCo****(for Finnish transfer tax filing  purposes), and Finnish HoldCo****hereby  accepts such sale and transfer; |
|        |                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                   |  |  |  |

 

17

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|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Kemira Germany hereby sells and transfers (*tritt ab*) the Kemira Oberhausen Assets to JV Europe and JV  Europe hereby accepts such sale and transfer;                                                                                                                                                                                                                                                                                                                                                                |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Rockwood Germany hereby sells and transfers (*tritt ab*) all of the issued and  outstanding shares in Sachtleben (“**Sachtleben  Shares**”) to JV Europe and JV Europe hereby accepts such sale and  transfer;                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | (d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Rockwood Germany hereby sells and transfers (*tritt ab*) the JV Europe Share B to  Kemira and Kemira hereby accepts such sale and transfer; and                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | (e)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Rockwood hereby undertakes to transfer on the Closing Date (as  defined below) the Sachtleben Corp Shares and Kemira hereby undertakes to  transfer on the Closing Date the Kemira Inc. Shares to JV US in each case  with effect as of the Closing Date, pursuant to a local transfer agreement  substantially in the form of **Annex 2.1(e) **(the  “**US Transfer Agreement**”), and to  combine the businesses of the US Companies into a single business operation  to be operated by JV US. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 2.2    | The transfers pursuant to section 2.1 shall (i)  be made  with economic effect (*wirtschaftlicher*Wirkung)  as of 31 December 2007 / 1 January 2008 (the “**Effective Date**”), unless otherwise  expressly set forth herein; and (ii) be subject to the condition  precedent (*aufschiebende Bedingung*)  of the Closing (as defined in the Master Agreement) occurring (the day on  which the Closing occurs, the “**Closing Date**”).                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 3.     | **CONSIDERATION**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 3.1    | Purchase Price for Kemira TiO2 Business                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 3.1.1  | The purchase price for the sale and transfer of the Kemira TiO2  Shares pursuant to section 2.1(a) amounts to a fixed amount of  EUR 168,900,000.00 (the “**Kemira Share Transfer  Receivable**”). The Kemira Share Transfer Receivable has been  determined on the basis of an enterprise value of Kemira TiO2 of EUR  222,700,000.00 by deducting (i) the amount of the Existing Intercompany  Receivable (as defined in the Master Agreement) of EUR 51,700,000.00 as  described in section 2.2.1(b) of the Master Agreement and (ii) the  amount of the Kemira Dividend of EUR 2,100,000.00 as described in  section 2.2.1(d) of the Master Agreement.****The Kemira Share Transfer Receivable shall not be due and  payable in cash but shall be settled pursuant to sections 3.4.1 to 3.4.5  through a payment into the capital reserves. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 3.1.2  | The purchase price for the sale and transfer of the Kemira Oberhausen  Assets pursuant to section 2.1(b) amounts to a fixed amount of a  net amount of EUR 2,300,000.00 (plus applicable transfer taxes, if any)  (the net amount the “**Oberhausen Transfer  Receivable**”).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

##  

18

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|   |   | The Oberhausen Transfer Receivable shall not be due and payable in  cash but shall be settled pursuant to sections 3.4.1 to 3.4.5 through a  payment into the capital reserves of JV Europe.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 3.2    |   | Purchase Price for Rockwood TiO2 Business                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 3.2.1  |   | The purchase price for the sale and transfer of the Sachtleben Shares  pursuant to section 2.1(c) amounts a fixed amount equal to the  aggregate amount of                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | EUR 180,000,000.00  (the “**Sachtleben Share Transfer Receivable**”)  which amount has been determined on the basis of an enterprise value of  Sachtleben of EUR 363,000,000.00 by deducting the amount of the Existing  Intercompany Receivable of EUR 183,000,000.00 as described in  section 2.2.2(a) of the Master Agreement; and |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
|   |   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | an  additional amount of EUR 2,900,000.00 (the “**Subordinated  Note Amount**”)**.** |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 3.2.2  |   | The Sachtleben Share Transfer Receivable shall not be due and payable  in cash but shall be settled pursuant to sections 3.4.1 to 3.4.5 through  a payment into the capital reserves of JV Europe. The Subordinated Note  Amount shall not be due and payable in cash but shall be automatically  converted into a subordinated note issued by Sachtleben to Rockwood Germany  (the “**Subordinated Note**”) which  note shall bear interest at the net interest rate applicable under the  Refinancing (as defined in the Master Agreement), interest to be accrued and  repaid together with the principal amount at the later of (i) 31  December 2010 and (ii) repayment being permitted under the  Refinancing commitments. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 3.3    |   | Purchase Price for Rockwood TiO2 Business                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   | The purchase price for the sale and transfer of the JV Europe  Share B pursuant to section 2.1(d) amounts to a fixed amount  of EUR 11,661.00 (the “**JV Europe Share  Transfer Receivable**”) and shall be due and payable by Kemira to  Rockwood Germany in cash on the Closing Date.                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 3.4    |   | Settlement Actions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   | Subject to the condition precedent (*aufschiebende Bedingung*) of Closing  occurring:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 3.4.1  |   | Kemira  Germany hereby assigns (*tritt ab*)  to Kemira the Oberhausen Asset Transfer Receivable in the amount of  EUR 2,300,000.00 and Kemira hereby accepts such assignment.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

 

19

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| 3.4.2  |   | Kemira  hereby assigns (*tritt ab*) to JV  Europe the Oberhausen Transfer Receivable in the amount of  EUR 2,300,000.00 which shall be recorded as a contribution into the  capital reserve (*Einzahlung in die  Kapitalrücklage*) of JV Europe pursuant to section 272 para. 2 no. 4 German Commercial Code (*HGB*). JV Europe hereby accepts  such assignment and takes note of (*nimmt  zur Kenntnis*) the payment into its capital reserve.                                                                  |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 3.4.3  |   | Kemira hereby assigns (*tritt ab*)  to Finnish HoldCo, and Finnish HoldCo hereby accepts such assignment, a  fraction of the Kemira Share Transfer Receivable equal to                                                                                                                                                                                                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | EUR 112,700,000.00;  and |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |
|   |   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | (i) plus  the amount by which the aggregate amount of Existing Intercompany Receivables  as defined in the Master Agreement (including the receivable resulting from  the Kemira Dividend but excluding the Existing Intercompany Receivable owed  by Kemira Inc. to JV US pursuant to section 2.2.1(c) of the Master  Agreement) exceeds EUR 53,800,000.00; or (ii) minus the  amount by which the aggregate amount of Existing Intercompany Receivables as  defined in the Master Agreement (including the receivable resulting from the  Kemira Dividend but excluding the Existing Intercompany Receivable owed by  Kemira Inc. to JV US pursuant to section 2.2.1(c) of the Master  Agreement) falls short of EUR 53,800,000.00 , as the case may be. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | By way of  example, if the Existing Intercompany Receivables amounted to  EUR 54,000,000.00, then the resulting amount under this  section 3.4.3(b) would be EUR 112,700,000.00 less  EUR 53,800,000.00 plus EUR 54,000,000, i.e. EUR 112,900,000.00. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |   | The fraction  of the Kemira Share Transfer Receivable so assigned shall be recorded as a  contribution into the capital reserve (*Einzahlung  in die Kapitalrücklage*) of JV Europe pursuant to section 272  para. 2 no. 4  German Commercial Code (*HGB*). JV  Europe hereby accepts such assignments and takes note of (*nimmt zur Kenntnis*) the payment into its  capital reserve.                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |   | For the avoidance of doubt, it is hereby set forth that, as a result  of the adjustment of the fraction of the Kemira Share Transfer Receivable to  be assigned pursuant to section 3.4.3(b), the aggregate amount of  (i) the Existing Intercompany Receivables of Kemira against  Kemira TiO2 immediately after the Closing; and (ii) the remaining  fraction of the Sachtleben Share Transfer Receivable against Finnish HoldCo  retained by Kemira shall together always equal EUR 110,000,000.00. |

 

20

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| 3.4.4  |   | Rockwood  Germany hereby assigns (*tritt ab*)  to JV Europe the Sachtleben Share Transfer Receivable in the amount of EUR 180,000,000.00,  which shall be recorded as a contribution into the capital reserve (*Einzahlung in die Kapitalrücklage*) of JV  Europe pursuant to section 272 para. 2 no. 4 German Commercial Code (*HGB*). JV Europe hereby accepts  such assignment and takes note of (*nimmt  zur Kenntnis*) the payment into its capital reserve.                                                                                                                                                                                             |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 3.4.5  |   | As  consideration for the shares of Kemira Inc. under the US Transfer Agreement  Kemira shall receive an intercompany receivable against JV US in the amount  of (i) EUR 7,000,000.00 less (ii) the Existing  Intercompany Receivable described in section 2.2.1(c) (in such amount  that is outstanding under this Existing Intercompany Receivable at Closing),  representing the difference in valuation between its 39 per cent limited  liability interest in JV US and the value of the Kemira Inc. Shares  contributed by it, thus resulting in a total Intercompany Receivable of  EUR 7,000,000.00 by Kemira against JV US and Kemira Inc. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 3.5    |   | Situation after Implementation Actions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |   | Following  the Closing having occurred, the US Transfer Agreement and the Master  Agreement on the Closing Date and as further described in the Master  Agreement,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Rockwood  Germany’s Intercompany Receivables will consist of |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | (i) | an  Intercompany Receivable in the amount of EUR 183,000,000.00 (being the result  of a waiver of the exceeding part of the Existing Intercompany Receivable  under the Master Agreement); and |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | (ii) | the  Subordinated Note in the amount of EUR 2,900,000.00; |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
|   |   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Kemira’s Intercompany Receivables will total EUR 117,000,000.00; of  which |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | (i) | EUR  7,000,000.00 will be against JV US and Kemira Inc.; and |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | (ii) | the  remaining EUR 110,000,000.00 will comprise of (x) the  Existing Intercompany Receivables of Kemira against Kemira TiO2 immediately after the Closing; and  (y) the remaining fraction of the Sachtleben Share Transfer Receivable  against Finnish HoldCo retained by Kemira as it is going to be determined  pursuant to section 3.4.3; |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |
|   |   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | JV Europe’s  intercompany receivables will amount to a total of EUR 0.00 (in words:  zero) as a result of the transaction pursuant to section 3.4.3 and the JV  Europe Share Transfer Receivable having been settled in cash. |

 

21

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|   |       | For the avoidance of doubt and notwithstanding anything to the  contrary contained herein or in the Master Agreement if, for whatever reason,  the amount of intercompany receivables of the Parties against the JV Group  Companies will deviate from what has been outlined in this section 3.5,  the Parties shall take all such actions and make or receive all such  declarations in order to provide a situation which is, from an economical  point of view, identical to the situation outlined in this section 3.5. |
|--------|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 4.     | ** ** | **KEMIRA  OBERHAUSEN ASSETS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 4.1    |       | Assets  Subject to Transfer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |       | The Kemira Oberhausen Assets subject to the transfer pursuant to  section 2 shall include                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |       | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | the tangible assets, other movable property, stocks and including  contracts and contract offers listed in **Annex 4.1(a)**; |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|   |       | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | such other tangible assets, other movable property, stocks, contracts  and contract offers owned by or acquired by or on behalf of the Oberhausen  Business Unit, or otherwise supplied to the Oberhausen Business Unit from the  Effective Date and until the Closing Date, except where |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | (i) | a  predominant use of such asset was made by Kemira Affiliates (as defined  below) outside the Oberhausen Business Unit and the continued use of such  asset is either procured under a Transitional Service Agreement or otherwise  provided free of charge to the TiO2 Pigments Business to the same extent such  asset was used prior to the date hereof or will be used in line with current  planning; |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | (ii) | such asset  is listed in **Annex 4.1(b)(ii)**;  or |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | (iii) | such assets  pursuant to Annex 4.1(b)(ii) include contracts and contract offers  which are not included in Annex 4.1(a); or |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | (iv) | such  contracts relate to Insurance Policies (as defined below). |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |       | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | the Oberhausen IP Rights as defined in section 5.2.1; and |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|   |       | (d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | liabilities |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | (i) | specifically listed in **Annex 4.1(d)(i) **(without  prejudice to employment-related liabilities, which shall solely be governed  by section 17.6); and |
|        |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  |  |  |  |

 

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|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | (ii)                                                                                                                                                                                                                                           | earn-out  payments owed to Gerd Dahms payable after the Closing Date in an amount of up  to EUR 233,333.00, provided, however, that Kemira Germany shall remain liable  for any prior periods and exceeding payments;                                    |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |   | provided,  however, that                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                           |
|   |   | (e)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | in respect of each of (a) to (d) and in order to avoid a  double consideration of items, such items shall be deemed removed or added  from or to the Kemira Oberhausen Assets, as the case may be, if and to the  extent these items |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | (i)                                                                                                                                                                                                                                            | have been  sold and transferred, added, incurred or created between the Effective Date  and the Closing Date other than through a Breach of the No Leakage Provisions  (as defined below); or                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | (ii)                                                                                                                                                                                                                                           | have been  sold and transferred, added, incurred or created between the Effective Date  and the Closing Date as a result of a Breach of the No Leakage Provisions if  and to the extent such breach will be compensated pursuant to  section 16; or |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | (iii)                                                                                                                                                                                                                                          | have  resulted in an actual adjustment of the Shareholding Split under the Master  Agreement.                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Any material  changes shall be notified to Rockwood until five days before the Closing  Date.                                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.2    |   | Provisions  relating to the Kemira Oberhausen Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.2.1  |   | To the  extent there is a reservation of title in favor of third parties attached to  Kemira Oberhausen Assets (other than IP Rights and Know-How) or there has  been a transfer of ownership of such assets by way of security (*Sicherungsübereignung*), the performance  obligation in relation to the third party remains with the respective Kemira  Affiliate. If the Kemira Affiliate fails to fulfill this obligation on or  before the Closing Date, Kemira may, with the consent of JV Europe, do so (or  procure that the Affiliate does so) no later than five days on which banks in  Frankfurt am Main, Germany, and Helsinki, Finland, are generally open for  business (a “**Business Day**”)  following the Closing Date, provided that Kemira shall provide evidence of  such fulfillment to JV Europe without undue delay (*unverzüglich*). |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.2.2  |   | As used in  this Agreement, with respect to a person or entity, “**Affiliate**” shall have the meaning given  in section 15 *et seq.* of the  German Stock Corporation Act (*AktG*),  but                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | with respect  to Rockwood Holdings, Rockwood, Rockwood Germany and Kemira shall exclude JV  Group Companies (“**JV Group Companies**”  defined as including                                                                          |
|        |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                          |  |  |

 

23

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|   |   |                                                                                                                                                                                                                                            | only JV  Europe, Sachtleben, Finnish HoldCo, Kemira TiO2, JV US, Sachtleben Corp,  Kemira Inc. and Maybrook, Sachtleben Trading (Shanghai) Company Limited, each  a “**JV Group Company**”) as well as  JV Europe’s direct and indirect subsidiaries and shareholdings; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |   | (b)                                                                                                                                                                                                                                             | with respect  to the JV Group Companies shall exclude Rockwood Holdings, Rockwood, Rockwood  Germany and Kemira and their Affiliates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                            |
| 4.3    |   | Transfer of  Contracts and Contract Offers                                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                            |
|   |   | Kemira hereby undertakes vis-à-vis JV Europe with effect as of the  Closing Date to assign or secure the assignment of the contracts listed in **Annex 4.3** to JV Europe (or at JV  Europe’s election to any JV Group Company). |
|   |   |                                                                                                                                                                                                                                            |
| 4.4    |   | Transfer of  Liabilities                                                                                                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                            |
|   |   | To the extent the Kemira Oberhausen Assets  include liabilities (collectively, the “**Transferred  Liabilities**”)                                                                                                                    |
|   |   |                                                                                                                                                                                                                                            |
|   |   | (a)                                                                                                                                                                                                                                             | JV Europe  hereby undertakes to the obligor under such liability (i.e. Kemira or Kemira  Germany) to assume such liability with effect as of the Closing Date and with  a discharging effect.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |   | (b)                                                                                                                                                                                                                                             | Kemira and  JV Europe jointly endeavor (and will cause their Affiliates to endeavor) to  obtain the consent of those third parties who are creditors of the  Transferred Liabilities. If it is not possible to obtain such consent or if  this is not expedient (in the opinion of both Kemira and JV Europe), Kemira  and/or Kemira’s Affiliate, as applicable, and JV Europe will – to the extent  legally permissible – conduct themselves and treat each other *inter se* as if JV Europe had validly  assumed the relevant liability with effect as of the Closing Date. In this  case, Kemira and/or Kemira’s Affiliate, as applicable, will remain the  nominal debtor in relation to third parties, but will internally fulfill the  liability for the account of and on the instructions of JV Europe. |
|   |   |                                                                                                                                                                                                                                            |
| 4.5    |   | Each of Kemira and Kemira Germany and JV Europe, as the case may be,  hereby accept any transfers or declarations as set out in section 4.                                                                                                 |
|   |   |                                                                                                                                                                                                                                            |
| 4.6    |   | The Parties shall cooperate in good faith on the transfer or  migration of any other services required by the Oberhausen Assets after the  Closing Date, including, for the avoidance of doubt, IT services and payroll  services.              |

 

24

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| 5.     | ** ** | **INTELLECTUAL PROPERTY RIGHTS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|--------|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 5.1    |       | Definitions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 5.1.1  |       | “**IP Rights**” shall be defined as patents,  utility models, domain names and trademarks as well as rights of use and  enjoyment and rights of exploitation of works protected by copyright  (including computer programs), of compilations (*Sammelwerke*) and data base works protected by copyright  like independent works, as well as of industrial property and copyright  protection rights (*Leistungsschutzrechte*)  (including rights to data bases protected by copyright), including all rights  acquired to identification marks through use, and the rights to the relevant  applications for registration, irrespective of whether any such rights are  registered and licenses thereto. |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 5.1.2  |       | “**Know How**” shall be defined as the  inventions, trade secrets, procedures, formulae and all technical,  operational and commercial know-how (including machine-readable data) and  other immaterial assets, irrespective of whether or not they can be  registered, including all embodiments, such as drawings, notes, or  documentation, and licenses thereto.                                                                                                                                                                                                                                                                                                                                     |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 5.1.3  |       | “**Nanotechnology IP Rights**”  shall be defined as                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |       | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | the IP Rights listed in**Annex 5.1.3(a)**; and |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|   |       | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | the Know-How developed by Kemira Germany primarily relating to  nanoemulsions and nanodispersions and the production thereof as well as  related to the IP Rights pursuant to section 5.1.3(a) (the “**Nanotechnology Know How**”). |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 5.2    |       | Transfer of  IP Rights                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 5.2.1  |       | The IP Rights and Know-How which transfer as part of the Kemira  Oberhausen Assets (the “**Oberhausen IP  Rights**”) pursuant to sections 2 and 4 shall include                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |       | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | the IP Rights and Know-How listed in **Annex 5.2.1(a)**; and |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|   |       | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | the IP Rights (if any) and Know-How owned or licensed by Kemira  Germany that was used primarily by or relate primarily to the Kemira TiO2  Pigments Business in the year preceding the date of this Agreement. |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |       | For the avoidance of doubt,  the Nanotechnology IP Rights shall not be the subject of the sale and  transfers set forth in this Agreement but of a separate license agreement  pursuant to section 5.3.1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

 

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| 5.2.2  |   | The assignment and transfer of the Oberhausen IP Rights shall be made  with commercial effect (*mit  wirtschaftlicher Wirkung*) as of the Effective Date, provided that  the assignment and transfer *in rem*  (*mit dinglicher Wirkung*) shall  be effected, subject to the condition precedent (*aufschiebende Bedingung*) of the Closing occurring, with  effect as of the Closing Date, by virtue of a separate assignment and  transfer agreement which was entered into by Kemira Germany and JV Europe on  the date hereof, a copy of which is attached hereto as **Annex 5.2.2**, (the “**Oberhausen IP Rights Transfer Agreement**”).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 5.2.3  |   | Section 4.2.1 shall apply *mutatis  mutandis* to the extent that the IP Rights or the Know-How are  subject to third party rights securing obligations of Kemira and its  Affiliates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 5.2.4  |   | With respect to IP Rights and  Know-How owned or licensed by either Kemira or Kemira Germany and their  respective Affiliates and existing on the Closing Date that are not transferred under  the Oberhausen IP Rights Transfer Agreement although such IP Rights and Know-How  predominantly relate to the Kemira TiO2 Pigments Business and were either  (i) predominantly used by or (ii) primarily belong to the Kemira  TiO2 Pigments Business, Kemira or Kemira Germany and their respective Affiliates,  as the case may be, on the one hand and JV Europe on the other hand will  arrange for a transfer of such IP Rights and Know-How to JV Europe by virtue  of a separate transfer agreement on terms and conditions that are  substantially the same as those set forth in the Oberhausen IP Rights  Transfer Agreement. To the extent such an IP Right or Know-How is only  licensed, the relevant parties shall, to the extent this is permitted under  the relevant license arrangement, agree on a transfer of such license or, if  a transfer is not possible, grant a sub-license as available under such  license, but with no less favourable terms and conditions as presently  granted under the respective license arrangement. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 5.2.5  |   | With respect to IP Rights and  Know-How owned or licensed by either Rockwood or Rockwood Germany and their  respective Affiliates and existing on the Closing Date that were not transferred  hereunder although the Parties agree that such IP Rights and Know-How  predominantly relate to the Rockwood TiO2 Pigments Business and were  predominantly used by the Rockwood TiO2 Pigments Business, section 5.2.4  shall apply *mutadis mutandis*.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 5.3    |   | Licenses and  Back-License                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 5.3.1  |   | To the extent IP Rights and  Know-How that are (i) owned or licensed by Kemira and as applicable  Kemira Germany and their respective Affiliates, (ii) existing on the  Closing Date, and (iii) required to conduct the Kemira TiO2 Pigments  Business substantially as conducted on the date of this Agreement were not  transferred under section 5.2 because they do not predominately relate to the  Kemira TiO2 Pigments Business, or are part of the                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

 

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|   |       | Nanotechnology IP Rights,  Kemira and as applicable Kemira Germany hereby,grants  subject to the condition precedent (*aufschiebende  Bedingung*) of the Closing occuring, with effect as of the Closing Date, on the  basis of a separate license agreement to be executed between Kemira and as  applicable Kemira Germany on the one hand and JV Europe on the other hand on  or prior to the Closing Date substantially in the form attached hereto as **Annex 5.3.1**, to JV Europe                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|--------|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |       | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | a perpetual, exclusive, transferable (in  whole or in part), fully paid-up license, with a limited right to grant  sublicenses, to use such IP Rights and Know-How for the production, sale and  marketing of (y) titanium dioxide pigments (including its applications)  as well as by-products (such as copperas and filter salts) and  (z) titanium dioxide-based products and services in the cosmetics industry,  as well as |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|   |       | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | a perpetual, non-exclusive, transferable  (in whole or in part), fully paid-up license, with a limited right to grant  sublicenses, to use the Nanotechnology IP Rights for the production, sale and  marketing of certain other than titanium dioxide based products and services  in the cosmetic industry. |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |       | This license is not sub-licensable except  to (i) JV Europe’s Affiliates (for as long as these are Affiliates) and  (ii) customers as a protective licence and not granted for the generation  of license fees. This license shall not extend to the Rockwood Water Business  .                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 5.3.2  |       | JV Europe and as applicable  Kemira TiO2 hereby grant, subject to the condition precedent (*aufschiebende Bedingung*) of the Closing  occurring, with  effect as of the Closing Date and shall cause its Affiliates to grant, on the  basis of a separate license agreement to be executed between JV Europe and  Kemira on or prior to the Closing Date substantially in the form attached  hereto as **Annex 5.3.2-1**, to  Kemira (and as required its Affiliates) a perpetual, transferable (in whole  or in part), fully paid-up license, with a limited right to grant  sub-licenses, to use the IP Rights and Know-How listed in **Annex 5.3.2-2** for Kemira’s or its  respective Affiliate’s business outside the TiO2 Pigments Business, provided  that such license shall (i) exclude the production, sale and marketing  of titanium dioxide pigments, and (ii) be****non-exclusive in relation to all other business fields. This licence  is not sub-licensable except to (i) Kemira’s Affiliates (for as long as  these are Affiliates) and (ii) customers as a protective license and not  granted for the generation of license fees, but to afford protection to such  third parties (e.g. customers that use products of the TiO2 Business). |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 6.     | ** ** | **SHAREHOLDING IN POHJOLAN VOIMA OY**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 6.1    |       | Kemira holds G6 shares (“**G6 Shares**”)  in Pohjolan Voima Oy (“**PVO**”),  the number of which corresponds to a total of approximately 59.2 per cent of  the outstanding and issued                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

 

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|   |       | G6 Shares. As a shareholder, Kemira has the right to purchase a  percentage corresponding to its G6 shareholding of the amount of electricity  generated by the power plant operated by PVO’s subsidiary Porin Prosessivoima  Oy (“**PPV**”) at favorable terms  and conditions.                                                                                                                                                                                                                                                                                   |
|--------|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 6.2    |       | Kemira shall, subject to the condition precedent (*aufschiebende Bedingung*) of Closing  occurring, use its rights as a shareholder of PVO and otherwise commercially  reasonable efforts to procure that Kemira TiO2 shall remain able to purchase  the electricity pursuant to section 6.1 through Kemira, at the terms  available to holders of G6 Shares in PVO from time to time, currently as set  out in the energy frame agreement and the energy supply agreement, dated 29  June 2007 between Kemira and Kemira TiO2 (the “**Energy Agreements**”). |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 6.3    |       | Kemira shall, subject to the condition  precedent (*aufschiebende Bedingung*)  of Closing occurring, further use commercially reasonable efforts to effect a  transfer of the G6 Shares to Kemira TiO2 as soon as reasonably practicable  and at no cost (other than the costs of the transfer such as transfer taxes  and stamp duty) to any JV Group Company and its direct or indirect  subsidiaries.                                                                                                                                                                          |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 6.4    |       | Kemira shall be responsible for all investments  into the power plant made or due until the end of 2007 in the amount of EUR  9,974,000.00 which will have been made in full by Kemira (directly or  indirectly) and that the corresponding amount shall be owed by Kemira TiO2 to  Kemira as part of the Existing Intercompany Receivables. Kemira shall not be  responsible for any direct and indirect investments required from 1  January 2008 onwards.                                                                                                                 |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 7.     | ** ** | **BUSINESS DOCUMENTS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 7.1    |       | Following  Closing, Kemira and Kemira Germany and Rockwood and Rockwood Germany shall  each provide to JV Europe the supplier and customer documents, business  correspondence and other business documents, in particular the accounting  documents that are necessary pursuant to commercial and Tax Law  (collectively, the “**Business Documents**”)  belonging or relating to or used by respectively the Kemira TiO2 Pigments  Business and the Rockwood TiO2 Pigments Business, except to the extent                                                             |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |       | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | a Business  Document is already available at one of the JV Group Companies or the  Oberhausen Business Unit; or |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
|   |       | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | where a  Party is bound by any law, ordinance, statute, rule, regulation, code,  judgment, decree, injunction, order, writ, ruling or other requirement of any  governmental authority or applicable law (collectively, the “**Law**”) to retain originals of the Business  Document, in which case complete and correct copies of such Business Document  shall be made available. |

 

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####  

| 7.2    |       | Each Party  may keep copies of Business Documents to the extent that these copies are  necessary for the performance of this Agreement, for accounting purposes or  as required by Law.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 8.     | ** ** | **TRANSITIONAL  SERVICES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 8.1    |       | On the Closing Date, Kemira TiO2 and Kemira will execute transitional  services agreements for the provision of the services and at the terms  described in **Annex 8.1-1**such  terms****including a fixed term  until 31 December 2008 and JV Europe, Sachtleben, Rockwood Germany  and Rockwood Germany will procure that Sachtleben Water will execute  transitional services agreements for the provision of the services in  accordance with section 8.2 such terms****including  a fixed term until 31 December 2008 (the “**Transitional Service Agreements**”). Should  Kemira TiO2 or JV Europe, Sachtleben or Sachtleben Water require any of such  transitional services after 31 December 2008, the Parties will  negotiate in good faith on the extension of this term. |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 8.2    |       | Should any services that (i) have been provided to Kemira TiO2,  JV Europe, Sachtleben, Finnish HoldCo or Sachtleben Water as of the date  hereof, and (ii) are required by Kemira TiO2, Sachtleben, JV Europe,  Finnish HoldCo and or Sachtleben Water after the Closing Date have been  omitted from the descriptions in Annex 8.1-1 or Annex 8.1-2, as the  case may be, Kemira and Rockwood Germany hereby agree, and Rockwood Germany  will procure that Sachtleben Water shall provide Kemira TiO2, Sachtleben, JV  Europe, Finnish HoldCo or Sachtleben Water, respectively, with such services                                                                                                                                                                                                         |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |       | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | to the same  extent and under terms and conditions not less favorable than the terms and  conditions under which such omitted services have been provided before the  date hereof; |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|   |       | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | subject to the same fixed terms as set forth in section 8.1, unless  these could be replaced under commercially reasonable conditions; and |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|   |       | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | in compliance with past practices, but at no higher cost than as  reflected in Annex 1.5 of the Master Agreement (the “**Financial Information and Valuation**”). |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |       | This obligation shall also be a direct obligation for the benefit of  Sachtleben Water (*Vertrag zugunsten  Dritter*) to the extent these services are provided by Rockwood  Germany, JV Europe or Sachtleben.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 8.3    |       | Kemira will  provide information technology services until the information technology  systems of Kemira TiO2 will be completely set up. The Parties will use  commercially                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

 

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|   |       | reasonable  efforts to complete the set-up until 31 December 2008. Kemira TiO2  shall bear any additional costs of Kemira, if such set up is not completed  prior to 1 January 2009. |
|--------|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |       |                                                                                                                                                                                                     |   |
| 9.     | ** ** | **WARRANTIES**                                                                                                                                                                                           |   |
|   |       |                                                                                                                                                                                                     |   |
| 9.1    |       | The Parties make the following  representations and warranties:                                                                                                                                          |   |
|   |       |                                                                                                                                                                                                     |   |
|   |       | (a)                                                                                                                                                                                                      | Kemira hereby represents and warrants to Rockwood Germany the  correctness and completeness of the statements under sections 9.2  through 9.16 and sections 12 and 13 with regard to Kemira TiO2, Kemira Inc.,  the Kemira TiO2 Shares, the Kemira Inc. Shares, the Maybrook Shares and the Kemira  Oberhausen Assets; |
|   |       |                                                                                                                                                                                                     |   |   |
|   |       | (b)                                                                                                                                                                                                      | Rockwood Germany hereby represents and warrants to Kemira the  correctness and completeness of the statements under sections 9.2  through 9.15 and sections 12 and 13 with regard to Sachtleben, the JV Europe  Share held by Rockwood Germany, the shares in Sachtleben held by Rockwood  Germany and the shares in Finnish HoldCo held by JV Europe; and |
|   |       |                                                                                                                                                                                                     |   |   |
|   |       | (c)                                                                                                                                                                                                      | Rockwood hereby represents and warrants to Kemira the correctness and  completeness of the statements under sections 9.2 through 9.15 and  sections 12 and 13 with regard to Sachtleben Corp and the Sachtleben Corp  Shares |
|   |       |                                                                                                                                                                                                     |   |
|   |       | (each a “**Warranty**” and  collectively, the “**Warranties**”),  provided that,                                                                                                     |
|   |       |                                                                                                                                                                                                     |   |
|   |       | (d)                                                                                                                                                                                                      | (i) | the Warranties shall in each case be made by means of an independent  guarantee promise (*selbständiges  Garantieversprechen*) as defined in section 311 para 1 of  the German Civil Code (*BGB*),  which – according to the Parties’ express intention – constitutes a promise  that is made from the start only with the restricted content according to  sections 9 through 13; |
|   |       |                                                                                                                                                                                                     |   |   |
|   |       |                                                                                                                                                                                                     | (ii) | references  to the “**Business**” refers to  (x) Kemira TiO2, the Kemira TiO2 Pigments Business and the Kemira  Oberhausen Assets to the extent the Warranty or indemnity is given by Kemira  and (y) the Rockwood TiO2 Pigments Business (excluding the Rockwood  Water Business) as operated by JV Europe to the extent the Warranty or  indemnity is given by Rockwood Germany and (z) the Rockwood TiO2  Pigments Business as operated by Sachtleben Corp to the extent the Warranty  or indemnity is given by Rockwood; |
|   |       |                                                                                                                                                                                                     |   |   |
|   |       |                                                                                                                                                                                                     | (iii) | references  to the “**Transferred****Company**” refer to (x) Kemira TiO2  and Kemira Inc. to the extent the Warranty or indemnity is given by Kemira, (y) |
|        |            |                                                                                                                                                                                                          |  |  |  |  |

 

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|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | Sachtleben excluding the Rockwood Water Business and, solely for the  purposes of section 9.2, JV Europe and Finnish HoldCo to the extent the  Warranty or indemnity is given by Rockwood Germany and (z) Sachtleben  Corp and, solely for the purposes of section 9.2, JV US to the extent  the Warranty or indemnity is given by Rockwood;                                                                                                                                                                                                                                                          |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | (iv)   | references to a “**US****Transferred****Company**” refer to (x) Kemira Inc. to the extent the  Warranty or indemnity is given by Kemira and (y) Sachtleben Corp to the  extent the Warranty or indemnity is given by Rockwood;                                                                                                                                                                                                                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | (v)    | references to a “**Warranting Party**”  refer to (x) Kemira to the extent the Warranty or indemnity is given by  Kemira, (y) Rockwood Germany to the extent the Warranty or indemnity is  given by Rockwood Germany and (z) Rockwood to the extent the Warranty or  indemnity is given by Rockwood. The Warranties and indemnities are given  solely between Rockwood Germany and Rockwood on the one hand and Kemira on  the other hand and do not constitute an agreement for the benefit of a third  party (*Vertrag zu Gunsten Dritter*)  unless otherwise expressly set out below; and |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | (vi)   | the Warranties and indemnities are given as of the date of this  Agreement and as of the Closing Date, except where the Warranty (x) is  given to “best knowledge” in the meaning of section 10.2, in which case  such Warranty shall be given as of the date of this Agreement and (y) is  expressly made with reference to a specific point in time, in which case the  Warranty is given as per such point in time.                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 9.2    |   | Status, Title and Authority                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 9.2.1  |   | The execution of this Agreement and the consummation of the  Transaction (i) have been duly authorized by all necessary corporate  actions on part of the relevant Transferred Company and (ii) will not  violate or conflict with the constitutional documents of the relevant  Transferred Company or any permit, license or order of a court or regulatory  body.                                                                                                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 9.2.2  |   | The Transferred Company (i) is duly organized, validly existing  and (where such concept applies) in good standing under the Laws of the  jurisdiction in which it was organized, (ii) is qualified to do business  and (where such concept applies) in good standing in each jurisdiction where  the conduct of its business requires it to be so qualified and  (iii) holds all requisite corporate power and authority to own, operate  or lease the properties that it purports to own, operate or lease and to  carry on its business operations as they are now being conducted. |

 

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| 9.2.3  |   | The Warranting Party holds the sole, full and unencumbered ownership  in the shares in the Transferred Company and in the Business and has the full  power and authority to sell and transfer all rights related to the Business.  The Warranting Party is free to dispose of all rights related to the Business  without the consent of third parties or has previously obtained such consent.  There exist no rights *in rem* or  any other third-party rights in or with regard to the Business, with the exception  of retention of title rights granted to suppliers (*Eigentumsvorbehalte zugunsten von Lieferanten*) customary  in the industry of the Business and made in the ordinary course of business. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| 9.2.4  |   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | The Kemira TiO2 Shares, Kemira Inc. Shares, Maybrook Shares,  Sachtleben Shares, JV Europe Share, the JV US Interests and the Sachtleben  Corp Shares, as the case may be, have or has been legally and validly issued  and fully paid up and |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | (i) | with respect  to the Kemira TiO2 Shares, represent 100 per cent of the issued and  outstanding shares in Kemira TiO2; |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | (ii) | with respect  to the Kemira Inc. Shares, represent 100 per cent of the issued and  outstanding shares in Kemira Inc.; |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | (iii) | with respect  to the Maybrook Shares, represent 100 per cent of the issued and outstanding  shares in Maybrook; |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | (iv) | with respect  to the Sachtleben Shares represent 100 per cent of the issued and  outstanding shares in Sachtleben; |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | (v) | with respect  to the JV Europe Share, represents 100 per cent of the issued and outstanding  shares in JV Europe; |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | (vi) | with respect  to the JV US Interests, represent 100 per cent of the issued and outstanding  limited liability interests in JV US; |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | (vii) | with respect  to the Sachtleben Corp Shares, represent 100 per cent of the issued and  outstanding shares in Sachtleben Corp; and |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | (viii) | with respect  to the shares in Finnish HoldCo held by JV Europe represent 100 per cent of  the issued and outstanding shares in Finnish HoldCo. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |
|   |   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | All of |   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | (i) | the Kemira  TiO2 Shares and the Kemira Inc. Shares are owned by Kemira; |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | (ii) | the Maybrook  Shares are owned by Kemira Inc.; |

 

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|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | (iii)                                                                                                                                                                                                                                                                                                                                                                         | the  Sachtleben Shares are owned by Rockwood Germany;                                                                                         |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | (iv)                                                                                                                                                                                                                                                                                                                                                                          | the  Sachtleben Corp Shares are owned by Rockwood;                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | (v)                                                                                                                                                                                                                                                                                                                                                                           | the JV  Europe Share is owned by Rockwood Germany;                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | (vi)                                                                                                                                                                                                                                                                                                                                                                          | the shares  in Finnish HoldCo are owned by JV Europe; and                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | (vii)                                                                                                                                                                                                                                                                                                                                                                         | the JV US  Interests are owned by Rockwood;                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | and in each case will be free and clear of any security interests,  pledges, liens, encumbrances, options or similar rights or interests as of  the Closing Date. Contributions in kind have full intrinsic value. No hidden contributions  in kind have been made and contributions have not been repaid. There are no  outstanding duties to make additional contributions. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                          |
|   |   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | This section  9.2.4 is warranted by                                                                                                                                                                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | (i)                                                                                                                                                                                                                                                                                                                                                                           | Kemira with  respect to the Kemira TiO2 Shares, the Kemira Inc. Shares and the Maybrook  Shares only;                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | (ii)                                                                                                                                                                                                                                                                                                                                                                          | by Rockwood  Germany with respect to the JV Europe Share, the Sachtleben Shares and the  shares in Finnish HoldCo held by JV Europe only; and |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | (iii)                                                                                                                                                                                                                                                                                                                                                                         | by Rockwood  with respect to the Sachtleben Corp. Shares and the JV US Interests only.                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                          |
| 9.2.5  |   | There is no security, option, warrant, right, call, subscription  agreement, commitment or understanding of any nature whatsoever, fixed or  contingent, that directly or indirectly (x) calls for the issuance,  redemption, sale, pledge or other disposition of any shares of capital stock  or other equity interests of the Transferred Company or any securities  convertible into, or other rights to acquire, any shares of capital stock or  other equity interests in the Transferred Company or (y) obligates the  Transferred Company to grant, offer or enter into any of the foregoing. No  shareholder, member or other person or entity holding an equity interest of  the Transferred Company or any other person or entity is entitled to any  preemptive or similar rights to subscribe for shares of capital stock or  other equity interests of the Transferred Company. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                          |
| 9.2.6  |   | There exist no participations, including silent participations or  sub-participations, in the Transferred Company other than those listed in **Annex 9.2.6**, and there exist no  conditional obligations or binding offers concerning the creation of such  participations. There are no                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

 

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|   |   | trust agreements or similar agreements in relation to the Business,  nor are there obligations in relation to shareholders or similar rights (e.g.  a voting trust or participation in profits).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 9.2.7  |   | The Transferred Company does not hold any interests – including in  the form of a silent participation or sub-participation – in any other  enterprises and is also not obliged to acquire any such interests, except  (i) as specified in **Annex 9.2.7**  or (ii) in the case of Kemira Inc., the Maybrook Shares or (iii) in  the case of JV Europe, the shares in Finnish HoldCo.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 9.2.8  |   | On the day following the Closing Date, the  Transferred Company is not subject to any control agreement, profit and loss  transfer agreement or other enterprise agreement as defined in  sections 291 *et seq.* of  the German Stock Corporation Act (*AktG*).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 9.2.9  |   | The Transferred Company is neither over-indebted nor insolvent under  applicable Laws and no bankruptcy, composition, insolvency or winding-up  proceedings have been commenced against the assets of the Transferred  Company, nor has a petition been filed for the commencement of bankruptcy,  composition, insolvency or winding-up proceedings with respect to the  Transferred Company and/or its assets, nor are there any reasons to commence  or file for such proceedings, and the Transferred Company have not entered  into debt settlement arrangements in financial distress with third parties.  There are no circumstances that could justify the avoidance of the transfer  of the Business pursuant to the provisions of the German Insolvency Code (*Insolvenzordnung*) and/or the German  Avoidance Act (*Anfechtungsgesetz*).                                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 9.2.10 |   | Kemira and Rockwood, as applicable, has and shall transfer to JV US  on the Closing Date, good, valid and marketable title to the Kemira Inc.  Shares or the Sachtleben Corp Shares, as applicable, free and clear of any  security interests, pledges, liens, encumbrances, options or similar rights  or interests.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 9.3    |   | Accounting, Annual Accounts and Profit Distributions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 9.3.1  |   | The Transferred Company’s audited annual accounts for the financial  years 2005 through 2007 (the “**Audited  Annual Accounts**”) have been prepared in compliance with the  applicable accounting principles: with respect to (i) Kemira TiO2, the  International Financial Reporting Standard (IFRS); (ii) the Oberhausen  Business Unit and Sachtleben, the generally accepted accounting principles in  Germany; and (iii) the US Companies, generally accepted accounting  principles in the United States as in effect from time to time (the “**Accounting Principles**”), in each case as  consistently applied by the Transferred Company; provided that, if there is a  conflict between such practices and the relevant generally accepted  accounting principles, the relevant generally accepted accounting principles  shall prevail. The Audited Annual Accounts are true, complete and correct in  all material respects and truly and correctly reflect in all material  respects the results of the |

 

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|   |   | Transferred Company’s operations, financial condition and assets and  liabilities as at 31 December 2007 (the “**Balance Sheet Date**”).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 9.3.2  |   | The provisions made for any liabilities on the Audited Annual  Accounts are, according to the Accounting Principles, sufficient and  adequate.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 9.3.3  |   | There are no resolutions on the appropriation of profits except for  (i) those that have previously been implemented by distribution and/or  (ii) those contemplated by and made in connection with the execution of  this Agreement or the Master Agreement, in particular the Kemira Dividend. No  provisional or hidden distributions of profits or other payments to  shareholders and/or members of corporate organs have been made. No hidden  reserves have been dissolved or withdrawn, except in each case in the ordinary  course of business consistent with past practice.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 9.4    |   | Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 9.4.1  |   | With the exception of retention of title rights granted to suppliers  (*Eigentumsvorbehalte zugunsten von  Lieferanten*) customary in the industry, the Transferred Company  and, with regard to the Kemira Oberhausen Assets, Kemira and/or Kemira’s  Affiliate, as applicable, has full and unencumbered title, or is otherwise  entitled to use, all assets whether tangible or intangible, that are of more  than minor importance to the Business as it is currently conducted (each an “**Asset**” and, collectively, the “**Assets**”).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 9.4.2  |   | No Asset is subject to any security interest, any charge or any other  encumbrance of any third party (including, as applicable, for the benefit of  Rockwood Germany or Kemira), except for retention of title rights customary  in the industry or (i) liens for Taxes, assessments and other  governmental charges that are not due and payable and that may thereafter be  paid without penalty, (ii) the title and other interests of a lessor  under a capital or operating lease or of a licensor under a license or  royalty agreement, (iii) carriers’, warehousemen’s, mechanics’,  materialmen’s, repairmen’s or other similar liens arising in the ordinary  course of business or (iv) security interests, charges and other  encumbrances as set forth in **Annex 9.4.2-1**  (the “**Permitted Liens**”). None of  the Transferred Company, Kemira or Kemira’s Affiliate, as applicable, is  obligated to grant any such security interests, charges, encumbrances or  similar rights, except as set forth in **Annex  9.4.2-2**; in particular, except for Permitted Liens, no third party  has any claims to such security interests, charges or encumbrances and the  power of the Transferred Company, Kemira and Kemira’s Affiliate, as applicable,  to dispose of Assets is not limited in any way. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 9.4.3  |   | Unless they  are of minor importance to the Business, the Assets (i) are in good  working order ordinary wear and tear excepted, (ii) have been maintained  and repaired on a regular                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

 

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|   |       | basis and,  (iii) if taken together, are sufficient to conduct the Business as it  was conducted before the date of this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|--------|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 9.4.4  |       | As of the Closing Date, no US Company shall have any assets,  obligations, liabilities or commitments other than assets, obligations,  liabilities and commitments relating to or arising from the conduct of the  Business.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 9.5    |       | Real Estate                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 9.5.1  |       | The Transferred Company is the owner of all of the real estate  specified in **Annex 9.5.1-1**  (the “**Owned Properties**”) and  uses, in connection with the Business, the real estate specified in **Annex 9.5.1-2** (the “**Used Properties**”, together with the Owned  Properties, each a “**Property**”  and collectively, the “**Properties**”).  Apart from the Owned Properties, the Transferred Company does not own any  real estate or rights equivalent to real estate (*grundstücksgleiche Rechte*), nor is the Transferred Company  obliged to acquire any further real estate or rights equivalent to real  estate (*grundstücksgleiche Rechte*).                                                                                                                                             |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 9.5.2  |       | The Owned Properties are not subject to any security interest, any  charge or any other third-party encumbrance (including, as applicable, for  the benefit of Rockwood Germany or Kemira), except Permitted Liens or as set  forth in **Annex 9.5.2-1**. The  Transferred Company is not obligated to grant any such security interests,  charges, encumbrances or similar rights, except as set forth in **Annex 9.5.2-2**; in particular, there  are no security interests, charges or other encumbrances that have not yet  been registered in the relevant land register or in the relevant register of  public charges, no third party has any claims to such security interests,  charges or encumbrances, and the Transferred Company’s power to dispose of  the Owned Properties is not limited in any way, except, in each case, for  Permitted Liens. |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 9.5.3  | ** ** | **Annex 9.5.3-1**contains  a true, accurate and complete list of all particulars (including address,  name of lessor, name of lessee, size, annual amount of lease payments, term  and termination) of all agreements relating to Used Properties (each a “**Lease**” and collectively, the “**Leases**”). No party to any Lease has  committed a material violation of such Lease that would give the other party  the right to prematurely terminate such Lease, and no lessor under any Lease  has given notice of termination regarding such Lease. None of the Transferred  Company, the Warranting Party or the Warranting Party’s Affiliates, as  applicable, has received any notice that it is in default with regard to  payments or any other obligations owed under any Lease except as described in  **Annex 9.5.3-2**.    |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 9.5.4  |       | All development and construction carried out by or on behalf of the  Business in relation to each Property has been done in accordance with all  applicable safety Laws except where such non-compliance would not have a  material adverse impact on the Business. The current use of each Property  conforms to all applicable safety Laws, except where such                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

 

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|   |       | non-compliance would not have a material adverse impact on the  Business. The construction of all buildings and other premises on the  Properties has been approved by the relevant authorities and such approvals  have not been revoked and are either unconditional or were subject only to  conditions that have been satisfied such that nothing further remains to be  done thereunder except where such revocation and/or non-fulfillment of such  condition would not have a material adverse impact on the Business. Any such  failure, non-compliance, revocation or non-fulfillment is considered to have  a material impact on the Business, if it either (i) could potentially  lead to any restriction, closure or suspension of the Business or  (ii) capital expenditures above EUR 500,000.00. |
|--------|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 9.6    |       | Intellectual Property Rights                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 9.6.1  |       | The Transferred Company is entitled to use the IP Rights and Know-How that are material for carrying out the  Business substantially in the same manner as conducted by the Transferred Company of the  date hereof (the “**Material IP Rights**”).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 9.6.2  | ** ** | **Annex 9.6.2**  contains a complete and correct list of all registered IP Rights or pending  applications thereof (the “**Registered****IP****Rights**”) of the Transferred Company and, with regard to  Kemira’s TiO2 Pigments Business, the Oberhausen IP Rights. Annex 9.6.2  correctly indicates the nature, the registration or application number, the  application date, the registered owner or applicant of the Registered IP  Rights and the jurisdictions in which such Registered IP Rights have been  registered or applied for.                                                                                                                                                                                                                                                   |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 9.6.3  |       | Except for the IP Rights listed in Annexes 5.1.3 and  5.2.1(a) Kemira Germany does not own or has owned in the year prior to  the date hereof any patents (and has not applied for any) that were developed  by the Oberhausen Business Unit and that are material for Kemira’s TiO2  Business.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 9.6.4  |       | Except as specified in **Annex 9.6.4**,  no Registered IP Rights or Material IP Right are licensed to any third party.  Annex 9.6.4 contains a list of all contracts, in particular license  agreements, with regard to the Registered IP Rights that is complete and  correct in all material respects.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 9.6.5  |       | Except as specified in **Annex 9.6.5**,  the Registered IP Rights are not subject to any pending or, to the Warranting  Party’s best knowledge, threatened proceedings for opposition, cancellation,  revocation or limitation. The payment of fees due and all other measures  necessary to maintain the Registered Material IP Rights have been undertaken  completely and in good time.                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 9.6.6  |       | To the Warranting Party’s best knowledge, the activities of the  Business and the IP Rights of the Business do not infringe any third-party IP  Rights or other third-party rights.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

 

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| 9.6.7  |   | To the Warranting Party’s best knowledge, all compensation and fees  for employee inventions of any of the employees of the Business have been  paid when due and, if not mandatory under applicable Law, such employees of  the Business have validly assigned or agreed to assign any rights to their  inventions to the Business, except as otherwise described in **Annex 9.6.7**.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 9.7    |   | Business Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 9.7.1  |   | The Business does not infringe any third-party rights under public or  civil law, except where such infringement cannot be expected to have a  material effect on the operation of the business.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 9.7.2  |   | Except as set out in **Annex 9.7.2**,  no claims for damages based on defective products or co-products (including,  but not limited to, filter salt and copperas) (i) with a value of more  than EUR 250,000.00 in an individual case or (ii) for serial  defects (*Serienschaden*) have  been asserted or threatened against the Business during the five years  immediately preceding the date of this Agreement, nor have any preliminary  investigations under criminal or public Law been instituted against the  Business or the employees, executives and/or members of corporate bodies of  the Business in connection with defective products or serial defects (*Serienschaden*) and there is no  indication that any such claims may be asserted or investigations instituted.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 9.8    |   | Governmental  Authorizations and Compliance with Laws                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 9.8.1  |   | Other than environmental permits, licenses, consents, concessions,  approvals and other public law legal positions, which are solely subject to  section 13.2, the Business holds all permits, licenses, consents,  concessions, approvals and other public law legal positions required under  applicable Laws for the operation the Business (collectively, the “**Permits**”) and the Business is conducted  in accordance with the Permits, including any ancillary provisions, and in  compliance with all applicable Laws, in particular provisions on employment  safety and environmental protection, unless the failure to hold the Permits  or the non-compliance with the Permits would not have a material impact on  the Business and would not result in expenditures or liabilities of more than  EUR 250,000.00. There is no indication that the Permits will expire or  be withdrawn, revoked, restricted or altered (in particular by imposition of  obligations) or otherwise negatively affected by the consummation of the  Transaction. There are no unsettled complaints by the competent public  authorities or employers’ liability insurance associations with an amount in  dispute above EUR 100,000.00. In addition, other third parties – in  particular neighbors – have not lodged complaints or asserted claims in  relation to the Business operations or parts thereof. |

 

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| 9.8.2  |       | The Transferred Company maintains all material Permits that belong to  the Business from an economic point of view and are necessary or exist for  the operation of the Business. The consummation of the Transaction will not  result in the cancellation, termination, revocation, modification,  suspension, restriction, limitation of or other change to any such Permits  that will have a material impact on the operations of the Business.                                                                                                                |
|--------|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 9.8.3  |       | The Business is currently and has in the past in all material  respects been conducted in compliance with applicable Laws.                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 9.9    |       | Subsidies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 9.9.1  | ** ** | **Annex 9.9.1**contains  a true and complete list of all public grants and subsidies applied or,  received and used by the Transferred Company that provide for any ongoing  obligation of the Company, including site or employment guarantees.                                                                                                                                                                                                                                                                                                              |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 9.9.2  |       | The Transferred Company has applied for, received and used public  grants and subsidies only in accordance with the applicable legal provisions  and in compliance with the orders, conditions and obligations of any relevant  public authority. Neither the consummation of the Transaction nor any other  circumstances currently in existence require the repayment or will lead to  the acceleration of the repayment of all or part of such grants or subsidies.                                                                                             |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 9.10   |       | Personnel Matters                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 9.10.1 | ** ** | **Annex 9.10.1**  contains a list of all current service contracts of the Transferred Company’s  managing directors or officers, as applicable, and members of the Transferred  Company’s supervisory board or board of directors, as applicable, in their  function as such and all additional agreements concluded with or offered to  them, and all other benefits owed, paid or offered to them by such  Transferred Company, including, but not limited to, profit participations,  bonuses, option rights, premiums and profit-based bonuses. |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 9.10.2 | ** ** | **Annex 9.10.2**  contains a list of all employees of the Transferred Company (a) with an  annual salary of more than EUR 100,000.00 (including bonuses and  performance-based payments) or (b) who are domiciled (i) outside  Germany with respect to the Rockwood TiO2 Pigments Business and  (ii) outside Finland with respect to the Kemira TiO2 Pigments Business  and the Kemira Oberhausen Assets.                                                                                                                                 |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 9.10.3 | ** ** | **Annex 9.10.3-1**  contains a true and complete list of all employees of the Business that were  laid off during the last twelve months and which the Business may be required  under applicable Law to rehire in case any new employees are hired by the  Business. Except as specified in **Annex 9.10.3-2**,  the Business has no liabilities towards retired members of corporate bodies  or laid-off employees.                                                                                                                                    |

 

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| 9.10.4  |       | Except as specified in **Annex 9.10.4**,  there are no agreements or promises regarding special rights (in particular  special termination rights, bonus payments or other benefits) in connection  with, arising from or triggered by a change of shareholders.                                                                                                                                                                                                                                                                           |
|---------|------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 9.10.5  |       | The Business is not a member of any employers’ association and is not  subject to any collective bargaining agreements, including any collective  bargaining agreements that may cover employees of any US Transferred Company  and collective bargaining agreements declared to be generally binding, except  as specified in **Annex 9.10.5**.                                                                                                                                                                                      |
|    |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 9.10.6  | ** ** | **Annex 9.10.6-1**  contains a list of all shop agreements that are applied at the Business.  Except for the reconcilements of interests (*Interessenausgleiche*)  and the social plans (*Sozialpläne*)  listed in **Annex 9.10.6-2**,  there are no agreements, promises or other obligations of the Business to be  fulfilled for past, current or future restructurings or other operational  changes.                                                                                                                        |
|    |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 9.10.7  | ** ** | **Annex 9.10.7**  contains a list of all agreements and promises at the Business regarding  benefits from the company pension schemes. All agreements and promises comply  with applicable Law.                                                                                                                                                                                                                                                                                                                                            |
|    |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 9.10.8  | ** ** | **Annex 9.10.8**  contains a list of all obligations of the Business based on customary  business practice (*betriebliche Übung*).                                                                                                                                                                                                                                                                                                                                                                                                    |
|    |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 9.10.9  | ** ** | **Annex 9.10.9**  contains a list of all collective and individual promises, agreements, plans,  schemes, regulations or other arrangements or understandings that restrict  the Business’ right of termination beyond the statutory regulations (e.g.  regulations on protection against rationalization).                                                                                                                                                                                                                           |
|    |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 9.10.10 | ** ** | **Annex 9.10.10**  contains a complete list of all stock options granted by the Business  including the names of the persons entitled to, the number of and the value  of such stock options at the time of their issuance.                                                                                                                                                                                                                                                                                                                |
|    |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 9.10.11 |       | To the extent required by applicable Law and the Accounting  Principles, appropriate provisions have been made in the Audited Annual  Accounts, for the full amount of present and future liabilities in respect of  pension undertakings to be paid to current or former managing directors, or  to officers or other employees of the Business. All statutory contributions  in respect of pension undertakings to current or former managing directors,  or to officers or other employees engaged in the Business have been made when  due. |
|    |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 9.10.12 |       | The Business is not a party – be it as plaintiff, defendant or  otherwise – to any court, arbitration or public authority proceedings  involving employees, managing directors, works councils, trade unions or  other employee representatives and, to the best knowledge of the                                                                                                                                                                                                                                                     |

 

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|    |       | Warranting Party, the US Transferred Company is in compliance in all  material respects with all applicable US federal, state and local Laws  respecting employment, occupational safety and health, employment practices,  terms and conditions of employment and wages and hours of employment with  respect to the current and former employees of the US Transferred Companies,  except as specified in **Annex 9.10.12**  or where such non-compliance would not have a material adverse impact on the  relevant US Transferred Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|---------|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 9.10.13 | ** ** | **Annex 9.10.13**contains  a complete list of all “employee benefit plans” within the meaning of section  3(3) of the U.S. Employee Retirement Security Act of 1974, as amended (“**ERISA**”), all other employee benefit  plans, arrangements or policies (including, without limitation, any equity,  deferred compensation, pension, retirement, savings, profit sharing,  incentive, bonus, health, life insurance, cafeteria, flexible spending,  dependent care, fringe benefit, vacation, holiday, disability, unemployment,  severance, or employee loan arrangement or policy), all employment,  indemnification, consulting, retention, severance or change of control  agreements, in each case, that is sponsored or maintained by the US  Transferred Company or to which the US Transferred Company or any of its  respective Affiliates contributes or is required to contribute on behalf of  current or former employees, consultants or directors of the US Transferred  Company or their beneficiaries or dependents, whether or not written (“**US Benefit Plans**”). Neither the US  Transferred Company nor any of its Affiliates has communicated to present or  former employees of the US Transferred Company or formally adopted or  authorized any additional US Benefit Plan or any material change in or  termination of any existing US Benefit Plan. Except as would not be  reasonably expected to have a material adverse effect on the US Transferred  Company, each US Benefit Plan has been construed, operated and administered  in accordance with its terms and all applicable Laws. Each US Benefit Plan  intended to be Tax-qualified under section 401(a) of the of the U.S.  Internal Revenue Code of 1986, as amended (the “**IRC**”), has received a favorable determination letter from  the U.S. Internal Revenue Service as to its Tax-qualified status under the  IRC and nothing has occurred since the date of such favorable determination  letter that would adversely affect the qualified status of such plan. |
|    |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 9.10.14 |       | No US Benefit Plan is a pension plan subject to Title IV of ERISA, or  a multiemployer plan within the meaning of section 3(37) of ERISA, and the US  Transferred Company does not have any outstanding liabilities with respect to  any such plan previously maintained or contributed to by such US Transferred  Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|    |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 9.10.15 |       | Except as would not be reasonably expected to have a material adverse  effect on the US Transferred company, there are no actions, suits, or claims  (other than routine claims for benefits in the ordinary course) with respect  to any US Benefit Plan that could give rise to a material liability, or to  the best knowledge of the Warranting Party, threatened, and the                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

 

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|    |       | Warranting Party has no knowledge of any facts which could give rise  to any such actions, suits or claims (other than routine claims for  benefits). No US Benefit Plan is currently under governmental investigation  or audit and, to the best knowledge of the Warranting Party, no such  investigation or audit is contemplated or under consideration.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|---------|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 9.10.16 |       | No event has occurred and no condition exists with respect to any US  Benefit Plan which could reasonably be expected to subject the US Transferred  Company, or any of its employees, agents, directors or affiliates, directly  or indirectly (through an indemnification agreement or otherwise), to a  material liability for breach of fiduciary duty, a “prohibited transaction”,  within the meaning of section 406 of ERISA or section 4975 of the IRC, or a  material tax, penalty or fine under section 502 or 4071 of ERISA or Subtitle  D, Chapter 43 of the IRC.                                                                                                                                                                                                                                                                                                              |
|    |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 9.10.17 |       | No event has occurred and no condition exists with respect to any  employee benefit plan or arrangement currently or previously maintained or  contributed to by any Affiliate of the US Transferred Company that could  subject the US Transferred Company or any of its employees, directly or  indirectly (through indemnification or otherwise), to material liability,  including, without limitation, liability under section 412, 4971 or 4980B of  the IRC or Title IV of ERISA.                                                                                                                                                                                                                                                                                                                                                                                                             |
|    |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 9.10.18 |       | Except as set forth in **Annex  9.10.18**, neither the execution of this Agreement nor the  consummation of the Transaction will (i) increase the amount of benefits  otherwise payable under any US Benefit Plan, (ii) result in the  acceleration of the time of payment, exercisability, funding or vesting of  any such benefits, or (iii) result in any payment (whether severance pay  or otherwise) becoming due to, or with respect to, any current or former  employee or director of the US Transferred Company. No payment or series of  payments that would constitute a “parachute payment” (within the meaning of  section 280G of the IRC) has been made or will be made by the US Transferred  Company, directly or indirectly, to any employee in connection with the  execution of this Agreement or as a result of the consummation of the  Transaction. |
|    |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 9.11    |       | Material Agreements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|    |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 9.11.1  | ** ** | **Annex 9.11.1**  contains a list of all Material Agreements. “**Material Agreements**” shall mean any of the following written  or oral agreements, contracts and arrangements, in each case, as amended from  time to time:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|    |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|    |       | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | agreements for joint ventures, strategic alliances; |
|    |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
|    |       | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | credit agreements with the Transferred Company as a lender or  borrower; |

 

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|   |   | (c)    | loans, guarantees, suretyships, letters of comfort, performance or  warranty bonds and similar instruments in each case (i) issued by any  third party, including, without limitation, the Warranting Party or the  Warranting Party’s Affiliates, or the Transferred Company, to secure any  indebtedness or other obligation of the Business or (ii) issued by the  Transferred Company to secure any indebtedness or other obligation of a third  party including, without limitations, the Warranting Party or the Warranting  Party’s Affiliates; |
|--------|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |   | (d)    | forward sales or purchases, futures, financial swaps, options and  other financial derivates and combinations thereof;                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |   | (e)    | all intra-group agreements not at arm’s length and not in the  ordinary course of business;                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |   | (f)    | non-compete covenants or other restrictive agreements entered into by  the Transferred Company that may restrict the Transferred Company from  operating its business as before the date of this Agreement in line with the  Transferred Company’s business plan or restrict the ability of the  Transferred Company to compete in any line of business;                                                                                                                                                                                                              |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |   | (g)    | any agreement relating to any merger, acquisition or disposal,  amalgamation or consolidation or reorganization involving the Business during  the last two years or older if there are ongoing contractual obligations;                                                                                                                                                                                                                                                                                                                                                   |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |   | (h)    | any financial lease agreement entered into by the Transferred Company  involving an annual lease in excess of EUR 250,000.00;                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |   | (i)    | any factoring agreement or any other sale of receivable entered into  by the Transferred Company;                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |   | (j)    | agreements to sell or otherwise dispose of any fixed assets with a fair  market value or a replacement value in excess of EUR 250,000.00;                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |   | (k)    | Energy Agreements and agreements with suppliers or customers whose  business with the Business exceeded an aggregate volume of  EUR 200,000.00 in the year 2007 or are expected or budgeted to exceed  such volume in 2008;                                                                                                                                                                                                                                                                                                                                           |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |   | (l)    | agreements containing minimum purchase requirements in excess of  EUR 2,000,000.00 per year; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

 

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|   |       | (m)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | rental,  lease and other agreements concerning the use of Assets in connection with  the Business and involving an annual financial burden of more than  EUR 100,000.00 in each individual case. |
|--------|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 9.11.2 |       | All of the Material Agreements are in full force and effect and no  notices of termination have been given or received in writing or, to the  Warranting Party’s best knowledge, orally, and to the Warranting Party’s best  knowledge, the Business is not in material default under any Material  Agreement and no notices of termination have been given or received.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 9.11.3 |       | There are no Material Agreements that could reasonably be expected to  impede the consummation of the Transaction. No loan or other indebtedness  will be repayable upon the consummation of the Transaction.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 9.11.4 |       | All Material Agreements entered into between the Business and the  Warranting Party or any Affiliate of the Warranting Party have been entered  into at arm’s length.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 9.12   |       | Suppliers and Customers                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |       | **Annex 9.12**  contains a list of the Business’ ten largest suppliers and of the ten largest  customers in the financial year 2007 and a list of all those suppliers of the  Business for whose goods and services no alternative source of supply at  comparable conditions exists. To the Warranting Party’s best knowledge, there  is no reason to assume that any of these suppliers or customers will  substantially reduce the extent of their business with the Business.                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 9.13   |       | Insurance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 9.13.1 | ** ** | **Annex 9.13.1-1**  contains a list of all insurance policies used in, taken out by, relating to  or for the benefit of the Business (each an “**Insurance Policy**” and, collectively, the “**Insurance Policies**”), which (i) are  maintained at group level or (ii) relate to property damages, business  liabilities and environmental liabilities, in each case including the name of  the insurance provider, the name of the insured, the insured risk, the policy  number, the date of issuance, the term, the maximum amount of coverage, the  amount of any deductible and to the extent taken out by the respective  Transferred Company and not maintained at group level, the annual premium.**Annex 9.13.1-2** contains a list of  all Insurance Policies where coverage will terminate or reduce upon or as a  result of the consummation of the Transaction. |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 9.13.2 |       | The Insurance Policies provide coverage that is (i) customary in  the Business’ industry both with respect to scope and nature and  (ii) adequate under any contractual or mandatory insurance requirement  applicable to the Business. Each Insurance Policy is in full force and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

 

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|   |       | effect and was in full force and effect during the periods of time  that such Insurance Policy was purported to be in effect, is valid, existing  and binding and all premiums due thereon have been timely paid (subject to  changes made in the ordinary course of business that did not materially  reduce the coverage thereunder). The Business has not received any notices of  termination or cancellation with respect to any Insurance Policy and the  consummation of the Transaction will not result in the termination of any  Insurance Policy, except as described in **Annex  9.13.2**.                                  |
|--------|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 9.13.3 | ** ** | **Annex 9.13.3**  sets forth all outstanding claims made under the Insurance Policies. To the  Warranting Party’s best knowledge, there are no circumstances or facts that  would entitle the Business to make any additional claims against any  insurance provider under any Insurance Policy in excess of EUR 100,000.00.                                                                                                                                                                                                                                                                                                  |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 9.14   |       | Legal  Disputes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |       | The Transferred Company is not a party – as plaintiff, defendant or  otherwise – to any court, arbitration or public authority proceedings  involving a value in dispute of more than EUR 100,000.00 in an  individual case, except as specified in **Annex 9.14**.  The aggregate amount of the values in dispute in all proceedings to which the  Transferred Company is a party and which are not listed in Annex 9.14 does  not exceed EUR 250,000.00. There is no indication that any additional  court, arbitration or public authority proceedings will be commenced after  the date of this Agreement. |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 9.15   |       | No Bribery or Corruption, Compliance with U.S. Sanctions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 9.15.1 |       | To the Warranting Party’s best knowledge, during the 10 years  immediately preceding the date of this Agreement, no employee of the  Transferred Company nor any third party acting on behalf of the Transferred  Company has, in violation of the applicable Law:                                                                                                                                                                                                                                                                                                                                                                 |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |       | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | offered,  promised or granted, directly or indirectly, any benefit (e.g. bribes,  payments in kind or kick-backs) to any person (e.g. a natural or legal person  or his/her/its representative(s)), in return for obtaining unfair favorable  treatment vis-à-vis competitors in the supply of goods or commercial  services, or, to the best of the Warranting Party’s best knowledge, demanded,  allowed him- or herself to be promised or accepted such benefit for him- or  herself or a third party for the purpose of obtaining unfair favorable  treatment vis-à-vis competitors in the supply of goods or commercial  services; |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|   |       | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | offered, promised or granted, directly or indirectly, any benefit  (cf. section 9.15.1(a)) to a public official, a person with special  public service obligations or any other |

 

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|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | person who performs public functions, to or for that person or a  third person, in return for the fact that he/she performed or will in future  perform an official act;                                                                                                                                                                                                                                      |
|--------|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |       | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | made any unlawful political donations; and/or                                                                                                                                                                                                                                                                                                                                                                 |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |       | (d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | otherwise used the Transferred Company’s funds for illegal purposes  in connection with the Business that could expose the Transferred Company or  its shareholders to the risk of the imposition of a penalty or fine (*Geldstrafe oder Geldbuße*) payable by, or  that could lead to an imposition of an obligation upon, or a loss for, the  Transferred Company or its respective shareholders. |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 9.15.2 |       | The Business and the Transferred Company is in compliance with  (i) all relevant sanctions and regulations promulgated by the Office of  Foreign Asset Control of the U.S. Department of the Treasury, (ii) all relevant  resolutions or directives of the United Nations and (iii) the relevant  Laws of the European Union. In addition to the foregoing, the business  operations do not include any business relations with Cuba, Iran, Syria or  North Korea or with any person or entity included in the list of specially  designated nationals and blocked persons of the Office of Foreign Asset  Control of the U.S. Department of the Treasury except as disclosed in **Annex 9.15.2**. |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 9.16   |       | Warranties Specific to Kemira                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |       | Each of the Kemira TiO2’s Finnish pension fund Kemira Pigments Oy:n  eläkesäätiö and Kemira TiO2’s Finnish sickness fund that manages, *inter alia*, mandatory benefits in lieu  of the competent Finnish governmental authority (*Kansaneläkelaitos*), is fully funded as per  December 31, 2007.                                                                                                                                                                                                                                                                                                                                                                             |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.    | ** ** | **SUPPLEMENTARY  PROVISIONS REGARDING THE WARRANTIES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.1   |       | The Warranties together with their annexes also apply – to the extent  required, *mutatis mutandis* – to  the Transferred Company’s consolidated Affiliates listed in **Annex 10.1-1**. With respect to the  Transferred Company’s non-consolidated Affiliates listed in **Annex 10.1-2**, all Warranties are  given to the****best knowledge of  the Warranting Party in the meaning of section 10.2 only and without any  obligation to make any further enquiry.                                                                                                                                                                                                                 |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.2   |       | Warranties that are given to the Warranting Party’s “best knowledge”  are given to the actual knowledge of the present members of Kemira’s,  Rockwood Germany’s or Rockwood’s managing directors / board or directors, as  applicable, as of the date of this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.3   |       | Except where otherwise expressly set forth in this Agreement, the  Affected Party (as defined below) shall only be entitled to raise claims  under the Warranties if and to the extent the                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

 

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|   |       | matter to which the claim relates is not disclosed in this Agreement,  the Master Agreement, the JV Agreement or their respective annexes.  Section 442 of the German Civil Code (*BGB*)  does not apply. For the sake of clarity, the Parties hereby acknowledge that  disclosure of any matter in any context other than in this Agreement, the  Master Agreement, the JV Agreement or their respective annexes (e.g.  disclosure solely in a data room) is not sufficient to bar an Affected Party  (as defined below) from raising a claim under the Warranties.                                                                                                                                                                                                                                     |
|--------|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.4   |       | To the extent that Warranties are limited by the disclosure of facts  in the relevant Warranty or in an Annex to this Agreement to which it  expressly refers, the respective limitation applies only to the Warranty to  which it specifically relates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 11.    | ** ** | **REMEDIES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 11.1   |       | If one or more Warranties are incorrect and/or incomplete, then the  Party to which such Warranty was given (the “**Affected Party**”) is in each case entitled to demand from the  Party breaching such Warranty (the “**Breaching  Party**”) that the warranted situation be provided.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 11.2   |       | If the Affected Party demands remedy of the warranted situation and  (i) the warranted situation is not fully provided by the Breaching Party  within a reasonable period, but in any case within four weeks after receipt  of the warranty remedy demand, (ii) remedy of the warranted situation  turns out to be impossible or inexpedient from the Affected Party’s  reasonable point of view, or (iii) the Breaching Party refuses remedy of  the warranted situation for any reason, then the Affected Party is entitled  to demand payment of damages from the Breaching Party to the respective JV  Group Company affected by the breach in the amount needed for remedy of the warranted  situation and/or for compensation of other losses, such losses specifically  excluding: |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |       | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | consequential  damages (*Folgeschäden*), lost  profits (*entgangener Gewinn*),  internal administration and overhead costs; |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
|   |       | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | amounts for  which specific accruals (*Rückstellungen*)  have been included in the Annual Audited Accounts; |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
|   |       | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | amounts that  have been specifically taken into consideration in the evaluation of the  Transaction as set out in the Financial Information and Valuation (and deducted  from the EBITDA or enterprise value); and |
|   |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
|   |       | (d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | amounts that are compensated pursuant to section 16 (Locked Box  Concept) which shall prevail over this section 11. |

 

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| 11.3   |   | The JV Group Companies shall be obliged to inform the Advisory Board  of JV Europe and any Party reasonably requesting such information of any  breach of the Warranties without undue delay after they become aware of such  breach.                                                                                                                                                                                                                                                           |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 11.4   |   | The liability of the Breaching Party for a breach of Warranty shall  be limited as follows:                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 11.4.1 |   | The Affected Party is entitled to raise claims for a breach of  Warranty only to the extent that any individual claim or a series of related  claims exceeds EUR 250,000.00 (*de  minimis*), except where an individual warranty specified a higher  or lower minimum amount, in which case such amount shall apply, and only if  and to the extent the sum of such claims exceeds EUR 4,000,000.00, in  which case the entire amount can be claimed (*Freigrenze*).                  |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 11.4.2 |   | Subject to section 11.4.3, for all claims resulting from a  breach of Warranty except for a breach of any Warranty set forth in section  9.2 (but excluding section 9.2.9), the maximum aggregate liability of the  Breaching Party equals EUR 25,000,000.00 unless otherwise set out in  this Agreement.                                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 11.4.3 |   | For claims in respect of fraud or willful misconduct, the statutory  rules shall apply. Section 444 of the German Civil Code (*BGB*) remains applicable.                                                                                                                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 11.5   |   | The Affected Party shall notify the Breaching Party in writing of any  breach of Warranty within 60 days after the Affected Party became aware of  such breach, provided that the failure to so notify the Breaching Party as  provided in this sentence will not relieve the Breaching Party from any liability  or obligation that it may have pursuant to this Agreement except to the  extent the Breaching Party shall actually have been materially prejudiced by  such failure or delay. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 11.6   |   | All claims arising pursuant to this section 11 shall be time-barred  from the earlier of                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | the first  anniversary of the Closing Date; and |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |
|   |   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | the  occurrence of a disposal of all shares in JV Europe (and the respective  limited liability interest in JV US as required by the JV Agreement) by  either Kemira and / or Rockwood Germany; and |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |
|   |   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | an initial  public offering of the shares in JV Europe, |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |   | (each of (b) and (c) an “**Exit  Event**”), provided, however, that to the extent any claim pursuant  to this section 11 was notified in writing to the Breaching Party in  accordance with this section 11 and is still pending at the time of the  earlier of the first anniversary of the Closing Date and an Exit Event, such  claim shall continue to be subject to the provisions of this section 11  until such claim is finally resolved.            |

 

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| 12.    | **TAX WARRANTIES AND  REMEDIES**                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 12.1   | For the purpose of this section 12,                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | “**Tax**”  or “**Taxes**” shall refer to:                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | liability for all forms of taxation, including any charge, tax, duty,  levy, customs, tariffs, withholding or liability wherever imposed for support  of national, state, federal, municipal or local government or any other  person, including social insurance contributions, corporation tax, trade tax,  VAT (including for the avoidance of doubt any non-deductible input VAT),  payroll tax, solidarity surcharge, antidumping duties, countervailing duties  and other public law levies; |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | secondary liability for other person’s Taxes (*Steuerhaftungsbeträge*) based on Law  (e.g. wage tax, reverse charged VAT, withholding tax, due to tax groups, fiscal  unities, acquisitions of business); |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Tax equivalent indebtedness based on (i) contractual  arrangements (e.g. under a Tax sharing agreement (*Steuerumlagen*), contractual tax guarantee or indemnity) or  (ii) Law; |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
|   | (d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | any payments for non-compliance with transfer pricing obligations  especially penalties to be levied; |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
|   | (e)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | any de-grouping charges or similar charges based on law or  contractual arrangements; and |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
|   | (f)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | any penalty, fine, surcharge, interest, charges or costs payable in connection  with any taxation within (a) to (e), above. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
| 12.2   | In  accordance with section 9.1 above, Kemira, Rockwood Germany and Rockwood  hereby represent and warrant the following:                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 12.2.1 | The Transferred Company has filed in good time all Tax returns and  reports in respect of Taxes with the relevant Tax authorities as are required  to be filed. For the avoidance of doubt, a tax return is filed in good time  if it is filed in accordance with (i) a time limit set forth in the  applicable tax code, or (ii) a time limit set by the relevant tax  authority in charge. All such Tax returns are true, correct and complete in  all material respects. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 12.2.2 | All Taxes required to have been paid by the Transferred Company have  been paid in full in due time.                                                                                                                                                                                                                                                                                                                                                                                  |

 

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| 12.2.3 | The Transferred Company has not given any waiver or been granted any  extension by any Tax authority of any period of limitation governing the time  of assessment or collection of any Taxes.                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 12.2.4 | There are no Tax audits, assessments or deficiencies pending against  the Transferred Company, and, to the Warranting Party’s best knowledge, no  such audit, assessment or deficiency is threatened, except as disclosed in **Annex 12.2.4**.                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 12.2.5 | The Transferred Company has withheld, paid or remitted the relevant  Tax authorities on a timely basis all Taxes required to have been withheld  and paid in connection with amounts paid or owing to any employee,  independent contractor, creditor, stockholder or other third party, and the  Transferred Company has complied with all applicable information reporting  requirements with respect to such amounts.                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 12.2.6 | The Transferred Company is not a party to any Tax sharing or Tax  allocation agreement that will survive after the Closing Date.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 12.2.7 | There are no material liens for Taxes (other than Taxes not yet due  and payable) against the assets of the Business.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 12.2.8 | The Transferred Company does not have a permanent establishment  outside the country of their incorporation that generates income of a capital  income character.                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 12.2.9 | The Warranties under clauses 12.2.1.1 through 12.2.10 shall apply *mutatis mutandis* to the Transferred  Company’s consolidated Affiliates listed in Annex 10.1-1.                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 12.3   | Remedies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 12.3.1 | In the event one or more of the Warranties given pursuant to this  section 12 are incorrect and/or incomplete, the Breaching Party (the  Warranting Party breaching such Warranty) shall indemnify and hold harmless  the Affected Party (the Party to which such Warranty was given) against any  liability of any JV Group Company for the payment of any and all Taxes  arising as a result, for the avoidance of doubt, including interest, penalty  or addition to Tax charged by the taxing authority relating to such Tax, by  payment of an amount equal to such Taxes to the relevant JV Group Company. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 12.3.2 | If audits by the relevant Tax authorities or other circumstances  (including for the avoidance of doubt the filing of tax returns) lead to  liabilities of any JV Group Company with regard to Taxes being attributable  to the period up to and including 31 December 2007 (the “**Pre-Effective-Date Period**”) and such  Taxes were not paid prior to 1 January 2008, then                                                                                                                                                                                                                     |

 

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | (i)    | if and to the extent such Taxes relate to JV Europe or its  consolidated Affiliates listed in Annex 10.1-1 then Rockwood Germany shall  indemnify and hold harmless Kemira;                                         |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | (ii)   | if and to the extent such Taxes relate to Sachtleben Corp then  Rockwood shall indemnify and hold harmless Kemira; or                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | (iii)  | if and to the extent such Taxes relate to Kemira TiO2, Kemira Inc. or  their respective consolidated Affiliates listed in Annex 10.1-1 then Kemira  shall indemnify and hold harmless Rockwood and Rockwood Germany |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | for and against all Taxes of any JV Group Company arising as a result  (including any such Taxes paid prior to the signing of this Agreement) by  payment of an amount equal to such Taxes, and for the avoidance of doubt,  including interest, penalty or addition to Tax charged by the taxing  authority relating to such Tax, to the relevant JV Group Company. The Tax is  attributable to the period up to and including 31 December 2007 if the  Tax should have been paid on or before 31 December 2007 or should have  been accounted for under the applicable generally accepted accounting  principles as a liability or a provision in the financial statement as of 31  December 2007. Taxes that relate to the Pre-Effective-Date Period and  are reflected in the Financial Information and Valuation and are paid prior  to or on 30 April 2008 shall be exempt from indemnification under this  section 12.                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 12.3.3 | If acts of a  Warranting Party or a Transferred Company that are not connected with the  Transferred Company’s Business or transactions that were conducted for the  preparation of the Transaction lead to additional Tax liabilities of any JV  Group Company for the period after the Pre-Effective-Date Period, the  Warranting Party engaged in such acts must or, if a Transferred Company  engaged in such acts then (i) Kemira if Kemira TiO2 and Kemira Inc.  engaged in such acts, (ii) Rockwood Germany if JV Europe engaged in such  acts or (iii) Rockwood if Sachtleben Corp engaged in such acts, must  compensate the relevant JV Group Company for all Taxes arising as a result,  excluding real estate transfer Tax caused by the Transaction, which shall be  borne by the respective JV Group Companies, but including any such real  estate transfer Taxes caused by the Water Carve-Out or the transfer of Closed  Landfills which shall be borne and reimbursed by Rockwood Germany or Kemira,  as the case may be. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 12.3.4 | The claims for the breach of any Warranty given pursuant to this  section 12 and claims under the Tax indemnity shall become time barred  upon expiration of a period of six months after the final and binding/non  appealable assessment of the respective Tax.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 12.3.5 | To the extent that Sachtleben Corp is included in any consolidated,  combined or unitary group with Rockwood or any of its Affiliates for period  from 1 January 2008 through the                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

 

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|   | Closing Date, JV US shall pay to Rockwood an amount equal to the Tax  liability that Sachtleben Corp would have incurred for such period computed  as if Sachtleben Corp filed a Tax return for such period on a separate  company basis, and Rockwood shall otherwise be responsible and shall  indemnify and hold harmless JV US from any Taxes imposed on the consolidated,  combined or unitary group.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 12.3.6 | Indemnification or compensation under this section 12 shall be  excluded with respect to (i) any Tax if and to the extent such Tax can  be recovered by the Transferred Company under a claim against any other party  (e.g. claims for reimbursement of VAT against customers, wage tax against  employees, withholding Tax or claims for compensation or indemnification  against third parties under contractual arrangements) within three months and  (ii) any VAT and VAT equivalent indebtedness due to a VAT-group  including interest and penalties relating thereto (in this section 12.3.6 “**VAT**”) if and to the extent the  Transferred Company charged with increased VAT relating to the  Pre-Effective-Date Period will benefit from correspondingly reduced VAT in  the period thereafter due to the attribution of taxable events to the  Pre-Effective-Date Period (temporary differences). |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 12.3.7 | If any claim may be made (i) for breach of Warranties or under  an indemnity under sections 11, 13 or 14 and (ii) under this section 12  such claim will first be made under Warranties or indemnities pursuant to  sections 11, 13 or 14. If and to the extent the claim is satisfied under the  Warranties or indemnities under sections 11, 13 or 14, the liability of a  Warranting Party under this section 12 will be reduced accordingly. No  claim of a Party under this section 12 may be indemnified or satisfied more  than once in respect of the same Tax suffered.                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 12.3.8 | In case of any findings, assessments, investigations (including any  announcement of a Tax audit) or other administrative procedures of the taxing  authorities or legal procedures which may have an effect on any amount  payable by the Parties under this section 12 or on any other legal grounds  (including but not limited to Tax imposed or to be imposed on the Parties due  to a Tax group or fiscal unity), section 15 shall apply (with the  indemnifying party being treated as the Warranting Party for purposes of  section 15).                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 12.4   | Sections 10.1, 10.3 and 10.4 and sections 11.1 (except for its  definitions), 11.2, 11.4.1, 11.4.2 and 11.6 shall not apply to this section  12.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 13.    | **ENVIRONMENTAL WARRANTIES AND REMEDIES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 13.1   | For the  purpose of this Agreement,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | “**Environmental Contamination**”  means any pollutants (including, for the avoidance of doubt, copperas),  contaminants or other dangerous substances as defined in Article 2 para  2 of European Community Council Directive 67/548/EEC, as amended through the  Closing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

 

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|   | Date, or any other substance, material or waste that is regulated  under any Environmental Law that exist in the air, soil, soil gas, leakage,  ground- or surface water, sea water or sea bed deposits, in or on buildings,  technical facilities, other man-made structures, improvements, machinery or equipment  or parts thereof, as well as waste or decommissioned sub-surface technical  installations or parts thereof that are relevant pursuant to any  Environmental Law applicable to the Former Sites and the Properties;                                                                                                                               |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | “**Environmental  Laws**” shall mean the relevant supranational, federal or state  Laws, statutes, directives, ordinances, rules, decisions, technical  directives, regulations, land-use planning or zoning regulations applicable  in (i) the EU or any of its member states or (ii) the USA or any of  its states, counties, cities or other political subdivisions applicable to  the Transferred Company and relating to Environmental Matters as well as  Landfills which are in force on the date of this Agreement (and not, for the  avoidance of doubt any Environmental Laws that subsequently come into force  and become effective); |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | “**Environmental  Matters**” shall mean all matters relating to the protection and  preservation of the environment, including the soil, land surface, the air,  ground and surface waters, sea water and sea bed deposits, and human life,  health, living and working environment as well as plant and animal life, as  well as matters relating to the emission of gas, dust, steam, solid objects,  liquids, noise, odor or magnetic, electric, nuclear or other radiation into  the neighborhood of facilities operated by the Transferred Company; and                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | “**Landfills**”  shall mean a site for the disposal of waste materials;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | “**Closed  Landfills**” are Landfills that have been closed, or where closure  procedures have been initiated, or that are in the after-care phase, in all  cases within the meaning of Art. 13 of Council Directive 1999/31/EC; and                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | “**Pori  Landfill**” shall mean the Landfills at Pori for (i) copperas  and filter salts/cakes and (ii) ilmenite mud residue.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 13.2   | The  Transferred Company holds all material environmental permits, licenses and  approvals of the relevant authorities and agencies that are required for the  conduct of the Business as it is presently conducted and the consummation of  the Transaction will not result in the cancellation, suspension, limitation  or other change to any such permits, licenses or approvals, except where such  cancellation, suspension, limitation or other change would not have a  material adverse impact on the Business.                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 13.3   | The Business  has not received written notice of any material violation of any applicable  Environmental Law binding upon it that has not been substantially corrected,  except for                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

 

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|   | violations  that could not reasonably be expected to have a material adverse effect on  the Business.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 13.4   | The Business  is in all material respects in compliance with all material applicable  Environmental Laws, and no investigations, proceedings or enforcement actions  of any kind have been instituted or are pending or threatened in writing  against the Transferred Company or the Business with respect to any material  breach of any Environmental Law.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 13.5   | The permit  (LSY-2004-Y-393) issued by the Western Finland Environmental Permit Authority  to Kemira TiO2, dated 31 December 2007, with respect to the  operation of Kemira TiO2’s Pori site (the “**Comprehensive  Environmental Permit**”) enables Kemira TiO2 to conduct its TiO2  Business in a manner that is materially consistent with past practice and in  accordance with Kemira TiO2’s business plans for its TiO2 Business which  includes capital expenditures for the treatment of co-products. The  Comprehensive Environmental Permit is valid and enforceable and does not  contain any terms and conditions that unreasonably restrict the operations of  Kemira TiO2. Kemira TiO2 is not and has not been in default of any of the  conditions of the Comprehensive Environmental Permit. There are, to Kemira’s  best knowledge, no events, circumstances or facts currently in existence  based upon which the Comprehensive Environmental Permit can be withdrawn,  revoked or cancelled or upon which it will expire without renewal. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 13.6   | The Audited  Annual Accounts include, in accordance with the Accounting Principles applied  on the relevant Audited Annual Accounts, specific reservations for all claims  and costs relating to Environmental Matters, in particular claims relating to  the investigation, monitoring, containment, remediation or disposal of  environmental damage (collectively the “**Environmental  Liabilities**”).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 13.7   | The Business  has initiated, from the point of view of a prudent business person, measures  to comply with all requirements on the implementation under Regulation  No. 1907/2006 of the European Parliament and of the Council concerning  the Registration, Evaluation, and Authorisation of Chemicals (REACH), dated  18 December 2006, as amended as of the date of this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 13.8   | There is no  Environmental Contamination on any site (other than a Closed Landfill)  formerly used for or by any business operations (including sites that have  been sold to third parties) of the Transferred Company, but no longer owned  or used by the Transferred Company as of the date of this Agreement (the “**Former Sites**”), or on or adjacent to the  Owned Properties or the Used Properties that would enable the relevant  authorities to request that the Business remedy, investigate, secure or  minimize the Environmental Contamination according to applicable  Environmental Laws.                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

 

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| 13.9    | There is  sufficient capacity available for the permitted disposal of any sewage, waste  and emissions (except for the disposal of Copperas, filter cake and ilmenite  residue). The Transferred Companies do not own or store (outside the Closed  Kemira Landfills) Copperas in excess of 100,000 metric tons.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 13.10   | Remedies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 13.10.1 | In the event one or more of the Warranties given under this  section 13 are incorrect and/or incomplete, the Breaching Party shall  indemnify and hold harmless the JV Group Companies against any and all  Environmental Liabilities relating to, resulting from or arising from such  incorrect and/or incomplete Warranty under this section 13. Where an  Environmental Liability results in the imposition of a duty to act, the  Breaching Party shall, at the election of the Affected Party, either properly  perform such act or reimburse the JV Group Companies, as applicable, for the  external and internal costs incurred in connection with complying with such  duty to act, including, but not limited to, the reasonable costs associated  with the interruption of business operations necessary to satisfy such duty  to act and similar costs, such costs specifically excluding the items listed  in section 11.2 (a) trough (d). Where an Environmental Liability results  in a payment obligation, the Breaching Party shall, at the election of the  Affected Party, pay the JV Group Companies, as applicable, or the relevant  authority once such payment obligation comes due. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 13.10.2 | The Affected Party can only claim indemnification under this  section 13 if and to the extent the Environmental Liabilities have been  incurred by the Affected Party or one or more of the JV Group Companies and  provided that the Affected Party or the JV Group Companies, as applicable, is  required to carry out the relevant measures either:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | pursuant to  an unappealable enforceable decision of a competent authority or an  Environmental Law; or |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |
|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | pursuant to  a final and enforceable court judgment, which is not subject to any appeal,  resulting from a third-party claim or a claim of a competent authority; or |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |
|    | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | pursuant to a settlement between one of the Parties and a competent  authority that has been entered into with the prior consent of the Breaching  Party and avoids a decision described in (a) that could otherwise have  been legally rendered; or |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |
|    | (d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | to prevent or mitigate criminal prosecution (including administrative  offence proceedings); or |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |
|    | (e)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | because prompt remediation is required pursuant to any Environmental  Laws due to an imminent material danger; or |

 

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|    | (f)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | insofar as the Breaching Party consented to it. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|    | In each (a) to (e), the Affected Party shall be entitled to  carry out only such measures which are compulsory in order to (i) in  cases (a) to (c) fulfill the legal obligations under the respective  document and (ii) in cases (d) and (e) avoid the scenario  described therein. Neither Party shall be entitled to carry out any proactive  measures prior to the occurrence of (a) through (f), which shall in  particular include any form of exploration measures (*Erkundungsmaßnahmen*).                                                                                                                                                                                                                                                                                    |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 13.10.3 | If a JV Group Company becomes aware of any facts that are reasonably  likely to give rise to an indemnification claim under section 13.10,  such JV Group Company shall notify the Breaching Party thereof in writing  without undue delay and, to the extent then feasible, set forth the estimated  amount of such claim, provided that the failure to so notify or a delay in so  notifying the Breaching Party as provided in this sentence will not relieve  the Breaching Party from any liability or obligations which it may have  pursuant to section 13.10.                                                                                                                                                                                                                                                     |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 13.10.4 | All claims arising pursuant to this section 13 shall be  time-barred from the fifth anniversary of the Closing Date, provided,  however, that to the extent any claim pursuant to this section 13 was  notified in writing to the Breaching Party in accordance with this  section 13 and is still pending on the fifth anniversary of the Closing  Date, as applicable, such claim shall continue to be subject to the  provisions of this section 13 until such claim is finally resolved.                                                                                                                                                                                                                                                                                                                    |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 13.10.5 | Section 10.3 and sections 11.1 (except for its definitions),  11.5 and 11.6 shall not apply to this section 13. For the avoidance of doubt  it is hereby set forth that section 11.4 shall apply.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 14.     | **FURTHER INDEMNITIES  AND CARVE-OUT OF CLOSED LANDFILLS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 14.1    | Carve-Out of  Closed Landfills                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 14.1.1  | Sachtleben currently owns the Landfills “Halde I”,  “Halde IV” and a solid material waste disposal site (*Feststoffdeponie*, including former  sludge lagoons) which will be closed in July 2009 , as described in an  indicative manner in **Annex 14.1.1-1**  (the “**Sachtleben Closed Landfills**”)  and Kemira TiO2 currently owns the Pori Landfill, as described in an  indicative manner in **Annex 14.1.1-2**  (the “**Kemira Closed Landfills**”).  The Parties have agreed to carve out the Sachtleben Closed Landfills and the  Kemira Closed Landfills from the JV Group Companies and treat the respective  JV Group Companies as if the Sachtleben Closed Landfills and the Kemira  Closed Landfills had never been part of the JV Group Companies. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 14.1.2  | Sachtleben will, subject to the condition precedent (*aufschiebende Bedingung*) of the  execution by the relevant Parties of the Closing Memorandum at Closing,  transfer the                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

 

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|   | Sachtleben Closed Landfills to Rockwood Germany or one of its  Affiliates under the terms and conditions of a separate sale and purchase  agreement between Sachtleben and Rockwood Germany or one of its Affiliates  incorporating the key terms set out in **Annex 14.1.2**  and Kemira TiO2 will, subject to the condition precedent (*aufschiebende Bedingung*) of the  execution by the relevant Parties of the Closing Memorandum at Closing,  transfer the Kemira Closed Landfills to Kemira or one of its Affiliates under  the terms and conditions of a separate sale and purchase agreement between  Kemira TiO2 and Kemira or one of its Affiliates incorporating the key terms  set out in **Annex 14.1.2** in  each case without payment of additional remuneration or assumption of  liability except as explicitly permitted by this Agreement. The Parties will  use commercially reasonable efforts to effect the transfer of the Sachtleben  Closed Landfills and the Kemira Closed Landfills as soon as reasonably  practicable after the Closing Date. Any cost associated with the transfer of  the Sachtleben Closed Landfills and/or Kemira Closed Landfills shall be borne  by Rockwood Germany or its respective Affiliates and Kemira or its respective  Affiliates, respectively. To the extent required as a pre-condition to  transfer pursuant to this section 14.1.2, Rockwood Germany or its  respective Affiliates and Kemira or its respective Affiliates shall obtain  their own permit with regard to the Sachtleben Closed Landfills and the  Kemira Closed Landfills, respectively, and notify the competent authorities  of the Sachtleben Closed Landfill and the Kemira Closed Landfill of the  indemnities under this Agreement immediately after the Closing Date and of  the respective transfer immediately after such transfer having taken effect. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 14.1.3 | Rockwood Germany will indemnify and hold harmless Sachtleben against  any liability of Sachtleben in connection with the Sachtleben Closed  Landfills and Kemira will indemnify and hold harmless Kemira TiO2 against any  liability of Kemira TiO2 in connection with the Kemira Landfills (e.g.  covering, maintenance, structural damages, damages to the cover of the  Landfill, leakages), in each case including liabilities relating to the time  before the Closing Date. JV Group Companies shall reimburse (i) Rockwood  Germany up to an amount of EUR 1,648,000 (allocated as follows:  Halde I: EUR 0 (zero); Halde IV: EUR 390,000  and *Feststoffdeponie*:  EUR 1,258,000) and (ii) Kemira up to an amount of  EUR 7,789,000, for indemnifying and holding harmless Sachtleben and  Kemira TiO2, as the case may be, under this section 14.1.3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 14.1.4 | Kemira TiO2 on behalf of Kemira and Sachtleben on behalf of Rockwood  Germany (or their respective Affiliates) shall continue to provide ongoing  maintenance and monitoring services for the Closed Landfills in the same  manner and to the same extent as had been conducted in the twelve months  prior to the Closing Date, excluding for the avoidance of doubt any such  additional or enhanced measures required by an authority or caused by a  deterioration of the environmental condition of the Closed Landfill and any  remediation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

 

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|   | measures. Kemira TiO2 shall in particular continue to  (i) collect and monitor the water from the Kemira Closed Landfills, and  (ii) treat the water pumped from the Kemira Closed Landfills at its own  costs as further described in **Annex 14.1.4**.  For the avoidance of doubt, Sachtleben shall provide services for the  so-called aftercare phase (ground-water monitoring, maintenance and  inspection) related to all dump sites, excluding “Halde III/2”, after  2009, which are reflected in the Sachtleben reserve amounting to  EUR 282,000.                                                                                                                                                                                                                                                             |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 14.1.5 | Without prejudice to any rights under this section 14.1, Kemira  TiO2 may continue to use the Kemira Closed Landfills for the deposit of  filter cake from its own production until the end of 2008 pursuant to the  existing permit.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 14.1.6 | Kemira TiO2 provided the Western Finland Environmental Permit  Authority with a bank guarantee of EUR 7,200,000.00 as security for  Kemira TiO2’s obligations in relation to the Kemira Closed Landfills. Kemira  shall procure a replacement of such bank guarantee as soon as practicable.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 14.2   | Other  Indemnities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 14.2.1 | Kemira with  regard to the carve-out of a 50 per cent participation previously held by  Kemira TiO2 in Kemira Chile Commercial Limitada and Rockwood Germany with  regard to the Water Carve-Out shall indemnify and hold harmless the JV Group  Companies from all claims, costs, damages, liabilities and expenses relating  thereto, including any Tax liability.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 14.2.2 | Kemira and  Rockwood Germany, each with respect to its TiO2 Pigments Business, shall  indemnify and hold harmless the JV Group Companies against all claims, costs,  damages, liabilities and expenses due to the breach of any antitrust Laws,  including European, Finnish, German or United States antitrust Laws, and any  investigations by a competent competition authority, including but not  limited to, the European Commission, the Finnish Competition Authority (*Kilpailuvirasto*), the Federal Cartel  Office (*Bundeskartellamt*), the  Antitrust Division of the United States Department of Justice or the United  States Federal Trade Commission. If any antitrust Laws are breached before  the Closing Date and such breach continues after the Closing Date, the claim  for indemnification shall be limited *pro  rata temporis*. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 14.2.3 | Kemira and  Rockwood Germany, each with respect to its TiO2 Pigments Business, shall  indemnify and hold harmless the JV Group Companies against all product  liability claims by third parties relating to products sold before the  Closing Date.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 14.2.4 | Rockwood  Germany shall indemnify and hold harmless Sachtleben against all costs and  damages in excess of EUR 1,616,000 with regard to the recultivation  obligation associated with “Essenberger Bruch”.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

 

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| 14.2.5 | Kemira shall indemnify and hold harmless Kemira TiO2 against the  potential claim associated with the divestment of Kemira’s titanium dioxide  in the Netherlands to Tronox (Kerr-McGee) in 2000, as specified in  Annex 9.14.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 14.2.6 | Rockwood Germany with regard to JV Europe and Finnish HoldCo, and  Rockwood with regard to JV US, shall indemnify and hold harmless Kemira  against                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | all  liabilities incurred by JV Europe, Finnish HoldCo or JV US before the Closing  Date; and |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | all  liabilities arising from JV Europe, Finnish HoldCo or JV US incurring any  liability before the Closing Date, |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | other than related to JV Europe’s incorporation, any transfer of the  shares in JV Europe to Rockwood Germany or in connection with the transaction  contemplated by this Agreement, the JV Agreement or the Master Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 14.3   | In the event of an indemnification pursuant to this section 14,  the indemnifying Party must compensate the JV Group Companies on a Euro by  Euro basis or on a US Dollar for US Dollar basis, as applicable, without any  thresholds. Sections 11.3 and 11.5, shall apply to any claim for  indemnification under this section 13.1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 15.    | **THIRD-PARTY CLAIMS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 15.1   | After receiving written notice of any third-party claim (including  any governmental authority) that may trigger a claim by a JV Group Company  against the Warranting Party for indemnification pursuant to sections 11,  12.3, 13.10 or 14 (each a “**Third Party  Claim**”), such JV Group Company shall as soon as reasonably  feasible give written notice thereof to the Warranting Party, provided that  the failure to so notify or a delay in so notifying the Warranting Party as  provided in this section 15.1 will not relieve the Warranting Party from any  liability or obligations that it may have pursuant to this Agreement, except  to the extent such Warranting Party shall actually have been materially  prejudiced by such failure or delay. Such notice shall specify in reasonable  detail the basis for such Third Party Claim and, to the extent feasible, set forth  the estimated amount of such Third Party Claim, and shall include a copy of  any relevant correspondence so far exchanged regarding such matter. If  without undue delay after having received such notice from a JV Group  Company, the Warranting Party sends a written notice to such JV Group Company  in which the Warranting Party finally and bindingly accepts its liability as  to the Third Party Claim (and specifies the limitations of liability under  this Agreement, if any, to which such acceptance is limited), the Warranting  Party shall be entitled to assume control of the defense of such Third Party  Claim employing its own counsel at its sole risk, cost and expense, including  all |

 

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|   | related fees and costs of defense (*Rechtsverfolgungskosten*)  (e.g. due to courts, witnesses, experts and including the JV Group Company’s  out of pocket expenses).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 15.2   | As long as the Warranting Party is defending a Third Party Claim, the  relevant JV Group Company shall provide or cause to be provided to the  Warranting Party information reasonably requested by the Warranting Party  relating to such Third Party Claim and the JV Group Company shall otherwise  cooperate with the Warranting Party and its representatives in good faith in  order to effectively contest such Third Party Claim. If such JV Group Company  does not fulfill their aforementioned obligations to provide information and  to otherwise cooperate with the Warranting Party in contesting a Third Party  Claim, such JV Group Company shall be estopped from asserting a claim for  indemnification to the extent such claim is based on the Third Party Claim,  but only if and to the extent such failure prejudiced the Warranting Party’s  ability to mitigate the Third Party Claim. The Warranting Party shall inform  the relevant JV Group Company of all developments and events relating to such  claim and such JV Group Company shall be entitled, at its own expense, to  employ its own counsel and to attend, but not to actively participate in or  to control, all conferences, meetings and proceedings relating to any such  Third Party Claim. The Warranting Party shall conduct such proceedings in  good faith using reasonable endeavors to take the respective interests of  each JV Group Company into account. The relevant JV Group Companies shall  fully cooperate with the Warranting Party in the defense of any Third Party  Claim, provide the Warranting Party’s representatives access, during normal  business hours, to all relevant business records and documents and permit the  Warranting Party and its representatives to consult with the directors,  employees and representatives of the relevant JV Group Company. If, however,  the respective interests of the JV Group Companies, in their reasonable  judgment, conflict with those of the Warranting Party, each JV Group Company  shall have the right to assume control of the defense at the Warranting  Party’s expense. Such conflict shall always be deemed to exist if, as a  result of the applicable limitations of liability (including *de minimis* and caps under sections  11.4.1 and 11.4.2), the Warranting Party will have to bear a liability of  75 per cent or less (or when assuming control of the defense has  declared that limitations of liability that would, in its opinion, lead to  such limitation apply). |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 15.3   | If the Warranting Party does not assume control of the defense of a  specific Third Party Claim, the JV Group Companies shall have full control of  such defense and such proceedings and may in their sole discretion contest such  Third Party Claim at the Warranting Party’s expense. If requested by the JV  Group Companies, the Warranting Party shall cooperate in good faith with such  JV Group Companies in order to effectively contest such Third Party Claim at  the Warranting Party’s sole risk, cost and expense, including all related  fees and costs of the defense (*Rechtsverfolgungskosten*)  (e.g. due to courts,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

 

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|   | witnesses, experts and including each JV Group Company’s out of  pocket expenses). The Warranting Party shall be entitled, at its own expense,  to employ its own counsel and to attend, but not actively participate in or  to control all conferences, meetings and proceedings relating to such Third  Party Claim. In no event shall the JV Group Companies be entitled to  acknowledge or settle such Third Party Claim, or permit any acknowledgement  or settlement of such Third Party Claim without the Warranting Party’s prior  written consent, which consent shall not to be unreasonably withheld. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 16.    | **LOCKED-BOX CONCEPT**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 16.1   | If and to the extent (i) any of the JV Group Companies or  (ii) the Parties with respect to any of the JV Group Companies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | either |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | (i) | breached or  permitted to breach any of the covenants set out in Section 10.1.1 of  the Master Agreement (the “**Covenants**”)  in the time period from the date of this Agreement and until and including  the Closing Date; or |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | (ii) | have done  anything or permitted anything during the time period between the Effective  Date and until and including the date of this Agreement that would have  constituted a breach of the Covenants, had the Covenant already been  applicable during this time period; |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | (each such  action, a “**Breach of the No Leakage  Provisions**”),                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | unless |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | (i) | the relevant  Breach of the No Leakage Provisions simultaneously leads to a monetary gain  by another JV Group Company; or |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | (ii) | the relevant  Breach of the No Leakage Provisions has been anticipated and the EBITDA and  consolidated net debt effect resulting from such Breach of the No Leakage  Provisions is correctly reflected in the valuation pursuant to the Financial  Information and Valuation; or |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | (iii) | only in the case of a Breach of the No Leakage Provisions pursuant to  section (a)(i), a specific accruals (*Rückstellungen*)  has been included in the Annual Audited Accounts to cover such Breach of the  No Leakage Provisions; or |

 

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | (iv)                                                                                                                                                                                                                                                                                                                                           | the Breach of the No Leakage Provisions has already been remedied by  payments that have been made under the Warranties; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                           |                                                                                                                     |
|   | then                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                           |                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                           |                                                                                                                     |
|   | (i) Rockwood  Germany in case of a Breach of the No Leakage Provisions by Rockwood Germany,  its Affiliates, JV Europe, Finnish HoldCo, Sachtleben or any of Sachtleben’s  Affiliates, (ii) Rockwood in case of a Breach of the No Leakage  Provisions by Rockwood, JV US, Sachtleben Corp or any of Sachtleben Corp’s  subsidiaries; and (iii) Kemira in case of a Breach of the No Leakage  Provisions by Kemira TiO2, Kemira Inc., Maybrook, or any of their respective  subsidiaries shall pay to JV Europe or JV US, as applicable, damages in the  amount needed to remedy the relevant Breach of the No Leakage Provisions,  provided that for purposes of this section 16.1 the amount of damages to  be paid shall be determined in accordance with section 249 et seq. of  the German Civil Code (BGB). |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                           |                                                                                                                     |
| 16.2   | For the  avoidance of doubt, the limitations set out in sections 11 through 13  shall not apply to such compensation obligations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                           |                                                                                                                     |
| 17.    | **TRANSFER OF EMPLOYEES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                           |                                                                                                                     |
| 17.1   | With effect  as of the Closing Date,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                           |                                                                                                                     |
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | the  employment relationships belonging to the Oberhausen Business Unit, which are  listed in **Annex 17.1(a) **(the  “**Oberhausen****Transferred Employees**”), shall pass to JV  Europe with all rights and duties pursuant to section 613a of the German  Civil Code (*BGB*) as further set  out in section 17.3; |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                           |                                                                                                                     |
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | the services  of the employees belonging to the sales network of Kemira’s TiO2 Pigments  Business, which are listed in **Annex 17.1(b) **(the  “**Sales Network Employees**”),  shall be provided to the JV Group Companies pursuant to section 17.9 below.                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                           |
| 17.2   | The  employees of the JV Group Companies including the Oberhausen Transferred  Employees, but excluding the Sales Network Employees, shall continue their employment  relationships with the respective JV Group Company, (the employees of the JV  Group Companies and the Oberhausen Transferred Employees and the Sales  Network Employees together the “**Transferred  Employees**”).                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 17.3   | If one or more of the Oberhausen Transferred Employees effectively  object to the transfer of his or her employment relationship, JV Europe shall  indemnify and reimburse Kemira Germany for all costs and expenses in relation  to these employees, in particular costs and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

 

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|   | expenses resulting from the objection against the transfer of the  employment relationship, including, but not limited to, the costs of  employment, termination of the employment relationship and related costs and  legal expenses, but limited to the costs incurred until in respect of each  Oberhausen Transferred Employee such date upon which the statutory or  contractual notice period ends had a termination notice been given  immediately after the objection was received. Kemira Germany will endeavor to  terminate such employment contracts at the earliest possible date or to  conclude termination agreements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 17.4   | If, contrary to the expectations of the Parties, the employment  relationships of individual Oberhausen Transferred Employees do not pass to  JV Europe by operation of law (but for reasons other than an objection or by  an employee giving notice), JV Europe is entitled but not obliged to take  over such employment relationships on an individual contractual basis.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 17.5   | If  additional employment relationships transfer to the JV Group Companies, in  addition to the employment relationships of the Transferred Employees,  pursuant to Law, Rockwood and Kemira (as applicable) shall bear all of the  costs and expenses resulting from such transfer, including, but not limited  to, the costs of terminating the employment contracts with such employees and  related costs and legal expenses. The respective JV Group Company will  endeavor to terminate such employment contracts at the earliest possible date  or to conclude termination agreements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 17.6   | Any obligations (including vested obligations under pension schemes,  accrued holiday entitlement, bonuses, stock option plans, old age part-time  arrangements), relating to periods before the Effective Date in respect of  Transferred Employees shall as between Rockwood Germany and Rockwood on the  one hand and Kemira on the other hand be borne and indemnified against by  Rockwood Germany (in respect of JV Europe and its non-US Affiliates),  Rockwood (in respect of Sachtleben Corp) and Kemira (in respect of Kemira  TiO2 and Kemira Inc. and their respective Affiliates), except to the extent  such obligation is already explicitly mentioned and reflected in the  Financial Information and Valuation. For obligations that fell due between  the Effective Date and the Closing Date, the JV Group Companies (JV Europe in  the case of the Oberhausen Transferred Employees and the relevant JV Europe  Group company for the Sales Network Employees) shall bear, and indemnify against,  such obligations except as otherwise set out in this Agreement and the Master  Agreement, including this section 17, the Warranties and section 16. The  value of holiday claims of any Transferred Employees in Germany shall be  calculated in accordance with section 7 para 4 of the Federal  Holiday Act (*Bundesurlaubsgesetz*)  and settled *pro rata temporis*for  periods**before and from the  Closing Date. |

 

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| 17.7   | Notifications to Transferred Employees:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 17.7.1 | The JV Group  Companies shall jointly prepare all necessary notifications to the  Transferred Employees regarding the transfer of the Kemira TiO2 Shares and  the Kemira Oberhausen Assets.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 17.7.2 | The Parties shall inform the Oberhausen Transferred Employees in  Germany about the transfer of the business pursuant to section 613a para  5 of the German Civil Code (*BGB*)  with the letter attached as a draft in **Annex 17.7.2**  within 10 Business Days after the date of this Agreement and the conduct  of the general assembly of employees pursuant to section 17.7.1. The  facts and plans relating to the Transferred Employees that are notified in  this letter are correct and complete from today’s point of view. Following  the expiry of the time-limit for declaration of an objection by the employees  of the Oberhausen Business Unit pursuant to section 613a para 6 of  the German Civil Code (*BGB*)  with regard to the German Transferred Employees and such other statutory Law  applicable on other Transferred Employees, the Parties shall inform each  other without undue delay (*unverzüglich*)  about any employees who have objected to the transfer of their employment  relationship. The Parties shall refrain from acts that could be reasonably  likely to cause the Transferred Employees to object to the transfer of their  employment relationships, except to the extent that such acts are  contemplated by this Agreement. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 17.7.3 | Within 15 days after the date of this Agreement, Kemira and/or  Kemira Germany, as applicable, shall call a general assembly of employees of  the Oberhausen Business Unit and give JV Europe the opportunity to inform the  Transferred Employees about the change of employer.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 17.8   | JV Europe shall bear the remuneration for employees’ invention  pursuant to sections 9 and 10 of the German Employees’ Invention  Act (*Arbeitnehmererfindungsgesetz*)  payable for the employees’ inventions made by the Oberhausen Transferred  Employees (whether or not actually transferred) or former employees of the  Oberhausen technology center, to the extent that (i) after the Effective  Date these are used and taken advantage of by JV Europe or its direct or  indirect subsidiaries and (ii) such IP Right or Know-How has been  transferred to JV Europe, provided that Kemira Germany shall pay all such  remunerations relating to the time period before the Effective Date.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 17.9   | Effective as  of the Closing Date, Kemira and its Affiliates provide to the JV Group  Companies sales services in Italy, Spain, France, Singapore, and Chile  through their sales network for the duration of one year commencing with the  Closing Date, to the extent such Sales Network Employees continue to be  employed with Kemira and its Affiliates and provided further that Kemira  shall not terminate the employment relationships with an effect                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

 

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|   | prior to  such one-year period other than for cause. The JV Group Companies shall  indemnify and reimburse Kemira and its Affiliates for all reasonable costs  and expenses in relation to these sales employees, in particular for all  contractual payments, incurred by Kemira and/or its respective Affiliate  during such one-year period commencing with the Closing Date. Kemira shall  support JV Group Companies if they wish to offer employment to any of these  sales employees (including e.g. shortening contractual notice period).                                                                                                                                                                                                                                                                                             |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 17.10  | Except as otherwise provided in the US Transition Services Agreement  (as defined in section 17.11), effective as of the Closing Date, (i) all  employees of the US Companies who continue employment with JV US (“**US Transferred Employees**”) shall cease  active participation in the US Benefit Plans, (ii) JV US shall establish  certain benefit plans (“**JV US Benefit Plans**”)  for the benefit of the US Transferred Employees as determined by JV US, and  (iii) the US Transferred Employees shall commence participation in JV US  Benefit Plans in accordance with the terms of such plans.                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 17.11  | On the Closing Date and at the request of JV US, JV US and the US  Companies shall enter into a transition services agreement in the form  attached here as **Annex 17.11**(“**US Transition Services Agreement**”) to  provide for the continuation of participation by the US Transferred Employees  for a period of time not to exceed the end of the calendar year in which the  Closing Date occurs in the applicable US Benefit Plans that provided health  and welfare benefits to such US Transferred Employees immediately prior to  the Closing Date.                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 17.12  | US Transferred Employees shall be credited for their length of  service with the applicable US Company for purposes of determining eligibility  to participate in, satisfying any waiting period, and vesting under JV US  Benefit Plans, to the extent they earned credit under comparable US Benefit  Plans. Any preexisting condition clause in any of the health coverages  (including medical and dental coverage) included in JV US Benefit Plans shall  be waived for the US Transferred Employees. JV US shall ensure that each US  Transferred Employee receives credit under any JV US Benefit Plan that is a  welfare benefit plan for any deductibles or co-payments paid by such US  Transferred Employee and his or her dependents for the calendar year in which  the Closing Date occurs under the applicable US Benefit Plan. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 17.13  | JV US shall take all steps necessary to permit each US Transferred  Employee who has received an eligible rollover distribution (as defined in  Section 402(c)(4)) of the IRC) from a US Benefit Plan that is a defined  contribution savings plan to roll over such eligible rollover distribution,  including any associated loans, as part of any lump sum cash distribution  into an account(s) under a 401(k) savings plan established and  maintained by JV US.                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 17.14  | After the Closing Date, Kemira TiO2 shall reimburse Kemira for  payments made to Mr. Del Dotto                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

 

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|   | under the earn-out arrangement originating from the Tri-K  acquisition, provided, however, that such reimbursement shall be limited to  payments made after 1 April 2008 and shall not exceed USD 1,000,000.00.  The obligation to reimburse under this section 17.14 shall not be  treated as an Intercompany Receivable within the meaning of the Master  Agreement.                                                                                                                                                                                                                      |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 18.    | **TRADEMARKS  AND COMPANY NAME “KEMIRA”**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 18.1   | JV Europe,  Finnish HoldCo, Kemira TiO2 and Kemira Inc. shall refrain from using the  corporate name and the trademark “KEMIRA” and any derivative or abbreviation  thereof (the “**Kemira Trademarks**”)  that reasonably implies a connection between the Joint Venture Group  Companies on the one hand and Kemira on the other hand immediately after the  Closing Date.                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 18.2   | The JV Group  Companies shall, however, be allowed to:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | sell off products and packaging and use up labels bearing the Kemira  Trademarks for a period of one (1) year after the Closing Date, provided  that such products, packaging and labels are held in stock by Kemira TiO2 or  Kemira Inc. or are part of the Kemira Oberhausen Assets as of the Closing  Date; and |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | use up  business paper and advertising materials bearing the Kemira Trademarks for a  period of six (6) months after the Closing Date. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
| 18.3   | Kemira TiO2 and Kemira Inc. shall change their company names within  three (3) months after the Closing Date to new company names that do not  contain the Kemira Trademarks or any other element that reasonably implies a  connection between Kemira TiO2 and Kemira Inc. on the one hand and Kemira on  the other hand. Kemira TiO2 and Kemira Inc. may, however, use a reference to  their former character as an affiliate of Kemira (e.g. “former Kemira  Pigments Business”) for a period of one year after the Closing Date.                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 19.    | **CONFIDENTIALITY**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 19.1   | The Parties must keep  secret the contents of this Agreement to the extent that no statutory  disclosure obligations exist or the respective other Party has not consented  to the disclosure. The Parties must also keep secret any information they  have about each other and about the enterprises affiliated with the  respective other Party as defined in section 15 of the German Stock  Corporation Act (*AktG*), to the  extent that such information is not known or available to the public, or the  respective other Party has not consented to the disclosure of the  information. |

 

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| 19.2   | If any disclosure or announcement of confidential matters referred to  in section 19.1 is required by Law or any governmental or  quasi-governmental authority, such disclosure may be made by the Party that  is required to make such disclosure after consultation with the other  Parties, unless such consultation is not practically possible before a Party  is required to make a disclosure.                                                                                               |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 19.3   | Notwithstanding section 19.1, each Party may disclose the  content of this Agreement to any of its Affiliates.                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 19.4   | Any press release or similar disclosure of any Party concerning the  Transaction shall require the prior consent of the other Parties except for  press releases in the meaning of section 18.2.                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 20.    | **MISCELLANEOUS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 20.1   | This Agreement, the Master Agreement and  the JV Agreement including their annexes and the documents they refer to,  contains the entire agreement of the Parties with respect to the subject  matter hereof. Any supplements or amendments to or a termination of this  Agreement, as well as any declarations to be made hereunder, shall be valid  only if made in writing, or if required by Law, in due notarial form. This  shall also apply to any change to, or cancellation of, this provision. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 20.2   | No Party may assign or otherwise transfer  any rights or claims under or in connection with this Agreement to a third  party without the prior written consent of the other Parties.                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 20.3   | Unless otherwise explicitly provided for in this Agreement, neither  this Agreement nor any provision contained in this Agreement is intended  to confer any rights or remedies upon any person or entity other than the  Parties.                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 20.4   | This Agreement shall be governed  exclusively by the Laws of the Federal Republic of Germany. The English  language version shall be determinative (even if a translation is made),  provided that where German or Finnish expressions are used in brackets, the  German or Finnish expression, as the case may be, shall be determinative.                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 20.5   | In this Agreement:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | any German  or Finnish legal term for any action, remedy, method of judicial proceeding,  legal document, legal status, court, official or any legal concept or thing  shall, in respect of any jurisdiction other than Germany and Finland, as the  case may be, be deemed to include what most closely approximates in that  jurisdiction to the German or Finnish legal term and any reference to any  German or Finnish statute |

 

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | shall be construed so as to include equivalent or analogous Laws of  any other jurisdiction;                                                                                           |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                   |
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | the headings shall not affect the interpretation of this Agreement;  and                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                   |
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | any capitalized terms used but not defined in this Agreement shall  have the same meaning as ascribed to such terms in the Master Agreement and  the JV Agreement, as the case may be. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                   |
| 20.6   | All disputes arising in connection with  this Agreement or its validity shall be finally settled in accordance with  Arbitration Rules of the International Chamber of Commerce without recourse to the ordinary courts of  law. The place of arbitration with respect to any claims relating to, arising  from or in connection with this Agreement shall be Frankfurt am Main,  Germany. The Arbitral Tribunal shall consist of three arbitrators. The  language of the arbitral proceedings shall be English.                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 20.7   | Unless provided otherwise in this  Agreement, all declarations (*Willenserklärungen*)**to be made or notices to be given by  the Parties pursuant to this Agreement shall be in writing in English and  delivered by hand, by courier, by facsimile or by e-mail in pdf-format (in  the latter case only if such e-mail is followed by facsimile or mail  confirmation within two weeks) to the person at the address set forth below,  or such other address as may be designated by the respective Party to the  other Party in the same manner: |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Notifications to Rockwood Holdings and Rockwood:                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Rockwood Specialties Group, Inc.                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Thomas J. Riordan, Senior Vice President,  Law and Administration                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 100 Overlook  Center                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Princeton NJ  08540                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | USA                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Facsimile:+1  (609) 514-8722                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | E-mail:  TRiordan@rocksp.com                                                                                                                                                           |

 

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|   | (b)    | Notifications to Rockwood Germany:               |
|--------|--------|--------------------------------------------------|
|   |   |                                             |
|   |   | Rockwood  Specialties Group GmbH                 |
|   |   | Udo Pinger                                       |
|   |   | Königsberger Straße 1                  |
|   |   | 60487 Frankfurt am Main                          |
|   |   | Germany                                          |
|   |   | Facsimile:+49 (69) 7165-5693                     |
|   |   | E-mail: udo.pinger@rocksp.de                     |
|   |   |                                             |
|   | (c)    | Notifications to Sachtleben:                     |
|   |   |                                             |
|   |   | Sachtleben Chemie GmbH                           |
|   |   | Prof. Dr. Wolf-Dieter  Griebler             |
|   |   | Dr.-Rudolf-Sachtleben-Str. 4                     |
|   |   | 47198 Duisburg                                   |
|   |   | Germany                                          |
|   |   | Facsimile:+49 (2066) 22-3201                     |
|   |   | E-mail:  w.d.griebler@sachtleben.de              |
|   |   |                                             |
|   | (d)    | Notifications to  JV Europe and Finnish HoldCo:  |
|   |   |                                             |
|   |   | Sachtleben Chemie GmbH                           |
|   |   | Prof. Dr. Wolf-Dieter  Griebler             |
|   |   | Dr.-Rudolf-Sachtleben-Str. 4                     |
|   |   | 47198 Duisburg                                   |
|   |   | Germany                                          |
|   |   | Facsimile:+49 (2066) 22-3201                     |
|   |   | E-mail:  w.d.griebler@sachtleben.de              |
|   |   | each with a copy  to Rockwood Germany and Kemira |

 

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|   | (e)    | Notifications to JV US                                            |
|--------|--------|-------------------------------------------------------------------|
|   |   |                                                              |
|   |   | White  Pigments LLC                                               |
|   |   | c/o Rockwood  Specialties Group, Inc.                        |
|   |   | Thomas J.  Riordan, Senior Vice President, Law and Administration |
|   |   | 100 Overlook Center                                               |
|   |   | Princeton NJ 08540                                                |
|   |   | USA                                                               |
|   |   | Facsimile:+1 (609) 514-8722                                       |
|   |   | E-mail: TRiordan@rocksp.com                                       |
|   |   |                                                              |
|   | (f)    | Notifications to Kemira, Kemira TiO2 and  Kemira Inc.             |
|   |   |                                                              |
|   |   | Hannu  Virolainen, President Kemira Speciality Business Area      |
|   |   | Kemira OYJ                                                        |
|   |   | Porkkalankatu 3                                                   |
|   |   | 00180 Helsinki                                                    |
|   |   | Finland                                                           |
|   |   | Facsimile:+358  - (0) 10 862 1068                                 |
|   |   | Email: hannu.virolainen@kemira.com                                |
|   |   |                                                              |
|   | (g)    | Notifications to Kemira Germany                                   |
|   |   |                                                              |
|   |   | Hermann-Josef Frings, Managing Director                           |
|   |   | Kemira Germany GmbH                                               |
|   |   | Marie-Curie-Straße 10                                        |
|   |   | 51377 Leverkusen                                                  |
|   |   | Germany                                                           |
|   |   | Facsimile:+49 - (0) 214 20690-250                                 |
|   |   | Email: hermann-josef.frings@kemira.com                            |

 
| 21.    | **AUTHORIZED  AGENT**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 21.1   | Kemira and Kemira Germany hereby appoint  the law firm of Gleiss Lutz Hootz Hirsch  Partnerschaftsgesellschaft von Rechtsanwälten, Steuerberatern, Mendelssohnstraße 87, 60325 Frankfurt am Main,  Germany, as their agent for service of process (*Zustellungsbevollmächtigter*) for all  legal proceedings arising out of or in connection with this Agreement. This  appointment shall only terminate upon the appointment of another agent for  service of process domiciled in Germany, provided that the agent for service  of |

 

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|   | process is an attorney admitted to the German bar*(in Deutschland zugelassener Rechtsanwalt*)  and his appointment has been notified to and approved in writing by Rockwood  (which approval shall not be unreasonably withheld). Kemira and Kemira  Germany shall upon the appointment of any new agent for service of process  (as the case may be) issue to the agent a written power of attorney (*Vollmachtsurkunde*) and shall irrevocably  instruct the agent to submit such deed in connection with any service of  process under this Agreement. A certified copy of the power of attorney shall  be submitted to Rockwood.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 21.2   | Rockwood, Rockwood Holdings and Rockwood Germany hereby appoint the law firm of Clifford Chance  Partnerschaftsgesellschaft, Mainzer Landstraße 46, 60325 Frankfurt am Main, Germany, as its agent for service of  process (*Zustellungsbevollmächtigter*)  for all legal proceedings arising out of or in connection with this  Agreement. This appointment shall only terminate upon the appointment of  another agent for service of process domiciled in Germany, provided that the  agent for service of process is an attorney admitted to the German bar*(in Deutschland zugelassener Rechtsanwalt*)  and his appointment has been notified to and approved in writing by Kemira  (which approval shall not be unreasonably withheld). Rockwood and Rockwood  Germany shall upon the appointment of any new agent for service of process  (as the case may be) issue to the agent a written power of attorney (*Vollmachtsurkunde*) and shall irrevocably  instruct the agent to submit such deed in connection with any service of  process under this Agreement. A certified copy of the power of attorney shall  be submitted to Kemira.                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 22.    | **SEVERABILITY**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | Should any provision of this Agreement, or any provision incorporated  into this Agreement in the future, be or become invalid or unenforceable, the  validity or enforceability of the other provisions of this Agreement shall  not be affected thereby. The invalid or unenforceable provision shall be  deemed to be substituted with retroactive effect by a suitable and equitable  provision that, to the extent legally permissible, comes as close as possible  to the intent and purpose of the invalid or unenforceable provision. The same  shall apply: (i) if the Parties have, unintentionally, failed to address  a certain matter in this Agreement (*Regelungslücke*);  in case a suitable and equitable provision shall be deemed to have been  agreed upon with retroactive effect and which comes as close as possible to  what the Parties, in the light of the intent and purpose of this Agreement,  would have agreed upon if they had considered the matter; or (ii) if any  provision of this Agreement is invalid because of the scope of any time  period of performance stipulated herein; in this case a legally permissible  time period or performance shall be deemed to have been agreed which comes as  close as possible to the stipulated time period or performance. |

 

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* * *

 
| Rockwood Holdings, Inc.                                          |                        |
|-----------------------------------------------------------------------|-----------------------------|
|                                                                  |                        |
| BY:                                                                   | /s/ CLEMENS ALFRED ROLLMAN  |   |
|                                                                  | Clemens Alfred Rollman      |
| Rockwood Specialties Group, Inc.                                 |                        |
|                                                                  |                        |
| BY:                                                                   | /s/ CLEMENS ALFRED ROLLMAN  |   |
|                                                                  | Clemens Alfred Rollman      |
| Deukalion  Einhundertvierundzwanzigste Vermögensverwaltungs GmbH |
|                                                                  |                        |
| BY:                                                                   | /s/ CLEMENS  ALFRED ROLLMAN |   |
|                                                                  | Clemens Alfred Rollman      |
| White Pigments Holding Oy                                             |                        |
|                                                                  |                        |
| BY:                                                                   | /s/ CLEMENS ALFRED ROLLMAN  |   |
|                                                                  | Clemens Alfred Rollman      |
| White Pigments LLC                                                    |                        |
|                                                                  |                        |
| BY:                                                                   | /s/ CLEMENS ALFRED ROLLMAN  |   |
|                                                                  | Clemens Alfred Rollman      |
| Kemira Oyj                                                            |                        |
|                                                                  |                        |
| BY:                                                                   | /s/ VERENA HÜGEL       |   |
|                                                                  | Verena Hügel           |
| Kemira Pigments Oy                                                    |                        |
|                                                                  |                        |
| BY:                                                                   | /s/ VERENA HÜGEL       |   |
|                                                                  | Verena Hügel           |
|                                                                       |                             |  |  |

 

 

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| Kemira Germany GmbH             |                  |
|---------------------------------|-----------------------|
|                            |                  |
| BY:                             | /s/ VERENA HÜGEL |   |
|                            | Verena Hügel     |
| Rockwood Specialties Group GmbH |                  |
|                            |                  |
| BY:                             | /s/ LEIF U. SCHRADER  |   |
|                            | Leif U. Schrader      |
| Sachtleben Chemie GmbH          |                  |
|                            |                  |
| BY:                             | /s/  LORENZO MATTHAEI |   |
|                            | Lorenzo Matthaei      |
|                                 |                       |  |  |

 

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