**Exhibit 10.10**

 

 

 

**OPTIONED 20% INTEREST PURCHASE AGREEMENT**

**dated as of September 15, 2008**

**between**

**WOLVERINE TUBE INC.,**

**WOLVERINE CHINA INVESTMENTS, LLC,**

**and**

**WIELAND-WERKE AG**

 

 

 

**FINAL VERSION**

**OPTIONED 20% INTEREST PURCHASE AGREEMENT**

**THIS OPTIONED 20% INTEREST PURCHASE AGREEMENT**(this“Agreement”), dated as of September 15, 2008, by and between **Wolverine Tube Inc.**, a Delaware corporation which has its principal place of business at 200 Clinton Avenue West, Suite 1000, Huntsville, Alabama 35801(“Wolverine”), **Wolverine China Investments, LLC**, a Delaware limited liability company having its principal place of business at 200 Clinton Avenue West, Suite 1000, Huntsville, Alabama 35801 (“W/Investments”), and**Wieland-Werke AG**, a corporation of the Federal Republic of Germany which has its principal place of business at Graf-Arco-Strasse 36, D-89079 Ulm, Germany (“Purchaser). Capitalized words used and not defined herein have the meanings setforth in **Annex I**. This Purchase Agreement shall be effective from and after September 15, 2008 (the “Effective Date”). 

**PREAMBLE**

**WHEREAS**, Wolverine, Purchaser and W/Investments have entered into that certain Option Agreementdated as of September 15, 2008 (the “Option Agreement”), pursuant to which Wolverine has granted Purchaser an option to purchase, upon the terms and conditions set forth in the Option Agreement a twenty percent (20%) ownershipinterest (represented by 20 Membership Units) in W/Investments (the “Optioned 20% Interest”) during the period beginning April 1, 2011 through and including March 31, 2013; 

**WHEREAS**, Wolverine, Purchaser, and W/Investments have executed and delivered that certain letter agreement (the “Option Acceleration LetterAgreement”) dated September 15, 2008, pursuant to which Wolverine has agreed to permit Purchaser to accelerate the exercise of the option to purchase the Optioned 20% Interest (as defined in the Option Agreement) upon the terms andconditions set forth in the Option Acceleration Letter Agreement and this Agreement; and 

**WHEREAS**, Wolverine, Purchaser, andWolverine Investments, and a certain other party or parties, have executed and delivered that certain 30% Interest Purchase Agreement dated as of September 15, 2008 pursuant to which Purchaser has purchased and is now the owner of a 30%ownership interest in W/Investments. 

**NOW THEREFORE**, in consideration of the foregoing and of the agreements, covenants,representations, and warranties set forth in this Agreement, the parties agree as follows: 

**Section 1. Definitions;Interpretation.**

(a) **Definitions**. 

As used in this Agreement, unless the context otherwise requires, the following terms have the respective meanings set forth in this Agreement, including **Annex I**. 

(b) **Interpretation**. 

In this Agreement: 

(i) thesingular includes the plural and vice versa, the masculine includes the feminine and vice versa and, unless the context otherwise requires, references to natural persons include corporate bodies, partnerships, and other legal entities and viceversa; 

(ii) any reference to an Article, Section, Clause, Schedule, Exhibit, Appendix, Annex, or Attachment, unlessotherwise specifically provided, shall be respectively to an Article, Section, Clause, Schedule, Exhibit, Appendix, Annex, or Attachment of this Agreement; and each reference herein to “the Agreement” or “this Agreement” shall,unless otherwise specifically provided, be construed to include the preamble, each such Article, Section, Clause, Schedule, Exhibit, Appendix, Annex, and Attachment; 

(iii) the headings of this Agreement are for ease of reference only and shall not affect its construction or interpretation; and

(iv) the expressions “include”, “includes” and “including” shall be construed withoutlimitation. 

**Section 2. Sale and Purchase.**

(a) **Authorization of Sale**. 

Subject to the terms and conditions of this Agreement, Wolverinehas authorized the sale of the Optioned 20% Interest, which ownership interest shall constitute twenty percent (20%) of the ownership interest of W/Investments (and shall be represented by 20 Membership Units) on the Accelerated PurchaseClosing Date, by Wolverine to Purchaser. 

(b) **Purchase and Sale of Optioned 20% Interest**. 

Subject to the terms and conditions of this Agreement and on the basis of the representations, warranties, covenants, and agreements contained in thisAgreement, at the Accelerated Purchase Closing, Wolverine hereby agrees that it shall sell, assign, and convey to Purchaser, free and clear of liens, claims, restrictions, and encumbrances, as of the Effective Date, that number of Membership Unitsof W/Investments as shall equal and constitute the Optioned 20% Interest, as set forth on **Annex II** hereto, and Purchaser shall purchase and acquire the number of Membership Units of W/Investments as shall equal and constitute theOptioned 20% Interest in W/Investments and accepts from Wolverine, as of the Effective Date, all of such Membership Units of W/Investments in the amounts set forth on **Annex II**hereto. At the Accelerated Purchase Closing, Wolverineshall deliver to Purchaser an amendment to Exhibit A of that certain Operating Agreement of W/Investments, dated July 17, 1997, as amended (the “Operating Agreement”), which amendment to the operating agreement shall be insubstantially the form of **Exhibit A** (the “Amendment to Operating Agreement) and which Wolverine, W/Investments and Purchaser shall execute and deliver; and immediately thereafter Wolverine, W/Investments and Purchaser shallexecute and deliver that certain Amended and Restated Limited Liability Company Agreement of W/Investments (the “Amended and Restated LLC Agreement”), and that certain Owners and Voting Rights Agreement by and among Wolverine, Purchaser,W/Investments, and Wolverine Shanghai, in substantially the form of **Exhibit C** and incorporated by reference herein (the “Voting Rights Agreement), and such other certificates or materials representing the Optioned 20% Interestpurchased from Wolverine by Purchaser pursuant to this Agreement. 

(c) **[Reserved]**

(d) **Purchase Price of 20% Optioned Interest**. 

 

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The aggregate cash purchase price of the Optioned 20% Interest shall be Ten Million One Hundred TwentyThousand and No/100’s US Dollars (US$10,120,000.00) (the “Accelerated Purchase Price”); and at the Accelerated Purchase Closing, Purchaser shall pay the Accelerated Purchase Price, in US Dollar currency, to Wolverine in good funds bywire transfer to the account identified in **Annex III**. 

(e) **Tax Liability of the Parties**. Subject to the termsof **Section 8(a)(iv)** hereof, 

(i) Wolverine hereby agrees to pay, when due, any and all taxes,assessments, penalties, interest or charges levied or assessed against Wolverine or W/Investments which are due and owing by either of them for the period up to the Accelerated Purchase Closing. 

(ii) Purchaser hereby agrees to pay, when due, any and all taxes, assessments, penalties, interest or charges levied or assessed againstPurchaser which are due and owing by it for the period up to and from and after the Accelerated Purchase Closing. 

(iii)W/Investments hereby agrees to pay, when due, any and all taxes, assessments, penalties, interest or charges levied or assessed against W/Investments which are due and owing by it for the period from and after the Accelerated Purchase Closing Date.Wolverine hereby agrees to pay, when due, any and all taxes, assessments, penalties, interest or charges levied or assessed against it which are due and owing by it for the period from and after the Accelerated Purchase Closing. 

(iv) The terms of this **Section 2(e)** shall survive the Closing. 

(f) **[RESERVED.]**

(g) **Incometax issues**. 

Wolverine shall file any and all necessary tax returns with respect to a termination of W/Investments for income taxpurposes under Section 708 of the Internal Revenue Code, if and as applicable. 

3. **Closing of the Purchase of Optioned 20%Interest**. 

(a) The closing of the sale of the 20% Ownership Interest (the “Accelerated Purchase Closing”) shall take place atthe offices of Purchaser, at Graf-Arco-Strasse 36, D-89079 Ulm, Germany and the offices of Wolverine, at 200 Clinton Avenue West Suite 1000, Huntsville, Alabama 35801, simultaneously with the execution and delivery of this Agreement, onSeptember 15, 2008 or at such other time and place as the parties shall agree (the “Accelerated Purchase Closing Date”). Purchaser shall be obligated to purchase fractional ownership interests which may be included in the Optioned 20%Ownership Interest, if any, in accordance with this Agreement and the Option Agreement, respectively; **provided, however**, that Purchaser shall have no right to purchase more than the Optioned 20% Ownership Interest, the calculation ofeach of which shall be based upon all of the issued and outstanding ownership interests of W/Investments on the Accelerated Purchase Closing Date and which outstanding ownership interest shall not be changed except in accordance with the VotingRights Agreement. 

(b) At the Accelerated Purchase Closing, Wolverine, W/Investments and Purchaser, as the case may be, shall execute anddeliver this Agreement and the Amended and Restated LLC Agreement, and such agreements, certificates, consents, or other instruments as may be required by this Agreement or Applicable Law (collectively, the “Accelerated Purchase TransactionDocuments”). 

 

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**Section 4. Representations of Wolverine and W/Investments.**

Wolverine, for itself and on behalf of W/Investments, hereby represents and warrants to Purchaser as of the Accelerated Purchase Closing Date as follows:

(a) **Securities Exemption**. 

Assuming the accuracy of the representations of Purchaser in **Section 6(e)**, the offer and sale of the Optioned 20% Interest by Wolverine are, or will be, exempt from registration under ApplicableLaws. 

(b) **Organization; Ownership Interests**. 

(i) Each of Wolverine and W/Investments is duly organized, validly existing, and in good standing under the laws of the jurisdiction ofits incorporation or other formation, is duly qualified to do business and in good standing in each other jurisdiction in which it conducts business where its failure to do so would materially adversely affect its operations, and has all requisitepower and authority to own, lease and operate the assets used in its business, to carry on its business as presently conducted, to enter into this Agreement and the other Accelerated Purchase Transaction Documents to which it is a party, to performits obligations hereunder and thereunder, and to consummate the transactions contemplated by this Agreement and the other Accelerated Purchase Transaction Documents. Attached as **Schedule 4(b)** are correct and complete copies of theOrganization Instruments of Wolverine and W/Investments, respectively, as in effect on the Accelerated Purchase Closing Date. 

(ii) Wolverine owns directly seventy (70) Membership Units representing seventy percent (70%) of the ownership interests in W/Investments, free and clear of all liens, claims, restrictions and encumbrances, except Permitted Liensfor which written consents to the sale of the Optioned 20% Interest upon the terms and conditions of this Agreement have been obtained by Wolverine. There are one hundred (100) Membership Units of W/Investments. 

(iii) W/Investments was formed on July 17, 1997, and has not been dissolved. W/Investments has owned all of the issued andoutstanding shares of Wolverine Shanghai since July 1997. 

(c) **Authorization; No Conflicts**. 

The execution, delivery and performance by each of Wolverine and W/Investments of this Agreement and the other Accelerated Purchase Transaction Documentsto which it is a party have been duly authorized by all requisite action (corporate or otherwise) of such entity, and this Agreement and the other Accelerated Purchase Transaction Documents to which it is a party constitute valid and bindingobligations of Wolverine and as the case may be, enforceable against Wolverine or W/Investments, as the case may be, in accordance with their respective terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium andsimilar laws of general applicability relating to or affecting creditor’s rights and to general equitable principles and other similar Applicable Laws. The execution, delivery and performance of this Agreement and the other Accelerated PurchaseTransaction Documents to which it is a party by Wolverine or W/Investments, as the case may be, will not (i) result in a conflict with its Organization Instruments, or (ii) result in material conflict with, or in a material breach of theterms or conditions of, or constitute a material default (with or without the passage of time, or both) under, any agreement (including loan agreements) or contract to which it is a party or to which its assets are subject, or result in the creationof a lien, claim, or encumbrance upon its properties or assets. 

 

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(d) **Compliance; Licenses and Permits**. 

Except as set forth on **Schedule 4(d)** or as expressly contemplated by this Agreement or another Accelerated Purchase Transaction Document,each of Wolverine and W/Investments has complied in all material respects with, and is not in material violation of, any Applicable Law or Permit with respect to its business, as presently or as currently proposed to be conducted and that would havea material adverse effect on the transactions contemplated by this Agreement or the other Accelerated Purchase Transaction Documents. With respect to the transactions contemplated by this Agreement or the other Accelerated Purchase TransactionDocuments, each of Wolverine and W/Investments has all material licenses and permits required by Governmental Authorities or Applicable Law (collectively, “Permits”) which are required for the conduct of its business as presently conductedor as is presently proposed to be conducted (except as disclosed in an Exhibit or Schedule to this Agreement or another Accelerated Purchase Transaction Document or contemplated by this Agreement or another Accelerated Purchase TransactionDocument), and such Permits are in full force and effect. 

(e) **Litigation**. 

There are no material Proceedings now pending or, to the Knowledge of Wolverine, threatened against, involving, or affecting Wolverine or W/Investmentsor their respective assets or properties which could materially adversely affect the transactions contemplated by this Agreement or the other Accelerated Purchase Transaction Documents or the assets or properties of Wolverine or W/Investments.

(f) **Brokers and Finders**. 

Neither Wolverine nor W/Investments nor any of their respective officers, directors, managers, employees or owners, has employed or has any obligation with respect to any broker or finder in connection with thetransactions contemplated by this Agreement. 

(g) **Financial Statements**. 

Wolverine has delivered to Purchaser unaudited financial statements of W/Investments for the fiscal years ending December 31,2005, December 31, 2006, and December 31, 2007 (collectively, the “W/Investments Unaudited Financial Statements”) and unaudited year-to-date balance sheets for the period January 1, 2008 through February 28, 2008(collectively, the “W/Investments Interim Financial Statements”, which, together with the W/Investments Unaudited Financial Statements, are referred to from time to time as the “W/Investments Financial Statements”), which havebeen prepared in accordance with US GAAP consistently applied throughout the periods referred to in the W/Investments Financial Statements, subject, (i) in the case of the W/Investments Interim Financial Statements, to normal recurringyear-end adjustments (except as contemplated by another Transaction Document, the effect of which would not, individually or in the aggregate, have a material adverse effect on W/Investments) and (ii) in the case of the W/Investments FinancialStatements, to the absence of cash flow statement and footnotes (which footnotes, if presented, would not cause a material change in the W/Investments Financial Statements), and are consistent with the books and records of W/Investments and fairlypresent the operations of W/Investments. 

(h) **No Material Adverse Change**. 

Except as contemplated by this Agreement or another Accelerated Purchase Transaction Document, since the date of the W/Investments Financial Statements,to the Knowledge of Wolverine, (i) there has been no material adverse change in the business, operations, properties, assets, or condition of W/Investments, and (ii) no event has occurred or circumstance exists that could result in such amaterial adverse change with respect to W/Investments. 

 

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(i) **Environmental Matters**. 

(i) To the Knowledge of Wolverine, W/Investments is in compliance with the Environmental Laws applicable to it. To the Knowledge ofWolverine, W/Investments has no reasonable basis to expect an actual or threatened order, notice, or other communication, from (A) any Governmental Authority or private citizen acting in the public interest or (B) the current or priorowner or operator of any of its facilities, of a violation or failure to materially comply with any Environmental Law or of an obligation to undertake or bear the cost of any environmental, health, and safety liabilities with respect to anyproperties or assets (whether real, personal, or mixed) which W/Investments owns or controls. 

(ii) There are no pending or,to the Knowledge of Wolverine, threatened material claims, encumbrances, or other restrictions against W/Investments arising under or pursuant to any Environmental Law or with respect to or affecting any real property in which W/Investments has orhad a controlling interest. 

(iii) To the Knowledge of Wolverine, W/Investments has no knowledge of any basis to expect, andto the Knowledge of Wolverine, neither W/Investments nor any person or entity for which W/Investments is responsible has received, any citation, directive, inquiry, notice, order, summons, warning, or other communication regarding a hazardousactivity, Hazardous Substance, or any alleged, actual, or potential material violation or failure to materially comply with any Environmental Law, or of any alleged, actual, or potential material obligation to undertake or bear the cost of anyenvironmental, health, and safety liabilities under any Environmental Law with respect to any of the facilities or any other property (whether real, personal, or mixed) in which W/Investments owns or controls. 

(iv) To the Knowledge of Wolverine, except as permitted under Applicable Law, there are no Hazardous Substances present at the facilitieswhich are owned or controlled by W/Investments, including any Hazardous Substances contained in barrels, above or underground storage tanks, landfills, land deposits, dumps, equipment (whether moveable or fixed) or other containers, either temporaryor permanent, or incorporated into any structure at any such location. To the Knowledge of Wolverine, neither W/Investments nor any person or entity for whose conduct it is responsible has permitted or conducted, or is aware of, any materialhazardous activity conducted with respect to any property (whether real, personal, or mixed) which is owned or controlled by W/Investments, except in compliance with Applicable Law. 

(k) **Employee Relations**. 

Since the formation of W/Investments on July 17, 1997, W/Investment has not employed employees and has not been and is not a party to any collective bargaining or other labor contract. 

(l) **Taxes**. 

(i) W/Investments has filed or caused to be filed all tax returns that are or were required to be filed by or with respect to it (whether separately or as a member of a group of entities) pursuant to Applicable Law and has paid, or madeprovision for the payment of, all taxes that have or may have become due pursuant to such tax returns or otherwise under Applicable Law, or pursuant to any assessment received by it, or that are being contested in good faith and as to which adequatereserves (determined in accordance with US GAAP) have been provided in the W/Investments Financial Statements. 

 

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(ii) All deficiencies assessed as a result of any audits of income tax returns byW/Investments under Applicable Law have been paid, reserved against, settled, or, are being contested in good faith by appropriate proceedings. W/Investments has not given or been requested to give waivers or extensions (or is or would not besubject to a waiver or extension given by any other person) of any statute of limitations relating to the payment of such income taxes by it or for which it may be liable. 

(iii) The charges, accruals, and reserves with respect to taxes on the W/Investments Financial Statements are adequate (as determined inaccordance with US GAAP). To the Knowledge of Wolverine, there is no proposed tax assessment against W/Investments. All taxes that are or were required under Applicable Law to be withheld or collected by W/Investments have been duly withheld orcollected and, to the extent required, been paid to the proper Governmental Authorities by W/Investments. 

(iv) All taxreturns filed by W/Investments (or that include on a consolidated basis W/Investments) are true, correct, and complete, and there is no tax sharing agreement to which W/Investments is a party which will require any payment by W/Investments after theAccelerated Purchase Closing Date. 

(m) **No Undisclosed Liabilities**. 

Except with regard to W/Investments’ restructuring activities as such concern entities other than Wolverine Shanghai, W/Investments has no materialliabilities or obligations except for liabilities or obligations reflected or reserved against in the W/Investments Financial Statements or related records, current liabilities incurred in the Ordinary Course of business, and liabilities previouslydisclosed to Purchaser in writing. 

**Section 5. Representations with respect to Wolverine Shanghai.**

Wolverine, for itself and on behalf of W/Investments and Wolverine Shanghai, hereby represents and warrants to Purchaser as of the Accelerated PurchaseClosing as follows: 

(a) **Organization**. 

Wolverine Shanghai is duly organized, validly existing, and in good standing under the laws of the jurisdiction of its incorporation or other formation, is duly qualified to do business and in good standing in eachother jurisdiction in which it conducts business where its failure to do so would materially adversely affect its operations, and has all requisite corporate power and authority to own, lease and operate the assets used in its business, to carry onits business as presently conducted, to enter such of the other Accelerated Purchase Transaction Documents to which it is a party, to perform its obligations under and to consummate the transactions contemplated by the other such AcceleratedPurchase Transaction Documents. Attached as **Schedule 5(a)** are correct and complete copies of the Organization Instruments of Wolverine Shanghai as in effect on the Accelerated Purchase Closing Date. 

 

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(b) **Authorization; No Conflicts**. 

The execution, delivery and performance by Wolverine Shanghai of the other Accelerated Purchase Transaction Documents to which it is a party have beenduly authorized by all requisite action (corporate or otherwise) of such entity, and such other Accelerated Purchase Transaction Documents constitute valid and binding obligations of Wolverine Shanghai, enforceable against Wolverine Shanghai inaccordance with their respective terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditor’s rights and to general equitable principlesand similar Applicable Laws. The execution, delivery and performance by Wolverine Shanghai of the other Accelerated Purchase Transaction Documents to which it is a party will not (i) result in a conflict with its Organization Instruments, or(ii) result in material conflict with, or in a material breach of the terms or conditions of, or constitute a material default (with or without the passage of time, or both) under, any agreement (including loan agreements) or contract to whichit is a party or to which its assets are subject, or result in the creation of a lien, claim, or encumbrance upon its properties or assets 

(c) **Compliance; Licenses and Permits**. 

Except as set forth on **Schedule 5(c)**, to the Knowledge ofWolverine, Wolverine Shanghai has complied in all material respects with, and is not in material violation of, any Applicable Law or Permit applicable to its business, as presently conducted or as currently proposed to be conducted, or affecting orrelating to its performance of the other Accelerated Purchase Transaction Documents to which it is as party. Wolverine Shanghai has all Permits which are required for the conduct of its business as presently conducted and as is presently proposed tobe conducted (except as disclosed in an Exhibit or Schedule to, or as contemplated by, this Agreement or another Accelerated Purchase Transaction Document or as previously disclosed to Purchaser with respect to the transfer of certain assets of itsmetals division), and such Permits are in full force and effect. 

(d) **Litigation**. 

Except as set forth on **Schedule 5(d)**, there are no material Proceedings now pending, or to the Knowledge of Wolverine, threatened against,involving, or affecting Wolverine Shanghai or its assets or properties which could materially adversely affect the transactions contemplated by this Agreement or the other Accelerated Purchase Transaction Documents or the assets or properties ofWolverine Shanghai. 

(e) **Brokers and Finders**. 

Neither Wolverine Shanghai nor any of its officers, directors, employees or owners, has employed or has any obligation with respect to any broker or finder in connection with the transactions contemplated by thisAgreement. 

(f) **Financial Statements**. 

Wolverine Shanghai has delivered to Purchaser audited financial statements of Wolverine Shanghai for the fiscal years ending December 31, 2005, December 31, 2006, and December 31, 2007(collectively, the “Wolverine Shanghai Financial Statements”), and unaudited year-to-date balance sheets and income statements for the period January 1, 2008 through February 24, 2008 (collectively, the “Wolverine ShanghaiInterim Financial Statements” and together with the Wolverine Shanghai Financial Statements, the “Wolverine Shanghai Financial Statements”), which have been prepared in accordance with Chinese GAAP consistently applied throughout theperiods referred to in the Wolverine Shanghai Financial Statements, subject, in the case of the Wolverine Shanghai Interim Financial Statements, to normal recurring year-end adjustments (except as contemplated by another Transaction Document, theeffect of which would not, individually or in the aggregate, have a material adverse effect on Wolverine Shanghai) and to the absence of notes (that, if presented, would not differ materially from those included in the Wolverine Shanghai FinancialStatements), and are consistent with the books and records of Wolverine Shanghai and fairly present the operations of Wolverine Shanghai. 

 

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(g) **Title to Properties; Encumbrances**. 

Wolverine Shanghai leases the real property used by it in the operation of its business and it is not the record title owner of such real property.Wolverine Shanghai owns all the personal property (whether tangible or intangible) that it purports to own and such personal property is located in the locations operated by it or reflected as operated by it on its books and records, including theWolverine Shanghai Financial Statements. The interests in real property leased by Wolverine Shanghai and the personal property owned by Wolverine Shanghai described in the Wolverine Shanghai Financial Statements or other property records ofWolverine Shanghai are free and clear of all material Encumbrances, except (a) mortgages, security interests, or other hypothecations shown on the Wolverine Shanghai Financial Statements, (b) mortgages, security interests, or otherhypothecations incurred in connection with the purchase of personal property after the date of the Wolverine Shanghai Financial Statements (which mortgages, security interests, or other hypothecations are limited to the personal property soacquired), (c) liens for current taxes not yet due, and (d) with respect to real property leased by Wolverine Shanghai, (i) minor imperfections of title, if any, none of which is substantial in amount, materially detracts from thevalue or impairs the use of the real property subject thereto or impairs the operation of it, and (ii) zoning laws and other land use restrictions (including, the rights of way, building use restrictions, exceptions, variances, reservations, orlimitations as currently in effect) which to the Knowledge of Wolverine do not impair the present or use of the real property subject thereto as contemplated by this Agreement or the other Accelerated Purchase Transaction Documents. All improvementsto real property owned by Wolverine Shanghai are located on real property leased by it and are located within the boundaries of such leased real property with respect to Wolverine Shanghai. 

(h) **No Material Adverse Change**. 

Except as contemplated by this Agreement or another Accelerated Purchase Transaction Document, since the date of the Wolverine Shanghai Financial Statements, to the Knowledge of Wolverine, (i) there has been no material adverse changein the business, operations, properties, assets, or condition of Wolverine Shanghai, and (ii) no event has occurred or circumstance exists that could result in such a material adverse change with respect to Wolverine Shanghai. 

(i) **Environmental Matters**. 

(i) To the Knowledge of Wolverine, Wolverine Shanghai is in compliance with the Environmental Laws applicable to it. To the Knowledge of Wolverine, Wolverine Shanghai has no reasonable basis to expect an actual orthreatened order, notice, or other communication, from (A) any Governmental Authority or private citizen acting in the public interest or (B) the current or prior owner or operator of any of its facilities, of a violation or failure tomaterially comply with any Environmental Law or of an obligation to undertake or bear the cost of any environmental, health, and safety liabilities with respect to any properties or assets (whether real, personal, or mixed) in which WolverineShanghai owns or controls. 

(ii) There are no pending or, to the Knowledge of Wolverine, threatened material claims,encumbrances, or other restrictions against Wolverine Shanghai arising under or pursuant to any Environmental Law or with respect to or affecting any real property in which Wolverine Shanghai has or had a controlling interest. 

 

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(iii) To the Knowledge of Wolverine, Wolverine Shanghai has no knowledge of any basis toexpect, and to the Knowledge of Wolverine, neither Wolverine Shanghai nor any person or entity for which Wolverine Shanghai is responsible has received, any citation, directive, inquiry, notice, order, summons, warning, or other communicationregarding a hazardous activity, Hazardous Substance, or any alleged, actual, or potential material violation or failure to materially comply with any Environmental Law, or of any alleged, actual, or potential material obligation to undertake or bearthe cost of any environmental, health, and safety liabilities under Environmental Law with respect to any of the facilities or any other property (whether real, personal, or mixed) in which Wolverine Shanghai owns or controls. 

(iv) To the Knowledge of Wolverine, except as permitted under Applicable Law, there are no Hazardous Substances present at the facilitieswhich are owned or controlled by Wolverine Shanghai, including any Hazardous Substances contained in barrels, above or underground storage tanks, landfills, land deposits, dumps, equipment (whether moveable or fixed) or other containers, eithertemporary or permanent, or incorporated into any structure at any such location. To the Knowledge of Wolverine, neither Wolverine Shanghai nor any person or entity for whose conduct it is responsible has permitted or conducted, or is aware of, anymaterial hazardous activity conducted with respect to any property (whether real, personal, or mixed) which is owned or controlled by Wolverine Shanghai, except in compliance with Applicable Law. 

(j) **Employee Relations**. 

Except as otherwise disclosed on **Schedule 5(j)**, Wolverine Shanghai has not been and is not a party to any collective bargaining or other labor contract. There is not presently pending or existing or, to the Knowledge ofWolverine, threatened, (i) any strike, slowdown, picketing, work stoppage, or employee grievance process, (ii) any material proceeding against or affecting Wolverine Shanghai relating to the alleged violation of any requirement underApplicable Law pertaining to labor relations or employment matters, including but not limited to, any material charge or complaint filed by an employee or union with a Governmental Authority or to other labor or employment dispute against oraffecting Wolverine Shanghai, or (iii) any application for certification of a collective bargaining agent. To the Knowledge of Wolverine, no event has occurred or circumstance exists that could provide the basis for any material work stoppageor other labor dispute with respect to Wolverine Shanghai. There is no lockout of any employees by Wolverine Shanghai, and no such action is contemplated by Wolverine Shanghai. To the Knowledge of Wolverine, Wolverine Shanghai has complied in allmaterial respects with requirements under Applicable Law relating to employment, equal employment opportunity, nondiscrimination, immigration, wages, hours, benefits, collective bargaining, the payment of employment taxes to governmental authorities(other than payment of such amounts with respect to current periods), occupational safety and health, and plant closing, and there is not currently due by Wolverine Shanghai any material fines, penalties, or other amounts (however designated) forfailure to comply with such requirements under Applicable Law. 

(k) **Taxes**. 

(i) Wolverine Shanghai has filed or caused to be filed all tax returns that are or were required to be filed by or with respect to it(whether separately or as a member of a group of entities) pursuant to Applicable Law and has paid, or made provision for the payment of, all taxes that have or may have become due pursuant to such tax returns or otherwise under Applicable Law, orpursuant to any assessment received by it, or that are being contested in good faith and as to which adequate reserves (determined in accordance with Chinese GAAP) have been provided in the Wolverine Shanghai Financial Statements. 

 

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(ii) All deficiencies assessed as a result of any audits of income tax returns byWolverine Shanghai under Applicable Law have been paid, reserved against, settled, or, are being contested in good faith by appropriate proceedings. Wolverine Shanghai has not given or been requested to give waivers or extensions (or is or would notbe subject to a waiver or extension given by any other person) of any statute of limitations relating to the payment of such income taxes by it or for which it may be liable. 

(iii) The charges, accruals, and reserves with respect to taxes on the Wolverine Shanghai Financial Statements of Wolverine Shanghai areadequate (as determined in accordance with Chinese GAAP). To the Knowledge of Wolverine, there is no proposed tax assessment against Wolverine Shanghai. All taxes that are or were required under Applicable Law to be withheld or collected byWolverine Shanghai have been duly withheld or collected and, to the extent required, have been paid to the proper Governmental Authorities by Wolverine Shanghai. 

(iv) All tax returns filed by Wolverine Shanghai (or that include on a consolidated basis Wolverine Shanghai) are true, correct, andcomplete, and there is no tax sharing agreement to which Wolverine Shanghai is a party which will require any payment by Wolverine Shanghai after the Accelerated Purchase Closing Date. 

(l) **Condition and Sufficiency of Assets**. 

To the Knowledge of Wolverine, the buildings, structures, and equipment owned or leased by Wolverine Shanghai are in good operating condition and repair (ordinary wear and tear excepted), are adequate for the uses forwhich each currently is used, and do not require maintenance or repair (except for ordinary, routine maintenance and repairs which are conducted in the Ordinary Course of Wolverine Shanghai’s business and which are not, to the Knowledge ofWolverine, material in nature or cost). The buildings, structures, and equipment leased by Wolverine Shanghai are sufficient for the conduct of Wolverine Shanghai’s business immediately after the Accelerated Purchase Closing Date insubstantially the same manner as conducted immediately prior to the Accelerated Purchase Closing Date, except as contemplated by the Voting Rights Agreement and as otherwise contemplated by this Agreement. 

(m) **Accounts Receivable**. 

Allaccounts receivable of Wolverine Shanghai reflected on its balance sheet included in the Wolverine Shanghai Interim Financial Statements (collectively, the “Accounts Receivable”) represent or will represent valid obligations arising fromthe Ordinary Course of Wolverine Shanghai’s business. Unless paid prior to the Accelerated Purchase Closing Date the Accounts Receivable, to the Knowledge of Wolverine, are or will be as of the Accelerated Purchase Closing Date collectible, inall material respects in the Ordinary Course of Wolverine Shanghai’s business net of the respective reserves shown on the balance sheet included in the Wolverine Shanghai Interim Financial Statements or on the accounting records of WolverineShanghai as of the Accelerated Purchase Closing Date; and subject to such reserves, to the Knowledge of Wolverine, the Accounts Receivable either have been or will be collected, in the Ordinary Course of Wolverine Shanghai’s business. To theKnowledge of Wolverine, there is no material contest, claim, or right of set-off, other than returns in the Ordinary Course of business, under any contract with any obligor of an Accounts Receivable or relating to the amount or validity of suchAccounts Receivable. 

 

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(n) **Inventory**. 

To the Knowledge of Wolverine, all of the inventory of Wolverine Shanghai reflected in the balance sheet included in the Wolverine Shanghai InterimFinancial Statements consists of a quality and quantity usable and salable in the Ordinary Course of Wolverine Shanghai’s business, as required by Chinese GAAP applied on a consistent basis. To the Knowledge of Wolverine, on the AcceleratedPurchase Closing Date all inventories of Wolverine Shanghai which have not been not written off have been priced at the lower of cost or market net realizable value on a first in, first out basis and the quantities of each item of inventory (whetherraw materials, work-in-process, or finished goods) are reasonable under the circumstances on the Accelerated Purchase Closing Date. 

(o)**No Undisclosed Liabilities**. 

Wolverine Shanghai has no material liabilities or obligations except for liabilities orobligations reflected or reserved against in the Wolverine Shanghai Financial Statements or related records, current liabilities incurred in the Ordinary Course of business, and liabilities previously disclosed to Purchaser in writing. 

**Section 6. Representations of Purchaser.**

Purchaser represents to Wolverine, W/Investments, and Wolverine Shanghai, each, as of the Accelerated Purchase Closing as follows: 

(a) **Organization; Ownership Interests**. 

(i) The Purchaser is duly organized,validly existing, and in good standing under the laws of the jurisdiction of its incorporation or other formation, is duly qualified to do business and in good standing in each other jurisdiction in which it conducts business where its failure to doso would materially adversely affect its operations, has all requisite corporate power and authority to own, lease and operate the assets used in its business, to carry on its business as presently conducted, to enter into this Agreement and theother Accelerated Purchase Transaction Documents, to perform its obligations hereunder and thereunder, and to consummate the transactions contemplated by this Agreement and the other Accelerated Purchase Transaction Documents. Attached as**Schedule 6(a)** are correct and complete copies of the Organization Instruments of Purchaser, as in effect on the date of this Agreement. 

(ii) Wieland owns directly thirty (30) Membership Units representing thirty percent (30%) of the ownership interests in W/Investments, free and clear of all liens, claims, restrictions and encumbrances.

(b) **Authorization; No Conflicts**. 

The execution, delivery and performance by the Purchaser of this Agreement and the other Accelerated Purchase Transaction Documents to which it is a party have been duly authorized by all requisite action (corporateor otherwise) of such entity, and this Agreement and the other Accelerated Purchase Transaction Document to which it is a party constitute a valid and binding obligation of Purchaser, enforceable against Purchaser in accordance with their respectiveterms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditor’s rights and to general equitable principles and similar Applicable Laws. ThePurchaser’s execution, delivery and performance of this Agreement and the other Accelerated Purchase Transaction Documents to which it is a party will not (i) result in a conflict with its Organization Instruments or (ii) result inmaterial conflict with, or in a material breach of the terms or conditions of, or 

 

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constitute a material default (with or without the passage of time, or both) under, any agreement (including loan agreements) or contract to which it is aparty or to which its assets are subject, or result in the creation of a lien, claim, or encumbrance upon its properties or assets. 

(c)**Compliance; Licenses and Permits**. 

Except as set forth on **Schedule 6(c)**, Purchaser has complied in all materialrespects with, and is not in material violation of, any Applicable Law or Permit with respect to its business, as presently or as currently proposed to be conducted and that would have a material adverse effect on the transactions contemplated bythis Agreement or the other Accelerated Purchase Transaction Documents. With respect to the transactions contemplated by this Agreement or the other Accelerated Purchase Transaction Documents, Purchaser has all Permits which are required for theconduct of its business as presently conducted or as is presently proposed to be conducted (except as disclosed in an Exhibit or Schedule to this Agreement or another Accelerated Purchase Transaction Document), and such Permits are in full force andeffect. 

(d) **Litigation**. 

There are no material Proceedings now pending, to the Knowledge of Purchaser, threatened against, involving, or affecting Purchaser or its property or which could materially adversely affect the transactionscontemplated by this Agreement or the other Accelerated Purchase Transaction Documents or the assets or properties of Purchaser. 

(e)**Investment Representations**. 

(i) Purchaser is acquiring the Optioned 20% Interest for its own account, forinvestment and not with a view to the distribution thereof, nor with any present intention of distributing the same. 

(ii)Purchaser understands that the Optioned 20% Interest has not been registered under Applicable securities Laws by reason of the offer and sale of the Optioned 20% Interest in a transaction which is exempt from the registration requirements of theApplicable securities Law and that the Optioned 20% Interest must be held indefinitely unless a subsequent disposition thereof is registered under the Applicable securities Law or is exempt from registration. 

(iii) Purchaser understands that the exemption from registration afforded by Applicable securities Laws (the provisions of which are knownto Purchaser) depends on the satisfaction of various conditions and that, if applicable, such exemptions may only afford the basis for sales under certain circumstances and only in limited amounts. 

(iv) Purchaser has had a reasonable time prior to the date of this Agreement to ask questions and receive answers concerning the terms andconditions of this Agreement and the other Accelerated Purchase Transaction Documents relating to Purchaser’s purchase of the Optioned 20% Interest, and to obtain any additional information which Wolverine, W/Investments, or Wolverine Shanghaipossesses or could acquire without unreasonable effort or expense, and Purchaser has generally such knowledge and experience in business and financial matters and with respect to investments in securities of privately held companies as to enablePurchaser to understand and evaluate the risks of such investment and form an investment decision with respect thereto. 

 

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(f) **Brokers and Finders**. 

Neither Purchaser, nor any of its officers, directors, employees or owners, has employed or has any obligation with respect to any broker or finder inconnection with the transactions contemplated by this Agreement. 

**Section 7. Actions prior to, simultaneously with, or after theAccelerated Purchase Closing.**

The obligation of Purchaser to purchase the Optioned 20% Interest at the Accelerated Purchase Closingis subject to the fulfillment or the waiver by Purchaser of the conditions described in **Sections 7(a), (b), (c), (g), (h), (i), (j), (k),_and (l)** on or before the Accelerated Purchase Closing, and the obligation of Wolverine tosell the Optioned 20% Interest or to complete its obligations under this Agreement at the Accelerated Purchase Closing is subject to the fulfillment or the waiver by Wolverine or W/Investments, as the case may be, of the conditions described in**Sections 7(a),_(b), (g), (h), (i), (j), (k), and (l)** on or before the Accelerated Purchase Closing. The parties agree that the activities described in **Section 7(m)** shall be completed after the AcceleratedPurchase Closing. 

(a) Accuracy of Representations and Warranties. The representations and warranties of or with respect toWolverine, W/Investments and Wolverine Shanghai, respectively, and of Purchaser contained in this Agreement and the other Accelerated Purchase Transaction Documents shall be true and correct in all material respects (other than those representationsand warranties which are qualified by “materiality”, which shall be true and correct in all respects) as of the Accelerated Purchase Closing Date. 

(b) Compliance with Covenants. Wolverine and W/Investments, respectively, on the one hand, and Purchaser, on the other hand, shall have performed and complied in all material respects with all agreements andcovenants contained in this Agreement and the other Accelerated Purchase Transaction Documents which are to be performed and complied with as of the date of the Accelerated Purchase Closing 

(c) Due Diligence. Prior to the Accelerated Purchase Closing Date, Purchaser shall have been satisfied in all respects with the results of its andits advisors’ business, intellectual property, legal, tax, accounting, and other due diligence investigation, if any, of W/Investments and Wolverine Shanghai. 

(d) **[Reserved.]**. 

(e) **[Reserved.]**

(f) **[Reserved.]**

(g) OtherTransaction Documents; Required Consents; Other Pre-Accelerated Purchase Closing Activities. 

(i) Except with respect tothe events, activities, approvals, filings, and consents which either this Agreement or another Transaction Document do not contemplate will occur at the Accelerated Purchase Closing, the events, activities, consents, approvals (including corporateapprovals evidenced by a certificate of an appropriate corporate officer) and other actions of, and notices and filings with, all persons as may be necessary or required with respect to the execution and delivery by the parties of this Agreement andsuch of the other Accelerated Purchase Transaction Documents as are to be executed and delivered on the Accelerated Purchase Closing Date, and the consummation by the parties of the transactions contemplated by this Agreement and such of the otherAccelerated Purchase 

 

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Transaction Documents as are to be executed and delivered on the Accelerated Purchase Closing Date have been obtained or made as contemplated by thisAgreement or such other of the Accelerated Purchase Transaction Documents (including, without limitation, the appointment of certain managers to the Management Committee of W/Investments and certain directors to the Board of Directors of WolverineShanghai and of certain officers of W/Investments and of Wolverine Shanghai, as contemplated by the Voting Rights Agreement; but excluding the consents and approvals required under the laws of the People’s Republic of China, if any).

(h) Authorizing Actions of Wolverine, W/Investments, and Purchaser. At or prior to the Accelerated Purchase Closing, Purchasershall have received copies of the requisite corporate actions taken by Wolverine and W/Investments, respectively, certified by the Secretary of Wolverine, and Wolverine shall have received copies of all requisite corporate actions (if any berequired) taken by Purchaser, certified by a duly authorized officer of Purchaser, to authorize their respective execution and delivery of this Agreement and the other Accelerated Purchase Transaction Documents to which each is a party and theirrespective consummation of the transactions contemplated hereby and thereby, and such other documents and other instruments as Wolverine or Purchaser, as the case may be, may reasonably request. 

(i) Payment. At the Accelerated Purchase Closing, Purchaser (i) shall pay and deliver the Accelerated Purchase Price to Wolverine inaccordance with this Agreement and Wolverine shall acknowledge receipt of such payment and (ii) shall pay and deliver to Wolverine the sum of US$362,000 as an adjustment to the Accelerated Purchase Price due to fluctuations in the workingcapital of Wolverine Shanghai computed in accordance with the working capital model (the “Working Capital Adjustment Payment”), which is attached as **Exhibit C**. Purchaser shall pay the Working Capital Adjustment Payment bywire transfer in accordance with the wiring instructions appearing in **Annex III**. 

(j) Amended and Restated LLC Agreement;Evidence of Optioned 20% Interest. On the Accelerated Purchase Closing Date, Wolverine, W/Investments, and Purchaser, each, shall have executed and delivered an Assignment and Amendment to the Operating Agreement, which evidences the assignment,transfer, sale and conveyance of the Optioned 20% Interest to Purchaser by Wolverine, and the Amended and Restated LLC Agreement and the Voting Rights Agreement, and Purchaser shall have received such certificates or other written evidence of thetransfer, sale, assignment, and conveyance of the Optioned 20% Interest to Purchase as may be appropriate under the circumstances (including, if requested by Purchaser, certificates evidencing ownership of the Optioned 20% Interest by Purchaser uponconsummation of the Closing). 

(k) Certificate of Wolverine. At the Accelerated Purchase Closing, Wolverine shall deliver toPurchaser a certificate from the president, in substantially the form attached hereto as **Exhibit B**, to the effect that (i) the only asset owned by W/Investments on the Accelerated Purchase Closing Date is all of the issued andoutstanding stock of Wolverine Shanghai and all of the issued and outstanding ownership interests (if and to the extent any such ownership interests have been issued and are outstanding under Applicable Law) of Wolverine Wieland Singapore HoldingsPrivate Limited (“Singapore Holdings”), (ii) that since W/Investments’ formation on July 17, 1997, its business activities and operations have consisted solely of the ownership of all the issued and outstanding securities ofWolverine Shanghai, of Wolverine European Holding B.V. (a corporation organized in The Netherlands, the securities of which W/Investments shall have transferred and assigned to an Affiliate or Affiliates of Wolverine before the Accelerated PurchaseClosing), and, if and to the extent ownership interests in Singapore Holdings have been issued and are outstanding under Applicable Law, of Singapore Holdings (a company organized in Singapore on or about March 13, 2008 which has had no assetsor business activities or operations and which has entered into no agreements or undertakings except those required under Applicable Law to complete its organization), (iii) Wolverine shall use commercially reasonable efforts to complete theactivities described in **Sections 6.8 and 6.9** of the Voting Rights Agreement on or before March 31, 2009, and (iv) W/Investments has transferred to Wolverine and Wolverine has assumed, as of the Retained Liabilities EffectiveDate, all Retained Liabilities, if any. 

 

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(l) Pending or Threatened Litigation. On the Accelerated Purchase Closing Date, there shall nothave been commenced or threatened against any party, Wolverine, W/Investments, Wolverine Shanghai, or Purchaser any Proceeding by any third party (i) which challenges, or seeks damages or other relief in connection with, any of the transactionscontemplated by this Agreement or (ii) which may have the effect of preventing, delaying, making illegal, or otherwise interfering with any of the transactions contemplated by this Agreement or any other Transaction Document. 

(m) Post-Accelerated Purchase Closing Activities. After the Accelerated Purchase Closing Date and on or before July 31, 2009, Wolverine andWieland shall cause W/Investments and Wolverine Shanghai to complete the registration of new or additional directors and other matters relating to the governance of Wolverine Shanghai and the other activities described in **Sections 6.8 and6.9** of the Voting Rights Agreement, (including all filings required in connection with the activities contemplated by this Agreement and the Voting Rights Agreement under the laws of the People’s Republic of China). In the event thatany notice, filing, or other action with respect to a third party (including any Governmental Authority) shall be required after the Accelerated Purchase Closing to give effect to the terms and conditions of this Agreement, the parties to thisAgreement agree that each will cooperate with the other to complete all such activities in a prompt manner and to give further effect to this Agreement and each of the other Accelerated Purchase Transaction Documents. 

**Section 8. Indemnification.**

(a) Agreement to Indemnify. 

(i) Subject to the limitations set forth in this Agreement, Wolverine, on theone hand, and Purchaser, on the other hand, (separately, the “Indemnifying Party”) shall indemnify, defend and hold the other (and the other’s respective officers, directors, managers, employees, representatives, and agents)(collectively, the “Indemnified Parties”) harmless from and against, and shall pay to such persons and reimburse such persons for, any and all Damages arising, directly or indirectly, from or in connection with: 

(A) any breach of any representation and warranty of the Indemnifying Party contained in this Agreement or in any certificate delivered ator in connection with the Accelerated Purchase Closing; or 

(B) any inaccuracy in any representation and warranty of anIndemnifying Party contained in this Agreement as of the Accelerated Closing Date, giving any effect to any written information delivered to the Indemnified Party at or before the Accelerated Purchase Closing; or 

(C) any breach or alleged breach of any covenant or agreement of the Indemnifying Party (or with respect to Wolverine, by W/Investments)contained in this Agreement or in a certificate delivered at the Accelerated Purchase Closing; or 

(D) any and allindebtedness, obligations, and other liabilities of W/Investments, whether known or unknown, absolute, contingent, fixed or otherwise (collectively, the “Retained Liabilities”), whether existing, accrued, due or payable or are claimed toexist or to accrue or be due or payable for any period prior to September 15, 

 

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2008 (the “Retained Liabilities Effective Date”), even though such Retained Liabilities are discovered or asserted after the Retained LiabilitiesEffective Date. Solely for the purposes of this **Section 8(a)(i)(D)**, the Indemnifying Party shall be Wolverine and the Indemnified Parties shall be Purchaser. 

(ii) The representations and warranties of Wolverine contained in**Section 4**, on the one hand, and of Purchaser contained in **Section 6**, on the other hand, of this Agreement shall survive for a period of twelve (12) months following the Accelerated Purchase Closing Date;**provided however**, that the representations and warranties concerning taxes contained in **Section 4(l)** shall survive until the expiration of the statute of limitations under Applicable Law. The representations andwarranties of Wolverine contained in **Section 5** of this Agreement shall survive for a period of twelve (12) months following March 13, 2008; **provided, however**, in the event Wolverine Shanghai does notdeliver its audited financial statements for the fiscal year ending December 31, 2008 (the “2008 Financial Statements”) to Purchaser on or before February 14, 2009, this Agreement shall survive until the thirtieth (30th) day immediately following the date on which the 2008 Financial Statement is actually delivered to Purchaser; and **provided further,however**, that the representations and warranties concerning taxes contained in **Section 5(k)** shall survive until the expiration of the statute of limitations under Applicable Law. No representation or warranty shall bedeemed to be waived or otherwise diminished unless waived or otherwise diminished by express written consent. A party’s consummation of the transactions contemplated hereby after waiving any of the conditions to its obligation to close(including the condition that the other party’s representations and warranties be true in all material respects) shall limit or otherwise affect its rights to recover under this Agreement; **provided**, **however**, that inno event shall a party’s decision to consummate the transactions contemplated hereby (“Closing Party”) be deemed to waive, limit or otherwise affect the other party’s indemnity obligations hereunder or the Closing Party’srights to recover for a breach of the representations and warranties contained in **Sections 4(c)**, **5(b)**, and **6(b)** of this Agreement. Further, the parties expressly agree that, notwithstanding the provisions of**Section 8(a)(i)**, the terms and conditions of **Section 8(a)(i)** shall be separate from and independent of the terms and conditions of this **Section 8(a)(iv)**, such that no claim for indemnificationwhich arises from the indemnification described in **Section 8(a)(iv)** shall be included in any claim for indemnification pursuant to **Section 8(a)(i)** and that no claim for indemnification which arises from theindemnification described in **Section 8(a)(i)** shall be included in any claim for indemnification pursuant to **Section 8(a)(iv)**. 

(iii) Notwithstanding the foregoing, any indemnification relating to any goods manufactured, sold, marketed, or distributed or servicesprovided by Wolverine Shanghai, Wolverine or its other Affiliates, or Purchaser or its Affiliates before the Closing shall not be governed by the terms and conditions of this Agreement, but shall be subject to those of the Voting Rights Agreement.

(iv) Subject to the limitations set forth in **Section 8(b)** of this Agreement, Wolverine (the“Chinese Payment Indemnifying Party”) shall indemnify, defend and hold each of W/Investments, Wolverine Shanghai, and Purchaser (and the officers, directors, or owners, as the case may be, of W/Investments, Wolverine Shanghai, andPurchaser) (collectively, the “Chinese Payment Indemnified Parties”) harmless from and against, and shall pay to such persons and reimburse such persons for, any and all amounts actually paid by such Chinese Payment Indemnified Party whicharises directly from or in connection with a claim by the People’s Republic of China that amounts are due from Wolverine Shanghai (or from W/Investments or Purchaser strictly and directly as a result of the direct or indirect, respectively,ownership of an interest in Wolverine Shanghai) under the local, regional, national or other laws of the People’s Republic of China with respect to the “capital gain” on the sale of the Optioned 20% Interest by Wolverine (that is, atax on the difference between the purchase price and the tax basis in the twenty-percent (20%) ownership interest by Wolverine on March 14, 2008) (the “Claimed Chinese Payment”). Purchaser, for itself, or on behalf ofW/Investments or Wolverine Shanghai, as the case may be and as it shall specifically give notice of to Wolverine, shall claim indemnification under this **Section****8(a)(iv)**

 

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by giving Wolverine written notice of the Claimed Chinese Payment within thirty (30) days after Purchaser receives written notice of such ClaimedChinese Payment, which notice by Purchaser shall, if and to the extent known by Purchaser after reasonable investigation, set forth the nature and amount of the Claimed Chinese Payment, the person against which such Claimed Chinese Payment is madeby the People’s Republic of China and copies of all relevant documents related to such Claimed Chinese Payment (if such documents are available to Purchaser), and the date when assessed, claimed or incurred. Wolverine shall either pay suchclaim by Purchaser or give written notice to Purchaser of Wolverine’s disagreement with such claim, specifying in reasonable detail the nature and extent of such disagreement on or before: (A) ten (10) days before the Claimed ChinesePayment is due or (B) thirty (30) days following Purchaser’s notice of such claim, whichever shall first occur. If Purchaser and Wolverine are unable to resolve any disagreement as provided in **Section 9(a)**, thenPurchaser and Wolverine agree to arbitrate such claim for indemnification pursuant to this **Section 8(a)(iv)** as otherwise provided in **Section 9**. The rights, duties and obligations of the parties contained in this**Section 8(a)(iv)** hereof shall survive the Closing until the later of expiration of the applicable statute of limitations or final resolution of the Claimed Chinese Payment, if a claim is pending as of the expiration of the statuteof limitations of the Claimed Chinese Payment. 

(b) Limitations on Indemnity. 

Notwithstanding any thing set forth in this Agreement to the contrary, no indemnification shall be required by Wolverine or Purchaser (or otherwise underthis Agreement) unless the Indemnifying Party shall have received notice of a claim specifying the factual basis of such claim in reasonable detail to the extent then known by the party making such claim on or before a date twelve (12) monthsafter the Accelerated Purchase Closing Date (or such later date as provided in **Section 8(a)(ii)**, or as otherwise provided for in this **Section 8(b)****)******. Except for claims based upon fraud, grossnegligence, or willful misconduct (all of which shall not expire on or before a date twelve (12) months after the Accelerated Purchase Closing Date, or such later date as provided in **Section 8(a)(ii)****)******,the aggregate liability for all indemnification and reimbursement of related expenses described in this **Section 8** which shall be paid by Wolverine or by Purchaser shall not exceed the Accelerated Cash Purchase Price; andindemnification or reimbursement of expenses under this Agreement shall be available only if and to the extent that indemnification or reimbursement of expenses is not available to an Indemnified Party under any policy of insurance or similarcontract. The provisions of this **Section 8** shall survive the Accelerated Purchase Closing Date for a period of twelve (12) months (or such later period as provided in **Section 8(a)(ii)**, except for claimsthat an Indemnifying Party receives written notice of during such twelve (12) month period (or such later period as provided in **Section 8(a)(ii)****)******; **provided, however**, that the obligations ofWolverine as provided in **Section 8(a)(i)(D)** with respect to the Retained Liabilities shall survive until the expiration of applicable statutes of limitation under Applicable Law. 

(c) Procedure for Indemnification – Third-Party Claims. 

(i) If any person shall claim indemnification hereunder arising from any claim or demand by any person (other than a party to thisAgreement) against an Indemnified Party or the commencement of any litigation asserting a claim by an independent party which may give rise to any indemnification to an Indemnified Party under the provisions of this **Section 8** (a“Third Party Claim”), such Indemnified Party shall give to the party from whom indemnification is sought (the “Indemnifying Party”) written notice of the basis for such claim or demand setting forth the nature of the claim ordemand in reasonable detail, as promptly as is practicable after obtaining knowledge of such claim, demand or litigation. The failure of the Indemnified Party to so notify the Indemnifying Party shall not relieve the Indemnifying Party of anyindemnification obligation hereunder except to the extent the Indemnifying Party which may materially adversely affect the transactions contemplated by this Agreement or the other Accelerated Purchase Transaction Documents. 

 

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(ii) If any Third Party Claim Proceeding is brought against an Indemnified Party by athird party and the Indemnified Party gives notice to the Indemnifying Party pursuant to this **Section 8****,** the Indemnifying Party shall, unless the claim involves taxes, be entitled to participate in such Proceeding and, tothe extent that it wishes, to assume the defense of such Proceeding, if (A) the Indemnifying Party provides written notice to the Indemnified Party that the Indemnifying Party intends to undertake such defense and by such notice it shall beconclusively established that the Indemnifying Party shall indemnify the Indemnified Party against all claims for indemnification resulting from or relating to such third-party claim as provided in this**Section 8****,** (B) the Indemnifying Party conducts the defense of the Third-Party Claim actively and diligently with counsel reasonably satisfactory to the Indemnified Party and (C) if the Indemnifying Party is aparty to the Proceeding, the Indemnifying Party has not determined in good faith that joint representation would be inappropriate. The Indemnified Party shall, in its sole discretion, have the right to employ separate counsel (who may be selected bythe Indemnified Party in its sole discretion) in any such action and to participate in the defense thereof, and the fees and expenses of such counsel shall be paid by such Indemnified Party. The Indemnified Party shall fully cooperate with theIndemnifying Party and its counsel in the defense or compromise of such claim or demand, provided that all reasonable out-of-pocket expenses incurred by the Indemnified Party shall be paid by the Indemnifying Party (except the fees and expense ofthe Indemnified Party’s counsel as set forth in the preceding sentence). If the Indemnifying Party assumes the defense of a Proceeding, the Indemnifying Party shall defend any such Third Party Claim in such manner as it may deem appropriate,including, without limitation, settling such Third Party Claim or litigation (subject to the consent of the Indemnified Party, which shall not be unreasonably withheld), after giving the Indemnified Party reasonable notice of the same, on such termsas the Indemnifying Party may deem appropriate, and the Indemnifying Party shall promptly reimburse the Indemnified Party in accordance with the provisions of this **Section 8**; provided that the Indemnifying Party shall furnish theIndemnified Party with copies of all pleadings and other material documents in connection with any such Third Party Claim or Proceeding and the Indemnified Party shall be consulted about (although not in control of) such Third Party Claim orProceeding. The Indemnified Party shall make available to the Indemnifying Party such books and records as the Indemnifying Party may reasonably require in connection with such defense. If the Indemnifying Party assumes the defense of a Third PartyClaim Proceeding, (X) no compromise or settlement of the Third Party Claim may be effected by the Indemnifying Party without the Indemnified Party’s consent (which shall not be unreasonably withheld) unless (1) there is no finding oradmission of any violation of law or any violation of the rights of any Person by the Indemnified Party and such settlement has no adverse effect on any other claims that may be made against the Indemnified Party and (2) the sole reliefprovided is monetary damages that are paid by the Indemnifying Party, and (Y) the Indemnified Party shall have no liability to the Indemnifying Party with respect to any compromise or settlement of such claims effected without its consent.

(iii) If (A) notice is given to an Indemnifying Party of the commencement of any Third Party Claim or a Proceeding bya third party making a claim and the Indemnifying Party does not, within ten (10) days after the Indemnified Party’s notice is given, give notice to the Indemnified Party of the Indemnifying Party’s election to assume the defense ofsuch claim or Proceeding or (B) an Indemnified Party determines in good faith that there is a reasonable probability that a third party intends to commence a claim or Proceeding which may adversely affect it other than as a result ofmonetary damages for which it would be entitled to indemnification from the Indemnifying Party under this Agreement, the Indemnified Party shall (upon notice to the Indemnifying Party) have the right to undertake the defense, compromise orsettlement of such third party’s claim; provided that the Indemnifying Party shall reimburse the Indemnified Party promptly and periodically for the costs of defending against such Third Party Claim (including reasonable attorneys’ feesand expenses) and the Indemnifying Party shall remain responsible for any indemnifiable amounts arising from or related to such Third Party Claim. The Indemnifying Party may elect to participate in such third party claim Proceedings, negotiations ordefense at any time at its own expense and upon giving the Indemnified Party notice of its election to so participate, the Indemnified Party shall provide the Indemnifying Party with the pleadings, documents, books, and records and shall consultwith the Indemnifying Party. 

 

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(iv) With respect to any Third Party Claim subject to indemnification under this**Section 8**, (i) both the Indemnified Party and the Indemnifying Party, as the case may be, shall keep the other person fully informed of the status of such Third Party Claim and any related Proceedings at all stages thereof ifsuch person is not represented by its own counsel, and (ii) the parties agree to render (each at its own expense) to each other such assistance as they may reasonably require of each other and to cooperate in good faith with each other in orderto ensure the proper and adequate defense of any third-party claim. 

(v) With respect to any Third Party Claim subject toindemnification under this **Section 8**, the parties agree to cooperate in such a manner as to preserve in full (to the extent possible) the confidentiality of all confidential information and the attorney-client and work-productprivileges. In connection therewith, each party agrees that: (i) it will use commercially reasonable efforts, in respect of any Third Party Claim in which it has assumed or participated in the defense, to avoid production of confidentialinformation (consistent with Applicable Law), and (ii) all communications between any party hereto and counsel responsible for or participating in the defense of any Third Party Claim shall, to the extent possible, be made so as to preserve anyapplicable attorney-client or work-product privilege. 

(d) Indemnification Procedure – Direct Claims. 

If an Indemnified Party shall claim indemnification pursuant to this **Section 8** for any claim other than a Third Party Claim (a“Direct Claim”), the Indemnified Party shall notify the Indemnifying Party in writing of the basis for such claim setting forth the nature and amount of the damages resulting from such claim. The Indemnifying Party shall give writtennotice of any disagreement with such claim within fifteen (15) days following receipt of the Indemnified Party’s notice of the claim, specifying in reasonable detail the nature and extent of such disagreement. If the Indemnifying Party andthe Indemnified Party are unable to resolve any disagreement as provided in **Section 9(a)**, then the parties hereto agree to arbitrate any direct claim for Damages as otherwise provided in **Section 9**. 

**Section 9. Arbitration.**

(a) Internal Dispute Resolution. 

The parties intend to resolve on an amicable basis any disputes relating to theinterpretation and application of this Agreement or other agreements or instruments executed by each of them in connection with or in the performance of this Agreement. The parties to this Agreement shall promptly discuss any such dispute amongthemselves in good faith; and if such dispute, controversy or difference cannot be resolved as provided in this **Section 9(a)** within thirty (30) calendar days, then a party may give the another party written notice ofarbitration (the “Arbitration Notice”), which arbitration shall be conducted as provided in this Agreement and, otherwise, in accordance with the commercial arbitration rules of the American Arbitration Association then in effect by three(3) arbitrators (the “Arbitration Panel”). The place of the arbitration shall be New York, New York. 

(b) ArbitrationProceedings and Award. 

(i) Each member of the Arbitration Panel shall be licensed to practice law in the United Statesof America, shall have engaged in the practice of law for at least fifteen (15) years, shall have substantial experience in commercial litigation, shall not currently represent or have formerly represented Wolverine, Wieland or any Affiliate ofWolverine or Wieland, or W/Investments or Wolverine Shanghai, or any officer or director of an Owner or any Affiliate of Wolverine, Wieland, or of W/Investments, or Wolverine Shanghai. 

 

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(ii) Each party to the arbitration proceedings shall have the right to request reasonablediscovery pursuant to the rules then in effect under the Federal Rules of Civil Procedure and the Federal Rules of Evidence, each as then in effect, which discovery shall not exceed a period of ninety (90) days and/or the period required forall testimony to be transcribed. The Arbitration Panel shall not have any right to amend this Agreement without the written consent of the parties. 

(iii) The Arbitration Panel shall use its best efforts to commence and conclude all arbitration activities (including, without limitation, the rendering of its written award) within one hundred eighty (180) daysfollowing the appointment of the third independent arbitrator. Any and all awards of the Arbitration Panel (including any interest which the Arbitration Panel shall deem to be part of any such award) shall be in writing and shall set out the groundsof such award or awards and shall be final, conclusive, and binding on the parties; and any judgment thereon may be entered and enforced in any court of competent jurisdiction. 

(iv) The Arbitration Panel shall determine and award, as between the parties to the arbitration proceedings, in the manner and amount asthe Arbitration Panel determines appropriate and equitable, the fees, costs and expenses of the arbitration proceeding and those incurred by the parties to the arbitration proceedings (including reasonable attorneys’ fees). The ArbitrationPanel shall render its award, which shall be final, not subject to appeal or review, and binding on the parties. In addition, such award shall be in writing, apply legal principles consistent with the terms of this Agreement, and set forth thereason or reasons for its award. The Arbitration Panel shall have the authority to award equitable relief which shall be binding upon the parties to the arbitration proceedings (including without limitation, enjoining the parties to the arbitrationproceedings to take or refrain from taking specific action with respect to subject matter of the matter or disagreement); **provided, however**, no party to the arbitration proceedings shall seek, and the Arbitration Panel shall have noauthority to award, any punitive, special, or consequential damages or damages for lost business opportunity or for loss of profits relating to any matters under, arising out of, or in connection with or relating to this Agreement or otherwisesubject to arbitration. 

(v) The Arbitration Panel shall issue the arbitration award in New York, New York, and each partyto this Agreement agrees that such award shall constitute a foreign arbitral award with respect to each country in which such party conducts business. The Arbitration Panel shall determine and may award, between the parties to the arbitrationproceedings, in the manner and amount as the Arbitration Panel determines appropriate and equitable, the fees, costs and expenses of the arbitration proceedings and those incurred by such parties (including reasonable attorneys’ fees) and mayaward interest on any awards of the Arbitration Panel; **provided, however**, that each party to the arbitration proceedings shall pay its own costs associated with or arising from the arbitration proceedings, unless the writtenarbitration award expressly provides otherwise. Until issuance of the arbitration award, the parties to this Agreement shall continue to perform this Agreement, and any other agreements or instruments executed in connection with or in theperformance of this Agreement, in accordance with their respective terms. 

(c) Jurisdiction. 

Each party to this Agreement agrees that arbitration under this Article is the exclusive method for resolving any dispute (other than the internaldispute resolution procedures described in **Section 9(a))** and agrees that it will not commence any action or proceeding based on a dispute pertaining to this Agreement, **except** (i) to recognize and enforce theaward of the Arbitration Panel, (ii) to enforce these 

 

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provisions of this **Section 9** or compel the another party to this Agreement to participate in arbitration in accordance with this**Section 9**, (iii) for the purposes specified in **Section 9(d)**, or (iv) in the event this arbitration provision is held to be unenforceable for any reason by a court of competent jurisdiction, in whichevent each party to this Agreement hereby agrees to commence proceedings only in the United States District Court for the Southern District of New York (or if that court refuses jurisdiction, the Supreme Court of the State of New York sitting in andfor New York County) and each party hereby submits itself and its property to personal jurisdiction in the United States District Court for the Southern District of New York and the courts of the State of New York sitting in and for New York County(and appropriate appellate courts thereof). For purposes of **Section 9(c) and Section 9(d)**, each party to this Agreement agrees that service of process in any such action may be effected by certified mail orinternationally-recognized private express courier to such party at its address as provided in **Section 11(g)** and each party to this Agreement waives any right to assert that any court is inconvenient and agrees not to raise anysuch objection or assertion. 

(d) Injunctive Relief. 

Without prejudice to the validity or enforceability of the arbitration provisions of this **Section 9**, each party to this Agreement shall be entitled to seek from any competent judicial authorityappropriate injunctive relief to preserve the arbitral matter or otherwise protect its rights pending resolution of the arbitral matter; **provided, however**, any such injunctive relief shall be authorized or subsequently ratified by theArbitration Panel selected to resolve the dispute. 

(e) English as Language of Arbitration. 

All communications and testimony, whether oral or written, during the arbitration proceedings shall be in the English language. 

**Section 10. Governing Law; Consent to Jurisdiction and Venue; Waiver of Jury Trial.**

This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to any law or rule thatwould cause the laws of any jurisdiction other than the State of Delaware to be applied. 

**ANY PROCEEDING AGAINST THE PARTIES RELATING INANY WAY TO THIS AGREEMENT MAY BE BROUGHT AND ENFORCED IN THE COURTS OF THE STATE OF NEW YORK LOCATED IN NEW YORK COUNTY, NEW YORK OR THE UNITED STATES DISTRICT COURT FOR SOUTHERN DISTRICT OF NEW YORK, TO THE EXTENT SUBJECT MATTER JURISDICTION EXISTSTHEREFOR, AND THE PARTIES IRREVOCABLY SUBMIT TO THE JURISDICTION OF BOTH SUCH COURTS IN RESPECT OF ANY SUCH PROCEEDING. EACH OF THE PARTIES IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION THAT THEY MAY NOW OR HEREAFTER HAVETO THE LAYING OF VENUE OF ANY SUCH PROCEEDING IN THE COURTS OF THE STATE OF NEW YORK LOCATED IN NEW YORK COUNTY, NEW YORK OR THE SOUTHERN DISTRICT OF NEW YORK AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN ANYINCONVENIENT FORUM. ANY JUDGMENT MAY BE ENTERED IN ANY COURT HAVING JURISDICTION THEREOF.**

**EACH OF THE PARTIES HERETO HEREBYIRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT.**

 

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**Section 11. General Terms.**

(a) English as Language of Agreement. This Agreement and all notices permitted or required by this Agreement shall be in the English language.

(b) Governing Law. This Agreement is governed by, and interpreted in accordance with, the laws of the State of Delaware (excludingrules on choice of law principles); **provided, however**, in the event that another governing law is expressly specified in an agreement or in an Annex, Exhibit, Appendix, Attachment, or Schedule to this Agreement, the parties agree thatsuch other governing law shall apply. **Notwithstanding any provision to the contrary contained herein**, the parties agree that if applying the law of the State of Delaware, agreeing to arbitration in New York, New York, or availingthemselves to the courts of the United States of America or of any State or political subdivision thereof, will cause the business of the parties hereto to suffer material adverse tax or regulatory consequences, the parties shall mutually agree ondifferent law or forum, as necessary. 

(c) Interpretation; Severability. The terms and conditions of this Agreement shall be readand interpreted so as to render them consistent with each other in order to effect the intents and purposes of the parties. Whenever possible, each provision of this Agreement shall be interpreted in a manner as to be effective and valid underApplicable Law, but if for any reason any clause or provision of this Agreement, or the application of any such clause or provision in a particular context or to a particular situation, circumstance or person is held to be prohibited, invalid orunenforceable by any governmental authority, then the application of such clause or provision in contexts or to situations, circumstances or persons other than that in or to which it is held prohibited, invalid or unenforceable, shall not beaffected thereby, and the remaining clauses and provisions of this Agreement shall nevertheless remain in full force and effect. 

(d)Termination of this Agreement. Except as expressly provided in this Agreement, this Agreement shall terminate automatically upon the consummation of the sale and purchase the Tendered Shares. 

(e) Amendments. This Agreement may not be changed, amended, or terminated without the express prior written consent of each party to thisAgreement. 

****(f) Conflicts with Exhibits. To the extent that the terms, covenants, or conditions of an Exhibit or Annex tothis Agreement conflict with the terms, covenants, or conditions of this Agreement, such terms, covenants, or conditions of such Exhibit or Annex shall control.****

(g) Notices. 

All notices and other communications which are required to be permitted under thisAgreement shall be in writing and shall be deemed to have been duly given if personally delivered or if sent by internationally-recognized overnight courier, or by facsimile addressed as follows: 

if to Wolverine or W/Investments: 

WolverineTube Inc. 

200 Clinton Avenue West, Suite 1000 

Huntsville, Alabama 35801 

Facsimile: (256) 580-3996 

Attention: President 

 

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with a copy (which shall not constitute notice) to: 

Wolverine Tube, Inc. 

200 Clinton Avenue,Suite 1000 

Huntsville, Alabama 35801 

Facsimile: (256) 580-3996 

Attention: Legal Department 

and to 

Bradley ArantRose & White LLP 

200 Clinton Avenue West, Suite 

900 Huntsville, Alabama 35801-4900 

Facsimile: (256) 517-5200 

Attention: S. Revelle Gwyn, Esq. 

if toPurchaser: 

Wieland-Werke AG 

Graf-Arco-Strasse 34-36 

D-89079 Ulm 

Federal Republic of Germany 

Facsimile: +49-731-944-2875 

Attention: Legal Department 

with a copy(which shall not constitute notice) to: 

Lillig & Thorness, Ltd. 

1900 Spring Road, Suite 200 

Oak Brook,Illinois 60523-1495 

Facsimile: 630-571-1042 

Attention: Gregory F. Smith, Esq. and David R. Stallter, Esq. 

or to such other address as the party to whom notice orother communication is to be given may have furnished to the other parties in writing in accordance herewith. Any such notice or communication shall be deemed to have been given, received and to be effective (i) in the case of personaldelivery, on the date of such delivery if a Business Day or, if not a Business Day, the next succeeding Business Day; (ii) in the case of delivery by internationally-recognized overnight courier, on the third Business Day after the date whendeposited with such overnight courier with all “next-day” delivery charges prepaid; and (iii) in the case of facsimile, on the second Business Day after transmission, when such transmission is evidenced by written confirmation ofsending and receipt generated by the facsimile machine from which transmitted. 

(h) Counterparts. This Agreement and any otherdocument permitted or required to be executed hereunder may be executed in any number of counterparts and by the different parties thereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of whichtaken together shall constitute one and the same document. The parties agree that a facsimile, digital or other electronic copy of any party’s signature to this Agreement shall have the same effect as an original signature; **provided,however**, that, as soon as possible after the effectiveness of this Agreement, each party shall send original executed signature pages to the other parties. 

 

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(i) Successors and Assigns. This Agreement shall bind and inure to the benefit of each of theparties to this Agreement, and each of their respective successors and assigns (if any); **provided, however,** that no party shall have the right to assign either this Agreement or any other Transaction Document or any of its rights,interests, privileges or obligations under this Agreement or any other Transaction Document. 

(j) No Waiver. The failure of anyparty to insist upon strict performance of any covenant or obligation hereunder shall not be a waiver of such party’s right to demand strict compliance in the future. No consent or waiver, express or implied, to or of any breach or default inthe performance of any obligation hereunder, shall constitute a consent to or waiver of any other breach or default in the performance of the same or any other obligation under this Agreement. 

(k) Further Assurances. Each party hereto agrees to execute, acknowledge, deliver, file, record and publish such further agreements, certificates,amendments of certificates, instruments, or documents as may be required by Applicable Law or may, in the opinion of either Wolverine or Wieland be necessary or desirable to carry out the provisions of this Agreement. 

(l) Remedies; Specific Performance. 

(i) Except as otherwise provided in this Agreement, no remedy conferred by any of the provisions of this Agreement is intended to be exclusive of any other remedy which is otherwise available at law, in equity, bystatute or otherwise under Applicable Law, and a party’s election of any one or more of such remedies shall not constitute a waiver by such party of the right to pursue any other available remedy. Each remedy shall be cumulative and shall be inaddition to every other remedy which is available under this Agreement or under Applicable Law. Any reference to law in this **Section 11(l)** shall be a reference to Applicable Law. 

(ii) Except as otherwise provided in this Agreement and without prejudice to any other rights or remedies which a party may have, eachparty acknowledges and agrees that damages would not be an adequate remedy for any breach of this Agreement and that, to the fullest extent permitted by law, the parties shall be entitled to the remedies of injunction, specific performance and otherequitable relief (without a showing that monetary damages are unavailable, or posting of bond, or other similar actions) for any threatened or actual breach of this Agreement by such other party or any other relevant person. 

(m) Entire Agreement. This Agreement contains the entire understanding of the parties with respect to the subject matter hereof and supersedes allprior agreements and understandings among the parties with respect to such subject matter, including, without limitation, that certain Memorandum of Understanding, dated as of November 13, 2007, by and between Wolverine and Purchaser.

(o) Third Party Beneficiaries. The provisions of this Agreement are intended solely to benefit the parties to this Agreement and,to the fullest extent permitted by Applicable Law, shall not be construed as conferring any benefit upon any third party, including any creditor of any party, and no such creditor shall be a third party beneficiary of this Agreement. 

(o) Costs. Unless otherwise expressly agreed in this Agreement or in another Transaction Document, each party shall pay all of its own expensesand costs incurred in connection with the preparation, execution, and delivery of this Agreement and the other Accelerated Purchase Transaction Documents and the consummation of the transactions contemplated by this Agreement or any of the otherAccelerated Purchase Transaction Documents. 

 

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(p) Confidentiality. 

(i) Except if and to the extent as all other parties shall expressly agree upon in writing, each party agrees (i) to take reasonableand appropriate efforts to safeguard from disclosure, treat as confidential, and not disclose the terms and conditions of this Agreement or of any other Transaction Document, other facts related to the activities contemplated by this Agreement orany other Transaction Document, and any and all Confidential Information which it receives pursuant to its execution, delivery or performance of this Agreement or any other Transaction Document to anyone other than as permitted by this Agreement,(ii) to not use any Confidential Information for any purpose other than such party’s performance of the terms and conditions of this Agreement or of any other Transaction Document, and (iii) to not distribute the terms and conditionsof this Agreement or any other Transaction Document or any Confidential Information to any person other than as permitted by this Agreement without the prior written consent of the other parties to this Agreement or such other Transaction Document.Each party shall have the right to request the return or destruction of any Confidential Information (including all copies) which it has received from another party, and each party shall promptly comply with any such request from another party. Eachparty also shall destroy all material prepared by it which is based upon any Confidential Information which it receives from another party; **provided, however**, a party who returns or destroys any Confidential Information which ismaterial to its performance of this Agreement or any other Transaction Document shall not have any liability for its failure thereafter to perform the terms and conditions of this Agreement to which such Confidential Information was material. Ifrequested by another party, a party (acting through one of its officers or directors) shall promptly certify in writing to the requesting party that such party has returned or destroyed all Confidential Information described in such request.

(ii) All Confidential Information shall be used by a party solely for the purposes of performing its obligations under thisAgreement or another Transaction Document and not for any other purpose. Each party shall inform each of its officers, directors, employees, representatives, or agents to whom this Agreement or any other Transaction Document, the terms andconditions of this Agreement or of any other Transaction Document, or any Confidential Information is disclosed of the confidential nature of such information and of the need to maintain such in confidence and shall disclose the terms and conditionsof this Agreement and other Accelerated Purchase Transaction Documents and Confidential Information to its officers, directors, employees, representatives or agents only on a “need-to-know” basis. 

(iii) In the event any governmental authority shall request or require (by whatever method or in whatever manner) the disclosure of thisAgreement or any other Transaction Document or any Confidential Information or any information regarding the terms and conditions of this Agreement or of any other Transaction Document or the fact of its or their respective existence, the partyreceiving such a request or requirement shall promptly give written notice to each of the other parties to this Agreement or such other Transaction Document of such request or requirement so that such other parties shall have an opportunity to seekan appropriate protective order. The parties to this Agreement and the other Accelerated Purchase Transaction Documents shall cooperate to take reasonable steps to prevent disclosure of another party’s Confidential Information, including seeingan appropriate protective order, or if the information is required to be disclosed, confidential treatment. The parties also agree that if, in the absence of a protective order, a party is legally required to disclose Confidential Information, theterms and conditions of this Agreement or another Transaction Document, the fact of this Agreement or another Transaction Document, or other facts related to the activities contemplated by this Agreement or another Transaction Document, such partymay disclose such information (including such Confidential Information) without liability under this Agreement or such other Transaction Document, but such party shall not be relieved of any liability under this Agreement or such other TransactionDocument for any previous disclosure by such party (or any of its officers, directors, employees, representatives, or agents) which was not permitted by this Agreement. 

 

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(iv) This **Section 11(p)** shall survive the termination of thisAgreement for a period of five (5) years. 

(q) Plain Meaning; Independent Review. This Agreement shall be construed in itsentirety according to its plain meaning and shall be construed as the product of negotiation at arms’ length between equally sophisticated business persons advised by counsel. Each party acknowledges that such party and its attorneys have beengiven an equal opportunity to negotiate the terms and conditions of this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party or any similar rule operating against the drafter of anagreement shall not be applicable to the construction or interpretation of this Agreement and this Agreement shall not be construed against the party who provided and drafted it.

EACH PARTY HEREBY ACKNOWLEDGES THAT IT HAS THOROUGHLY REVIEWED THIS AGREEMENT; THAT IT HAS HAD ACCESS TO LEGAL COUNSEL OR OTHER PROFESSIONAL ADVISORS OFITS OWN CHOICE; THAT IT HAS REVIEWED THIS AGREEMENT WITH SUCH COUNSEL AND/OR ADVISORS TO THE EXTENT IT HAS DEEMED NECESSARY OR APPROPRIATE; AND THAT IT HAS NOT RELIED UPON THE ADVICE OF ANY OTHER COUNSEL, OR ADVISORS, OR THIRD PARTIES. 

**[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK;**

**NEXT PAGE IS SIGNATURE PAGE.]**

************************************* 

 

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**[SIGNATURE PAGE TO PURCHASE AGREEMENT]**

**IN WITNESS WHEREOF**, the parties have executed and delivered this Purchase Agreement on the date first above written. 

 
**WOLVERINE:**WOLVERINE TUBE INC.By:   Harold M. Karp Title: President and Chief Operating Officer**PURCHASER:**WIELAND-WERKE AGBy:   Harald Kroener Title: Chairman of the Executive BoardBy:   Dr. Ulrich Hartmann Title: Member of the Executive Board
 
**W/INVESTMENTS:**WOLVERINE CHINA INVESTMENTS, LLCBy: Wolverine Tube Inc. (a Delaware corporation), Its Member By:    Harold M. Karp Title: President and Chief Operating OfficerBy: Wieland-Werke AG (a corporation of the Federal Republic of Germany), Its Member By:    Harald Kroener Title: Chairman of the Executive Board By:    Dr. Ulrich Hartmann Title: Member of the Executive Board
 

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**INDEX OF ANNEXES, SCHEDULES & EXHIBITS**

 
**Annex**Annex I:  DefinitionsAnnex II:  Optioned 20% Ownership Interest Purchased by PurchaserAnnex III:  Wire Instructions**Exhibits**
Exhibit A:
  Form of Amendment to Amended and Restated Limited Liability Company Agreement
Exhibit B:
  Certificate of Wolverine President Regarding W/Investments Activities
Exhibit C:
  Working Capital Model**Schedules**Schedule 4(b)  Organization Instruments of Wolverine and W/InvestmentsSchedule 4(d)  Compliance; Licenses and PermitsSchedule 5(a)  Organization Instruments of Wolverine ShanghaiSchedule 5(c)  Compliance; Licenses and PermitsSchedule 5(d)  LitigationSchedule 5(j)  Employee RelationsSchedule 6(a)  Organization Instruments of PurchaserSchedule 6(c)  Compliance; Licenses and Permits
 

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**ANNEX I**

**DEFINITIONS**

“**Accelerated Purchase Closing**” and “**AcceleratedPurchase Closing Date**” shall have the meanings set forth in **Section 3(a)**. 

“**Accelerated PurchasePrice**” shall have the meaning set forth in **Section 2(d)**. 

“**Accelerated Purchase TransactionDocuments**” means (i) this Agreement, (ii) the Amended and Restated LLC Agreement, (iii) the Voting Rights Agreement, (iv) the Option Acceleration Letter Agreement, and (v) all other documents, agreements andinstruments executed and delivered in connection herewith, in each case, as amended, modified or supplemented from time to time. 

“**Affiliate**” means with respect to any entity, any other entity that, directly or indirectly, controls, is controlled by or is under common control with, that entity or as otherwise agreed to by the parties from time totime; **provided, however**, that in each case any such other entity shall be considered to be an Affiliate only during the time period during which such control exists, For purposes of this definition, “control” (including, withcorrelative meaning, the terms “controlled by” and “under common control with”), as used with respect to any entity means the possession, directly or indirectly, of the power to direct and/or cause the direction of the managementand policies of such entity, whether through the ownership of voting securities by contract or otherwise. 

“**Agreement**”shall have the meaning set forth in the preamble hereto. 

“**Amended and Restated LLC Agreement**” has the meaning set forthin **Section 2(b)**. 

“**Applicable Law**” means with respect to the relevant subject matter or entity any andall governmental (whether national, supranational, state, provincial, local, or any other governmental level), quasi governmental, or self regulatory body’s laws, regulations, ordinances and any other provisions having the force of law in thejurisdiction to which any such laws, regulations, ordinances or other provisions pertain. 

“**Chinese GAAP**” means generallyaccepted accounting principles as recognized by the People’s Republic of China, applied on a consistent basis. 

“**commerciallyreasonable efforts**” means the efforts that a prudent business person would use in similar circumstances to achieve a desired result and as expeditiously as possible; provided that an obligation to use the commercially reasonable effortsunder this Agreement does not require the person subject to that obligation to take actions that would result in a materially adverse change in the benefits to such person of this Agreement or the transactions contemplated hereby. 

“**Damages**” means damages, loss, liability, claim, damage, expense (including cost of investigation and reasonable attorneys’ fees)and diminution of value, whether or not involving a third-party claim, but shall not include any special, consequential, punitive damages or damages for lost business opportunity. 

“**Dollars”** or **“$”** shall mean the currency of the United States of America or United States dollars. 

 

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“**Encumbrances**” means all mortgages, judgments, claims, liens, security interests,pledges, escrows, charges, pre-emptive rights, rights of first offer or first refusal or other encumbrances of any kind or character whatsoever. 

“**Environmental Law**” means any Applicable Law pertaining to health, industrial hygiene or environmental or ecological condition. 

**“Governmental Authority**” means any minister, ministry, department, court, judicial authority, tribunal, arbitrator, authority, agency, commission, commissioner, board, bureau, body, exchange,official, association or other instrumentality or organization of any country or other domestic or foreign state, city, country, municipality, territory, province, district, region, commonwealth, protectorate, possession or other politicalsubdivision, in each case having jurisdiction over any party in any respect to matters arising under this Agreement. 

“**HazardousSubstance**” means, without limitation: (i) those substances included within the definitions of “hazardous substances,” “hazardous materials,” “toxic substances,” or “solid waste” under anyApplicable Law; (ii) those substances listed by any Governmental Authority as hazardous substances; and (iii) those other substances, materials or which are or become regulated under any Applicable Law or by any Governmental Authority.

“**Indemnified Party**” has the meaning set forth in **Section 8(a)(i)**. 

“**Indemnifying Party**” has the meaning set forth in **Section 8(a)(i)**. 

“**Knowledge**” or “**Knowledge of Wolverine, W/Investments, or Wolverine Shanghai, or of Purchaser**” means (i) withrespect to Wolverine, W/Investments, Wolverine Shanghai, or Purchaser, actual present knowledge of the officers and directors of Wolverine, W/Investments, or Wolverine Shanghai or of Purchaser, as the case may be, who have devoted substantiveattention to the transactions contemplated by this Agreement or the negotiation of the terms and conditions of this Agreement (who are with respect to Wolverine, W/Investments and Wolverine Shanghai, collectively, the following individuals: JamesBerry, David Jordan, Jennifer Brinkley David Styers, “Luke” Luo, David Owen and Bi Xiang Jian (also known as Michael Bi); and who are with respect to Purchaser, the following: Bernd Grassof, Klaus Guttenberg, and Thomas Hasenpflug) and(ii) incorporates reliance upon any certificates or disclosure schedules or information of such corporation or other legal entity. 

**“material adverse change**” means any material adverse change in the business, affairs, operations, assets, properties, liabilities, results of operations, condition (financial or otherwise) or prospects of a party’sbusiness. 

“**material adverse effect**” means an adverse effect in excess of $100,000, in the aggregate, on the condition(financial or otherwise), results of operations, business, properties, liabilities or prospects of a party’s business or the business of Wolverine Shanghai or of W/Investments. 

“**Operating Agreement**” has the meaning set forth in **Section 2(b)**. 

“**Option Acceleration Letter Agreement**” has the meaning set forth in the Preamble of this Agreement. 

“**Option Agreement**” means the Option Agreement dated as of September 15, 2008 as defined in the Preamble of this Agreement.

 

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“**Optioned 20% Ownership Interest**” has the meaning set forth in the Preamble of thisAgreement. 

“**Ordinary Course**” means an action taken by a person only if: 

(a) such action is consistent with the past practices of such person and is taken in the ordinary course of the normal day-to-day operations of suchperson; 

(b) such action is not required to be authorized by the board of directors of such person (or by any person or group of personsexercising similar authority) or by owners; and 

(c) such action is similar in nature and magnitude to actions customarily taken, withoutany authorization by the board of directors of such person (or by any person or group of persons exercising similar authority), in the ordinary course of the normal day-to-day operations of other persons that are in the same line of business as suchperson. 

“**Organization Instruments**” means the certificates, instruments, registrations, and other similar documents whichare required by Applicable Law for the formation, organization, or creation of a legal entity such as a corporation, limited liability company, or other business enterprise under such Applicable Law, and all amendments to such certificates,instruments, registrations, or other similar documents. 

**“Permits**” shall have the meaning set forth in**Section 4(d)**. 

“**Permitted Liens**” means (i) the liens for current taxes not yet due and payable(provided that, with respect to real property, taxes shall be deemed to refer to ad valorem property taxes only), (ii) with respect to personal property only, the liens imposed by Applicable Law, such as the liens of carriers, warehousemen,mechanics, materialmen and landlords, and other similar liens incurred in the Ordinary Course for sums not constituting borrowed money, that are not overdue, (iii) with respect to real property only, (A) minor imperfections of title, ifany, none of which materially detracts from the value or impairs the present or anticipated use of the real property subject thereto, or impairs the present or anticipated operations of the owners or lessor of such real property, as the case may be,and (B) zoning laws and other land use restrictions that do not impair the present or anticipated use of the real property subject thereto, and (iv) liens arising from or in connection with indebtedness incurred in the Ordinary Course ofthe borrower’s business or in the Ordinary Course of the business of an Affiliate or in accordance with the Organization Documents of a borrower or an Affiliate. 

**“person**” or “**persons**” shall be construed in the broadest sense and means any individual, corporation, partnership, limited liability company, association, trust, GovernmentalAuthority or other entity or organization. 

“**Proceeding**” means any action, customer claim, proceeding, arbitration, audit,hearing, investigation, litigation or suit (whether civil, criminal, administrative, investigative or informal) commenced, brought, conducted, or heard by or before, or otherwise involving, any Governmental Authority or arbitrator. 

“**Representative”** shall mean the person designated in writing to represent either or all of Wolverine, W/Investments, or WolverineShanghai or to represent Purchaser. 

“**Retained Liabilities**” has the meaning set forth in **Section 8(a)(i)(D).**

 

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“**Retained Liabilities Effective Date**” has the meaning set forth in**Section 8(a)(i)(D)**.

**“Tax Liability”** has the meaning set forth in **Section 8(a)(iv)**.

“**tax return**” means any report, return or other information required to be supplied to a taxing authority in connectionwith the taxes. 

“**taxes**” means (i) all taxes, charges, fees, levies or other assessments (whether national, federal,state, local or foreign), including income, gross receipts, excise, property, sales, use, transfer, license, payroll, franchise, ad valorem, withholding, employment or unemployment taxes due under Applicable Law and (ii) any interest, penaltiesand additions related to the foregoing. 

“**US GAAP**” means generally accepted accounting principles as recognized by theUnited States of America, applied on a consistent basis. 

“**Voting Rights Agreement**” has the meaning set forth in**Section 2(b)**. 

“**W/Investments Financial Statements**” has the meaning set forth in**Section 4(g)** and unless the context otherwise expressly requires the contrary, the term “W/Investments Financial Statements” includes the W/Investments Interim Financial Statements as provided in**Section 4(g)**. 

“**W/Investments Interim Financial Statements**” has the meaning set forth in **Section4(g)****.**

“**Wolverine Shanghai Financial Statements**” has the meaning set forth in**Section 5(f)** and unless the context otherwise expressly requires the contrary, the term “Wolverine Shanghai Financial Statements” includes the Wolverine Shanghai Interim Financial Statements as provided in**Section 5(f)**. 

“**Wolverine Shanghai Interim Financial Statements**” has the meaning set forth in**Section 5(f)**. 

 

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**ANNEX II**

**MEMBERSHIP UNITS**

 
   
**Name**
  
**Number of Membership Units of**