Document:

Exhibit 10.2

 

ROCKWOOD SPECIALTIES GROUP, INC.

 

AND

 

KEMIRA OYJ

 

 

SHAREHOLDERS’ AND JOINT VENTURE AGREEMENT 

REGARDING THE

TITANIUM DIOXIDE JOINT VENTURE

 

 

 

TABLE OF CONTENTS

 

	
  1.

  	
  Preamble

  	
  12

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Corporate Structure and statutes

  	
  13

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Special Resolutions

  	
  14

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Supervisory Board

  	
  19

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Advisory Board

  	
  20

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Advisory Board Meetings and Resolutions

  	
  21

  
	
   

  	
   

  	
   

  
	
  7.

  	
  Managing Directors

  	
  23

  
	
   

  	
   

  	
   

  
	
  8.

  	
  Management of the Joint Venture

  	
  24

  
	
   

  	
   

  	
   

  
	
  9.

  	
  Affiliate Transactions

  	
  24

  
	
   

  	
   

  	
   

  
	
  10.

  	
  Annual Accounts and Dividend Policy

  	
  24

  
	
   

  	
   

  	
   

  
	
  11.

  	
  Information Rights

  	
  25

  
	
   

  	
   

  	
   

  
	
  12.

  	
  Proportionate Shareholdings

  	
  27

  
	
   

  	
   

  	
   

  
	
  13.

  	
  Disposal of Shares

  	
  28

  
	
   

  	
   

  	
   

  
	
  14.

  	
  Trade Sale

  	
  28

  
	
   

  	
   

  	
   

  
	
  15.

  	
  Initial Public Offering

  	
  32

  
	
   

  	
   

  	
   

  
	
  16.

  	
  Transfers to Affiliates

  	
  39

  
	
   

  	
   

  	
   

  
	
  17.

  	
  Pre-Emption Right

  	
  40

  
	
   

  	
   

  	
   

  
	
  18.

  	
  Drag-Along Right

  	
  41

  
	
   

  	
   

  	
   

  
	
  19.

  	
  Tag-Along Right

  	
  42

  
	
   

  	
   

  	
   

  
	
  20.

  	
  Duration and Termination of the Company

  	
  43

  

 

2

 

	
  21.

  	
  Deadlock Provision

  	
  43

  
	
   

  	
   

  	
   

  
	
  22.

  	
  Non-Compete

  	
  44

  
	
   

  	
   

  	
   

  
	
  23.

  	
  Joint and Several Liability

  	
  46

  
	
   

  	
   

  	
   

  
	
  24.

  	
  Confidentiality

  	
  46

  
	
   

  	
   

  	
   

  
	
  25.

  	
  Miscellaneous

  	
  47

  
	
   

  	
   

  	
   

  
	
  26.

  	
  Authorised Agent

  	
  51

  
	
   

  	
   

  	
   

  
	
  27.

  	
  Severability

  	
  51

  

 

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3

 

DEFINITIONS

 

In this Agreement

 

	
  “Advisory Board” and “Advisory Boards”

  	
  shall have the meaning given to it in section 5.1;

  
	
   

  	
   

  
	
  “Advisory Board By-laws”

  	
  shall have the meaning given to it in section 2.3(b);

  
	
   

  	
   

  
	
  “Affiliate”

  	
  shall have the meaning given to it in section 13.1(a);

  
	
   

  	
   

  
	
  “Affiliate Transaction”

  	
  shall have the meaning given to it in section 3.2(g);

  
	
   

  	
   

  
	
  “Agreement”

  	
  shall mean this agreement;

  
	
   

  	
   

  
	
  “Annual Budget”

  	
  shall have the meaning given to it in section 8;

  
	
   

  	
   

  
	
  “Articles of Association”

  	
  shall have the meaning given to it in section 2.3(a);

  
	
   

  	
   

  
	
  “Business Day” 

  	
  shall have the meaning given to it in section 11.2(a); 

  
	
   

  	
   

  
	
  “Closing”

  	
  shall have the meaning given to it in section 3.1;

  
	
   

  	
   

  
	
  “Delaware LLC Act”

  	
  shall have the meaning given to it in section 3.1;

  
	
   

  	
   

  
	
  “Drag-Along Notice”

  	
  shall have the meaning given to it in section 18.2;

  
	
   

  	
   

  
	
  “Drag-Along Right”

  	
  shall have the meaning given to it in section 18.1;

  
	
   

  	
   

  
	
  “Drag-Along Shareholder”

  	
  shall have the meaning given to it in section 18.1;

  
	
   

  	
   

  
	
  “Dragged Shares”

  	
  shall have the meaning given to it in section 18.1;

  
	
   

  	
   

  
	
  “Dual Track Process”

  	
  shall have the meaning given to it in section 14.2(b)(i);

  
	
   

  	
   

  
	
  “Equity Securities”

  	
  shall have the meaning given to it in section 3.1(c);

  
	
   

  	
   

  
	
  “Exit Event” 

  	
  shall have the meaning given to it in section 20.1; 

  
	
   

  	
   

  
	
  “Final Offer”

  	
  shall have the meaning given to it in section 14.2(e);

  

 

4

 

	
  “Finnish HoldCo”

  	
  shall have the meaning given to it in the deed caption;

  
	
   

  	
   

  
	
  “Functional Additive Business”

  	
  shall have the meaning given to it in section 1.1;

  
	
   

  	
   

  
	
  “IFRS”

  	
  shall have the meaning given to it in section 3.2(e);

  
	
   

  	
   

  
	
  “IFRS Accounts”

  	
  shall have the meaning given to it in section 11.1;

  
	
   

  	
   

  
	
  “Implementation Agreement”

  	
  shall have the meaning given to it in section 1.3;

  
	
   

  	
   

  
	
  “Initial Period”

  	
  shall have the meaning given to it in section 1.4;

  
	
   

  	
   

  
	
  “Initial Public Offering”

  	
  shall have the meaning given to it in section 15.1;

  
	
   

  	
   

  
	
  “Investment Bank”

  	
  shall have the meaning given to it in section 14.2(a);

  
	
   

  	
   

  
	
  “Investment Bank Analysis”

  	
  shall have the meaning given to it in section 14.2(a);

  
	
   

  	
   

  
	
  “Joint Venture” 

  	
  shall have the meaning given to it in section 1.4; 

  
	
   

  	
   

  
	
  “Joint Venture Accounts”

  	
  shall have the meaning given to it in section 10.1;

  
	
   

  	
   

  
	
  “Joint Venture By-laws”

  	
  shall have the meaning given to it in section 2.3(c);

  
	
   

  	
   

  
	
  “Joint Venture Company”
  and 

  “Joint Venture Companies”

  	
  shall have the meaning given to it in section 3.1(c);

  
	
   

  	
   

  
	
  “Joint Venture Subsidiary”
  and 

  “Joint Venture Subsidiaries”

  	
  shall have the meaning given to it in section 2.2(c);

  
	
   

  	
   

  
	
  “JV Europe”

  	
  shall have the meaning given to it in the deed caption;

  
	
   

  	
   

  
	
  “JV US”

  	
  shall have the meaning given to it in the deed caption;

  
	
   

  	
   

  
	
  “Kemira”

  	
  shall have the meaning given to it in the deed caption;

  
	
   

  	
   

  
	
  “Kemira Advisory Board Members”

  	
  shall have the meaning given to it in section 5.3(b);

  
	
   

  	
   

  
	
  “Kemira Germany”

  	
  shall have the meaning given to it in the deed caption;

  

 

5

 

	
  “Kemira Inc.”

  	
  shall have the meaning given to it in the deed caption;

  
	
   

  	
   

  
	
  “Kemira TiO2”

  	
  shall have the meaning given to it in the deed caption;

  
	
   

  	
   

  
	
  “Kemira TiO2 Pigments Business”

  	
  shall have the meaning given to it in section 1.1;

  
	
   

  	
   

  
	
  “Lock-Up”

  	
  shall have the meaning given to it in section 15.2(g);

  
	
   

  	
   

  
	
  “Management Board” and 

  “Management Boards”

  	
  shall have the meaning given to it in section 7.1;

  
	
   

  	
   

  
	
  “Master Agreement”

  	
  shall have the meaning given to it in section 1.3;

  
	
   

  	
   

  
	
  “Non-Requesting Shareholder”

  	
  shall have the meaning given to it in section 14.2;

  
	
   

  	
   

  
	
  “Offer”

  	
  shall have the meaning given to it in section 21.1;

  
	
   

  	
   

  
	
  “Offer Notice”

  	
  shall have the meaning given to it in section 21.1;

  
	
   

  	
   

  
	
  “Offeree”

  	
  shall have the meaning given to it in section 21.1;

  
	
   

  	
   

  
	
  “Offeror”

  	
  shall have the meaning given to it in section 21.1;

  
	
   

  	
   

  
	
  “Other Business”

  	
  Shall have the meaning given to it in section 22.4(a);

  
	
   

  	
   

  
	
  “Party” and “Parties”

  	
  shall have the meaning given to them in the deed caption;

  
	
   

  	
   

  
	
  “Price Range”

  	
  shall have the meaning given to it in section 14.2(a);

  
	
   

  	
   

  
	
  “Private Equity Funds”

  	
  shall have the meaning given to it in section 22.4(a);

  
	
   

  	
   

  
	
  “Prohibited Business”

  	
  shall have the meaning given to it in section 22.1;

  
	
   

  	
   

  
	
  “Purchase Option”

  	
  shall have the meaning given to it in section 17.1;

  
	
   

  	
   

  
	
  “Requesting Shareholder”

  	
  shall have the meaning given to it in section 14.2;

  
	
   

  	
   

  
	
  “Restricted Management Matter”

  	
  shall have the meaning given to it in section 3.2;

  
	
   

  	
   

  
	
  “Rockwood”

  	
  shall have the meaning given to it in the deed caption;

  

 

6

 

	
  “Rockwood Advisory Board Members”

  	
  shall have the meaning given to it in section 5.3(a);

  
	
   

  	
   

  
	
  “Rockwood Germany”

  	
  shall have the meaning given to it in the deed caption;

  
	
   

  	
   

  
	
  “Rockwood Holdings”

  	
  shall have the meaning given to it in the deed caption;

  
	
   

  	
   

  
	
  “Rockwood TiO2 Pigments Business”

  	
  shall have the meaning given to it in section 1.1;

  
	
   

  	
   

  
	
  “Rockwood Water Business”

  	
  shall have the meaning given to it in section 1.1;

  
	
   

  	
   

  
	
  “Sachtleben” 

  	
  shall have the meaning given to it in the deed caption; 

  
	
   

  	
   

  
	
  “Sachtleben Corp”

  	
  shall have the meaning given to it in the deed caption;

  
	
   

  	
   

  
	
  “Sale Period”

  	
  shall have the meaning given to it in section 17.2;

  
	
   

  	
   

  
	
  “Sales Process”

  	
  shall have the meaning given to it in section 14.2;

  
	
   

  	
   

  
	
  “Sales Process Request”

  	
  shall have the meaning given to it in section 14.2;

  
	
   

  	
   

  
	
  “SEC”

  	
  shall have the meaning given to it in section 15.2(c)

  
	
   

  	
   

  
	
  “Securities Act”

  	
  shall have the meaning given to it in section 3.1(d);

  
	
   

  	
   

  
	
  “Selling Shareholder”

  	
  shall have the meaning given to it in section 17.1;

  
	
   

  	
   

  
	
  “Shareholder” and “Shareholders”

  	
  shall have the meaning given to them in section 2.2;

  
	
   

  	
   

  
	
  “Shares” and “Share”

  	
  shall have the meaning given to them in section 2.2;

  
	
   

  	
   

  
	
  “Special Majority Matter”

  	
  shall have the meaning given to it in section 3.1;

  
	
   

  	
   

  
	
  “Statutes”

  	
  shall have the meaning given to it in section 2.3;

  
	
   

  	
   

  
	
  “Structure Paper”

  	
  shall have the meaning given to it in section 3.1(f);

  
	
   

  	
   

  
	
  “Tag-Along Notice”

  	
  shall have the meaning given to it in section 19.1;

  

 

7

 

	
  “Tag-Along Right”

  	
  shall have the meaning given to it in section 19.1;

  
	
   

  	
   

  
	
  “Tagged Shares”

  	
  shall have the meaning given to it in section 19.1;

  
	
   

  	
   

  
	
  “TiO2 Pigments Business”  and 

  “TiO2 Pigments Businesses”

  	
  shall have the meaning given to it in section 1.1;

  
	
   

  	
   

  
	
  “Trade Sale”

  	
  shall have the meaning given to it in section 14.1;

  
	
   

  	
   

  
	
  “Transaction”

  	
  shall have the meaning given to it in section 1.3;

  
	
   

  	
   

  
	
  “Transfer”

  	
  shall have the meaning given to it in section 13.1;

  
	
   

  	
   

  
	
  “US GAAP”

  	
  shall have the meaning given to it in section 3.2(e); and

  
	
   

  	
   

  
	
  “Violation”

  	
  shall have the meaning given to it in section 15.3(a).

  

 

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8

 

ANNEXES

 

	
  Annex 2.2(c)

  	
  Joint Venture Subsidiaries;

  
	
   

  	
   

  
	
  Annex 2.3(a)

  	
  Articles of Association;

  
	
   

  	
   

  
	
  Annex 2.3(b)

  	
  Advisory Board By-laws;

  
	
   

  	
   

  
	
  Annex 2.3(c)

  	
  Joint Venture By-laws of JV Europe;

  
	
   

  	
   

  
	
  Annex 3.1(k)

  	
  Instructions to accounting firm;

  
	
   

  	
   

  
	
  Annex 7.2

  	
  Initial Directors;

  
	
   

  	
   

  
	
  Annex 8

  	
  Content of Annual Budget;

  
	
   

  	
   

  
	
  Annex 11.2(a)

  	
  Form of financial reporting package;

  
	
   

  	
   

  
	
  Annex 21.1

  	
  Normalised EBITDA calculation method;

  
	
   

  	
   

  
	
  Annex 21.2(b)

  	
  Form of guarantee;

  
	
   

  	
   

  
	
  Annex 21.3

  	
  Form of Offer for acquisition of Shares; and

  
	
   

  	
   

  
	
  Annex 22.5(b)

  	
  List of key employees.

  

 

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9

 

SHAREHOLDERS’ AND JOINT VENTURE AGREEMENT

 

THIS AGREEMENT IS MADE ON 21 May 2008 BY AND AMONG

 

1.                                       Rockwood
Holdings, Inc., 100 Overlook Center, Princeton, NJ 08540, USA

 

hereinafter referred to as “Rockwood
Holdings”;

 

2.                                       Rockwood
Specialties Group, Inc., 100 Overlook Center, Princeton, NJ 08540, USA

 

hereinafter referred to as “Rockwood”;

 

3.                                       Rockwood
Specialties Group GmbH, Königsberger Straße 1, 60487 Frankfurt am Main,
Germany, registered in the commercial register of the lower court of Frankfurt
am Main under registration number HR B 5 79 24

 

hereinafter referred to as “Rockwood Germany”;

 

4.                                       Sachtleben
Chemie GmbH, Dr.-Rudolf Sachtleben-Straße 4, 47189 Duisburg, Germany,
registered in the commercial register of the lower court of Duisburg under
registration number HR B 1 96 69

 

hereinafter referred to as “Sachtleben”;

 

5.                                       Sachtleben
Corporation, a Delaware corporation with business address 140 Grand Street, Suite 400,
White Plains, NY 10601, USA

 

hereinafter referred to as “Sachtleben Corp”;

 

6.                                       Deukalion
Einhundertvierundzwanzigste Vermögensverwaltungs-GmbH, Königsberger Straße 1,
60487 Frankfurt am Main, Germany, registered in the commercial register of the
lower court of Frankfurt am Main under registration number HR B 8 05 60, to be
renamed White Pigments Holding GmbH

 

hereinafter referred to as “JV Europe”;

 

10

 

7.                                       White
Pigments Holding Oy, Finland, a limited liability company under establishment

 

hereinafter referred to as “Finnish HoldCo”;

 

8.                                       Kemira
Oyj, Porkkalankatu 3, FI-00180 Helsinki, Finland, with business identification
number 0109823-0

 

hereinafter referred to as “Kemira”;

 

9.                                       Kemira
Pigments Oy, Porkkalankatu 3, FI-00180 Helsinki, Finland, with business
identification number 0948159-2

 

hereinafter referred to as “Kemira TiO2”;

 

10.                                 Kemira
Specialty Inc., USA, with its principal place of business at 151 Veterans
Drive, Northvale, NJ 07647, USA

 

hereinafter referred to as “Kemira Inc.”;

 

11.                                 Kemira
Germany GmbH, registered in the commercial register of the lower court of
Cologne under registration number HRB 57319

 

hereinafter referred to as “Kemira Germany”;

 

and

 

12.                                 White
Pigments LLC, a Delaware limited liability company, 100 Overlook Center,
Princeton, NJ 08540, USA

 

hereinafter referred to as “JV US”.

 

In the following, Rockwood Holdings, Rockwood, Rockwood Germany,
Sachtleben, Sachtleben Corp, JV Europe, Finnish HoldCo, Kemira, Kemira TiO2,
Kemira Inc., Kemira Germany and JV US are referred to as each a “Party” and collectively the “Parties”.

 

11

 

NOW IT IS HEREBY AGREED:

 

1.             PREAMBLE

 

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

 

1.2           In order to jointly pursue future business
opportunities in the field of the production and marketing of titanium dioxide
pigments, Rockwood and Kemira have decided to combine their respective TiO2
Pigments Business by forming a joint venture in the form of a newly established
German limited liability company.

 

1.3           On the date hereof, the Parties have entered
into a certain Master Agreement (the “Master
Agreement”) setting out the structure and the transactions to be
implemented in order to establish such joint venture (such transactions, as
they are described in more detail in the Master Agreement, collectively the “Transaction”) as well as the contractual
terms and conditions governing the joint venture. The Transaction will be
implemented mainly through a certain Agreement regarding the Implementation of
the Titanium Dioxide Joint Venture which was also entered into on the date
hereof (the “Implementation Agreement”).
Capitalized terms used but not defined in this Agreement shall have the same
meaning as ascribed to such term in the Master Agreement and/or the Implementation
Agreement, as the case may be.

 

1.4           Unless otherwise agreed, JV Europe and JV US
(collectively, the “Joint Venture”)
shall be jointly operated at least until 1 January 2011 (the “Initial Period”).

 

12

 

2.             CORPORATE STRUCTURE AND STATUTES

 

2.1           JV
Europe is a newly established German limited liability company which, following
the consummation of the Transaction, has a registered share capital in the
amount of EUR 25,000 (in words: Euro twenty-five thousand). JV US is a
Delaware limited liability company, which following the consummation of the
Transaction, will have two members, Rockwood and Kemira.

 

2.2           Following the consummation of the Transaction,

 

(a)           Rockwood
Germany will hold shares in JV Europe in the amount of EUR 15,250 (in
words: Euro fifteen thousand two hundred fifty) equaling 61 per cent of the
total registered share capital of JV Europe; and Kemira will hold shares in JV
Europe in the amount of EUR 9,750 (in words: Euro nine thousand seven
hundred fifty) equaling 39 per cent of the total registered share capital of JV
Europe;

 

(b)           Rockwood will hold limited liability company
interests of JV US equaling 61 per cent of the total issued and outstanding
limited liability company interests of JV US; and Kemira will hold limited
liability company interests of JV US equaling 39 per cent of the total
issued and outstanding limited liability company interests of JV US; and

 

(c)           the Joint Venture will own the TiO2 Pigments
Businesses including the shares (held directly and indirectly) in the entities
as set out in Annex 2.2(c) (each,
a “Joint Venture Subsidiary” and
collectively the “Joint Venture Subsidiaries”).

 

Rockwood, Rockwood Germany  and
Kemira are also referred to as each a “Shareholder”
and collectively the “Shareholders”,
and the shares in JV Europe and the limited liability company interests of JV
US from time to time are also referred to as the “Shares” and each a “Share”.

 

2.3           The
Parties shall, to the extent this is required and within their respective
corporate or limited liability company powers to do so, amend and restate, in
each case in their entirety, the following statutes of JV Europe and JV US
as soon as reasonably practicable after the date hereof but in any event prior
to and with effect from the Closing Date:

 

(a)           the articles of association of JV Europe
substantially as set out in Annex 2.3(a) and
the limited liability company agreement of JV US, which shall (i) to the
extent legally possible, implement the terms of this Agreement, including
creation of an Advisory Board (as defined below) and (ii) provide for the
treatment of JV US as a corporation for US tax purposes (collectively, the “Articles of Association”);

 

13

 

(b)           the by-laws of the Advisory Board (as defined
below) of JV Europe, substantially as set out in Annex 2.3(b) (the
“Advisory Board By-laws”); and

 

(c)           the by-laws of the Management Board (as defined
below) of JV Europe substantially as set out in Annex 2.3(c) (the “Joint
Venture By-laws”)

 

(collectively, and together with
the certificate of formation of JV US, the “Statutes”)
or otherwise cause the Statutes to be in the forms substantially set forth in
Annexes 2.3(a), 2.3(b) and 2.3(c).

 

Following the Closing, the Parties shall in good faith agree on the
final wording of the Statutes (if either Party requests amendments thereto) in
order to properly reflect the provisions of this Agreement, the Master
Agreement and the Implementation Agreement.

 

2.4           To the extent there is a conflict between the
Statutes and this Agreement, this Agreement shall, to the extent permitted by
applicable law, prevail. Each Shareholder shall vote its Shares and shall take
all such other actions that may be necessary to ensure that the Statutes
facilitate and do not at any time conflict with, any provision of this
Agreement. The foregoing shall apply mutatis
mutandis with regard to the articles of association, certificates of
formation, certificates of incorporation, by-laws, partnership agreements,
limited liability company agreements or other statutes of the Joint Venture
Subsidiaries.

 

3.             SPECIAL RESOLUTIONS

 

3.1           Without
prejudice to unanimous consent or majority requirements under applicable law,
including German law or the Delaware Limited Liability Company Act (the “Delaware LLC Act”), and notwithstanding
anything to the contrary contained in this Agreement and/or the Statutes, JV
Europe, JV US and the Shareholders agree that following the closing of the
Transaction (the “Closing”) each
of the following actions (including, but not limited to, any action or
resolution of a shareholders’ or members’ meeting, the management or any other
corporate or limited liability company body) shall require the prior
affirmative approval of all shareholders or members of JV Europe or JV US, as
the case may be (each, a “Special Majority
Matter”):

 

	
  (a)

  	
   

  	
  any changes of the Statutes, including any
  change to the corporate or limited liability company purpose of the Joint
  Venture;

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  any transfer, disposal, pledge or
  encumbrance of Shares;

  

 

14

 

(c)                                  any (i) issuance or re-issuance from
treasury of any equity securities or other ownership interests or rights to
acquire, or securities or other interests convertible or exchangeable for,
equity securities or other ownership interests (collectively, “Equity Securities”) of JV Europe, JV US or
any Joint Venture Subsidiary (each a “Joint
Venture Company” and collectively the “Joint Venture Companies”); or (ii) transfer of any Equity
Securities by any Joint Venture Company (other than to another Joint Venture
Company);

 

(d)                                 (i) the registration of any of the Equity
Securities of a Joint Venture Company under the Securities Act of 1933, as
amended (the “Securities Act”); or
(ii) application for admission or listing of any Equity Securities on a
stock exchange;

 

(e)                                  any redemption, re-purchase or other
acquisition by any Joint Venture Company of Equity Securities issued by any
Joint Venture Company, except for Equity Securities of the Joint Venture
Subsidiaries to the extent they are redeemed, re-purchased or acquired by
another Joint Venture Company;

 

(f)                                    any capital decreases or reorganizations of any
Joint Venture Company, including without limitation, in-kind contributions,
de-mergers either by split-up, spin-off or hive-down, mergers or conversions
within the meaning of section 1 of the German Reorganization Act (Umwandlungsgesetz; UmwG), or any other
transactions that have a similar effect, except where such reorganization (i) is
provided for in the Master Agreement or the step paper of Deloitte &
Touche GmbH Wirtschaftsprüfungsgesellschaft dated 21 May 2008 (the “Structure Paper”); or (ii) involves
solely Joint Venture Companies and would not entail any material disadvantage
for the Shareholders (including tax disadvantages);

 

(g)                                 the approval, commitment or making by any Joint
Venture Company (except in favour of another Joint Venture Company) of any
dividends (in cash or in kind) except where such dividend distribution is
provided by this Agreement or the Master Agreement;

 

(h)                                 except as provided for in the Master Agreement
or the Structure Paper, any conclusion of enterprise agreements (Unternehmensverträge) (including
domination or profit and loss transfer agreements) within the meaning of
section 291, 292 of the German Stock Corporation Act (Aktiengesetz, AktG) or similar agreements
(such as silent partnership agreements or profit-related loan agreements) by
any Joint Venture Company, except for agreements with another Joint Venture
Company;

 

15

 

(i)                                       (i) any liquidation, dissolution,
commencement of bankruptcy, or similar proceedings with respect to any Joint Venture
Company, or the admission in writing by any Joint Venture Company of its
bankruptcy, insolvency or general inability to pay debts as they become due; (ii) the
appointment of any liquidator and the dismissal of any liquidator; and (iii) the
adoption of any liquidation balance sheet, the liquidation financial statements
as well as the discharge of the liquidators, except in each case as required by
applicable law;

 

(j)                                     any resolution, commitment or agreement that
would require the Shareholders to make an investment in, or loan to, any Joint
Venture Company;

 

(k)                                  adoption of the audited annual accounts and the
apportionment of the net income of JV Europe and JV US for each fiscal year,
except where otherwise is provided for in this Agreement, provided that

 

(i)            if the respective shareholders cannot reach an agreement
with regard to the audited annual accounts within a period of four weeks
following the shareholders’ or members’ meeting in which such matter was
submitted for approval, the audited annual accounts of JV Europe and JV US for
the respective fiscal year shall be finally determined with, absent manifest
errors, binding effect upon the Parties by a reputable accounting firm acting
as an independent expert and in line with the instructions set out in Annex 3.1(k). If the Shareholders cannot
agree on the independent expert within an additional period of five weeks
following the shareholders’ or members’ meeting in which such matter was
submitted for approval or the mutually agreed independent expert refuses to act
as such, the independent expert shall be appointed, upon request of either
Rockwood or Kemira, by the German Institute of Chartered Accountants (Institut der Wirtschaftsprüfer – IDW); and

 

(ii)           if Rockwood and Kemira cannot reach an
agreement with regard to the apportionment of the net income for a specific
fiscal year, section 10.3 shall apply;

 

(l)            any
material change of the long-term business strategy of either, JV Europe or JV
US compared to the long term business strategy in place for the TiO2 Pigments
Businesses at the date hereof or, if such long term strategy was subsequently
amended pursuant to an agreement amongst the Shareholders, the long term
business strategy in place after such amendment except with regard to

 

16

 

(i)            the production, marketing and sale of titanium
dioxide pigments,

 

(ii)           the production, marketing and sale of products
of the Functional Additives Business (except for the introduction of new
product lines that can be expected to negatively affect the short or long term
profitability of the Joint Venture in a material manner); and

 

(iii)          the disposal, sale and processing of
by-products of titanium dioxide (including copperas and filter salts) or of the
Functional Additive Business; and

 

(m)          the
appointment and removal of one (1) managing director of JV Europe or one (1) member
of the Management Board of JV US, it being understood that such approval right
shall only have the effect that of all of the managing directors of
JV Europe and of all of the members of the Management Board  of JV US appointed at any given time, at
least one (1) managing director of JV Europe and one (1) member
of the Management Board of  JV US at
all times have been appointed with the approval of Kemira, it being understood
that the initial managing directors and members of the Management Board JV US
as set out in this Agreement are deemed to be approved by Kemira.

 

3.2           Without
prejudice to unanimous consent or majority requirements under applicable laws
including German law and the Delaware LLC Act, and notwithstanding anything to
the contrary contained in this Agreement and/or the Statutes, JV Europe, JV US
and the Shareholders agree that following the Closing each of the following
actions (including, but not limited to, any action or resolution of a shareholders’
or members’ meeting, the management or any other corporate or limited liability
company body) shall require the prior affirmative approval of the Advisory
Board of JV Europe or JV US, as the case may be, including the prior
affirmative approval of the Advisory Board members designated by Rockwood and
Kemira (each, a “Restricted Management Matter”):

 

(a)           any capital expenditure with a value in excess
of EUR 10,000,000 in an individual case unless such measure is required
due to the replacement or maintenance of assets or pursuant to applicable law;

 

(b)           any acquisition by a Joint Venture Company with
a value in excess of EUR 10,000,000 in the individual case;

 

(c)           any
sale, disposal or lease of

 

17

 

(i)            any material part of the TiO2 Pigments
Businesses (irrespective of whether at fair market value or not); or

 

(ii)           any assets

 

(1)           with a fair market value in excess of
EUR 10,000,000 in an individual case or, with view to all previous sales,
disposals or leases of assets by the Joint Venture in any given fiscal year,
and

 

(2)           irrespective of their fair market value, if
such sale, disposal or lease would cause the aggregate fair market value of all
assets sold, disposed of or leased in such fiscal year to exceed
EUR 10,000,000;

 

(d)           any
incurrence of or the entering into any agreement that would permit the
incurrence of financial debt of the Joint Ventures resulting in a breach of
applicable financial covenants under the credit facilities pursuant to which
the Joint Venture borrows monies from financial institutions.

 

(e)           any material amendment of or deviation from the
accounting principles and policies to be applied by a Joint Venture Company in
accordance with this Agreement, except where such amendment or deviation, as
the case may be is required due to a change in applicable law and/or
International Financial Reporting Standards (“IFRS”)
or US Generally Accepted Accounting Principles (“US GAAP”), as the case may be, or required
or otherwise reasonably advisable in connection with the consolidation of a
Joint Venture Company by Rockwood and Rockwood’s direct or indirect parents;

 

(f)            the termination or settlement by any Joint
Venture Company of any material litigation with a value in excess of
EUR 5,000,000;

 

(g)           any agreement of the Joint Venture Companies
with either Kemira or Rockwood or any of their respective Affiliates (as
defined below) with a value in excess of EUR 250,000, except for

 

(i)            agreements between two Joint Venture Companies;
and

 

(ii)           agreements for purchase and supplies on terms
and conditions no less favorable to the Joint Venture Companies than could have
been obtained on an arms’ length basis

 

18

 

(each such transaction, an “Affiliate Transaction”); and

 

(h)           any
agreement or commitment to effect any of the foregoing matters.

 

3.3           The
Shareholders undertake to procure that no Special Majority Matters nor any
Restricted Management Matters will be implemented by any of the Joint Venture
Companies following the Closing without the prior affirmative approval of
Kemira and Rockwood or the members appointed by them to the Advisory Boards, as
the case may be, irrespective of the corporate or limited liability company
body which has to decide on such action pursuant to applicable law.

 

3.4           The
rights of a Shareholder contained in this section 3 shall, except where
otherwise is mandated by applicable law, terminate for such Shareholder at such
time as the relevant Shareholder’s combined direct and indirect ownership
interests in the Joint Venture (including shares, limited liability company
interests and other ownership interests held by Affiliates of the relevant
Shareholder) has fallen below 20 per cent.

 

4.             SUPERVISORY BOARD

 

4.1           Sachtleben
has currently and, following the implementation of the Transaction, will
continue to have a statutory supervisory board (Aufsichtsrat) pursuant to the German One Third Participation
Act (Drittelbeteiligungsgesetz).
The shareholders’ representatives for the supervisory board will be elected by
Sachtleben’s shareholders’ meeting in accordance with statutory law, provided
that Kemira shall be entitled if it so wishes to designate one of such
shareholders’ representatives to be elected by the shareholders’ meeting of
Sachtleben, provided, however, that section 3.4 shall apply with regard to
Kemira’s right. Pursuant to Sachtleben’s articles of association, the statutory
supervisory board has only information but no consent rights with regard to the
dealings of Sachtleben, except where such rights are given under mandatory law,
in which case the representatives of the Shareholders shall, to the extent
permissible cast their votes in accordance with the terms of this Agreement.

 

4.2           Except
to the extent otherwise is mandated by applicable law, no supervisory board
shall be established at the level of JV Europe. If and to the extent
applicable law requires the establishment of a supervisory board at the level
of JV Europe, such supervisory board shall be established in addition to
and not instead of the Advisory Board and the Shareholders shall take all such
actions including making amendments of the Articles of Association of
JV Europe in order to establish such supervisory board, provided that they
shall ensure, to the extent legally permissible, that the establishment of such
supervisory board does not affect or amend the corporate 

 

19

 

governance
principles and the allocation of rights and obligations under this Agreement (including
its Annexes). The Shareholders shall further vote their Shares in
JV Europe such that Rockwood and Kemira are always represented on such
supervisory board of JV Europe (taking into consideration that a certain
number of seats on such supervisory board will be reserved for employee
representatives) in the same proportion as they are represented on the
Supervisory Board as provided for under section 4.1.

 

5.             ADVISORY BOARD

 

5.1           Following
the Closing, JV Europe and JV US shall each have an advisory board (each such
board, an “Advisory Board” and
collectively the “Advisory Boards”).
Each of the Advisory Boards shall be a body that solely represents the
Shareholders and their interests (i.e. the Advisory Boards shall not be a body
representing the best interest of the enterprise (Unternehmensinteresse) but a body representing the best
interests of the Shareholders). Correspondingly, subject to requirements under
mandatory applicable law, the individuals serving on the Advisory Boards shall
be entitled to act solely in the best interest of the Shareholder they
represent.

 

5.2           The Advisory Boards shall have those powers
assigned to them by this Agreement and the relevant Articles of Association.
The internal organization of the Advisory Board, the procedures and formalities
to be complied with by the Advisory Boards shall be those set forth in this
Agreement and the relevant Statutes.

 

5.3           The Advisory Boards shall each consist of a
total of five members including the chairman (Vorsitzender
des Beirates). Of the five advisory board members of each Advisory
Board:

 

(a)                                  Rockwood shall be entitled to designate three
members including the chairman (the “Rockwood
Advisory Board Members”), and to demand the removal of any or all of
the Rockwood Advisory Board Members; and

 

(b)                                 Kemira shall be entitled to designate two
members (the “Kemira Advisory Board Members”),
and to demand the removal of any or all of the Kemira Advisory Board Members;

 

provided that the composition of the Advisory Board of JV Europe shall
at all times be identical to the composition of the Advisory Board of JV US and
the Shareholders shall procure that if a certain individual is either appointed
to an Advisory Board or ceases to be a member of an Advisory Board, a
corresponding change shall be made to the respective other Advisory Board
without undue delay.

 

20

 

5.4           The
initial Advisory Boards of JV Europe and JV US shall each consist of the
following members:

 

(a)           Seifi
Ghasemi, as chairman, Robert J. Zatta and Thomas J. Riordan as the Rockwood
Advisory Board Members; and

 

(b)           Matti Lapinleimu and Hannu Virolainen as the
Kemira Advisory Board Members.

 

5.5           Members
of the Advisory Boards are appointed and removed by shareholders’ or members’
resolution of JV Europe or JV US, as the case may be. Each Shareholder is
obliged to promptly vote in a shareholders’ or members’ meeting of JV Europe or
JV US, as the case may be, upon the appointment and the removal of the other
Shareholders’ designees in accordance with sections 5.3 and 5.4 and as notified
in writing by such other Shareholder.

 

5.6           Other
than the customary reimbursement of out-of pocket expenses, members of the
Advisory Board shall not be entitled to any kind of remuneration.

 

5.7           The
rights of a Shareholder contained in this section 5 shall terminate for
such Shareholder at such time as the relevant Shareholder’s combined direct and
indirect ownership interests in the Joint Venture (including shares, limited
liability company interests and other ownership interests held by Affiliates of
the relevant Shareholder) has fallen below 20 per cent.

 

6.             ADVISORY BOARD MEETINGS AND RESOLUTIONS

 

6.1           Following
the Closing, the Advisory Boards shall meet on a regular basis, at least four
times each calendar year to discuss all matters of JV Europe and JV US,
respectively, provided that the Advisory Board of JV Europe shall also discuss
all matters that affect the Joint Venture as a whole. The meetings of the
Advisory Boards take place either at JV Europe’s or JV US’ respective principal
place of business, or, if all members of the Advisory Boards agree, elsewhere
or by way of telephone or video-conferencing or by way of a combination of
these options. To the extent possible and practicable with view to the agenda
of the relevant meetings, the meetings of the Advisory Board of JV Europe and
the meetings of the Advisory Board of JV US shall always occur on one and the
same day and in one and the same place. A meeting of an Advisory Board shall be
convened if it is necessary pursuant to this Agreement, the law or JV Europe’s
or JV US’ respective Statutes and if a convocation appears otherwise necessary
in the interests of JV Europe or JV US, or if a member of the Advisory Board
requires that such meeting be convened, stating the purpose.

 

21

 

6.2                                 A meeting of an Advisory Board is convened by
its chairman or, if he or she refuses to convene such meeting in spite of a
relevant request or has not done so within one week after the receipt of such
request, by any other member of the relevant Advisory Board requiring the
meeting to be convened, by registered letter, e-mail or facsimile to the other
members of the Advisory Board, accompanied by the agenda. The notice period for
convening a meeting of an Advisory Board is at least two weeks and commences on
the day the invitation is being dispatched. Compliance with periods of notice
and formalities of convening the meeting and the notification of the agenda can
be waived if all members of the relevant Advisory Board agree to this.

 

6.3                                 A meeting of an Advisory Board has a quorum
only if at least four members of the Advisory Board are duly represented in
such meeting. Absent of such quorum, a new meeting shall be convened in
accordance with the terms set forth in this section 6. This second meeting has
a quorum for the items of the agenda for the meeting in which the absence of a
quorum became evident, regardless of how many members of the relevant Advisory
Board are represented, provided that this was expressly stated in the new
invitation.

 

6.4                                 The chairman of an Advisory Board or in his
absence, the longest-serving member of the relevant Advisory Board, establishes
that the meeting has a quorum and decides on the voting procedure.

 

6.5                                 Written minutes of the resolutions of the
meetings of an Advisory Board shall be prepared, signed by the chairman, a copy
of which shall be sent to each member. Evidence that the invitation to the
meeting was sent out timely shall be kept safely with JV Europe’s company
books.

 

6.6                                 To the extent resolutions need not be passed in
an Advisory Board meeting, they can be passed outside a formal meeting if all
members of the relevant Advisory Board declare their agreement to the proposed
voting procedure or participate in the voting. The chairman of the relevant
Advisory Board initiates the passing of a resolution, stating the subject
matter, the proposed resolution, the voting procedure and the time-limit for
voting. A memorandum on the subject-matter, procedure and result of the voting
shall be prepared, signed by the chairman and a copy of which shall be sent to
each member of the relevant Advisory Board.

 

6.7                                 The Advisory Boards shall in particular be
responsible for deciding upon Restricted Management Matters and all such other
management matters that require the prior consent of the Advisory Boards
pursuant to the Statutes. Subject to applicable law, following the Closing the
Management Board of the relevant entity shall obtain the relevant Advisory
Board’s consent prior to executing any of the Restricted Management Matters, unless
compliance with this 

 

22

 

requirement will, in the
relevant Management Board’s prudent forecast, cause serious harm to JV Europe
or JV US, as the case may be, and/or the relevant Joint Venture Subsidiaries in
which case a ratification of the relevant Restricted Management Matter by the
relevant Advisory Board shall be sought by the relevant Management Board.

 

6.8                                 Resolutions of the Advisory Board shall
generally be passed with simple majority of the members of the Advisory Board,
provided that resolutions regarding a Restricted Management Matter (or a
Special Majority Matter if such matter requires a decision of an Advisory
Board) shall require an unanimous vote of the respective Advisory Board. Its
resolutions can only be challenged by an action within one month following the
day the relevant resolution was passed.

 

7.                                       MANAGING DIRECTORS

 

7.1                                 JV Europe shall, on a day to day basis, be
managed by its board of directors which shall consist of at least two managing
directors (Geschäftsführer),
while  JV US shall, on a day to day basis, be managed by its board of
directors which shall also consist of at least two directors (each such board,
a “Management Board” and
collectively the “Management Boards”).
Individuals serving on the Management Board of JV Europe may (but are not
required to) be at the same time a member of the Management Board of JV US and vice versa.

 

7.2                                 The Management Boards of JV Europe and JV US
shall as of the Closing be composed as set out in Annex 7.2. Members of the Management Boards shall,
subject to section 3.1(m), be appointed and removed by shareholders’ or members’
resolution of JV Europe or JV US, as the case may be.

 

7.3                                 The CEO of the Joint Venture shall, unless the
Shareholders decide otherwise

 

(a)                                  be a member of the Management Board of JV
Europe; and

 

(b)                                 may be a member of the Management Board of
JV US.

 

7.4                                 JV Europe and JV US shall each be represented
by the joint signature of two members of the respective Management Board or,
with respect to JV Europe, by the signature of one member of the Management
Board of JV Europe together with the holder of a registered power of attorney (Prokurist) or, with respect to JV US, by
the signature of one or more officers of JV US with approval of the Managing
Board of JV US.

 

7.5                                 The requirements as to the composition of the
Management Boards contained in this section 7 

 

23

 

shall terminate at such time as one of the
Shareholders’ combined direct and indirect ownership interests in the Joint
Venture (including shares, limited liability company interests or other
ownership interests held by Affiliates of the relevant Shareholder) has fallen
below 20 per cent.

 

8.                                       MANAGEMENT OF THE JOINT VENTURE

 

Following the Closing, the Joint Venture
shall be managed in compliance with this Agreement, the respective Statutes and
the annual business plan adopted by the Advisory Board (the “Annual Budget”) and otherwise in accordance
with applicable laws. The Annual Budget set out in Annex 8 will be based on a budget presentation which
shall include financial information (profit and loss statement, balance sheet,
capital expenditures and cash flow). Further, the Parties undertake that they
will cooperate in the running of the Joint Venture’s business to the effect
that the business of the Joint Venture, including its subsidiaries from time to
time, shall be conducted and managed for the benefit of all Shareholders with
the aim to maximize value and profits and in line with applicable laws and best
business practice.

 

9.                                       AFFILIATE TRANSACTIONS

 

Following the Closing, JV
Europe and JV US shall regularly account for all payments (including fees and
cost reimbursements) of any kind made by the Joint Venture Companies under any
Affiliate Transaction. For the avoidance of doubt, it is hereby set forth that
the foregoing sentence shall apply irrespective of whether such agreement or
arrangement (i) has already been in place at the date hereof or is entered
into after the date hereof; or (ii) was approved by the relevant Advisory
Board.

 

10.                                 ANNUAL ACCOUNTS AND DIVIDEND
POLICY

 

10.1         Following the Closing, JV Europe and JV US
shall, in addition to what may be required under applicable law, prepare their
annual accounts (stand alone and consolidated) and quarterly accounting
reports, in each case in accordance with the accounting standards then applied
by Rockwood Holdings (currently US GAAP) (collectively, the “Joint Venture Accounts”).

 

10.2         The annual accounts of JV Europe and JV US and, to the extent required
by applicable law, the Joint Venture Subsidiaries, shall be audited by Deloitte
or any other independent auditor of international standing designated by
Rockwood and the Shareholders agree to take all such actions and make all such
declarations including the voting of their Shares in JV Europe and JV US
as is required in order to appoint or cause the appointment of such independent
auditor of the relevant entity.

 

24

 

10.3         JV Europe and JV US shall always distribute any net income shown in the
relevant audited annual accounts as adopted by the relevant shareholders’ or
members’ meeting, unless the Shareholders resolve otherwise or a distribution
appears inappropriate with a view to (i) JV Europe’s and JV US’ liquidity
position and (ii) the terms and conditions of the documentation underlying
the third party financing as described in section 2.4 of the Master Agreement.

 

11.                                 INFORMATION RIGHTS

 

11.1         Following the Closing, Rockwood and Kemira
shall, and shall cause the Joint Venture Companies to, fully cooperate with
each other in order to establish general procedures that will enable Kemira and
the Joint Venture Companies to translate the Joint Venture Accounts into IFRS accounts
and reports to the extent this is required to enable Kemira to comply with its
reporting requirements, as applicable from time to time, in a timely manner
(collectively, the “IFRS Accounts”).
Following the establishment of such general procedures, Rockwood and Kemira
shall cooperate with each other, and shall cause the Joint Venture Companies
to, fully cooperate with Kemira and provide Kemira with all such information
that is required for Kemira to translate the Joint Venture Accounts as they
become available into the respective IFRS Accounts.

 

11.2         The Joint Venture Companies shall deliver to each Shareholder, as long
as such Shareholder’s combined direct and indirect ownership interests in the
Joint Venture (including shares, limited liability company interests and other
ownership interests held by Affiliates of the relevant Shareholder) is equal to
or greater than 20 per cent,

 

(a)                                  by no later than on the 6th day on which banks
in Frankfurt am Main, Germany, are generally open for business (a “Business Day”) of a calendar month a
financial reporting package in the format set out in Annex 11.2(a) for the respective preceding month;
and

 

(b)                                 promptly upon becoming available, copies of all
such additional financial statements, reports, notices and budgets sent or made
available generally by the Joint Venture Companies to either Shareholders, and
such additional information regarding the financial position or business of the
Joint Venture as each such Shareholder may reasonably request.

 

11.3         Without limiting the foregoing information
rights, with respect to each Shareholder and for as long as such Shareholder’s
combined direct and indirect ownership interests in the Joint Venture
(including shares, limited liability company interests and other ownership interests
held by 

 

25

 

Affiliates of
the relevant Shareholder) is equal to or greater than 20 per cent, the
Joint Venture shall:

 

(a)                                  make appropriate officers and directors as well
as other members of the management of each of the Joint Venture Companies
available periodically and at such times as reasonably requested by such
Shareholder for consultation with such Shareholder or its designated
representative with respect to matters relating to the business and affairs of
the Joint Venture Companies, including, without limitation, significant changes
in management personnel and compensation of employees, introduction of new
products or new lines of business, important acquisitions or dispositions of
plants and equipment, significant research and development programs, the
purchasing or selling of important trademarks, licenses or concessions or the
proposed commencement or compromise of significant litigation;

 

(b)                                 to the extent consistent with applicable law,
inform each Shareholder or its designated representative in advance with
respect to any significant corporate actions, including, without limitation,
dividends, mergers, acquisitions or dispositions of assets, issuances of
significant amounts of debt or equity, and to provide such Shareholder or its
designated representative with the right to consult with each of the Joint
Venture Companies with respect to such actions;

 

(c)                                  to the extent consistent with applicable law,
afford each Shareholder or its designated representative the right to visit and
inspect any of the offices and properties of the Joint Venture Companies and
inspect and copy the books and records of the Joint Venture Companies, at such
times as the Shareholder or its designated representative shall reasonably
request;

 

(d)                                 undertake towards each other to share all
information they or any of their respective Affiliates receive from the
Management Boards or otherwise from the Joint Venture Companies immediately
amongst each other. JV Europe and JV US shall ensure that all Shareholders
receive any information which has been delivered or disclosed to a certain
Shareholder by any of the Joint Venture Companies. This shall not apply if and
to the extent such information only relates to the receiving Shareholder or is,
in the reasonable opinion of the Management Board, of minor importance.

 

11.4         Each Shareholder shall be entitled, at its own
expense, to review the services rendered by and have access to the work
products of the auditor of JV Europe and JV US, provided that such 

 

26

 

review and
access shall not materially delay or otherwise materially interfere with the
auditor’s services. Each Shareholder shall in addition be entitled, at its own
expense, to appoint a special auditor (Sonderprüfer).
With regard to the special auditor’s rights and obligations, sections 144 and
145 para 1 to 3 German Stock Corporation Act (AktG)
shall, with the exemption of the extension of the special auditor’s rights
towards a shareholder of a Shareholder, apply analogously. The Shareholder
appointing the special auditor shall instruct the special auditor to grant the
other Shareholder access to any and all of its work products in the same extent
made available to the appointing Shareholder.

 

11.5         For the avoidance of doubt, it is hereby set forth that the information
rights contained in this section 11 shall be in addition to any other
information rights the Shareholders may have under applicable law, the Statutes
or otherwise.

 

12.                                 PROPORTIONATE SHAREHOLDINGS

 

Notwithstanding anything to the
contrary contained herein or elsewhere, following the Closing

 

(a)                                  each Shareholder’s percentage shareholding in
JV Europe’s registered share capital must at all times be the same as such Shareholder’s
percentage limited liability company interest in JV US;

 

(b)                                 no Shareholder shall transfer any Shares in
JV Europe to any transferee unless it transfers such amount of its limited
liability company interests in JV US together with such number of Shares
in JV Europe so that, following the consummation of any such transfer,
both it as well as its transferee owns the same percentage in JV Europe’s
registered share capital and of the issued and outstanding limited liability
company interests of JV US as they owned immediately prior to such transfer,
provided that this shall apply similarly if a Shareholder transfers Shares in
JV US with respect to such Shareholder’s Shares in JV Europe; and

 

(c)                                  subject to section 3.1, neither JV Europe nor
JV US shall issue or sell any shares (or other units) of its Equity Securities
unless both JV Europe and JV US issue or transfer such number of Equity
Securities in JV Europe and JV US so that, following the consummation of any
such issuances and/or transfers, both Shareholders shall own the same
percentage in the registered share capital of JV Europe and of the issued and
outstanding limited liability company interests of JV US as they owned
immediately prior to such issuances or transfers.

 

27

 

13.                                 DISPOSAL OF SHARES

 

13.1         Following the Closing, no Shareholder may
transfer, pledge, encumber or otherwise dispose of any Shares or any right,
title or interest therein or thereto (including the granting of sub-participations
or so-called silent participations) (each such transaction, a “Transfer”) to any other person except for
Transfers made by either Shareholder

 

(a)                                  at any time after the date hereof to an
affiliate of such Shareholder within the meaning of section 15 et seq. AktG (an
“Affiliate”) in accordance with
section 16;

 

(b)                                 at any time after the date hereof with the
prior written consent of the other Shareholder;

 

(c)                                  at any time after the Initial Period in a Trade
Sale (as defined below) in accordance with section 14 or an Initial Public
Offering (as defined below) in accordance with section 14.2(b)(i) in
conjunction with section 15.2; and

 

(d)                                 at any time after six months from the
completion of the process set forth in section 14 and/or section 15,
as the case may be (if such process has not led to a successful Trade Sale or
an Initial Public Offering), in accordance with sections 17 through 19,

 

provided, however, that in each such case
such Transfers are only permissible if made in accordance with section 12
and further provided that the limitations on the rights and obligations of the
Shareholders to transfer their Shares including their rights and obligations
under sections 17 through 19 shall terminate following a successful
Initial Public Offering.

 

13.2         Where a transfer of Shares pursuant to this
Agreement is permissible or unless agreed otherwise or as provided in section
15.2 in connection with an Initial Public Offering, a Shareholder shall
transfer only its entire ownership interest in a Joint Venture Company (i.e., a
transfer of less than all Shares held by a Shareholder (or its Affiliate
transferee) shall not be permitted).

 

14.                                 TRADE SALE

 

14.1         Each Shareholder shall be entitled to propose,
at any time after the expiry of the Initial Period, to the other Shareholder a
trade sale of the entire Joint Venture to a third party (i.e., a transaction in
which both Shareholders (or their respective Affiliate transferees) dispose of
their entire interest in the Joint Venture either through a sale of all of their
respective Shares, an asset deal in which the Joint Venture would effectively
sell all of its assets or any other transaction with a similar effect) (each
such transaction, a “Trade Sale”).
If either Shareholder proposes a Trade 

 

28

 

Sale, the
Shareholders shall discuss such proposal in good faith, taking into
consideration the overall economic environment, the proceeds that are likely to
result from such Trade Sale and all other circumstances that are, from the
point of view of a prudent business person, relevant in such context. If the
Shareholders reach a mutual understanding to pursue a Trade Sale, they shall
also agree in good faith on the process to be followed in connection with such
Trade Sale, their common expectation as to the proceeds to be generated as a
result of such Trade Sale and whether both of them would undertake to waive
their respective pre-emption rights as set forth in section 17 in
connection with such Trade Sale.

 

14.2         If the Shareholders cannot agree on whether to pursue a Trade Sale
within a time period of 30 Business Days after a Shareholder has made such
proposal, then each Shareholder (such Shareholder, the “Requesting Shareholder”) shall be entitled,
within 20 Business Days following the expiry of such 30 Business-Days-period,
to request (each such request, a “Sales
Process Request”) by sending a corresponding notice to the other
Shareholder (such Shareholder, the “Non-Requesting
Shareholder”), the initiation of a sales process with the aim to
complete a Trade Sale in the form of an auction to selected third parties (such
sales process, a “Sales Process”).
Upon a Sales Process Request being made, the Parties shall proceed as follows:

 

(a)                                  The Shareholders shall jointly engage an investment
bank of international reputation to assist them in the Sales Process. If the
Shareholders cannot agree on such investment bank within 30 days following a
Sales Process Request, the investment bank shall be determined with binding
effect upon the Shareholders by Ernst & Young, Germany, unless the
latter is, at such time, acting as an auditor of either Party in which case
another of the Big Four international
accounting firms not being an auditor of either Party at that time shall decide
(the investment bank so engaged, the “Investment
Bank”). If the Shareholders cannot agree on which other of the Big Four international accounting firms
not being an auditor of either Party at that time shall determine the
Investment Bank within an additional period of one week following such 30
day-period or the mutually agreed accounting firm refuses to act, such Big Four international accounting firm
shall be appointed, upon request of either Rockwood or Kemira, by the German
Institute of Chartered Accountants. The Shareholders shall instruct the
Investment Bank to analyze in writing (i) the market environment for such
Trade Sale, potential purchasers of the Joint Venture (both financial and
strategic investors), potential issues to be considered in connection with a Sales
Process and the range of sales proceeds that could realistically be expected
from a Trade Sale in a Sales Process (such range of sales proceeds, the “Price Range”); and (ii) the viability
of an Initial Public Offering and whether a process aimed 

 

29

 

at such
Initial Public Offering should be run concurrently with, instead of or as an
alternative to a Sales Process. The Investment Bank shall be instructed to make
such analysis available to the Shareholders within a time period not to exceed
20 Business Days after its instruction to do so (the “Investment Bank Analysis”).

 

(b)                                 Following the receipt of the Investment Bank
Analysis, the Shareholders shall discuss its contents and the recommendations
contained therein with the Investment Bank and amongst each other in good faith
with the aim to reach a mutual understanding whether to proceed (i) with a
Sales Process or, in case the Investment Bank has recommended an Initial Public
Offering (either instead of or as an alternative to a Sales Process) (ii) with
a process aimed at an Initial Public Offering, provided that such process aimed
at an Initial Public offering may either be conducted concurrently with or
instead of a Sales Process. Section 14.1, sentences 2 and 3 shall apply mutatis mutandis. If the Shareholders
cannot mutually agree on whether to pursue or not to pursue a Sales Process
and/or a process aimed at an Initial Public Offering within a time period of 30
Business Days following the receipt by each Shareholder of the Investment Bank
Analysis, then the Requesting Shareholder shall be entitled, within 5 Business
Days following the expiry of such 30 Business-Days-period, to request by
sending a corresponding notice to the Non-Requesting Shareholder that

 

(i)            if the Investment Bank has recommended in the
Investment Bank Analysis a process aimed at an Initial Public Offering pursuant
to section 15.2, a process aimed at an Initial Public Offering shall be
conducted (x) as a stand-alone process or (y) in addition to a Sales
Process (“Dual Track Process”).
For the avoidance of doubt, a Dual Track Process may be requested by the
Requesting Shareholder irrespective of whether the Investment Bank has
recommended the Initial Public Offering be run concurrently with, instead of or
as an alternative to a Sales Process, provided, however, that the Requesting
Shareholder will bear any additional costs incurred due to such Dual Track
Process not recommended by the Investment Bank; or

 

(ii)           a Sales Process shall be conducted, provided that such request may be
made irrespectively of what the Investment Bank has recommended in the
Investment Bank Analysis.

 

(c)                                  If a Sales Process Request pursuant to
section 14.2(b)(i)(x) or section 14.2(b)(ii) is made, the
Shareholders shall engage the Investment Bank to conduct (if applicable in 

 

30

 

parallel to
the process aimed at an Initial Public Offering pursuant to section 15.2)
a Sales Process with the aim of implementing a Trade Sale within a reasonable
time period at terms and conditions that are customary for such type of
transaction and generally with the view to maximize the sales proceeds for the
Shareholders (giving due consideration to matters like transaction certainty
and potential post closing liabilities resulting from representations and
warranties and the like). In such case, the Parties shall cooperate in good
faith and render each other and the Investment Bank all such information and
assistance which is in the view of the Investment Bank reasonably necessary in
the conduct of such Sales Process and to complete the Sales Process as soon as
reasonably practicable and in any event within a time period not to exceed 9
months. The Parties shall in particular refrain from making any announcements
and statements (public or private) which could have an adverse effect on the
Sales Process or any of the Shareholders and its Affiliates.

 

(d)                                 If a Sales Process Request pursuant to
section 14.2(b)(i)(x) regarding a dual track process (i.e. a Sales
Process concurrently with a process aimed at an Initial Public Offering) has
been made, the Shareholders shall discuss at a later stage upon the request of
either Shareholder in good faith with the aim to reach a mutual understanding
(and in consultation with the Investment Bank) whether to complete the Sales
Process or the process aimed at an Initial Public Offering. Section 14.1,
sentences 2 and 3 shall apply mutatis
mutandis. If the Shareholders cannot mutually agree within a time
period of 10 Business Days following the request by either Shareholder to have
such discussion, the Requesting Shareholder shall be entitled to decide whether
the Sales Process or the process aimed at an Initial Public Offering shall be
completed.

 

(e)                                  If the Requesting Shareholder has decided to
complete the Sales Process and such Sales Process results in at least one bona fide final offer (which offer shall
be “binding” in the sense as this term is typically used in a Sales Process)
from a potential third party purchaser on terms and conditions customary for
such type of transaction and at a price that is within the Price Range (a “Final Offer”), then the Requesting
Shareholder shall be entitled to request from the Non-Requesting Shareholder to
complete a Trade Sale on terms and conditions which are with regard to the
sales proceeds not less favourable than the Final Offer and otherwise
substantially similar to those set forth in the Final Offer. If the Sales
Process results in several Final Offers, the Requesting Shareholder shall be
entitled to request from the Non-Requesting Shareholder to complete a Trade
Sale on terms and conditions which are with regard to the sales proceeds not
less favourable

 

31

 

than in the most favourable Final Offer and
otherwise substantially similar to those set forth in the most favourable Final
Offer, provided that the most favourable Final Offer shall be determined mainly
on the basis of the sales proceeds resulting from the acceptance of such offer,
giving due consideration to matters like transaction certainty and potential
post closing liabilities resulting from representations and warranties and the
like. If the Shareholders cannot agree on which Final Offer shall be the most
favourable Final Offer, Ernst & Young, unless the latter is, at such
time, acting as an auditor of either Party in which case one of the Big Four international accounting firms
not being an auditor of either Party at that time, shall determine this with
binding effect upon the Shareholders. Section 14.2(a), sentence 3 shall
apply. If the Requesting Shareholder requests the completion of a Trade Sale in
accordance with the preceding sentences, the Non-Requesting Shareholder shall
have a pre-emption right. With respect to such pre-emption right, the
provisions set forth in section 17 shall apply mutatis mutandis.

 

(f)                                    If the Sales Process does not result in any
final offer of a potential purchaser on terms and conditions customary for such
type of transaction and at a price that is within the Price Range within nine
months of the engagement of the Investment Bank pursuant to section 14.2(c),
than each Shareholder shall be entitled to request the termination of the Sales
Process and neither Shareholder shall be under an obligation to participate in
a Trade Sale as a result of the Sales Process. For the avoidance of doubt, it
is further set forth that in such case neither Shareholder shall be entitled to
sell its Shares on the basis of the final offers actually received as a result
of the Sales Process. Section 17 shall remain unaffected.

 

(g)                                 Notwithstanding anything to the contrary
contained herein, if a Trade Sale is completed in accordance with the
provisions contained in this section 14, the obligations and liabilities
of the Shareholders under the final legal documentation for such Trade Sale
shall be several and not joint but on a pro rata basis based on each
Shareholder’s ownership interest in JV Europe and JV US.

 

15.                                 INITIAL PUBLIC OFFERING

 

15.1         Alternatively to the proposal of a Trade Sale pursuant to section 14,
at any time after the expiry of the Initial Period (without prejudice to
sections 14.2(a) and 14.2(b)(i) pursuant to which a process
aimed at an Initial Public Offering may be commenced in connection with a Sales
Process) but no earlier than six months following the failure of the Sales
Process pursuant to section 14 or any preceding Sales Process by Trade Sale or
Initial Public Offering, each Shareholder 

 

32

 

shall be entitled to request from the Joint
Venture Companies and the respective other Shareholder (or its respective
Affiliate transferees) (i) the direct or indirect (i.e., via a further
direct or indirect holding company) listing of the Joint Venture or its
applicable Equity Securities on a stock exchange within the European Union,
Switzerland, a transnational stock exchange, the New York Stock Exchange or
NASDAQ or (ii) an underwritten public offering of Equity Interests of any
Joint Venture Company under the Securities Act representing at least 20 per
cent of the total share capital of the Joint Venture after such listing (each
such public offering, an “Initial Public
Offering”).

 

15.2                           In the event either Shareholder duly requests
the Initial Public Offering, the following shall apply:

 

(a)                                  If the managing underwriter of the Initial
Public Offering advises JV Europe and JV US that marketing factors require a
limitation of the number of Shares to be underwritten in the Initial Public
Offering, the Shareholders shall be entitled to sell their respective pro rata
portion of the aggregate number of Shares sold in such Initial Public Offering.
This shall apply equally in the event an over-allotment option is exercised.

 

(b)                                 If the stock market listing requires the Joint
Venture Companies’ restructuring (e.g., the conversion of JV Europe into
another legal form and the contribution of JV US into JV Europe or vice versa)
or such restructuring is in the reasonable view of either Shareholder appropriate,
the Shareholders shall be obliged to consent to such restructuring and to take
all such actions and make or receive all such declarations which are necessary
in that respect, provided, however, that no Shareholder shall be obliged to
take any such action or to make or receive any such declaration if the proposed
restructuring would cause a substantial adverse tax effect for such
Shareholder. A substantial adverse tax effect shall be any tax effect
that, with view to other restructuring alternatives available to achieve an
Initial Public Offering, treats one Shareholder substantially less favourable
compared to (i) his tax treatment in such other structure alternatives and
(ii) the tax treatment of the other Shareholders in connection with the proposed
restructuring and subsequent Initial Public Offering.

 

(c)                                  The relevant Joint Venture Companies shall
initiate the stock market registration and/or file a registration statement
under the Securities Act covering all the Equity Securities of the relevant
Joint Venture Companies to be registered and use their reasonable best efforts
to cause such registration statement to be declared effective by the United
States Securities and Exchange Commission (the “SEC”) as soon as practicable and shall bear 

 

33

 

any and all costs related
thereto (in particular but not limited to bank fees and charges), including, to
the extent legally permissible, all legal costs incurred by the Shareholders in
connection with the stock market registration and all registration, filing and
qualification fees, printers’ and accounting fees but excluding underwriting
discounts and commissions relating to the Equity Securities being offered.

 

(d)                                 Each Shareholder will be required to sell its
Shares on the basis provided by the applicable underwriting arrangements and
complete and execute all questionnaires, powers of attorney, underwriting
agreements and other documents reasonably required under the terms of such
underwriting arrangements and the provisions of this Agreement.

 

(e)                                  The relevant Joint Venture Companies shall

 

(i)            forward drafts and final versions of bid
letters, term sheets, other transaction documents and correspondence with
advisers to the Shareholders as soon as the same become available;

 

(ii)           keep the Shareholders fully informed of the process without delay; and

 

(iii)          allow each Shareholder and its representatives and advisors to
reasonably participate in any formal presentation by prospective underwriters
regarding the Initial Public Offering.

 

(f)                                    Whenever the
Joint Venture Companies are required under this section 15.2 to use their
reasonable best efforts to effect the registration of Equity Securities under
the Securities Act, the Joint Venture Companies shall also, as expeditiously as
reasonably practicable,

 

(i)            prepare and file with the SEC a registration
statement with respect to such Equity Securities and use reasonable best
efforts to cause such registration statement to become effective, and, upon the
request of either Shareholder, keep such registration statement effective for a
period of up to one hundred twenty (120) days or, if earlier, until the
distribution contemplated in the registration statement has been completed;
provided, however, that such 120 day period shall be extended for a period of
time equal to the period a Shareholder refrains, at the request of an
underwriter of the Joint Venture Companies, from selling any Equity Securities
included in such registration;

 

34

 

(ii)           prepare and file with
the SEC such amendments and supplements to such registration statement and the
prospectus used in connection therewith as may be necessary to comply with the
requirements of the Securities Act and furnish to the Shareholders such numbers
of copies of a prospectus, including a preliminary prospectus, in conformity
with the requirements of the Securities Act, and such other documents as the
Shareholders may reasonably request in order to facilitate the disposition of
such Equity Securities owned by them;

 

(iii)          use reasonable best
efforts to register and qualify the Equity Securities covered by such
registration statement under such other securities or blue sky laws of such
jurisdictions as shall be reasonably requested by either Shareholder;

 

(iv)          provide a transfer
agent and registrar and a CUSIP number for all such Equity Securities, in each
case not later than the effective date of such registration;

 

(v)                                 use
reasonable best efforts to obtain

 

(1)           a “comfort” letter from the independent certified public accountants of
the Joint Venture Companies, in form and substance as is customarily given by
independent certified public accountants to underwriters in an underwritten
public offering under the Securities Act, and

 

(2)            an opinion of the counsel representing the
Joint Venture Companies for the purposes of such registration, in form and
substance as is customarily given to underwriters in an underwritten public
offering under the Securities Act, addressed in each case to the underwriters,
and otherwise use reasonable best efforts to take all other
steps necessary to effect the registration of such Equity Securities under the
Securities Act.

 

It shall be a condition precedent to the
obligations of the Joint Venture Companies to take any action pursuant to this
section 15.2(f) with respect to the Equity Securities of either
Shareholder that such Shareholder shall furnish to the Joint Venture Companies
such information regarding itself, the Equity Securities held by it and the
intended method of disposition of such Equity Securities as shall be reasonably
required to effect the registration of such Equity Securities held by such
Shareholder.

 

(g)                                 Each Shareholder shall undertake to comply with
any transfer restrictions regarding the Shares held by it, which the provisions
of the stock market registration proceeding, the 

 

35

 

provisions
regarding the admission to trade on the respective stock exchange and/or market
segment or the regulations of the syndicate leading underwriting agent (konsortialführende Emissionsbank) require
(the “Lock-up”); provided,
however, that no Shareholder shall be obliged to comply with a longer Lock-up
term or additional transfer restrictions regarding the Shares held by it than
the longer of those required by statutory law or the respective stock exchange
or, in the case of the registration of any Equity Interests under the
Securities Act, 120 days after the effective date of such registration.

 

(h)                                 The Shareholders shall be entitled to request
from the Joint Venture Companies to include into the agreements with the
respective underwriting agent (Emissionsbank)
the right to a secondary offering of the Shares held by the Shareholders and to
undertake any and all actions and measures necessary for this purpose, unless
the respective underwriting agent (Emissionsbank)
objects to the incorporation of such term. The Joint Venture Companies shall
bear the costs for the application and the implementation of such secondary
offering.

 

Notwithstanding anything to the contrary contained in this Agreement,
if at any time prior to the completion of the Initial Public Offering, such
Initial Public Offering will be aborted, the Parties shall, upon the request of
either Shareholder, take all such actions and make or receive all such
declarations such Shareholder will reasonably request in order to reverse, to
the extent legally permissible under applicable law, the actions taken by the
Parties following the request by either Shareholder, as the case may be, to
pursue the Initial Public Offering, so as to seek to cause, to the maximum
extent permissible under applicable law, (i) the Joint Venture Companies
to have the same legal form, in the same jurisdiction and with substantially
the same governing documents as the Statutes and (ii) the Shareholders to
have substantially the same rights and obligations as the Shareholders have
under the Statutes and this Agreement as if none of the steps described in
section 15.2 shall have been taken.

 

15.3                           Indemnification

 

(a)                                  In connection with any registration of Equity
Securities under the Securities Act pursuant to this Agreement, the Joint
Venture Companies shall indemnify and hold harmless each Shareholder, each
underwriter thereof, and each other person or entity, if any, who controls such
Shareholder or underwriter within the meaning of the Securities Act and each
officer, director, partner and member of any of the foregoing persons or
entities, against any losses, claims, damages or liabilities, joint or several,
to which any of the foregoing persons or entities may become subject under the
Securities Act or otherwise, 

 

36

 

insofar as such losses, claims damages or
liabilities (or actions in respect thereof) arise out of or are based upon (i) an
untrue statement or alleged untrue statement of a material fact contained in
the registration statement under which Equity Securities were registered under
the Securities Act pursuant to section 15.2, any preliminary prospectus or
final prospectus contained therein or any amendment or supplement thereto, (ii) the
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading or,
with respect to any prospectus, necessary to make the statements therein in
light of the circumstances under which they were made not misleading, or (iii) any
violation or alleged violations by the Joint Venture Companies of the Securities
Act or state securities laws or any rules or regulations promulgated
thereunder applicable to the Joint Venture Companies (collectively, a “Violation”), and the Joint Venture
Companies shall promptly reimburse such persons or entities for any legal or
other expenses reasonably incurred by 
them in connection with investigating or defending any such loss, claim,
damage, liability or action as such expenses are incurred; provided, however,
that the Joint Venture Companies shall not be liable in any such case for any
such loss, claim, damage, liability or action to the extent that it arises out
of or is based upon a Violation which occurs in reliance upon and in conformity
with written information furnished expressly for use in connection with such registration
by any of the foregoing persons or entities.

 

(b)                                 In connection with any registration of Equity
Securities under the Securities Act pursuant to this Agreement, to the extent
permitted by law, each Shareholder will severally and not jointly indemnify and
hold harmless the Joint Venture Companies, each of its directors, each of its
officers who has signed such registration statement, legal counsel and
accountants for the Joint Venture Companies, any underwriter, the other
Shareholder and any controlling person of any such underwriter or such
Shareholder, against any losses, claims, damages, or liabilities (joint or
several) to which any of the foregoing persons or entities may become subject,
under the Securities Act or other applicable law, insofar as such losses,
claims, damages, or liabilities (or actions in respect thereto) arise out of or
are based upon any Violation, in each case to the extent (and only to the
extent) that such Violation occurs in reliance upon and in conformity with
written information furnished by such Shareholder expressly for use in
connection with such registration; and each such Shareholder will pay, any
legal or other expenses reasonably incurred by any person or entity intended to
be indemnified pursuant to this section 15.3(b) in connection with
investigating or defending any such loss, claim, damage, liability, or action;
provided, however, that in no event shall any indemnity under this section 15.3(b) 

 

37

 

exceed the net proceeds actually received by
such Shareholder from the sale of Equity Securities held by such Shareholder
effected pursuant to such registration.

 

(c)                                  Promptly after receipt by an indemnified party
of notice of the commencement of any action involving a claim referred to in
the preceding paragraphs of this section 15.3, such indemnified party will, if
a claim in respect thereof is to be made against any indemnifying party under
this section 15.3, deliver to the indemnifying party written notice of the commencement
thereof; provided, however, that an indemnified party’s failure to give such
notice in a timely manner shall only relieve the indemnification obligations of
an indemnifying party to the extent such indemnifying party is prejudiced or
harmed by such failure. In case any such action is brought against an
indemnified party, the indemnifying party shall have the right to participate
in, and, to the extent the indemnifying party so desires, to assume the defense
thereof with counsel mutually satisfactory to the parties; provided, however,
that if any indemnified party shall have reasonably concluded that there may be
one or more legal or equitable defenses available to such indemnified party
that conflict with those available to the indemnifying party, the indemnifying
party shall not have the right to assume the defense of such action on behalf
of such indemnified party and such indemnifying party shall reimburse such
indemnified party for that portion of the reasonable fees and expenses of any
counsel retained by the indemnified party in connection with the matters
covered by the indemnity agreement provided in this section 15.3.

 

(d)                                 If, except as a result of an indemnified party’s
failure to timely deliver notice to the indemnifying party of the commencement
of any action involving a claim referred to in the preceding paragraphs of this
section 15.3, the indemnification provided for in this section 15 is held by a
court of competent jurisdiction to be unavailable to an indemnified party with
respect to any loss, claim, damage or liability referred to herein, then the
indemnifying party, in lieu of indemnifying such indemnified party hereunder,
shall contribute to the amounts paid or payable by such indemnified party as a
result of such loss, claim, damage or liability in such proportion as is
appropriate to reflect the relative fault of the indemnifying party on the one
hand and of the indemnified party on the other hand in connection with the
statements or omissions which resulted in such loss, claim, damage or liability
as well as any other relevant equitable considerations; provided, however, that
the maximum amount of liability in respect of such contribution shall be
limited, in the case of each Shareholder, to an amount equal to the net
proceeds actually received by such Shareholder from the sale of Equity
Securities held by such Shareholder 

 

38

 

effected pursuant to such registration. The
relative fault of the indemnifying party and of the indemnified party shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission to state a material fact
relates to information supplied by the indemnifying party or by the indemnified
party and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. Further, no
person or entity guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) will be entitled to contribution from any person or entity
who was not guilty of such fraudulent misrepresentation.

 

(e)           Unless otherwise superseded by an underwriting agreement entered into
in connection with an underwritten public offering of Equity Securities
pursuant to this section 15, the obligations of the Joint Venture Companies and
the Shareholders under this section 15.3 shall survive the completion of any
offering of Equity Securities under the Securities Act pursuant to this section
15, and otherwise and shall survive the termination of this Agreement.

 

16.                                 TRANSFERS TO AFFILIATES

 

16.1                           Each Shareholder may transfer all (but not a
portion) of its Shares to one of its Affiliates for so long as

 

(a)                                  the Affiliate has agreed in writing to be bound
by the terms and conditions of this Agreement;

 

(b)                                 the Transfer complies in all respects with any
applicable provisions of this Agreement (in particular section 12); and

 

(c)                                  the Transfer complies in all respects with any
applicable requirements of applicable law.

 

16.2         If any Shareholder wishes to transfer Shares to
an Affiliate, then it shall give notice to the other Shareholder of his
intention to do so not less than ten (10) Business Days prior to
effecting such Transfer. Such notice shall state (i) the name and address
of the Affiliate to which such Transfer is proposed; and (ii) the
relationship of such Affiliate to such Shareholder.

 

16.3         An Affiliate may transfer its Shares only to the original transferor
Shareholder or to a person that is an Affiliate of such original transferor
Shareholder. If any Affiliate of any original transferor Shareholder to which
Shares have been transferred ceases to be an Affiliate of such Shareholder, 

 

39

 

such Affiliate transferee
shall, and such Shareholder shall cause such Affiliate transferee to, transfer
back to such Shareholder (or to another Affiliate of such Shareholder) any
Shares it owns on or prior to the date that such Affiliate transferee ceases to
be an Affiliate of such Shareholder.

 

16.4                           Upon becoming a party to this Agreement

 

(a)                                  the Affiliate transferee of Kemira shall be
substituted for, and shall enjoy the same rights and be subject to the same
obligations as, the Shareholders with respect to the Shares transferred by
Kemira to such Affiliate; and

 

(b)                                 the Affiliate transferee of Rockwood shall be
substituted for, and shall enjoy the same rights and be subject to the same
obligations as, Rockwood with respect to the Shares transferred to such Affiliate;

 

provided, however, that in the case of both
clauses (a) and (b) the relevant Shareholder and its Affiliate
transferees may exercise any rights they may have under this Agreement or the
Statutes only jointly and in one and the same way.

 

17.                                 PRE-EMPTION RIGHT

 

17.1                           If after expiration of the Initial Period and
six months following the termination of the Sales Process set forth in section
14 and/or a process aimed at an Initial Public Offering set forth in section
15, as the case may be (if such process has not led to a successful Trade Sale
or the Initial Public Offering of more than 30 per cent of the ownership
interests in the Joint Venture or any legal successor thereof), a Shareholder
intending to sell all of its Shares in a bona
fide transaction to a third party (i.e., to a person other than to
an Affiliate pursuant to section 16) (a “Selling
Shareholder”) shall be required to offer all of its Shares to the
other Shareholder by sending a complete and certified copy of the share
transfer agreement agreed with the third party (the “Purchase Option”) to the other Shareholder.

 

Such other Shareholder may accept the Purchase Option in writing within
a period of 20 Business Days following receipt of the offer. Unless otherwise
agreed between the Shareholders, the Shareholders shall execute the share
transfer agreement underlying the Purchase Option within 10 Business Days
following receipt of the written acceptance by the Selling Shareholder,
provided, however, that, if such sale and transfer is subject to governmental
or regulatory consents, approvals or clearances (including expiration or
termination of all applicable waiting periods under applicable law), such 10
Business Days period shall be extended until the expiration of 10

 

40

 

Business Days after all such consents, approvals or clearances
(including expiration or termination of all applicable waiting periods under
applicable law) have been received, but in no event later than nine months
following the date of the delivery of the Purchase Option.

 

17.2         If the Purchase Option is not duly exercised, the Selling Shareholder
shall be entitled to sell and transfer all (but no less than all) of its Shares
without such other Shareholder’s consent on such terms and conditions as set
out in the Purchase Option to the third party at any time within three months
(or such longer time, up to an additional six months following such two-month
period, as shall be required to obtain all governmental and regulatory consents,
approvals and clearances (including the expiration or termination of all
applicable waiting periods under applicable law) in order to consummate such
sale and transfer) of the expiration of the applicable period (the “Sale Period”). If the Selling Shareholder
shall not have consummated the proposed sale and transfer by the end of the
Sale Period, then the Selling Shareholder may not thereafter transfer such
Shares without once again complying with the applicable provisions of this
section 17.

 

18.                                 DRAG-ALONG RIGHT

 

If and to the extent the pre-emption right under section 17 is not duly
exercised, the following shall apply:

 

18.1         A Selling Shareholder intending to sell all of its Shares to any bona fide third party which must not be an
Affiliate of such Selling Shareholder and must be dealing at arm’s length,
shall be entitled to require the other Shareholder (“Drag-Along Shareholder”) to sell and transfer all of its
Shares (“Dragged Shares”) on the
same terms (“Drag-Along Right”) as
the Selling Shareholder to the third party.

 

18.2         To exercise a Drag-Along Right, the Selling
Shareholder shall request the sale and transfer of the Dragged Shares by the
Drag-Along Shareholder to the third party by written notice to the Drag-Along
Shareholder no later than 30 Business Days following the Purchase Option being
delivered to the Drag-Along Shareholder (the “Drag-Along
Notice”).

 

18.3         Within 10 Business Days following the receipt of the Drag-Along Notice,
the Drag-Along Shareholder shall sell its Dragged Shares to the third party (i) on
the same terms and conditions as the Selling Shareholder sells its Shares to
the third party but not on terms and conditions less favourable than set out in
the Purchase Option and (ii) subject to the disposal of its Shares by the
Selling Shareholder to the third party, provided, however, that the liability
of the Shareholders under such definitive agreements shall be several and not
joint and several.

 

41

 

18.4        Each Shareholder undertakes to take all actions
necessary for a sale to the third party following the exercise of the
Drag-Along Right, according to the provisions of this section.

 

18.5        The Selling Shareholder shall have a period of
10 Business Days from the date of the delivery of the Drag-Along Notice to
consummate the sale and transfer on the terms and conditions set forth in the
Drag-Along Notice, provided, however, that, if such sale and transfer is
subject to governmental or regulatory consents, approvals or clearances
(including expiration or termination of all applicable waiting periods under
applicable law), such 10 Business Days period shall be extended until the
expiration of 10 Business Days after all such consents, approvals or clearances
(including expiration or termination of all applicable waiting periods under
applicable law) have been received, but in no event later than nine months
following the date of the delivery of the Drag-Along Notice. If the sale and
transfer shall not have been consummated during such period, the Selling
Shareholder shall return to the Drag-Along Shareholder any documents in the
possession of the Selling Shareholder executed by the Drag-Along Shareholder in
connection with such proposed sale and transfer, and all the restrictions on
transfers of Shares contained in this Agreement or otherwise applicable at such
time with respect to the Shares shall again be in effect.

 

18.6        Concurrently with the consummation of the sale
and transfer of Shares pursuant to this section 18, the Selling
Shareholder shall give notice thereof to the Drag-Along Shareholder, shall
remit to the Drag-Along Shareholder the total consideration (the cash portion
of which is to be paid by wire transfer in accordance with the Drag-Along
Shareholder’s wire transfer instructions) for the Shares transferred in such
sale and transfer, and shall furnish such other evidence of the completion and
time of completion of such sale and transfer and the terms thereof as may be
reasonably requested by the Drag-Along Shareholder.

 

19.          TAG-ALONG RIGHT

 

If and to the extent the pre-emption right under section 17 is not duly
exercised, the following shall apply:

 

19.1        Within 20
Business Days following the receipt of the Purchase Option, the Shareholder
receiving such Purchase Option may request by giving written notice to the
Selling Shareholder (the “Tag-Along Notice”)
that its Shares (the “Tagged Shares”)
may also be sold and transferred to the third party on the same terms and
conditions as the Selling Shareholders’ but not on terms and conditions less
favourable than set out in the Purchase Option (the “Tag-Along Right”).

 

42

 

19.2        Sections 18.3 through 18.6 shall apply mutatis
mutandis with regard to the Tagged Shares.

 

20.          DURATION AND TERMINATION OF THE COMPANY

 

20.1        The Joint Venture is established for an
indefinite period commencing on the Closing Date, provided that the Joint
Venture and this Agreement shall terminate automatically upon the completion of
Initial Public Offering, a Trade Sale or the acquisition of all ownership
interests in the Joint Venture by either Shareholder or a third party (each an “Exit Event”) except with respect to
provisions set forth in sections 13 through 27 which shall survive the
termination of this Agreement.

 

20.2        The termination of JV Europe and this Agreement without cause (ordentliche Kündigung) shall not be
permitted.

 

20.3        Each Shareholder is, however, entitled to
terminate the Joint Venture for cause (aus
wichtigem Grund) after having notified the other Shareholder of a
breach and such breach has not been cured within six months of receipt of such
notice within 30 days following the end of such six months period (unless a
shorter notice period or termination without notice period is permissible and
cannot be excluded under statutory law in which case such shorter or no notice
period shall apply).

 

21.          DEADLOCK PROVISION

 

21.1        If after the expiry of the Initial Period, an
agreement with regard to a resolution of the Shareholders or of the Advisory
Boards of JV Europe and JV US concerning a Special Majority Matter or
Restricted Management Matter cannot be reached, the decision upon such approval
shall be adjourned and if so requested by Rockwood, the Shareholders or members
of the Advisory Board, as the case may be, shall immediately following the
meeting of the Shareholders or the Advisory Board in which consent to the
matter could not be reached enter into consultations on how to resolve the
deadlock. If the members of the Advisory Board or the Shareholders, as the case
may be, cannot agree on a mutual course of action with regard to the relevant
Special Majority Matter or Restricted Management Matter within a period of 60
calendar days (or within any other period mutually agreed in writing between
the Shareholders) following the meeting in which consent to the matter could
not be reached, either Shareholder may deliver an offer by courier (any
Shareholder making such offer being an “Offeror”)
in accordance with sections 21.2 and 21.3 below, to acquire all Shares owned by
the other Shareholder including a minimum price per Share based on a
calculation method taking into account the average of the 

 

43

 

actual EBITDA figures for the two years prior
to the year in which such Offer has been made, as well as the year in which the
Offer is made (forecast or budget, depending on what is available at such time)
of the Joint Venture multiplied by six as set forth in detail in Annex 21.1 (the “Offer”). Within 30 calendar days following
receipt of the Offer, the Shareholder receiving an Offer (being the “Offeree”) shall either notify the Offeror
of its acceptance of the Offer or notify the Offeror that it will acquire all
of the Offeror’s Shares on the same terms and conditions set out in the Offer
(in each case an “Offer Notice”).
To the extent both Shareholders make an Offer before having received an Offer
of the other Shareholder, only the Offer received first by the relevant Offeree
shall be considered and the later Offer shall have no effect. The Offer shall
include all relevant provisions governing the transfer of the offered and
accepted Shares.

 

21.2        In the Offer, the transferor shall warrant to
the transferee unencumbered title to the transferor’s Shares, corporate
authority to enter into the Offer and attach

 

(a)                                 either a guarantee upon first demand (Bürgschaft auf erstes Anforderung unter Ausschluss
der Einreden nach § 770 BGB) of a reputable European or US American
bank; or

 

(b)                                 a guarantee by the ultimate shareholder listed
on a stock exchange with the European Union or the Unites States of America
substantially in the form as attached as Annex
21.2(b),

 

in the amount of the offered purchase price
for the Shares being subject of its Offer. Any other representations and
warranties and/or indemnification shall be excluded.

 

21.3        The Offer and the Offer Notice shall be in the form attached as Annex 21.3 and in notarial form.

 

22.          NON-COMPETE

 

22.1        Following the Closing, as long
as the Shareholders (or their Affiliate transferees) remain shareholders or
other equity holders of the Joint Venture and for a further period of two (2) years after an Exit Event, Kemira
and Rockwood Holdings, as the case may be, agree not to (and to procure that their respective subsidiaries will
not), directly or indirectly, as a proprietor, shareholder, partner or
otherwise

 

(a)                                 engage in the production, sale and marketing of
titanium dioxide pigments; and

 

(b)                                 compete with the other activities included in
the TiO2 Businesses as conducted by the 

 

44

 

Joint Venture at the time of
Closing (excluding Rockwood’s Water Business business carved out before the
Closing Date through the execution of the Water Business Carve-Out (as defined
in the Master Agreement)),

 

(each such activity, a “Prohibited Business”).

 

22.2        Section 22.1(b) shall not prevent
Kemira, Rockwood or their Affiliates (other than JV Europe and JV US and their
direct and indirect subsidiaries) from continuing to conduct their businesses
(other than their TiO2 Businesses) as conducted on the Closing Date as well as
usual evolutions of these businesses. For the avoidance of doubt, Rockwood and
its subsidiaries may continue to engage in the global pigments business of
Elementis plc., which is being integrated into the color pigments and service
business within Rockwood’s performance additives segment and usual evolutions
thereof.

 

22.3        Section 22.1 shall not prevent Rockwood,
Rockwood Germany and Kemira or any of their respective Affiliates from
acquiring an interest in an enterprise (Unternehmen)
active in the fields pursuant to section 22.1, to the extent that

 

(a)                                 such interest is acquired solely as a financial
investment;

 

(b)                                 does not exceed 10 per cent of the outstanding
shares/interests or voting rights of such enterprise; and

 

(c)                                  does not contractually or factually allow to
exert control over such enterprise’s business decision.

 

22.4        The Shareholders expressly acknowledge and
agree that

 

(a)                                 Rockwood’s ultimate shareholders (collectively,
the “Private Equity Funds”) and
their Affiliates (other than Rockwood Holdings, Rockwood, the Joint Venture and
their respective subsidiaries) shall not be bound by this section 22 and
the Parties agree and acknowledge that that the Private Equity Funds are
permitted to have, and may presently or in the future have, investments or
other business relationships with entities engaged in businesses related to the
Prohibited Business (each, an “Other Business”);
and

 

(b)                                 none of the Private Equity Funds or their
Affiliates (other than Rockwood Holdings, Rockwood, the Joint Venture and their
respective subsidiaries) will be prohibited by 

 

45

 

virtue of their indirect investment through
Rockwood Holdings in the Joint Venture Companies from pursuing and engaging in
any such activities.

 

22.5                        For the same period pursuant to
section 22.1, Rockwood, Rockwood Germany and Kemira will not, and will
procure that none of its subsidiaries will, do or permit any of the following:

 

(a)                                 directly or indirectly solicit or otherwise
contact any present or past customers of JV Europe (including its subsidiaries
from time to time), for themselves or any other person, for the purpose of
obtaining business pursuant to section 22.1 (a) and (b); or

 

(b)                                 directly or indirectly (except for media
advertising directed to the general public) solicit, or endeavour to entice
away any key employee as listed in Annex 22.5(b) of
JV Europe and / or its subsidiaries from time to time.

 

23.          JOINT AND SEVERAL LIABILITY

 

The Parties agree that

 

(a)                                 Rockwood Holdings; Rockwood and Rockwood
Germany on the one hand; and

 

(b)                                 Kemira and Kemira Germany on the other hand

 

shall be jointly and severally liable for
each and every of the obligations that either of these entities has under or in
connection with this Agreement.

 

24.          CONFIDENTIALITY

 

24.1        The Parties must keep secret the contents of this
Agreement to the extent that no statutory disclosure obligations exist or the
respective other Party has not consented to the disclosure. The Parties must
also keep secret any information they have received about each other and about
the enterprises affiliated with the respective other Party as defined in
section 15 German Stock Corporation Act (AktG)
from the date they have started talks about the Joint Venture, to the extent
that such information is not available to the public or (except in case of
information of Kemira in relation to Kemira TiO2 and Rockwood and Rockwood
Germany in relation to JV Europe) previously known to the disclosing Party, or
the respective other Party has not consented to the disclosure of the
information.

 

24.2        If any disclosure or announcement of confidential matters referred to
in section 24.1 is required by law or by any regulation, rule or any
governmental or quasi governmental authority, such 

 

46

 

disclosure may be made by the Party which has
been addressed upon consultation of the other Parties.

 

24.3                        Notwithstanding section 24.1, each Party
may disclose the content of this Agreement to any of its Affiliates.

 

24.4        Any press release or similar disclosure of any Party concerning the
Transaction shall require the prior consent of the other Parties except for
press releases permitted under section 24.2.

 

25.          MISCELLANEOUS

 

25.1        This Agreement, including the Master Agreement
and the Implementation Agreement and their Annexes, contain the entire
agreement of the Parties with respect to the subject matter thereof. Any
supplements or amendments to or a termination of these Agreements, as well as
any declarations to be made thereunder, shall be valid only if made in writing,
or if required by law, in due notarial form. This shall also apply to any
change to, or cancellation of, this provision.

 

25.2        Rockwood shall at all times be entitled to make for tax purposes any
election under the laws of the United States of America required or deemed
necessary by it or any of its affiliates upon consultation with Kemira; provided,
however, that Rockwood shall not be permitted to change the tax treatment of JV
US from treatment as a corporation to treatment as a partnership without the
prior written consent of Kemira; and provided further that JV US shall not be
permitted to change the tax treatment of JV US from treatment as a corporation
to treatment as a partnership without the prior written consent of both Kemira
and Rockwood.

 

25.3        No Party may assign or otherwise transfer any rights or claims under or
in connection with this Agreement to a third party without the prior written
consent of the other Parties.

 

25.4        Unless otherwise explicitly provided for in this Agreement, neither
this Agreement nor any provisions contained in this Agreement is intended to
confer any rights or remedies upon any person or entity other than the Parties.

 

25.5        This Agreement shall be exclusively governed by the laws of the Federal
Republic of Germany. The English language version shall be determinative (even
if a translation is made), provided that where German expressions are used in
brackets, the German expression shall be determinative.

 

25.6        In this Agreement:

 

47

 

(a)                                 any German legal term for any action, remedy,
method of judicial proceeding, legal document, legal status, court, official or
any legal concept or thing shall, in respect of any jurisdiction other than
Germany, be deemed to include what most closely approximates in that
jurisdiction to the German legal term and any reference to any German statute
shall be construed so as to include equivalent or analogous laws of any other
jurisdiction; and

 

(b)                                 the headings shall not affect the
interpretation of this Agreement.

 

25.7        To the
extent permitted by law, all disputes arising in connection with this Agreement
or its validity shall be finally settled in accordance with Arbitration Rules of
the International Chamber of
Commerce without recourse to the
ordinary courts of law. The place of arbitration is Frankfurt am Main, Germany.
The Arbitral Tribunal consists of three arbitrators. The language of the
arbitral proceedings is English.

 

25.8        Unless provided otherwise in this Agreement, all
declarations (Willenserklärungen)  to be made or notices to be given by the
Parties pursuant to this Agreement shall be in writing in English and delivered
by hand, by courier or by fax to the Person at the address set forth below, or
such other address as may be designated by the respective Party to the other
Party in the same manner. A notification made by email in pdf-format shall be
regarded as sufficient, provided that an identical notification in writing and
delivered by hand or by courier follows within two weeks after such email:

 

(a)                                 Notifications to Rockwood Holdings and
Rockwood:

 

Rockwood Specialties Group, Inc.

Thomas J. Riordan, Senior Vice President, Law
and Adminstration

100 Overlook
Center

Princeton NJ
08540, USA

Facsimile: +1
(609) 514-8722

E-mail:
TRiordan@rocksp.com

 

(b)                                 Notifications to Rockwood Germany:

 

Rockwood Specialties Group GmbH

Udo Pinger

Königsberger
Straße 1

60487 Frankfurt
am Main, Germany

Facsimile: +49
(69) 7165-5693

E-mail:
udo.pinger@rocksp.de

 

48

 

(c)                                  Notifications to
JV Europe and Finnish HoldCo:

 

Sachtleben Chemie GmbH

Wolf-Dieter Griebler

Dr.-Rudolf-Sachtleben-Str. 4

47198 Duisburg, Germany

Facsimile: +49 (2066) 22-3201

E-mail: w.d.griebler@sachtleben.de

Each with a copy to Rockwood Germany and Kemira

 

(d)                                 Notifications to Sachtleben:

 

Sachtleben Chemie GmbH

Wolf-Dieter Griebler

Dr.-Rudolf-Sachtleben-Str. 4

47198 Duisburg, Germany

Facsimile: +49 (2066) 22-3201

E-mail: w.d.griebler@sachtleben.de

 

(e)                                  Notifications to Sachtleben Corp

 

c/o Rockwood Specialties Group, Inc.

Thomas J. Riordan, Senior Vice President, Law
and Adminstration

100 Overlook
Center

Princeton NJ
08540, USA

Facsimile: +1
(609) 514-8722

E-mail:
TRiordan@rocksp.com

 

(f)                                   Notifications to Kemira and Kemira TiO2:

 

Hannu Virolainen, President Kemira Speciality
Business Area

Kemira OYJ

Porkkalankatu 3

00180 Helsinki

Finland

Facsimile: +358 - (0) 10 862 1068

E-mail:
hannu.virolainen@kemira.com

 

49

 

(g)                                  Notifications to Kemira Germany:

 

Hermann-Josef Frings, Managing Director

Kemira Germany
GmbH

Marie-Curie-Straße
10

51377 Leverkusen

Germany

Facsimile: +49 (214) 20690-250

E-mail:
hermann-josef.frings@kemira.com

 

(h)                                 Notifications to Kemira Inc.:

 

Hannu Virolainen, President
Kemira Speciality Business Area

c/o Kemira OYJ

Porkkalankatu 3

00180 Helsinki

Finland

Facsimile: +358 - (0) 10 862
1068

Email: hannu.virolainen@kemira.com

 

(i)                                     Notifications to White Pigments, LLC:

 

Thomas J. Riordan, Senior Vice President, Law and Administration

White Pigments, LLC

c/o Rockwood Specialties Group Inc.

100 Overlook Center

Princeton NJ 08540, USA

Facsimile: +1 (609) 514-8722

E-mail: TRiordan@rocksp.com

with a copy to JV Europe and Kemira

 

50

 

26.          AUTHORISED AGENT

 

26.1        Kemira and
Kemira TiO2 hereby appoint the law firm of Gleiss Lutz Hootz Hirsch, Frankfurt am Main/Germany as their agent for
service of process (Zustellungsbevollmächtigter)
for all legal proceedings arising out of or in connection with this Agreement.
This appointment shall only terminate upon the appointment of another agent for
service of process domiciled in Germany, provided that the agent for service of
process is an attorney admitted to the German bar (in Deutschland zugelassener Rechtsanwalt) and his
appointment has been notified to and approved in writing by Rockwood (which
approval shall not be unreasonably withheld). Kemira and Kemira TiO2 shall upon
the appointment of any new agent for service of process (as the case may be)
issue to the agent a written power of attorney (Vollmachtsurkunde) and shall irrevocably instruct the agent
to submit such deed in connection with any service of process under this
Agreement. A certified copy of the power of attorney shall be submitted to
Rockwood.

 

26.2        Finnish HoldCo, Rockwood Holdings, Inc.,
Rockwood, Rockwood Germany and Sachtleben
Corp hereby appoint the law firm of Clifford Chance, Frankfurt am Main/Germany, as their agent for service of process (Zustellungsbevollmächtigter) for all legal
proceedings arising out of or in connection with this Agreement. This
appointment shall only terminate upon the appointment of another agent for
service of process domiciled in Germany, provided that the agent for service of
process is an attorney admitted to the German bar (in Deutschland zugelassener Rechtsanwalt) and his
appointment has been notified to and approved in writing by Kemira (which
approval shall not be unreasonably withheld). Rockwood and Rockwood Germany
shall upon the appointment of any new agent for service of process (as the case
may be) issue to the agent a written power of attorney (Vollmachtsurkunde) and shall irrevocably
instruct the agent to submit such deed in connection with any service of
process under this Agreement. A certified copy of the power of attorney shall
be submitted to Kemira.

 

27.          SEVERABILITY

 

Should any provision of this Agreement, or
any provision incorporated into this Agreement in the future, be or become
invalid or unenforceable, the validity or enforceability of the other
provisions of this Agreement shall not be affected thereby. The invalid or
unenforceable provision shall be deemed to be substituted with retroactive
effect by a suitable and equitable provision which, to the extent legally
permissible, comes as close as possible to the intent and purpose of the
invalid or unenforceable provision. The same shall apply: (i) if the
Parties have, unintentionally, failed to address a certain matter in this
Agreement (Regelungslücke); in
case a suitable and equitable provision shall be deemed to have been agreed
upon with retroactive 

 

51

 

effect and which comes as close as possible
to what the Parties, in the light of the intent and purpose of this Agreement,
would have agreed upon if they had considered the matter; or (ii) if any
provision of this Agreement is invalid because of the scope of any time period
of performance stipulated herein; in this case a legally permissible time
period or performance shall be deemed to have been agreed which comes as close
as possible to the stipulated time period or performance.

 

* * *

 

52

 

	
  Rockwood Holdings, Inc.

  
	
   

  
	
  BY: 

  	
  /s/ CLEMENS ALFRED ROLLMAN

  	
   

  
	
   

  	
  Clemens Alfred Rollman

  
	
  Rockwood Specialties Group, Inc.

  
	
   

  
	
  BY: 

  	
  /s/ CLEMENS ALFRED ROLLMAN

  	
   

  
	
   

  	
  Clemens Alfred Rollman

  
	
  Sachtleben Corporation

  
	
   

  
	
  BY: 

  	
  /s/ CLEMENS ALFRED ROLLMAN

  	
   

  
	
   

  	
  Clemens Alfred Rollman

  
	
  Deukalion
  Einhundertvierundzwanzigste Vermögensverwaltungs GmbH

  
	
   

  
	
  BY: 

  	
  /s/ CLEMENS ALFRED ROLLMAN

  	
   

  
	
   

  	
  Clemens Alfred Rollman

  
	
  White Pigments Holdings Oy

  	
   

  
	
   

  
	
  BY: 

  	
  /s/ CLEMENS ALFRED ROLLMAN

  	
   

  
	
   

  	
  Clemens Alfred Rollman

  
	
  White Pigments LLC

  	
   

  
	
   

  
	
  BY: 

  	
  /s/ CLEMENS ALFRED ROLLMAN

  	
   

  
	
   

  	
  Clemens Alfred Rollman

  
	
  Kemira Oyj

  	
   

  
	
   

  
	
  BY: 

  	
  /s/ VERENA HÜGEL

  	
   

  
	
   

  	
  Verena Hügel

  	
   

  
					

 

 

53

 

	
  Kemira Pigments Oy

  	
   

  
	
   

  	
   

  
	
  BY: 

  	
  /s/ VERENA HÜGEL

  	
   

  
	
   

  	
  Verena Hügel

  
	
  Kemira Germany GmbH

  	
   

  
	
   

  	
   

  
	
  BY: 

  	
  /s/ VERENA HÜGEL

  	
   

  
	
   

  	
  Verena Hügel

  
	
  Kemira Specialty Inc.

  	
   

  
	
   

  	
   

  
	
  BY: 

  	
  /s/ VERENA HÜGEL

  	
   

  
	
   

  	
  Verena Hügel

  
	
  Rockwood Specialties Group GmbH

  	
   

  
	
   

  	
   

  
	
  BY: 

  	
  /s/ LEIF
  U. SCHRADER

  	
   

  
	
   

  	
  Leif U. Schrader

  	
   

  
	
  Sachtleben Chemie GmbH

  	
   

  
	
   

  	
   

  
	
  BY: 

  	
  /s/ LORENZO
  MATTHAEI

  	
   

  
	
   

  	
  Lorenzo Matthaei

  	
   

  
				

 

 

54Exhibit 10.3

 

ROCKWOOD HOLDINGS, INC.

 

ROCKWOOD SPECIALTIES GROUP, INC.

 

ROCKWOOD
SPECIALTIES GROUP GMBH

 

 

SACHTLEBEN
CHEMIE GMBH

 

DEUKALION
EINHUNDERTVIERUNDZWANZIGSTE VERMÖGENSVERWALTUNGS-GMBH

 

WHITE PIGMENTS HOLDINGS OY

 

KEMIRA PIGMENTS OY

 

 

KEMIRA GERMANY GMBH

 

KEMIRA OYJ

 

 

AGREEMENT REGARDING THE
IMPLEMENTATION

OF THE TITANIUM DIOXIDE JOINT VENTURE

 

 

 

Table of Contents

 

	
  Section

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Preamble

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  Sale and Transfer

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  Consideration

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  Kemira Oberhausen Assets

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  Intellectual Property Rights

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  Shareholding in Pohjolan Voima Oy

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  Business Documents

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  Transitional Services

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  Warranties

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
  Supplementary Provisions Regarding the Warranties

  	
   

  	
  47

  
	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
  Remedies

  	
   

  	
  48

  
	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
  Tax Warranties and Remedies

  	
   

  	
  50

  
	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
  Environmental Warranties and Remedies

  	
   

  	
  53

  
	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
  Further Indemnities and Carve-Out of Closed Landfills

  	
   

  	
  57

  
	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
  Third-Party Claims

  	
   

  	
  60

  
	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
  Locked-Box Concept

  	
   

  	
  62

  
	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
  Transfer of Employees

  	
   

  	
  63

  
	
   

  	
   

  	
   

  	
   

  
	
  18.

  	
  Trademarks and Company Name “Kemira”

  	
   

  	
  67

  
	
   

  	
   

  	
   

  	
   

  
	
  19.

  	
  Confidentiality

  	
   

  	
  67

  
	
   

  	
   

  	
   

  	
   

  
	
  20.

  	
  Miscellaneous

  	
   

  	
  68

  
	
   

  	
   

  	
   

  	
   

  
	
  21.

  	
  Authorized Agent

  	
   

  	
  71

  
	
   

  	
   

  	
   

  	
   

  
	
  22.

  	
  Severability

  	
   

  	
  72

  
					

 

 

List of Annexes

 

	
  Annex 2.1(a)

  	
   

  	
  Short-form purchase and transfer agreement regarding TiO2 Shares;

  
	
   

  	
   

  	
   

  
	
  Annex 2.1(e)

  	
   

  	
  Form of US Transfer Agreement

  
	
   

  	
   

  	
   

  
	
  Annex 4.1(a)

  	
   

  	
  List of Kemira Oberhausen Assets;

  
	
   

  	
   

  	
   

  
	
  Annex 4.1(b)(ii)

  	
   

  	
  List of excluded assets;

  
	
   

  	
   

  	
   

  
	
  Annex 4.1(d)(i)

  	
   

  	
  List of liabilities;

  
	
   

  	
   

  	
   

  
	
  Annex 4.3

  	
   

  	
  Transferred Contracts

  
	
   

  	
   

  	
   

  
	
  Annex 5.1.3(a)

  	
   

  	
  List of Nanotechnology IP Rights

  
	
   

  	
   

  	
   

  
	
  Annex 5.2.1(a)

  	
   

  	
  List of Oberhausen IP Rights;

  
	
   

  	
   

  	
   

  
	
  Annex 5.2.2

  	
   

  	
  Form of Oberhausen IP Rights Transfer Agreement;

  
	
   

  	
   

  	
   

  
	
  Annex 5.3.1

  	
   

  	
  Form of license to certain other IP Rights and Know-How not
  transferred;

  
	
   

  	
   

  	
   

  
	
  Annex 5.3.2-1

  	
   

  	
  Form of back-license agreement;

  
	
   

  	
   

  	
   

  
	
  Annex 5.3.2-2

  	
   

  	
  IP Rights subject to back-license;

  
	
   

  	
   

  	
   

  
	
  Annex 8.1-1

  	
   

  	
  Term sheets for the transitional services to be provided by Kemira to
  Kemira TiO2;

  
	
   

  	
   

  	
   

  
	
  Annex 9.2.6

  	
   

  	
  List of participations in the Company;

  
	
   

  	
   

  	
   

  
	
  Annex 9.2.7

  	
   

  	
  List of interests held by the Company;

  
	
   

  	
   

  	
   

  
	
  Annex 9.4.2-1

  	
   

  	
  List of
  security interests, charges, encumbrances of third parties in Assets;

  

 

2

 

	
  Annex 9.4.2-2

  	
   

  	
  List of obligations to grant security interests, charges,
  encumbrances;

  
	
   

  	
   

  	
   

  
	
  Annex 9.5.1-1

  	
   

  	
  List of Owned Properties;

  
	
   

  	
   

  	
   

  
	
  Annex 9.5.1-2

  	
   

  	
  List of Used Properties;

  
	
   

  	
   

  	
   

  
	
  Annex 9.5.2-1

  	
   

  	
  List of security interests, charges etc. in Owned Properties;

  
	
   

  	
   

  	
   

  
	
  Annex 9.5.2-2

  	
   

  	
  List of obligations to grant security interests, charges etc. in
  Owned Properties;

  
	
   

  	
   

  	
   

  
	
  Annex 9.5.3-1

  	
   

  	
  List of particulars of all Leases;

  
	
   

  	
   

  	
   

  
	
  Annex 9.5.3-2

  	
   

  	
  Description of default payments or other obligations under the
  Leases;

  
	
   

  	
   

  	
   

  
	
  Annex 9.6.2

  	
   

  	
  List of Registered IP Rights;

  
	
   

  	
   

  	
   

  
	
  Annex 9.6.4

  	
   

  	
  List of Licensed IP Rights;

  
	
   

  	
   

  	
   

  
	
  Annex 9.6.5

  	
   

  	
  List of Challenged IP Rights;

  
	
   

  	
   

  	
   

  
	
  Annex 9.6.7

  	
   

  	
  Employee invention compensations;

  
	
   

  	
   

  	
   

  
	
  Annex 9.7.2

  	
   

  	
  List of claims for defective products;

  
	
   

  	
   

  	
   

  
	
  Annex 9.9.1

  	
   

  	
  List of subsidies;

  
	
   

  	
   

  	
   

  
	
  Annex 9.10.1

  	
   

  	
  List of service contracts of managing directors, supervisory board
  and holders of a registered commercial power of representtation, additional
  agreements and benefits;

  
	
   

  	
   

  	
   

  
	
  Annex 9.10.2

  	
   

  	
  List of executives and foreign employees;

  
	
   

  	
   

  	
   

  
	
  Annex 9.10.3-1

  	
   

  	
  List of employees laid off;

  
	
   

  	
   

  	
   

  
	
  Annex 9.10.3-2

  	
   

  	
  List of liabilities towards retired members of corporate bodies and
  employees;

  

 

3

 

	
  Annex 9.10.4

  	
   

  	
  List of agreements or promises regarding special rights in regard of
  a change of shareholders;

  
	
   

  	
   

  	
   

  
	
  Annex 9.10.5

  	
   

  	
  List of membership of employers’ associations and collective
  bargaining agreements;

  
	
   

  	
   

  	
   

  
	
  Annex 9.10.6-1

  	
   

  	
  List of shop agreements;

  
	
   

  	
   

  	
   

  
	
  Annex 9.10.6-2

  	
   

  	
  List of reconcilements of interests and social plans;

  
	
   

  	
   

  	
   

  
	
  Annex 9.10.7

  	
   

  	
  List of agreements and promises regarding benefits from pension
  scheme;

  
	
   

  	
   

  	
   

  
	
  Annex 9.10.8

  	
   

  	
  List of obligations based on customary business practice;

  
	
   

  	
   

  	
   

  
	
  Annex 9.10.9

  	
   

  	
  List of collective and individual promises, agreements, plans,
  schemes, regulations, arrangements that restrict the right of termination
  beyond statutory regulation;

  
	
   

  	
   

  	
   

  
	
  Annex 9.10.10

  	
   

  	
  List of stock options;

  
	
   

  	
   

  	
   

  
	
  Annex 9.10.12

  	
   

  	
  List of court, arbitration, public authority proceedings regarding employment
  matters;

  
	
   

  	
   

  	
   

  
	
  Annex 9.10.13

  	
   

  	
  Employee benefit plans;

  
	
   

  	
   

  	
   

  
	
  Annex 9.10.18

  	
   

  	
  List of benefit payments;

  
	
   

  	
   

  	
   

  
	
  Annex 9.11.1

  	
   

  	
  List of Material Agreements;

  
	
   

  	
   

  	
   

  
	
  Annex 9.12

  	
   

  	
  List of ten largest suppliers and customers in 2007, list of
  suppliers without alternative;

  
	
   

  	
   

  	
   

  
	
  Annex 9.13.1-1

  	
   

  	
  List of Insurance Policies;

  

 

4

 

	
  Annex 9.13.1-2

  	
   

  	
  List of Insurance Policies that must be replaced after the
  consummation of the Transaction;

  
	
   

  	
   

  	
   

  
	
  Annex 9.13.2

  	
   

  	
  Notices of termination or cancellation of Insurance Policies, effects
  of consummation of the Transaction on Insurance Policies;

  
	
   

  	
   

  	
   

  
	
  Annex 9.13.3

  	
   

  	
  Outstanding claims under Insurance Policies;

  
	
   

  	
   

  	
   

  
	
  Annex 9.14

  	
   

  	
  List of court, arbitration or public authority proceedings the Company
  is party to;

  
	
   

  	
   

  	
   

  
	
  Annex 9.15.2

  	
   

  	
  Trading with certain designated countries;

  
	
   

  	
   

  	
   

  
	
  Annex 10.1-1

  	
   

  	
  List of Company’s consolidated Affiliates;

  
	
   

  	
   

  	
   

  
	
  Annex 10.1-2

  	
   

  	
  List of Company’s non-consolidated Affiliates;

  
	
   

  	
   

  	
   

  
	
  Annex 12.2.4

  	
   

  	
  List of Tax audits, assessments or deficiencies pending against the
  Company;

  
	
   

  	
   

  	
   

  
	
  Annex 14.1.1-1

  	
   

  	
  Description of Sachtleben Landfills;

  
	
   

  	
   

  	
   

  
	
  Annex 14.1.1-2

  	
   

  	
  Description of Kemira Closed Landfills;

  
	
   

  	
   

  	
   

  
	
  Annex 14.1.2 

  	
   

  	
  Description of transfer of Sachtleben and Kemira Closed Landfill; 

  
	
   

  	
   

  	
   

  
	
  Annex 14.1.4

  	
   

  	
  Services for Kemira Closed Landfill;

  
	
   

  	
   

  	
   

  
	
  Annex 17.1(a)

  	
   

  	
  List of Oberhausen Transferred Employees;

  
	
   

  	
   

  	
   

  
	
  Annex 17.1(b)

  	
   

  	
  List of Sales Network Employees;

  
	
   

  	
   

  	
   

  
	
  Annex 17.7.2

  	
   

  	
  Information letter pursuant to sec. 613a BGB; and

  
	
   

  	
   

  	
   

  
	
  Annex 17.11

  	
   

  	
  US Transition Services Agreement.

  

 

5

 

DEFINITIONS

 

In this Agreement

 

	
  “Accounting Principles”

  	
   

  	
  shall have the meaning given to it in section 9.3.1;

  
	
   

  	
   

  	
   

  
	
  “Affected Party”

  	
   

  	
  shall have the meaning given to it in section 11.1;

  
	
   

  	
   

  	
   

  
	
  “Affiliate “

  	
   

  	
  shall have the meaning given to it in section 4.2.2;

  
	
   

  	
   

  	
   

  
	
  “Agreement”

  	
   

  	
  shall mean this agreement;

  
	
   

  	
   

  	
   

  
	
  “Asset” and “Assets”

  	
   

  	
  shall have the meaning given to it in section 9.4.1;

  
	
   

  	
   

  	
   

  
	
  “Audited Annual Accounts”

  	
   

  	
  shall have the meaning given to it in section 9.3.1;

  
	
   

  	
   

  	
   

  
	
  “Balance Sheet Date”

  	
   

  	
  shall have the meaning given to it in section 9.3.1;

  
	
   

  	
   

  	
   

  
	
  “Breaching Party”

  	
   

  	
  shall have the meaning given to it in section 11.1;

  
	
   

  	
   

  	
   

  
	
  “Breach
  of the  No Leakage Provisions”

  	
   

  	
  shall have the meaning given to it in section 16.1(a);

  
	
   

  	
   

  	
   

  
	
  “Business”

  	
   

  	
  shall have the meaning given to it in section 9.1(d)(ii);

  
	
   

  	
   

  	
   

  
	
  “Business Day”

  	
   

  	
  shall have the meaning given to it in section 4.2.1;

  
	
   

  	
   

  	
   

  
	
  “Business Documents”

  	
   

  	
  shall have the meaning given to it in section 7.1;

  
	
   

  	
   

  	
   

  
	
  “Closed Landfills”

  	
   

  	
  shall have the meaning given to it in section 13.1;

  
	
   

  	
   

  	
   

  
	
  “Closing Date”

  	
   

  	
  shall have the meaning given to it in section 2.2;

  
	
   

  	
   

  	
   

  
	
  “Company” and “Companies”

  	
   

  	
  shall have the meaning given to it in the deed caption;

  
	
   

  	
   

  	
   

  
	
  “Comprehensive
  Environmental Permit”

  	
   

  	
  shall have the meaning given to it in section 13.5;

  
	
   

  	
   

  	
   

  
	
  “Covenants”

  	
   

  	
  shall have the meaning given to it in section 16.1(a)(i);

  
	
   

  	
   

  	
   

  
	
  “Effective Date”

  	
   

  	
  shall have the meaning given to in section 2.2;

  

 

6

 

	
  “Energy Agreements”

  	
   

  	
  shall have the meaning given to in section 6.2;

  
	
   

  	
   

  	
   

  
	
  “Environmental
  Contamination”

  	
   

  	
  shall have the meaning given to it in section 13.1;

  
	
   

  	
   

  	
   

  
	
  “Environmental Laws”

  	
   

  	
  shall have the meaning given to it in section 13.1;

  
	
   

  	
   

  	
   

  
	
  “Environmental Liabilities”

  	
   

  	
  shall have the meaning given to it in section 13.6;

  
	
   

  	
   

  	
   

  
	
  “Environmental Matters”

  	
   

  	
  shall have the meaning given to it in section 13.1;

  
	
   

  	
   

  	
   

  
	
  “ERISA”

  	
   

  	
  shall have the meaning given to it in section 9.10.13;

  
	
   

  	
   

  	
   

  
	
  “Exit Event”

  	
   

  	
  shall have the meaning given to it in section 11.6;

  
	
   

  	
   

  	
   

  
	
  “Financial
  Information and Valuation”

  	
   

  	
  shall have the meaning given to it in section 8.2(c);

  
	
   

  	
   

  	
   

  
	
  “Finnish HoldCo”

  	
   

  	
  shall have the meaning given to it in the deed caption;

  
	
   

  	
   

  	
   

  
	
  “Former Sites”

  	
   

  	
  shall have the meaning given to it in section 13.8;

  
	
   

  	
   

  	
   

  
	
  “Functional
  Additive Business”

  	
   

  	
  shall have the meaning given to it in section 1.1;

  
	
   

  	
   

  	
   

  
	
  “G6 Shares”

  	
   

  	
  shall have the meaning given to it in section 6.1;

  
	
   

  	
   

  	
   

  
	
  “Insurance Policy” and “Insurance Policies”

  	
   

  	
  shall have the meaning given to it in section 9.13.1;

  
	
   

  	
   

  	
   

  
	
  “IP Rights”

  	
   

  	
  shall have the meaning given to it in section 5.1.1;

  
	
   

  	
   

  	
   

  
	
  “IRC”

  	
   

  	
  shall have the meaning given to it in section 9.10.13;

  
	
   

  	
   

  	
   

  
	
  “JV Agreement”

  	
   

  	
  shall have the meaning given to it in section 1.2;

  
	
   

  	
   

  	
   

  
	
  “JV Europe”

  	
   

  	
  shall have the meaning given to it in the deed caption;

  
	
   

  	
   

  	
   

  
	
  “JV Europe Share”

  	
   

  	
  shall have the meaning given to in section 1.3(a);

  
	
   

  	
   

  	
   

  
	
  “JV Europe Share A”

  	
   

  	
  shall have the meaning given to in section 1.5(c)(i);

  

 

7

 

	
  “JV Europe Share B”

  	
   

  	
  shall have the meaning given to in section 1.5(c)(ii);

  
	
   

  	
   

  	
   

  
	
  “JV
  Europe Share Transfer Receivable”

  	
   

  	
  shall have the meaning given to in section 3.3;

  
	
   

  	
   

  	
   

  
	
  “JV Group Company” and “JV Group Companies”

  	
   

  	
  shall have the meaning given to in section 4.2.2(a);

  
	
   

  	
   

  	
   

  
	
  “JV US”

  	
   

  	
  shall have the meaning given to in section 1.3(g)(i);

  
	
   

  	
   

  	
   

  
	
  “JV US Benefit Plans “

  	
   

  	
  shall have the meaning given to it in section 17.10;

  
	
   

  	
   

  	
   

  
	
  “JV US Interests”

  	
   

  	
  shall have the meaning given to in section 1.3(g)(i);

  
	
   

  	
   

  	
   

  
	
  “Kemira”

  	
   

  	
  shall have the meaning given to it in the deed caption;

  
	
   

  	
   

  	
   

  
	
  “Kemira Germany”

  	
   

  	
  shall have the meaning given to it in the deed caption;

  
	
   

  	
   

  	
   

  
	
  “Kemira Closed Landfill”

  	
   

  	
  shall have the meaning given to it in section 14.1.1;

  
	
   

  	
   

  	
   

  
	
  “Kemira Inc.”

  	
   

  	
  shall have the meaning given to it in section 1.3(g)(ii);

  
	
   

  	
   

  	
   

  
	
  “Kemira Inc. Shares”

  	
   

  	
  shall have the meaning given to it in section 1.3(g)(ii);

  
	
   

  	
   

  	
   

  
	
  “Kemira Oberhausen Assets”

  	
   

  	
  shall have the meaning given to it in section 1.3(f);

  
	
   

  	
   

  	
   

  
	
  “Kemira
  Share Transfer Receivable”

  	
   

  	
  shall have the meaning given to it in section 3.1.1;

  
	
   

  	
   

  	
   

  
	
  “Kemira TiO2”

  	
   

  	
  shall have the meaning given to it in the deed caption;

  
	
   

  	
   

  	
   

  
	
  “Kemira
  TiO2 Pigments Business”

  	
   

  	
  shall have the meaning given to it in section 1.1;

  
	
   

  	
   

  	
   

  
	
  “Kemira TiO2 Shares”

  	
   

  	
  shall have the meaning given to it in section 1.3(e);

  
	
   

  	
   

  	
   

  
	
  “Kemira Trademarks” 

  	
   

  	
  shall have the meaning given to it in section 18.1; 

  
	
   

  	
   

  	
   

  
	
  “Know-How”

  	
   

  	
  shall have the meaning given to it in section 5.1.2;

  

 

8

 

	
  “Landfills”

  	
   

  	
  shall have the meaning given to it in section 13.1;

  
	
   

  	
   

  	
   

  
	
  “Law”

  	
   

  	
  shall have the meaning given to it in section 7.1(b);

  
	
   

  	
   

  	
   

  
	
  “Lease” and “Leases”

  	
   

  	
  shall have the meaning given to it in section 9.5.3;

  
	
   

  	
   

  	
   

  
	
  “Master Agreement”

  	
   

  	
  shall have the meaning given to it in section 1.2;

  
	
   

  	
   

  	
   

  
	
  “Material Agreements”

  	
   

  	
  shall have the meaning given to it in section 9.11.1;

  
	
   

  	
   

  	
   

  
	
  “Material IP Rights”

  	
   

  	
  shall have the meaning given to it in section 9.6.1;

  
	
   

  	
   

  	
   

  
	
  “Maybrook”

  	
   

  	
  shall have the meaning given to it in section 1.3(g)(ii);

  
	
   

  	
   

  	
   

  
	
  “Maybrook Shares”

  	
   

  	
  shall have the meaning given to it in section 1.3(g)(ii);

  
	
   

  	
   

  	
   

  
	
  “Nanotechnology
  IP Rights”

  	
   

  	
  shall have the meaning given to it in section 5.1.3;

  
	
   

  	
   

  	
   

  
	
  “Nanotechnology
  Know How”

  	
   

  	
  shall have the meaning given to it in section 5.1.3(b);

  
	
   

  	
   

  	
   

  
	
  “Oberhausen
  Business Unit”

  	
   

  	
  shall have the meaning given to it in section 1.3(f);

  
	
   

  	
   

  	
   

  
	
  “Oberhausen IP Rights”

  	
   

  	
  shall have the meaning given to it in section 5.2.1;

  
	
   

  	
   

  	
   

  
	
  “Oberhausen IP Rights Transfer Agreement”

  	
   

  	
  shall have the meaning given to it in section 5.2.2

  
	
   

  	
   

  	
   

  
	
  “Oberhausen Transfer Receivable”

  	
   

  	
  shall have the meaning given to it in section 3.1.2;

  
	
   

  	
   

  	
   

  
	
  “Oberhausen
  Transferred Employees”

  	
   

  	
  shall have the meaning given to in section 17.1(a);

  
	
   

  	
   

  	
   

  
	
  “Owned Properties”

  	
   

  	
  shall have the meaning given to it in section 9.5.1;

  
	
   

  	
   

  	
   

  
	
  “Party” and “Parties”

  	
   

  	
  shall have the meaning given to it in the deed caption;

  
	
   

  	
   

  	
   

  
	
  “Permits”

  	
   

  	
  shall have the meaning given to it in section 9.8.1;

  

 

9

 

	
  “Permitted Liens”

  	
   

  	
  shall have the meaning given to it in section 9.4.2;

  
	
   

  	
   

  	
   

  
	
  “Pori Landfill”

  	
   

  	
  shall have the meaning given to it in section 13.1

  
	
   

  	
   

  	
   

  
	
  “PPV”

  	
   

  	
  shall have the meaning given to it in section 6.1;

  
	
   

  	
   

  	
   

  
	
  “Pre-Effective-Date Period”

  	
   

  	
  shall have the meaning given to it in section 12.3.2;

  
	
   

  	
   

  	
   

  
	
  “Properties” and “Property”

  	
   

  	
  shall have the meaning given to it in section 9.5.1;

  
	
   

  	
   

  	
   

  
	
  “PVO”

  	
   

  	
  shall have the meaning given to it in section 6.1;

  
	
   

  	
   

  	
   

  
	
  “Registered IP Rights”

  	
   

  	
  shall have the meaning given to it in section 9.6.2;

  
	
   

  	
   

  	
   

  
	
  “Rockwood”

  	
   

  	
  shall have the meaning given to it in the deed caption;

  
	
   

  	
   

  	
   

  
	
  “Rockwood Germany”

  	
   

  	
  shall have the meaning given to it in the deed caption;

  
	
   

  	
   

  	
   

  
	
  “Rockwood Holdings”

  	
   

  	
  shall have the meaning given to it in the deed caption;

  
	
   

  	
   

  	
   

  
	
  “Rockwood
  TiO2 Pigments Business”

  	
   

  	
  shall have the meaning given to it in section 1.1;

  
	
   

  	
   

  	
   

  
	
  “Rockwood
  Water Business”

  	
   

  	
  shall have the meaning given to it in section 1.1;

  
	
   

  	
   

  	
   

  
	
  “Sachtleben”

  	
   

  	
  shall have the meaning given to it in the deed caption;

  
	
   

  	
   

  	
   

  
	
  “Sachtleben
  Closed Landfill”

  	
   

  	
  shall have the meaning given to it in section 14.1.1;

  
	
   

  	
   

  	
   

  
	
  “Sachtleben Corp”

  	
   

  	
  shall have the meaning given to it in section 1.1;

  
	
   

  	
   

  	
   

  
	
  “Sachtleben Corp Shares”

  	
   

  	
  shall have the meaning given to it in section 1.3(g)(i);

  
	
   

  	
   

  	
   

  
	
  “Sachtleben Shares”

  	
   

  	
  shall have the meaning given to it in section 2.1(c);

  
	
   

  	
   

  	
   

  
	
  “Sachtleben
  Share Transfer Receivable”

  	
   

  	
  shall have the meaning given to it in section 3.2.1(a);

  

 

10

 

	
  “Sachtleben Water”

  	
   

  	
  shall have the meaning given to it in section 1.4;

  
	
   

  	
   

  	
   

  
	
  “Sales
  Network Employees”

  	
   

  	
  shall have the meaning given to it in section 17.1(b);

  
	
   

  	
   

  	
   

  
	
  “Subordinated Note”

  	
   

  	
  shall have the meaning given to it in section 3.2.2;

  
	
   

  	
   

  	
   

  
	
  “Subordinated
  Note Amount”

  	
   

  	
  shall have the meaning given to it in section 3.2.1(b);

  
	
   

  	
   

  	
   

  
	
  “Tax” or “Taxes”

  	
   

  	
  shall have the meaning given to it in section 12.1;

  
	
   

  	
   

  	
   

  
	
  “TiO2
  Pigments Business” and “TiO2
  Pigments Businesses”

  	
   

  	
  shall have the meaning given to it in section 1.1;

  
	
   

  	
   

  	
   

  
	
  “Third Party Claim”

  	
   

  	
  shall have the meaning given to it in section 15.1;

  
	
   

  	
   

  	
   

  
	
  “Transaction”

  	
   

  	
  shall mean the transactions contemplated by this Agreement;

  
	
   

  	
   

  	
   

  
	
  “Transferred Company”

  	
   

  	
  shall have the meaning given to in section 9.1(d)(iii);

  
	
   

  	
   

  	
   

  
	
  “Transferred Employees”

  	
   

  	
  shall have the meaning given to in section 17.2;

  
	
   

  	
   

  	
   

  
	
  “Transferred Liabilities”

  	
   

  	
  shall refer to the liabilities listed in section 4.4;

  
	
   

  	
   

  	
   

  
	
  “Transitional
  Service Agreements”

  	
   

  	
  shall have the meaning given to it in section 8.1;

  
	
   

  	
   

  	
   

  
	
  “US Benefit Plans”

  	
   

  	
  shall have the meaning given to it in section 9.10.13;

  
	
   

  	
   

  	
   

  
	
  “US
  Company” and “US Companies”

  	
   

  	
  shall have the meaning given to it in section 1.3(g)(ii);

  
	
   

  	
   

  	
   

  
	
  “US Transfer Agreement”

  	
   

  	
  shall have the meaning given to it in section 2.1(e);

  
	
   

  	
   

  	
   

  
	
  “US
  Transferred Company”

  	
   

  	
  shall have the meaning given to it in section 9.1(d)(iv);

  

 

11

 

	
  “US
  Transferred Employees”

  	
   

  	
  shall have the meaning given to it in section 17.10;

  
	
   

  	
   

  	
   

  
	
  “US
  Transition Services Agreement”

  	
   

  	
  shall have the meaning given to it in section 17.11;

  
	
   

  	
   

  	
   

  
	
  “Used Properties”

  	
   

  	
  shall have the meaning given to it in section 9.5.1;

  
	
   

  	
   

  	
   

  
	
  “VAT”

  	
   

  	
  shall have the meaning given to it in section 12.3.6;

  
	
   

  	
   

  	
   

  
	
  “Warranty” and “Warranties” 

  	
   

  	
  shall have the meaning given to it in section 9.1; 

  
	
   

  	
   

  	
   

  
	
  “Warranting Party”

  	
   

  	
  shall have the meaning given to it in section 9.1(d)(v); and

  
	
   

  	
   

  	
   

  
	
  “Water Carve-Out”

  	
   

  	
  shall have the meaning given to it in section 1.4.

  

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

12

 

SHARE AND ASSET PURCHASE AND TRANSFER
AGREEMENT

 

THIS AGREEMENT IS MADE ON 21 MAY 2008 BY AND AMONG

 

	
  (a)

  	
  Rockwood Holdings Inc., 100 Overlook Center, Princeton, NJ 08540, USA

  
	
   

  	
   

  
	
   

  	
  hereinafter referred to as “Rockwood Holdings”;

  
	
   

  	
   

  
	
  (b)

  	
  Rockwood Specialties Group, Inc., 100 Overlook Center,
  Princeton, NJ 08540, USA

  
	
   

  	
   

  
	
   

  	
  hereinafter referred to as “Rockwood”;

  
	
   

  	
   

  
	
  (c)

  	
  Rockwood Specialties Group GmbH, Königsberger Straße 1, 60487
  Frankfurt am Main, Germany, registered in the commercial register of the
  lower court of Frankfurt am Main under registration number HR B 5 79 24

  
	
   

  	
   

  
	
   

  	
  hereinafter referred to as “Rockwood Germany”;

  
	
   

  	
   

  
	
  (d)

  	
  Sachtleben Chemie GmbH, Dr.-Rudolf-Sachtleben-Straße 4, 47189
  Duisburg, Germany, registered in the commercial register of the lower court
  of Duisburg under registration number HR B 1 96 69

  
	
   

  	
   

  
	
   

  	
  hereinafter referred to as “Sachtleben”;

  
	
   

  	
   

  
	
  (e)

  	
  Deukalion Einhundertvierundzwanzigste Vermögensverwaltungs-GmbH,
  Königsberger Straße 1, 60487 Frankfurt am Main, Germany, registered in the
  commercial register of the lower court of Frankfurt am Main under
  registration number HR B 8 05 60, to be renamed after signing into White
  Pigments Holdings GmbH

  
	
   

  	
   

  
	
   

  	
  hereinafter referred to as “JV Europe”;

  
	
   

  	
   

  
	
  (f)

  	
  White Pigments Holding Oy, a limited liability company under
  establishment, Finland,

  
	
   

  	
   

  
	
   

  	
  hereinafter referred to as “Finnish HoldCo”;

  
	
   

  	
   

  
	
  (g)

  	
  White Pigments LLC, a Delaware limited liability company with
  business address at 100 Overlook Center, Princeton, NJ 08540, USA,

  
	
   

  	
   

  
	
   

  	
  hereinafter referred to as “JV US”;

  

 

13

 

	
  (h)

  	
  Kemira Pigments Oy, Porkkalankatu 3, FI-00180 Helsinki, Finland with
  business identification number 0948159-2

  
	
   

  	
   

  
	
   

  	
  hereinafter referred to as “Kemira TiO2”;

  
	
   

  	
   

  
	
  (i)

  	
  Kemira Germany GmbH, Marie-Curie-Straße 10, 51377 Leverkusen,
  Germany, registered in the commercial register of the lower court of Cologne
  under registration number HR B 57319

  
	
   

  	
   

  
	
   

  	
  hereinafter referred to as “Kemira Germany”;

  
	
   

  	
   

  
	
   

  	
  and

  
	
   

  	
   

  
	
  (j)

  	
  Kemira Oyj, Porkkalankatu 3, FI-00101 Helsinki, Finland, with
  business identification number 0109823-0

  
	
   

  	
   

  
	
   

  	
  hereinafter referred to as “Kemira”.

  

 

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

 

NOW IT IS HEREBY AGREED

 

	
  1.

  	
  PREAMBLE

  
	
   

  	
   

  
	
  1.1

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

  

 

14

 

	
  1.2

  	
  In order to jointly pursue future business opportunities in the field
  of the production and marketing of pigments, the Parties intend to combine
  their respective TiO2 Pigments Businesses by forming a joint venture. In
  connection therewith, Rockwood Holdings, Rockwood, Rockwood Germany,
  Sachtleben, JV Europe, Sachtleben Corp, Finnish HoldCo, JV US, Kemira, Kemira
  TiO2, Kemira Inc. (as defined below) and Kemira Germany have today entered
  into a master agreement (the “Master
  Agreement”) and a shareholders and joint venture agreement (the “JV Agreement”) regarding the titanium
  dioxide joint venture.

  
	
   

  	
   

  
	
  1.3

  	
  The TiO2 Pigments Businesses include the following shareholdings and
  assets owned (directly or indirectly) by Rockwood and Kemira, respectively:

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  Rockwood Germany owns all shares in JV Europe (“JV Europe Share”).

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Rockwood Germany owns all shares in Sachtleben.

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  Sachtleben owns

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)

  	
  a share in the nominal amount of EUR 12,800.00 in Alberti &
  Co GmbH, Germany, registered in the commercial register of the lower court of
  Göttingen under HR B 120005, representing 25 per cent of the entire share
  capital;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)

  	
  a share in the nominal amount of EUR 51,129.19 in Pigment-Chemie
  GmbH, Germany, registered in the commercial register of the lower court of
  Duisburg under HR B 7018, representing 100 per cent of the entire share
  capital;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii)

  	
  a limited partnership interest in the amount of EUR 576,000.00
  in Deutsche Baryt-Industrie Dr. Rudolf Alberti GmbH & Co. KG,
  Germany, registered in the commercial register of the lower court of
  Göttingen under HR A 121227;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iv)

  	
  a share in the nominal amount of RMB 54,900,000.00 in Guangzhou
  Huali Sachtleben Chemicals Company, Limited, 238 Nangang West Rd., Huangpu
  District, Guangzhou 510760, China, registered with the National Industrial
  and Commercial Administration Bureau of the People’s Republic of China for
  the Guangdong Province under the license number 004714, representing 40 per
  cent of the entire share capital; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (v)

  	
  a share in the nominal amount of RMB 3,000,000.00 in Sachtleben
  Trading (Shanghai) Company Limited, 2272 Hongqiao Road, Shanghai 200336,
  China, registered with the National Industrial and Commercial 

  

 

15

 

	
   

  	
   

  	
   

  	
  Administration Bureau of the People’s Republic of China for Shanghai
  under the license number 1137603 representing 100 per cent of the entire
  share capital.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  JV Europe owns all shares in Finnish HoldCo.

  
	
   

  	
   

  	
   

  
	
   

  	
  (e)

  	
  Kemira owns 8,300,000 issued and outstanding shares representing 100
  per cent of the issued and outstanding shares in Kemira TiO2 (“Kemira TiO2 Shares”).

  
	
   

  	
   

  	
   

  
	
   

  	
  (f)

  	
  Kemira Germany owns and operates the Oberhausen Technology Center
  business unit (the “Oberhausen Business
  Unit”), which consists of the assets and intellectual property
  rights as further defined in section 4.1 (the “Kemira Oberhausen Assets”).

  
	
   

  	
   

  	
   

  
	
   

  	
  (g)

  	
  Furthermore, Rockwood and Kemira hold the following shareholdings and
  limited liability interests in certain companies in the US:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)

  	
  Rockwood owns all issued and outstanding shares in Sachtleben
  Corporation (the “Sachtleben Corp Shares”)
  and all of the limited liability interests in White Pigments LLC, a
  newly-formed Delaware limited liability company (all limited liability
  company interests in JV US, the “JV US
  Interests”); and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)

  	
  Kemira owns all issued and outstanding shares in Kemira Specialty, Inc.
  (“Kemira Inc.”, the shares in
  Kemira Inc., the “Kemira Inc. Shares”),
  having its principal place of business at 151 Veterans Drive, Northvale, NJ
  07647, USA. Kemira Inc. owns all issued and outstanding shares in Maybrook, Inc.
  (the “Maybrook Shares”), having
  its principal place of business at 570 Broadway, Lawrence, Massachusetts, USA
  (“Maybrook”, and together with
  Kemira Inc. and, together with Sachtleben Corp, collectively, the “US Companies” and each a “US Company”).

  
	
   

  	
   

  	
   

  	
   

  
	
  1.4

  	
  The Rockwood Water Business will be carved out prior to the Closing
  Date into a company held by Rockwood Germany outside the joint venture (such
  company “Sachtleben Water”) as
  further set out in the Master Agreement, after an existing profit and loss
  transfer agreement between MIWAC Mitteldeutsche Wasserchemie GmbH and
  Sachtleben has been terminated (“Water
  Carve-Out”).

  
	
   

  	
   

  
	
  1.5

  	
  Pursuant to the Master Agreement, the Parties have agreed that

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  Kemira shall transfer the Kemira TiO2 Shares to Finnish HoldCo;

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Kemira shall transfer or cause the transfer of the Kemira Oberhausen
  Assets to JV Europe;

  

 

16

 

	
   

  	
  (c)

  	
  the share in JV Europe representing 100 per cent of JV Europe’s
  entire share capital shall be split into,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)

  	
  one share with the nominal value of EUR 15,250.00, representing
  61 per cent of JV Europe’s entire share capital (“JV Europe Share A”); and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)

  	
  one share with the nominal value of EUR 9,750.00, representing
  39 per cent of JV Europe’s entire share capital (“JV Europe Share B”), which will be
  transferred by Rockwood Germany to Kemira pursuant to this Agreement;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  following which (i) Rockwood Germany will own 61 per cent of the
  shares in JV Europe; and (ii) Kemira will own 39 per cent of the
  shares in JV Europe; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  additionally, with respect to the joint venture in the United States

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)

  	
  Rockwood shall transfer the Sachtleben Corp Shares and Kemira shall
  transfer the Kemira Inc. Shares to JV US,

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)

  	
  in exchange for

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (1)

  	
  Rockwood receiving 61 per cent of the limited liability interest
  in JV US; and

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (2)

  	
  Kemira receiving a combination of 39 per cent of the limited
  liability interest in JV US and an Intercompany Receivable (as defined in the
  Master Agreement) in a principal amount of approximately
  EUR 6,400,000.00 against JV US;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  following which (i) Rockwood will own 61 per cent of the issued
  and outstanding limited liability interest in JV US; and (ii) Kemira
  will own 39 per cent of the issued and outstanding limited liability interest
  in JV US.

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  SALE AND TRANSFER

  
	
   

  	
   

  
	
  2.1

  	
  Upon the terms and subject to the conditions set forth in this
  Agreement,

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  Kemira hereby sells and transfers (tritt
  ab) the Kemira TiO2 Shares to Finnish HoldCo which transfer shall
  further be subject to the terms of a short-form share purchase and transfer
  agreement regarding the TiO2 Shares attached as Annex 2.1(a) between Kemira and Finnish HoldCo  (for Finnish transfer tax filing
  purposes), and Finnish HoldCo  hereby
  accepts such sale and transfer;

  
						

 

17

 

	
   

  	
  (b)

  	
  Kemira Germany hereby sells and transfers (tritt ab) the Kemira Oberhausen Assets to JV Europe and JV
  Europe hereby accepts such sale and transfer;

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  Rockwood Germany hereby sells and transfers (tritt ab) all of the issued and
  outstanding shares in Sachtleben (“Sachtleben
  Shares”) to JV Europe and JV Europe hereby accepts such sale and
  transfer;

  
	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  Rockwood Germany hereby sells and transfers (tritt ab) the JV Europe Share B to
  Kemira and Kemira hereby accepts such sale and transfer; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (e)

  	
  Rockwood hereby undertakes to transfer on the Closing Date (as
  defined below) the Sachtleben Corp Shares and Kemira hereby undertakes to
  transfer on the Closing Date the Kemira Inc. Shares to JV US in each case
  with effect as of the Closing Date, pursuant to a local transfer agreement
  substantially in the form of Annex 2.1(e) (the
  “US Transfer Agreement”), and to
  combine the businesses of the US Companies into a single business operation
  to be operated by JV US.

  
	
   

  	
   

  	
   

  
	
  2.2

  	
  The transfers pursuant to section 2.1 shall (i)  be made
  with economic effect (wirtschaftlicher Wirkung)
  as of 31 December 2007 / 1 January 2008 (the “Effective Date”), unless otherwise
  expressly set forth herein; and (ii) be subject to the condition
  precedent (aufschiebende Bedingung)
  of the Closing (as defined in the Master Agreement) occurring (the day on
  which the Closing occurs, the “Closing Date”).

  
	
   

  	
   

  
	
  3.

  	
  CONSIDERATION

  
	
   

  	
   

  
	
  3.1

  	
  Purchase Price for Kemira TiO2 Business

  
	
   

  	
   

  
	
  3.1.1

  	
  The purchase price for the sale and transfer of the Kemira TiO2
  Shares pursuant to section 2.1(a) amounts to a fixed amount of
  EUR 168,900,000.00 (the “Kemira Share Transfer
  Receivable”). The Kemira Share Transfer Receivable has been
  determined on the basis of an enterprise value of Kemira TiO2 of EUR
  222,700,000.00 by deducting (i) the amount of the Existing Intercompany
  Receivable (as defined in the Master Agreement) of EUR 51,700,000.00 as
  described in section 2.2.1(b) of the Master Agreement and (ii) the
  amount of the Kemira Dividend of EUR 2,100,000.00 as described in
  section 2.2.1(d) of the Master Agreement.  The Kemira Share Transfer Receivable shall not be due and
  payable in cash but shall be settled pursuant to sections 3.4.1 to 3.4.5
  through a payment into the capital reserves.

  
	
   

  	
   

  
	
  3.1.2

  	
  The purchase price for the sale and transfer of the Kemira Oberhausen
  Assets pursuant to section 2.1(b) amounts to a fixed amount of a
  net amount of EUR 2,300,000.00 (plus applicable transfer taxes, if any)
  (the net amount the “Oberhausen Transfer
  Receivable”).

  

 

18

 

	
   

  	
   

  	
  The Oberhausen Transfer Receivable shall not be due and payable in
  cash but shall be settled pursuant to sections 3.4.1 to 3.4.5 through a
  payment into the capital reserves of JV Europe.

  
	
   

  	
   

  	
   

  
	
  3.2

  	
   

  	
  Purchase Price for Rockwood TiO2 Business

  
	
   

  	
   

  	
   

  
	
  3.2.1

  	
   

  	
  The purchase price for the sale and transfer of the Sachtleben Shares
  pursuant to section 2.1(c) amounts a fixed amount equal to the
  aggregate amount of

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
  EUR 180,000,000.00
  (the “Sachtleben Share Transfer Receivable”)
  which amount has been determined on the basis of an enterprise value of
  Sachtleben of EUR 363,000,000.00 by deducting the amount of the Existing
  Intercompany Receivable of EUR 183,000,000.00 as described in
  section 2.2.2(a) of the Master Agreement; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  an
  additional amount of EUR 2,900,000.00 (the “Subordinated
  Note Amount”).

  
	
   

  	
   

  	
   

  
	
  3.2.2

  	
   

  	
  The Sachtleben Share Transfer Receivable shall not be due and payable
  in cash but shall be settled pursuant to sections 3.4.1 to 3.4.5 through
  a payment into the capital reserves of JV Europe. The Subordinated Note
  Amount shall not be due and payable in cash but shall be automatically
  converted into a subordinated note issued by Sachtleben to Rockwood Germany
  (the “Subordinated Note”) which
  note shall bear interest at the net interest rate applicable under the
  Refinancing (as defined in the Master Agreement), interest to be accrued and
  repaid together with the principal amount at the later of (i) 31
  December 2010 and (ii) repayment being permitted under the
  Refinancing commitments.

  
	
   

  	
   

  	
   

  
	
  3.3

  	
   

  	
  Purchase Price for Rockwood TiO2 Business

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The purchase price for the sale and transfer of the JV Europe
  Share B pursuant to section 2.1(d) amounts to a fixed amount
  of EUR 11,661.00 (the “JV Europe Share
  Transfer Receivable”) and shall be due and payable by Kemira to
  Rockwood Germany in cash on the Closing Date.

  
	
   

  	
   

  	
   

  
	
  3.4

  	
   

  	
  Settlement Actions

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Subject to the condition precedent (aufschiebende Bedingung) of Closing
  occurring:

  
	
   

  	
   

  	
   

  
	
  3.4.1

  	
   

  	
  Kemira
  Germany hereby assigns (tritt ab)
  to Kemira the Oberhausen Asset Transfer Receivable in the amount of
  EUR 2,300,000.00 and Kemira hereby accepts such assignment.

  

 

19

 

	
  3.4.2

  	
   

  	
  Kemira
  hereby assigns (tritt ab) to JV
  Europe the Oberhausen Transfer Receivable in the amount of
  EUR 2,300,000.00 which shall be recorded as a contribution into the
  capital reserve (Einzahlung in die
  Kapitalrücklage) of JV Europe pursuant to section 272 para. 2 no. 4 German Commercial Code (HGB). JV Europe hereby accepts
  such assignment and takes note of (nimmt
  zur Kenntnis) the payment into its capital reserve.

  
	
   

  	
   

  	
   

  
	
  3.4.3

  	
   

  	
  Kemira hereby assigns (tritt ab)
  to Finnish HoldCo, and Finnish HoldCo hereby accepts such assignment, a
  fraction of the Kemira Share Transfer Receivable equal to

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
  EUR 112,700,000.00;
  and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  (i) plus
  the amount by which the aggregate amount of Existing Intercompany Receivables
  as defined in the Master Agreement (including the receivable resulting from
  the Kemira Dividend but excluding the Existing Intercompany Receivable owed
  by Kemira Inc. to JV US pursuant to section 2.2.1(c) of the Master
  Agreement) exceeds EUR 53,800,000.00; or (ii) minus the
  amount by which the aggregate amount of Existing Intercompany Receivables as
  defined in the Master Agreement (including the receivable resulting from the
  Kemira Dividend but excluding the Existing Intercompany Receivable owed by
  Kemira Inc. to JV US pursuant to section 2.2.1(c) of the Master
  Agreement) falls short of EUR 53,800,000.00 , as the case may be.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By way of
  example, if the Existing Intercompany Receivables amounted to
  EUR 54,000,000.00, then the resulting amount under this
  section 3.4.3(b) would be EUR 112,700,000.00 less
  EUR 53,800,000.00 plus EUR 54,000,000, i.e. EUR 112,900,000.00.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The fraction
  of the Kemira Share Transfer Receivable so assigned shall be recorded as a
  contribution into the capital reserve (Einzahlung
  in die Kapitalrücklage) of JV Europe pursuant to section 272
  para. 2 no. 4
  German Commercial Code (HGB). JV
  Europe hereby accepts such assignments and takes note of (nimmt zur Kenntnis) the payment into its
  capital reserve.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  For the avoidance of doubt, it is hereby set forth that, as a result
  of the adjustment of the fraction of the Kemira Share Transfer Receivable to
  be assigned pursuant to section 3.4.3(b), the aggregate amount of
  (i) the Existing Intercompany Receivables of Kemira against
  Kemira TiO2 immediately after the Closing; and (ii) the remaining
  fraction of the Sachtleben Share Transfer Receivable against Finnish HoldCo
  retained by Kemira shall together always equal EUR 110,000,000.00.

  

 

20

 

	
  3.4.4

  	
   

  	
  Rockwood
  Germany hereby assigns (tritt ab)
  to JV Europe the Sachtleben Share Transfer Receivable in the amount of EUR 180,000,000.00,
  which shall be recorded as a contribution into the capital reserve (Einzahlung in die Kapitalrücklage) of JV
  Europe pursuant to section 272 para. 2 no. 4 German Commercial Code (HGB). JV Europe hereby accepts
  such assignment and takes note of (nimmt
  zur Kenntnis) the payment into its capital reserve.

  
	
   

  	
   

  	
   

  
	
  3.4.5

  	
   

  	
  As
  consideration for the shares of Kemira Inc. under the US Transfer Agreement
  Kemira shall receive an intercompany receivable against JV US in the amount
  of (i) EUR 7,000,000.00 less (ii) the Existing
  Intercompany Receivable described in section 2.2.1(c) (in such amount
  that is outstanding under this Existing Intercompany Receivable at Closing),
  representing the difference in valuation between its 39 per cent limited
  liability interest in JV US and the value of the Kemira Inc. Shares
  contributed by it, thus resulting in a total Intercompany Receivable of
  EUR 7,000,000.00 by Kemira against JV US and Kemira Inc.

  
	
   

  	
   

  	
   

  
	
  3.5

  	
   

  	
  Situation after Implementation Actions

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Following
  the Closing having occurred, the US Transfer Agreement and the Master
  Agreement on the Closing Date and as further described in the Master
  Agreement,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
  Rockwood
  Germany’s Intercompany Receivables will consist of

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (i)

  	
  an
  Intercompany Receivable in the amount of EUR 183,000,000.00 (being the result
  of a waiver of the exceeding part of the Existing Intercompany Receivable
  under the Master Agreement); and

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (ii)

  	
  the
  Subordinated Note in the amount of EUR 2,900,000.00;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  Kemira’s Intercompany Receivables will total EUR 117,000,000.00; of
  which

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (i)

  	
  EUR
  7,000,000.00 will be against JV US and Kemira Inc.; and

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (ii)

  	
  the
  remaining EUR 110,000,000.00 will comprise of (x) the
  Existing Intercompany Receivables of Kemira against Kemira TiO2 immediately after the Closing; and
  (y) the remaining fraction of the Sachtleben Share Transfer Receivable
  against Finnish HoldCo retained by Kemira as it is going to be determined
  pursuant to section 3.4.3;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)

  	
  JV Europe’s
  intercompany receivables will amount to a total of EUR 0.00 (in words:
  zero) as a result of the transaction pursuant to section 3.4.3 and the JV
  Europe Share Transfer Receivable having been settled in cash.

  

 

21

 

	
   

  	
   

  	
  For the avoidance of doubt and notwithstanding anything to the
  contrary contained herein or in the Master Agreement if, for whatever reason,
  the amount of intercompany receivables of the Parties against the JV Group
  Companies will deviate from what has been outlined in this section 3.5,
  the Parties shall take all such actions and make or receive all such
  declarations in order to provide a situation which is, from an economical
  point of view, identical to the situation outlined in this section 3.5.

  
	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  KEMIRA
  OBERHAUSEN ASSETS

  
	
   

  	
   

  	
   

  
	
  4.1

  	
   

  	
  Assets
  Subject to Transfer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Kemira Oberhausen Assets subject to the transfer pursuant to
  section 2 shall include

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
  the tangible assets, other movable property, stocks and including
  contracts and contract offers listed in Annex 4.1(a);

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  such other tangible assets, other movable property, stocks, contracts
  and contract offers owned by or acquired by or on behalf of the Oberhausen
  Business Unit, or otherwise supplied to the Oberhausen Business Unit from the
  Effective Date and until the Closing Date, except where

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (i)

  	
  a
  predominant use of such asset was made by Kemira Affiliates (as defined
  below) outside the Oberhausen Business Unit and the continued use of such
  asset is either procured under a Transitional Service Agreement or otherwise
  provided free of charge to the TiO2 Pigments Business to the same extent such
  asset was used prior to the date hereof or will be used in line with current
  planning;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (ii)

  	
  such asset
  is listed in Annex 4.1(b)(ii);
  or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (iii)

  	
  such assets
  pursuant to Annex 4.1(b)(ii) include contracts and contract offers
  which are not included in Annex 4.1(a); or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (iv)

  	
  such
  contracts relate to Insurance Policies (as defined below).

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)

  	
  the Oberhausen IP Rights as defined in section 5.2.1; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (d)

  	
  liabilities

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (i)

  	
  specifically listed in Annex 4.1(d)(i) (without
  prejudice to employment-related liabilities, which shall solely be governed
  by section 17.6); and

  
							

 

22

 

	
   

  	
   

  	
   

  	
  (ii)

  	
  earn-out
  payments owed to Gerd Dahms payable after the Closing Date in an amount of up
  to EUR 233,333.00, provided, however, that Kemira Germany shall remain liable
  for any prior periods and exceeding payments;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  provided,
  however, that

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (e)

  	
  in respect of each of (a) to (d) and in order to avoid a
  double consideration of items, such items shall be deemed removed or added
  from or to the Kemira Oberhausen Assets, as the case may be, if and to the
  extent these items

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (i)

  	
  have been
  sold and transferred, added, incurred or created between the Effective Date
  and the Closing Date other than through a Breach of the No Leakage Provisions
  (as defined below); or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (ii)

  	
  have been
  sold and transferred, added, incurred or created between the Effective Date
  and the Closing Date as a result of a Breach of the No Leakage Provisions if
  and to the extent such breach will be compensated pursuant to
  section 16; or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (iii)

  	
  have
  resulted in an actual adjustment of the Shareholding Split under the Master
  Agreement.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Any material
  changes shall be notified to Rockwood until five days before the Closing
  Date.

  
	
   

  	
   

  	
   

  
	
  4.2

  	
   

  	
  Provisions
  relating to the Kemira Oberhausen Assets

  
	
   

  	
   

  	
   

  
	
  4.2.1

  	
   

  	
  To the
  extent there is a reservation of title in favor of third parties attached to
  Kemira Oberhausen Assets (other than IP Rights and Know-How) or there has
  been a transfer of ownership of such assets by way of security (Sicherungsübereignung), the performance
  obligation in relation to the third party remains with the respective Kemira
  Affiliate. If the Kemira Affiliate fails to fulfill this obligation on or
  before the Closing Date, Kemira may, with the consent of JV Europe, do so (or
  procure that the Affiliate does so) no later than five days on which banks in
  Frankfurt am Main, Germany, and Helsinki, Finland, are generally open for
  business (a “Business Day”)
  following the Closing Date, provided that Kemira shall provide evidence of
  such fulfillment to JV Europe without undue delay (unverzüglich).

  
	
   

  	
   

  	
   

  
	
  4.2.2

  	
   

  	
  As used in
  this Agreement, with respect to a person or entity, “Affiliate” shall have the meaning given
  in section 15 et seq. of the
  German Stock Corporation Act (AktG),
  but

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
  with respect
  to Rockwood Holdings, Rockwood, Rockwood Germany and Kemira shall exclude JV
  Group Companies (“JV Group Companies”
  defined as including

  
							

 

23

 

	
   

  	
   

  	
   

  	
  only JV
  Europe, Sachtleben, Finnish HoldCo, Kemira TiO2, JV US, Sachtleben Corp,
  Kemira Inc. and Maybrook, Sachtleben Trading (Shanghai) Company Limited, each
  a “JV Group Company”) as well as
  JV Europe’s direct and indirect subsidiaries and shareholdings; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  with respect
  to the JV Group Companies shall exclude Rockwood Holdings, Rockwood, Rockwood
  Germany and Kemira and their Affiliates.

  
	
   

  	
   

  	
   

  
	
  4.3

  	
   

  	
  Transfer of
  Contracts and Contract Offers

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Kemira hereby undertakes vis-à-vis JV Europe with effect as of the
  Closing Date to assign or secure the assignment of the contracts listed in Annex 4.3 to JV Europe (or at JV
  Europe’s election to any JV Group Company).

  
	
   

  	
   

  	
   

  
	
  4.4

  	
   

  	
  Transfer of
  Liabilities

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  To the extent the Kemira Oberhausen Assets
  include liabilities (collectively, the “Transferred
  Liabilities”)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
  JV Europe
  hereby undertakes to the obligor under such liability (i.e. Kemira or Kemira
  Germany) to assume such liability with effect as of the Closing Date and with
  a discharging effect.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  Kemira and
  JV Europe jointly endeavor (and will cause their Affiliates to endeavor) to
  obtain the consent of those third parties who are creditors of the
  Transferred Liabilities. If it is not possible to obtain such consent or if
  this is not expedient (in the opinion of both Kemira and JV Europe), Kemira
  and/or Kemira’s Affiliate, as applicable, and JV Europe will – to the extent
  legally permissible – conduct themselves and treat each other inter se as if JV Europe had validly
  assumed the relevant liability with effect as of the Closing Date. In this
  case, Kemira and/or Kemira’s Affiliate, as applicable, will remain the
  nominal debtor in relation to third parties, but will internally fulfill the
  liability for the account of and on the instructions of JV Europe.

  
	
   

  	
   

  	
   

  
	
  4.5

  	
   

  	
  Each of Kemira and Kemira Germany and JV Europe, as the case may be,
  hereby accept any transfers or declarations as set out in section 4.

  
	
   

  	
   

  	
   

  
	
  4.6

  	
   

  	
  The Parties shall cooperate in good faith on the transfer or
  migration of any other services required by the Oberhausen Assets after the
  Closing Date, including, for the avoidance of doubt, IT services and payroll
  services.

  

 

24

 

	
  5.

  	
   

  	
  INTELLECTUAL PROPERTY RIGHTS

  
	
   

  	
   

  	
   

  
	
  5.1

  	
   

  	
  Definitions

  
	
   

  	
   

  	
   

  
	
  5.1.1

  	
   

  	
  “IP Rights” shall be defined as patents,
  utility models, domain names and trademarks as well as rights of use and
  enjoyment and rights of exploitation of works protected by copyright
  (including computer programs), of compilations (Sammelwerke) and data base works protected by copyright
  like independent works, as well as of industrial property and copyright
  protection rights (Leistungsschutzrechte)
  (including rights to data bases protected by copyright), including all rights
  acquired to identification marks through use, and the rights to the relevant
  applications for registration, irrespective of whether any such rights are
  registered and licenses thereto.

  
	
   

  	
   

  	
   

  
	
  5.1.2

  	
   

  	
  “Know How” shall be defined as the
  inventions, trade secrets, procedures, formulae and all technical,
  operational and commercial know-how (including machine-readable data) and
  other immaterial assets, irrespective of whether or not they can be
  registered, including all embodiments, such as drawings, notes, or
  documentation, and licenses thereto.

  
	
   

  	
   

  	
   

  
	
  5.1.3

  	
   

  	
  “Nanotechnology IP Rights”
  shall be defined as

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
  the IP Rights listed in
  Annex 5.1.3(a); and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  the Know-How developed by Kemira Germany primarily relating to
  nanoemulsions and nanodispersions and the production thereof as well as
  related to the IP Rights pursuant to section 5.1.3(a) (the “Nanotechnology Know How”).

  
	
   

  	
   

  	
   

  
	
  5.2

  	
   

  	
  Transfer of
  IP Rights

  
	
   

  	
   

  	
   

  
	
  5.2.1

  	
   

  	
  The IP Rights and Know-How which transfer as part of the Kemira
  Oberhausen Assets (the “Oberhausen IP
  Rights”) pursuant to sections 2 and 4 shall include

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
  the IP Rights and Know-How listed in Annex 5.2.1(a); and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  the IP Rights (if any) and Know-How owned or licensed by Kemira
  Germany that was used primarily by or relate primarily to the Kemira TiO2
  Pigments Business in the year preceding the date of this Agreement.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  For the avoidance of doubt,
  the Nanotechnology IP Rights shall not be the subject of the sale and
  transfers set forth in this Agreement but of a separate license agreement
  pursuant to section 5.3.1.

  

 

25

 

	
  5.2.2

  	
   

  	
  The assignment and transfer of the Oberhausen IP Rights shall be made
  with commercial effect (mit
  wirtschaftlicher Wirkung) as of the Effective Date, provided that
  the assignment and transfer in rem
  (mit dinglicher Wirkung) shall
  be effected, subject to the condition precedent (aufschiebende Bedingung) of the Closing occurring, with
  effect as of the Closing Date, by virtue of a separate assignment and
  transfer agreement which was entered into by Kemira Germany and JV Europe on
  the date hereof, a copy of which is attached hereto as Annex 5.2.2, (the “Oberhausen IP Rights Transfer Agreement”).

  
	
   

  	
   

  	
   

  
	
  5.2.3

  	
   

  	
  Section 4.2.1 shall apply mutatis
  mutandis to the extent that the IP Rights or the Know-How are
  subject to third party rights securing obligations of Kemira and its
  Affiliates.

  
	
   

  	
   

  	
   

  
	
  5.2.4

  	
   

  	
  With respect to IP Rights and
  Know-How owned or licensed by either Kemira or Kemira Germany and their
  respective Affiliates and existing on the Closing Date that are not transferred under
  the Oberhausen IP Rights Transfer Agreement although such IP Rights and Know-How
  predominantly relate to the Kemira TiO2 Pigments Business and were either
  (i) predominantly used by or (ii) primarily belong to the Kemira
  TiO2 Pigments Business, Kemira or Kemira Germany and their respective Affiliates,
  as the case may be, on the one hand and JV Europe on the other hand will
  arrange for a transfer of such IP Rights and Know-How to JV Europe by virtue
  of a separate transfer agreement on terms and conditions that are
  substantially the same as those set forth in the Oberhausen IP Rights
  Transfer Agreement. To the extent such an IP Right or Know-How is only
  licensed, the relevant parties shall, to the extent this is permitted under
  the relevant license arrangement, agree on a transfer of such license or, if
  a transfer is not possible, grant a sub-license as available under such
  license, but with no less favourable terms and conditions as presently
  granted under the respective license arrangement.

  
	
   

  	
   

  	
   

  
	
  5.2.5

  	
   

  	
  With respect to IP Rights and
  Know-How owned or licensed by either Rockwood or Rockwood Germany and their
  respective Affiliates and existing on the Closing Date that were not transferred
  hereunder although the Parties agree that such IP Rights and Know-How
  predominantly relate to the Rockwood TiO2 Pigments Business and were
  predominantly used by the Rockwood TiO2 Pigments Business, section 5.2.4
  shall apply mutadis mutandis.

  
	
   

  	
   

  	
   

  
	
  5.3

  	
   

  	
  Licenses and
  Back-License

  
	
   

  	
   

  	
   

  
	
  5.3.1

  	
   

  	
  To the extent IP Rights and
  Know-How that are (i) owned or licensed by Kemira and as applicable
  Kemira Germany and their respective Affiliates, (ii) existing on the
  Closing Date, and (iii) required to conduct the Kemira TiO2 Pigments
  Business substantially as conducted on the date of this Agreement were not
  transferred under section 5.2 because they do not predominately relate to the
  Kemira TiO2 Pigments Business, or are part of the

  

 

26

 

	
   

  	
   

  	
  Nanotechnology IP Rights,
  Kemira and as applicable Kemira Germany hereby,  grants
  subject to the condition precedent (aufschiebende
  Bedingung) of the Closing occuring, with effect as of the Closing Date, on the
  basis of a separate license agreement to be executed between Kemira and as
  applicable Kemira Germany on the one hand and JV Europe on the other hand on
  or prior to the Closing Date substantially in the form attached hereto as Annex 5.3.1, to JV Europe

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
  a perpetual, exclusive, transferable (in
  whole or in part), fully paid-up license, with a limited right to grant
  sublicenses, to use such IP Rights and Know-How for the production, sale and
  marketing of (y) titanium dioxide pigments (including its applications)
  as well as by-products (such as copperas and filter salts) and
  (z) titanium dioxide-based products and services in the cosmetics industry,
  as well as

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  a perpetual, non-exclusive, transferable
  (in whole or in part), fully paid-up license, with a limited right to grant
  sublicenses, to use the Nanotechnology IP Rights for the production, sale and
  marketing of certain other than titanium dioxide based products and services
  in the cosmetic industry.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  This license is not sub-licensable except
  to (i) JV Europe’s Affiliates (for as long as these are Affiliates) and
  (ii) customers as a protective licence and not granted for the generation
  of license fees. This license shall not extend to the Rockwood Water Business
  .

  
	
   

  	
   

  	
   

  
	
  5.3.2

  	
   

  	
  JV Europe and as applicable
  Kemira TiO2 hereby grant, subject to the condition precedent (aufschiebende Bedingung) of the Closing
  occurring, with
  effect as of the Closing Date and shall cause its Affiliates to grant, on the
  basis of a separate license agreement to be executed between JV Europe and
  Kemira on or prior to the Closing Date substantially in the form attached
  hereto as Annex 5.3.2-1, to
  Kemira (and as required its Affiliates) a perpetual, transferable (in whole
  or in part), fully paid-up license, with a limited right to grant
  sub-licenses, to use the IP Rights and Know-How listed in Annex 5.3.2-2 for Kemira’s or its
  respective Affiliate’s business outside the TiO2 Pigments Business, provided
  that such license shall (i) exclude the production, sale and marketing
  of titanium dioxide pigments, and (ii) be  non-exclusive in relation to all other business fields. This licence
  is not sub-licensable except to (i) Kemira’s Affiliates (for as long as
  these are Affiliates) and (ii) customers as a protective license and not
  granted for the generation of license fees, but to afford protection to such
  third parties (e.g. customers that use products of the TiO2 Business).

  
	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  SHAREHOLDING IN POHJOLAN VOIMA OY

  
	
   

  	
   

  	
   

  
	
  6.1

  	
   

  	
  Kemira holds G6 shares (“G6 Shares”)
  in Pohjolan Voima Oy (“PVO”),
  the number of which corresponds to a total of approximately 59.2 per cent of
  the outstanding and issued

  

 

27

 

	
   

  	
   

  	
  G6 Shares. As a shareholder, Kemira has the right to purchase a
  percentage corresponding to its G6 shareholding of the amount of electricity
  generated by the power plant operated by PVO’s subsidiary Porin Prosessivoima
  Oy (“PPV”) at favorable terms
  and conditions.

  
	
   

  	
   

  	
   

  
	
  6.2

  	
   

  	
  Kemira shall, subject to the condition precedent (aufschiebende Bedingung) of Closing
  occurring, use its rights as a shareholder of PVO and otherwise commercially
  reasonable efforts to procure that Kemira TiO2 shall remain able to purchase
  the electricity pursuant to section 6.1 through Kemira, at the terms
  available to holders of G6 Shares in PVO from time to time, currently as set
  out in the energy frame agreement and the energy supply agreement, dated 29
  June 2007 between Kemira and Kemira TiO2 (the “Energy Agreements”).

  
	
   

  	
   

  	
   

  
	
  6.3

  	
   

  	
  Kemira shall, subject to the condition
  precedent (aufschiebende Bedingung)
  of Closing occurring, further use commercially reasonable efforts to effect a
  transfer of the G6 Shares to Kemira TiO2 as soon as reasonably practicable
  and at no cost (other than the costs of the transfer such as transfer taxes
  and stamp duty) to any JV Group Company and its direct or indirect
  subsidiaries.

  
	
   

  	
   

  	
   

  
	
  6.4

  	
   

  	
  Kemira shall be responsible for all investments
  into the power plant made or due until the end of 2007 in the amount of EUR
  9,974,000.00 which will have been made in full by Kemira (directly or
  indirectly) and that the corresponding amount shall be owed by Kemira TiO2 to
  Kemira as part of the Existing Intercompany Receivables. Kemira shall not be
  responsible for any direct and indirect investments required from 1
  January 2008 onwards.

  
	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  BUSINESS DOCUMENTS

  
	
   

  	
   

  	
   

  
	
  7.1

  	
   

  	
  Following
  Closing, Kemira and Kemira Germany and Rockwood and Rockwood Germany shall
  each provide to JV Europe the supplier and customer documents, business
  correspondence and other business documents, in particular the accounting
  documents that are necessary pursuant to commercial and Tax Law
  (collectively, the “Business Documents”)
  belonging or relating to or used by respectively the Kemira TiO2 Pigments
  Business and the Rockwood TiO2 Pigments Business, except to the extent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
  a Business
  Document is already available at one of the JV Group Companies or the
  Oberhausen Business Unit; or

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  where a
  Party is bound by any law, ordinance, statute, rule, regulation, code,
  judgment, decree, injunction, order, writ, ruling or other requirement of any
  governmental authority or applicable law (collectively, the “Law”) to retain originals of the Business
  Document, in which case complete and correct copies of such Business Document
  shall be made available.

  

 

28

 

	
  7.2

  	
   

  	
  Each Party
  may keep copies of Business Documents to the extent that these copies are
  necessary for the performance of this Agreement, for accounting purposes or
  as required by Law.

  
	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  TRANSITIONAL
  SERVICES

  
	
   

  	
   

  	
   

  
	
  8.1

  	
   

  	
  On the Closing Date, Kemira TiO2 and Kemira will execute transitional
  services agreements for the provision of the services and at the terms
  described in Annex 8.1-1 such
  terms  including a fixed term
  until 31 December 2008 and JV Europe, Sachtleben, Rockwood Germany
  and Rockwood Germany will procure that Sachtleben Water will execute
  transitional services agreements for the provision of the services in
  accordance with section 8.2 such terms  including
  a fixed term until 31 December 2008 (the “Transitional Service Agreements”). Should
  Kemira TiO2 or JV Europe, Sachtleben or Sachtleben Water require any of such
  transitional services after 31 December 2008, the Parties will
  negotiate in good faith on the extension of this term.

  
	
   

  	
   

  	
   

  
	
  8.2

  	
   

  	
  Should any services that (i) have been provided to Kemira TiO2,
  JV Europe, Sachtleben, Finnish HoldCo or Sachtleben Water as of the date
  hereof, and (ii) are required by Kemira TiO2, Sachtleben, JV Europe,
  Finnish HoldCo and or Sachtleben Water after the Closing Date have been
  omitted from the descriptions in Annex 8.1-1 or Annex 8.1-2, as the
  case may be, Kemira and Rockwood Germany hereby agree, and Rockwood Germany
  will procure that Sachtleben Water shall provide Kemira TiO2, Sachtleben, JV
  Europe, Finnish HoldCo or Sachtleben Water, respectively, with such services

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
  to the same
  extent and under terms and conditions not less favorable than the terms and
  conditions under which such omitted services have been provided before the
  date hereof;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  subject to the same fixed terms as set forth in section 8.1, unless
  these could be replaced under commercially reasonable conditions; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)

  	
  in compliance with past practices, but at no higher cost than as
  reflected in Annex 1.5 of the Master Agreement (the “Financial Information and Valuation”).

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  This obligation shall also be a direct obligation for the benefit of
  Sachtleben Water (Vertrag zugunsten
  Dritter) to the extent these services are provided by Rockwood
  Germany, JV Europe or Sachtleben.

  
	
   

  	
   

  	
   

  
	
  8.3

  	
   

  	
  Kemira will
  provide information technology services until the information technology
  systems of Kemira TiO2 will be completely set up. The Parties will use
  commercially 

  

 

29

 

	
   

  	
   

  	
  reasonable
  efforts to complete the set-up until 31 December 2008. Kemira TiO2
  shall bear any additional costs of Kemira, if such set up is not completed
  prior to 1 January 2009.

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  WARRANTIES

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  9.1

  	
   

  	
  The Parties make the following
  representations and warranties:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
  Kemira hereby represents and warrants to Rockwood Germany the
  correctness and completeness of the statements under sections 9.2
  through 9.16 and sections 12 and 13 with regard to Kemira TiO2, Kemira Inc.,
  the Kemira TiO2 Shares, the Kemira Inc. Shares, the Maybrook Shares and the Kemira
  Oberhausen Assets;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  Rockwood Germany hereby represents and warrants to Kemira the
  correctness and completeness of the statements under sections 9.2
  through 9.15 and sections 12 and 13 with regard to Sachtleben, the JV Europe
  Share held by Rockwood Germany, the shares in Sachtleben held by Rockwood
  Germany and the shares in Finnish HoldCo held by JV Europe; and

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)

  	
  Rockwood hereby represents and warrants to Kemira the correctness and
  completeness of the statements under sections 9.2 through 9.15 and
  sections 12 and 13 with regard to Sachtleben Corp and the Sachtleben Corp
  Shares

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (each a “Warranty” and
  collectively, the “Warranties”),
  provided that,

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (d)

  	
  (i)

  	
  the Warranties shall in each case be made by means of an independent
  guarantee promise (selbständiges
  Garantieversprechen) as defined in section 311 para 1 of
  the German Civil Code (BGB),
  which – according to the Parties’ express intention – constitutes a promise
  that is made from the start only with the restricted content according to
  sections 9 through 13;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (ii)

  	
  references
  to the “Business” refers to
  (x) Kemira TiO2, the Kemira TiO2 Pigments Business and the Kemira
  Oberhausen Assets to the extent the Warranty or indemnity is given by Kemira
  and (y) the Rockwood TiO2 Pigments Business (excluding the Rockwood
  Water Business) as operated by JV Europe to the extent the Warranty or
  indemnity is given by Rockwood Germany and (z) the Rockwood TiO2
  Pigments Business as operated by Sachtleben Corp to the extent the Warranty
  or indemnity is given by Rockwood;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (iii)

  	
  references
  to the “Transferred  Company” refer to (x) Kemira TiO2
  and Kemira Inc. to the extent the Warranty or indemnity is given by Kemira, (y)

  
							

 

30

 

	
   

  	
   

  	
   

  	
   

  	
  Sachtleben excluding the Rockwood Water Business and, solely for the
  purposes of section 9.2, JV Europe and Finnish HoldCo to the extent the
  Warranty or indemnity is given by Rockwood Germany and (z) Sachtleben
  Corp and, solely for the purposes of section 9.2, JV US to the extent
  the Warranty or indemnity is given by Rockwood;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (iv)

  	
  references to a “US  Transferred  Company” refer to (x) Kemira Inc. to the extent the
  Warranty or indemnity is given by Kemira and (y) Sachtleben Corp to the
  extent the Warranty or indemnity is given by Rockwood;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (v)

  	
  references to a “Warranting Party”
  refer to (x) Kemira to the extent the Warranty or indemnity is given by
  Kemira, (y) Rockwood Germany to the extent the Warranty or indemnity is
  given by Rockwood Germany and (z) Rockwood to the extent the Warranty or
  indemnity is given by Rockwood. The Warranties and indemnities are given
  solely between Rockwood Germany and Rockwood on the one hand and Kemira on
  the other hand and do not constitute an agreement for the benefit of a third
  party (Vertrag zu Gunsten Dritter)
  unless otherwise expressly set out below; and

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (vi)

  	
  the Warranties and indemnities are given as of the date of this
  Agreement and as of the Closing Date, except where the Warranty (x) is
  given to “best knowledge” in the meaning of section 10.2, in which case
  such Warranty shall be given as of the date of this Agreement and (y) is
  expressly made with reference to a specific point in time, in which case the
  Warranty is given as per such point in time.

  
	
   

  	
   

  	
   

  
	
  9.2

  	
   

  	
  Status, Title and Authority

  
	
   

  	
   

  	
   

  
	
  9.2.1

  	
   

  	
  The execution of this Agreement and the consummation of the
  Transaction (i) have been duly authorized by all necessary corporate
  actions on part of the relevant Transferred Company and (ii) will not
  violate or conflict with the constitutional documents of the relevant
  Transferred Company or any permit, license or order of a court or regulatory
  body.

  
	
   

  	
   

  	
   

  
	
  9.2.2

  	
   

  	
  The Transferred Company (i) is duly organized, validly existing
  and (where such concept applies) in good standing under the Laws of the
  jurisdiction in which it was organized, (ii) is qualified to do business
  and (where such concept applies) in good standing in each jurisdiction where
  the conduct of its business requires it to be so qualified and
  (iii) holds all requisite corporate power and authority to own, operate
  or lease the properties that it purports to own, operate or lease and to
  carry on its business operations as they are now being conducted.

  

 

31

 

	
  9.2.3

  	
   

  	
  The Warranting Party holds the sole, full and unencumbered ownership
  in the shares in the Transferred Company and in the Business and has the full
  power and authority to sell and transfer all rights related to the Business.
  The Warranting Party is free to dispose of all rights related to the Business
  without the consent of third parties or has previously obtained such consent.
  There exist no rights in rem or
  any other third-party rights in or with regard to the Business, with the exception
  of retention of title rights granted to suppliers (Eigentumsvorbehalte zugunsten von Lieferanten) customary
  in the industry of the Business and made in the ordinary course of business.

  
	
   

  	
   

  	
   

  	
   

  
	
  9.2.4

  	
   

  	
  (a)

  	
  The Kemira TiO2 Shares, Kemira Inc. Shares, Maybrook Shares,
  Sachtleben Shares, JV Europe Share, the JV US Interests and the Sachtleben
  Corp Shares, as the case may be, have or has been legally and validly issued
  and fully paid up and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (i)

  	
  with respect
  to the Kemira TiO2 Shares, represent 100 per cent of the issued and
  outstanding shares in Kemira TiO2;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (ii)

  	
  with respect
  to the Kemira Inc. Shares, represent 100 per cent of the issued and
  outstanding shares in Kemira Inc.;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (iii)

  	
  with respect
  to the Maybrook Shares, represent 100 per cent of the issued and outstanding
  shares in Maybrook;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (iv)

  	
  with respect
  to the Sachtleben Shares represent 100 per cent of the issued and
  outstanding shares in Sachtleben;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (v)

  	
  with respect
  to the JV Europe Share, represents 100 per cent of the issued and outstanding
  shares in JV Europe;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (vi)

  	
  with respect
  to the JV US Interests, represent 100 per cent of the issued and outstanding
  limited liability interests in JV US;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (vii)

  	
  with respect
  to the Sachtleben Corp Shares, represent 100 per cent of the issued and
  outstanding shares in Sachtleben Corp; and

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (viii)

  	
  with respect
  to the shares in Finnish HoldCo held by JV Europe represent 100 per cent of
  the issued and outstanding shares in Finnish HoldCo.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  All of

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (i)

  	
  the Kemira
  TiO2 Shares and the Kemira Inc. Shares are owned by Kemira;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (ii)

  	
  the Maybrook
  Shares are owned by Kemira Inc.;

  

 

32

 

	
   

  	
   

  	
   

  	
  (iii)

  	
  the
  Sachtleben Shares are owned by Rockwood Germany;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (iv)

  	
  the
  Sachtleben Corp Shares are owned by Rockwood;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (v)

  	
  the JV
  Europe Share is owned by Rockwood Germany;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (vi)

  	
  the shares
  in Finnish HoldCo are owned by JV Europe; and

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (vii)

  	
  the JV US
  Interests are owned by Rockwood;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  and in each case will be free and clear of any security interests,
  pledges, liens, encumbrances, options or similar rights or interests as of
  the Closing Date. Contributions in kind have full intrinsic value. No hidden contributions
  in kind have been made and contributions have not been repaid. There are no
  outstanding duties to make additional contributions.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)

  	
  This section
  9.2.4 is warranted by

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (i)

  	
  Kemira with
  respect to the Kemira TiO2 Shares, the Kemira Inc. Shares and the Maybrook
  Shares only;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (ii)

  	
  by Rockwood
  Germany with respect to the JV Europe Share, the Sachtleben Shares and the
  shares in Finnish HoldCo held by JV Europe only; and

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (iii)

  	
  by Rockwood
  with respect to the Sachtleben Corp. Shares and the JV US Interests only.

  
	
   

  	
   

  	
   

  	
   

  
	
  9.2.5

  	
   

  	
  There is no security, option, warrant, right, call, subscription
  agreement, commitment or understanding of any nature whatsoever, fixed or
  contingent, that directly or indirectly (x) calls for the issuance,
  redemption, sale, pledge or other disposition of any shares of capital stock
  or other equity interests of the Transferred Company or any securities
  convertible into, or other rights to acquire, any shares of capital stock or
  other equity interests in the Transferred Company or (y) obligates the
  Transferred Company to grant, offer or enter into any of the foregoing. No
  shareholder, member or other person or entity holding an equity interest of
  the Transferred Company or any other person or entity is entitled to any
  preemptive or similar rights to subscribe for shares of capital stock or
  other equity interests of the Transferred Company.

  
	
   

  	
   

  	
   

  	
   

  
	
  9.2.6

  	
   

  	
  There exist no participations, including silent participations or
  sub-participations, in the Transferred Company other than those listed in Annex 9.2.6, and there exist no
  conditional obligations or binding offers concerning the creation of such
  participations. There are no

  

 

33

 

	
   

  	
   

  	
  trust agreements or similar agreements in relation to the Business,
  nor are there obligations in relation to shareholders or similar rights (e.g.
  a voting trust or participation in profits).

  
	
   

  	
   

  	
   

  
	
  9.2.7

  	
   

  	
  The Transferred Company does not hold any interests – including in
  the form of a silent participation or sub-participation – in any other
  enterprises and is also not obliged to acquire any such interests, except
  (i) as specified in Annex 9.2.7
  or (ii) in the case of Kemira Inc., the Maybrook Shares or (iii) in
  the case of JV Europe, the shares in Finnish HoldCo.

  
	
   

  	
   

  	
   

  
	
  9.2.8

  	
   

  	
  On the day following the Closing Date, the
  Transferred Company is not subject to any control agreement, profit and loss
  transfer agreement or other enterprise agreement as defined in
  sections 291 et seq. of
  the German Stock Corporation Act (AktG).

  
	
   

  	
   

  	
   

  
	
  9.2.9

  	
   

  	
  The Transferred Company is neither over-indebted nor insolvent under
  applicable Laws and no bankruptcy, composition, insolvency or winding-up
  proceedings have been commenced against the assets of the Transferred
  Company, nor has a petition been filed for the commencement of bankruptcy,
  composition, insolvency or winding-up proceedings with respect to the
  Transferred Company and/or its assets, nor are there any reasons to commence
  or file for such proceedings, and the Transferred Company have not entered
  into debt settlement arrangements in financial distress with third parties.
  There are no circumstances that could justify the avoidance of the transfer
  of the Business pursuant to the provisions of the German Insolvency Code (Insolvenzordnung) and/or the German
  Avoidance Act (Anfechtungsgesetz).

  
	
   

  	
   

  	
   

  
	
  9.2.10

  	
   

  	
  Kemira and Rockwood, as applicable, has and shall transfer to JV US
  on the Closing Date, good, valid and marketable title to the Kemira Inc.
  Shares or the Sachtleben Corp Shares, as applicable, free and clear of any
  security interests, pledges, liens, encumbrances, options or similar rights
  or interests.

  
	
   

  	
   

  	
   

  
	
  9.3

  	
   

  	
  Accounting, Annual Accounts and Profit Distributions

  
	
   

  	
   

  	
   

  
	
  9.3.1

  	
   

  	
  The Transferred Company’s audited annual accounts for the financial
  years 2005 through 2007 (the “Audited
  Annual Accounts”) have been prepared in compliance with the
  applicable accounting principles: with respect to (i) Kemira TiO2, the
  International Financial Reporting Standard (IFRS); (ii) the Oberhausen
  Business Unit and Sachtleben, the generally accepted accounting principles in
  Germany; and (iii) the US Companies, generally accepted accounting
  principles in the United States as in effect from time to time (the “Accounting Principles”), in each case as
  consistently applied by the Transferred Company; provided that, if there is a
  conflict between such practices and the relevant generally accepted
  accounting principles, the relevant generally accepted accounting principles
  shall prevail. The Audited Annual Accounts are true, complete and correct in
  all material respects and truly and correctly reflect in all material
  respects the results of the 

  

 

34

 

	
   

  	
   

  	
  Transferred Company’s operations, financial condition and assets and
  liabilities as at 31 December 2007 (the “Balance Sheet Date”).

  
	
   

  	
   

  	
   

  
	
  9.3.2

  	
   

  	
  The provisions made for any liabilities on the Audited Annual
  Accounts are, according to the Accounting Principles, sufficient and
  adequate.

  
	
   

  	
   

  	
   

  
	
  9.3.3

  	
   

  	
  There are no resolutions on the appropriation of profits except for
  (i) those that have previously been implemented by distribution and/or
  (ii) those contemplated by and made in connection with the execution of
  this Agreement or the Master Agreement, in particular the Kemira Dividend. No
  provisional or hidden distributions of profits or other payments to
  shareholders and/or members of corporate organs have been made. No hidden
  reserves have been dissolved or withdrawn, except in each case in the ordinary
  course of business consistent with past practice.

  
	
   

  	
   

  	
   

  
	
  9.4

  	
   

  	
  Assets

  
	
   

  	
   

  	
   

  
	
  9.4.1

  	
   

  	
  With the exception of retention of title rights granted to suppliers
  (Eigentumsvorbehalte zugunsten von
  Lieferanten) customary in the industry, the Transferred Company
  and, with regard to the Kemira Oberhausen Assets, Kemira and/or Kemira’s
  Affiliate, as applicable, has full and unencumbered title, or is otherwise
  entitled to use, all assets whether tangible or intangible, that are of more
  than minor importance to the Business as it is currently conducted (each an “Asset” and, collectively, the “Assets”).

  
	
   

  	
   

  	
   

  
	
  9.4.2

  	
   

  	
  No Asset is subject to any security interest, any charge or any other
  encumbrance of any third party (including, as applicable, for the benefit of
  Rockwood Germany or Kemira), except for retention of title rights customary
  in the industry or (i) liens for Taxes, assessments and other
  governmental charges that are not due and payable and that may thereafter be
  paid without penalty, (ii) the title and other interests of a lessor
  under a capital or operating lease or of a licensor under a license or
  royalty agreement, (iii) carriers’, warehousemen’s, mechanics’,
  materialmen’s, repairmen’s or other similar liens arising in the ordinary
  course of business or (iv) security interests, charges and other
  encumbrances as set forth in Annex 9.4.2-1
  (the “Permitted Liens”). None of
  the Transferred Company, Kemira or Kemira’s Affiliate, as applicable, is
  obligated to grant any such security interests, charges, encumbrances or
  similar rights, except as set forth in Annex
  9.4.2-2; in particular, except for Permitted Liens, no third party
  has any claims to such security interests, charges or encumbrances and the
  power of the Transferred Company, Kemira and Kemira’s Affiliate, as applicable,
  to dispose of Assets is not limited in any way.

  
	
   

  	
   

  	
   

  
	
  9.4.3

  	
   

  	
  Unless they
  are of minor importance to the Business, the Assets (i) are in good
  working order ordinary wear and tear excepted, (ii) have been maintained
  and repaired on a regular

  

 

35

 

	
   

  	
   

  	
  basis and,
  (iii) if taken together, are sufficient to conduct the Business as it
  was conducted before the date of this Agreement.

  
	
   

  	
   

  	
   

  
	
  9.4.4

  	
   

  	
  As of the Closing Date, no US Company shall have any assets,
  obligations, liabilities or commitments other than assets, obligations,
  liabilities and commitments relating to or arising from the conduct of the
  Business.

  
	
   

  	
   

  	
   

  
	
  9.5

  	
   

  	
  Real Estate

  
	
   

  	
   

  	
   

  
	
  9.5.1

  	
   

  	
  The Transferred Company is the owner of all of the real estate
  specified in Annex 9.5.1-1
  (the “Owned Properties”) and
  uses, in connection with the Business, the real estate specified in Annex 9.5.1-2 (the “Used Properties”, together with the Owned
  Properties, each a “Property”
  and collectively, the “Properties”).
  Apart from the Owned Properties, the Transferred Company does not own any
  real estate or rights equivalent to real estate (grundstücksgleiche Rechte), nor is the Transferred Company
  obliged to acquire any further real estate or rights equivalent to real
  estate (grundstücksgleiche Rechte).

  
	
   

  	
   

  	
   

  
	
  9.5.2

  	
   

  	
  The Owned Properties are not subject to any security interest, any
  charge or any other third-party encumbrance (including, as applicable, for
  the benefit of Rockwood Germany or Kemira), except Permitted Liens or as set
  forth in Annex 9.5.2-1. The
  Transferred Company is not obligated to grant any such security interests,
  charges, encumbrances or similar rights, except as set forth in Annex 9.5.2-2; in particular, there
  are no security interests, charges or other encumbrances that have not yet
  been registered in the relevant land register or in the relevant register of
  public charges, no third party has any claims to such security interests,
  charges or encumbrances, and the Transferred Company’s power to dispose of
  the Owned Properties is not limited in any way, except, in each case, for
  Permitted Liens.

  
	
   

  	
   

  	
   

  
	
  9.5.3

  	
   

  	
  Annex 9.5.3-1 contains
  a true, accurate and complete list of all particulars (including address,
  name of lessor, name of lessee, size, annual amount of lease payments, term
  and termination) of all agreements relating to Used Properties (each a “Lease” and collectively, the “Leases”). No party to any Lease has
  committed a material violation of such Lease that would give the other party
  the right to prematurely terminate such Lease, and no lessor under any Lease
  has given notice of termination regarding such Lease. None of the Transferred
  Company, the Warranting Party or the Warranting Party’s Affiliates, as
  applicable, has received any notice that it is in default with regard to
  payments or any other obligations owed under any Lease except as described in
  Annex 9.5.3-2.

  
	
   

  	
   

  	
   

  
	
  9.5.4

  	
   

  	
  All development and construction carried out by or on behalf of the
  Business in relation to each Property has been done in accordance with all
  applicable safety Laws except where such non-compliance would not have a
  material adverse impact on the Business. The current use of each Property
  conforms to all applicable safety Laws, except where such 

  

 

36

 

	
   

  	
   

  	
  non-compliance would not have a material adverse impact on the
  Business. The construction of all buildings and other premises on the
  Properties has been approved by the relevant authorities and such approvals
  have not been revoked and are either unconditional or were subject only to
  conditions that have been satisfied such that nothing further remains to be
  done thereunder except where such revocation and/or non-fulfillment of such
  condition would not have a material adverse impact on the Business. Any such
  failure, non-compliance, revocation or non-fulfillment is considered to have
  a material impact on the Business, if it either (i) could potentially
  lead to any restriction, closure or suspension of the Business or
  (ii) capital expenditures above EUR 500,000.00.

  
	
   

  	
   

  	
   

  
	
  9.6

  	
   

  	
  Intellectual Property Rights

  
	
   

  	
   

  	
   

  
	
  9.6.1

  	
   

  	
  The Transferred Company is entitled to use the IP Rights and Know-How that are material for carrying out the
  Business substantially in the same manner as conducted by the Transferred Company of the
  date hereof (the “Material IP Rights”).

  
	
   

  	
   

  	
   

  
	
  9.6.2

  	
   

  	
  Annex 9.6.2
  contains a complete and correct list of all registered IP Rights or pending
  applications thereof (the “Registered
  IP  Rights”) of the Transferred Company and, with regard to
  Kemira’s TiO2 Pigments Business, the Oberhausen IP Rights. Annex 9.6.2
  correctly indicates the nature, the registration or application number, the
  application date, the registered owner or applicant of the Registered IP
  Rights and the jurisdictions in which such Registered IP Rights have been
  registered or applied for.

  
	
   

  	
   

  	
   

  
	
  9.6.3

  	
   

  	
  Except for the IP Rights listed in Annexes 5.1.3 and
  5.2.1(a) Kemira Germany does not own or has owned in the year prior to
  the date hereof any patents (and has not applied for any) that were developed
  by the Oberhausen Business Unit and that are material for Kemira’s TiO2
  Business.

  
	
   

  	
   

  	
   

  
	
  9.6.4

  	
   

  	
  Except as specified in Annex 9.6.4,
  no Registered IP Rights or Material IP Right are licensed to any third party.
  Annex 9.6.4 contains a list of all contracts, in particular license
  agreements, with regard to the Registered IP Rights that is complete and
  correct in all material respects.

  
	
   

  	
   

  	
   

  
	
  9.6.5

  	
   

  	
  Except as specified in Annex 9.6.5,
  the Registered IP Rights are not subject to any pending or, to the Warranting
  Party’s best knowledge, threatened proceedings for opposition, cancellation,
  revocation or limitation. The payment of fees due and all other measures
  necessary to maintain the Registered Material IP Rights have been undertaken
  completely and in good time.

  
	
   

  	
   

  	
   

  
	
  9.6.6

  	
   

  	
  To the Warranting Party’s best knowledge, the activities of the
  Business and the IP Rights of the Business do not infringe any third-party IP
  Rights or other third-party rights.

  

 

37

 

	
  9.6.7

  	
   

  	
  To the Warranting Party’s best knowledge, all compensation and fees
  for employee inventions of any of the employees of the Business have been
  paid when due and, if not mandatory under applicable Law, such employees of
  the Business have validly assigned or agreed to assign any rights to their
  inventions to the Business, except as otherwise described in Annex 9.6.7.

  
	
   

  	
   

  	
   

  
	
  9.7

  	
   

  	
  Business Operations

  
	
   

  	
   

  	
   

  
	
  9.7.1

  	
   

  	
  The Business does not infringe any third-party rights under public or
  civil law, except where such infringement cannot be expected to have a
  material effect on the operation of the business.

  
	
   

  	
   

  	
   

  
	
  9.7.2

  	
   

  	
  Except as set out in Annex 9.7.2,
  no claims for damages based on defective products or co-products (including,
  but not limited to, filter salt and copperas) (i) with a value of more
  than EUR 250,000.00 in an individual case or (ii) for serial
  defects (Serienschaden) have
  been asserted or threatened against the Business during the five years
  immediately preceding the date of this Agreement, nor have any preliminary
  investigations under criminal or public Law been instituted against the
  Business or the employees, executives and/or members of corporate bodies of
  the Business in connection with defective products or serial defects (Serienschaden) and there is no
  indication that any such claims may be asserted or investigations instituted.

  
	
   

  	
   

  	
   

  
	
  9.8

  	
   

  	
  Governmental
  Authorizations and Compliance with Laws

  
	
   

  	
   

  	
   

  
	
  9.8.1

  	
   

  	
  Other than environmental permits, licenses, consents, concessions,
  approvals and other public law legal positions, which are solely subject to
  section 13.2, the Business holds all permits, licenses, consents,
  concessions, approvals and other public law legal positions required under
  applicable Laws for the operation the Business (collectively, the “Permits”) and the Business is conducted
  in accordance with the Permits, including any ancillary provisions, and in
  compliance with all applicable Laws, in particular provisions on employment
  safety and environmental protection, unless the failure to hold the Permits
  or the non-compliance with the Permits would not have a material impact on
  the Business and would not result in expenditures or liabilities of more than
  EUR 250,000.00. There is no indication that the Permits will expire or
  be withdrawn, revoked, restricted or altered (in particular by imposition of
  obligations) or otherwise negatively affected by the consummation of the
  Transaction. There are no unsettled complaints by the competent public
  authorities or employers’ liability insurance associations with an amount in
  dispute above EUR 100,000.00. In addition, other third parties – in
  particular neighbors – have not lodged complaints or asserted claims in
  relation to the Business operations or parts thereof.

  

 

38

 

	
  9.8.2

  	
   

  	
  The Transferred Company maintains all material Permits that belong to
  the Business from an economic point of view and are necessary or exist for
  the operation of the Business. The consummation of the Transaction will not
  result in the cancellation, termination, revocation, modification,
  suspension, restriction, limitation of or other change to any such Permits
  that will have a material impact on the operations of the Business.

  
	
   

  	
   

  	
   

  
	
  9.8.3

  	
   

  	
  The Business is currently and has in the past in all material
  respects been conducted in compliance with applicable Laws.

  
	
   

  	
   

  	
   

  
	
  9.9

  	
   

  	
  Subsidies

  
	
   

  	
   

  	
   

  
	
  9.9.1

  	
   

  	
  Annex 9.9.1 contains
  a true and complete list of all public grants and subsidies applied or,
  received and used by the Transferred Company that provide for any ongoing
  obligation of the Company, including site or employment guarantees.

  
	
   

  	
   

  	
   

  
	
  9.9.2

  	
   

  	
  The Transferred Company has applied for, received and used public
  grants and subsidies only in accordance with the applicable legal provisions
  and in compliance with the orders, conditions and obligations of any relevant
  public authority. Neither the consummation of the Transaction nor any other
  circumstances currently in existence require the repayment or will lead to
  the acceleration of the repayment of all or part of such grants or subsidies.

  
	
   

  	
   

  	
   

  
	
  9.10

  	
   

  	
  Personnel Matters

  
	
   

  	
   

  	
   

  
	
  9.10.1

  	
   

  	
  Annex 9.10.1
  contains a list of all current service contracts of the Transferred Company’s
  managing directors or officers, as applicable, and members of the Transferred
  Company’s supervisory board or board of directors, as applicable, in their
  function as such and all additional agreements concluded with or offered to
  them, and all other benefits owed, paid or offered to them by such
  Transferred Company, including, but not limited to, profit participations,
  bonuses, option rights, premiums and profit-based bonuses.

  
	
   

  	
   

  	
   

  
	
  9.10.2

  	
   

  	
  Annex 9.10.2
  contains a list of all employees of the Transferred Company (a) with an
  annual salary of more than EUR 100,000.00 (including bonuses and
  performance-based payments) or (b) who are domiciled (i) outside
  Germany with respect to the Rockwood TiO2 Pigments Business and
  (ii) outside Finland with respect to the Kemira TiO2 Pigments Business
  and the Kemira Oberhausen Assets.

  
	
   

  	
   

  	
   

  
	
  9.10.3

  	
   

  	
  Annex 9.10.3-1
  contains a true and complete list of all employees of the Business that were
  laid off during the last twelve months and which the Business may be required
  under applicable Law to rehire in case any new employees are hired by the
  Business. Except as specified in Annex 9.10.3-2,
  the Business has no liabilities towards retired members of corporate bodies
  or laid-off employees.

  

 

39

 

	
  9.10.4

  	
   

  	
  Except as specified in Annex 9.10.4,
  there are no agreements or promises regarding special rights (in particular
  special termination rights, bonus payments or other benefits) in connection
  with, arising from or triggered by a change of shareholders.

  
	
   

  	
   

  	
   

  
	
  9.10.5

  	
   

  	
  The Business is not a member of any employers’ association and is not
  subject to any collective bargaining agreements, including any collective
  bargaining agreements that may cover employees of any US Transferred Company
  and collective bargaining agreements declared to be generally binding, except
  as specified in Annex 9.10.5.

  
	
   

  	
   

  	
   

  
	
  9.10.6

  	
   

  	
  Annex 9.10.6-1
  contains a list of all shop agreements that are applied at the Business.
  Except for the reconcilements of interests (Interessenausgleiche)
  and the social plans (Sozialpläne)
  listed in Annex 9.10.6-2,
  there are no agreements, promises or other obligations of the Business to be
  fulfilled for past, current or future restructurings or other operational
  changes.

  
	
   

  	
   

  	
   

  
	
  9.10.7

  	
   

  	
  Annex 9.10.7
  contains a list of all agreements and promises at the Business regarding
  benefits from the company pension schemes. All agreements and promises comply
  with applicable Law.

  
	
   

  	
   

  	
   

  
	
  9.10.8

  	
   

  	
  Annex 9.10.8
  contains a list of all obligations of the Business based on customary
  business practice (betriebliche Übung).

  
	
   

  	
   

  	
   

  
	
  9.10.9

  	
   

  	
  Annex 9.10.9
  contains a list of all collective and individual promises, agreements, plans,
  schemes, regulations or other arrangements or understandings that restrict
  the Business’ right of termination beyond the statutory regulations (e.g.
  regulations on protection against rationalization).

  
	
   

  	
   

  	
   

  
	
  9.10.10

  	
   

  	
  Annex 9.10.10
  contains a complete list of all stock options granted by the Business
  including the names of the persons entitled to, the number of and the value
  of such stock options at the time of their issuance.

  
	
   

  	
   

  	
   

  
	
  9.10.11

  	
   

  	
  To the extent required by applicable Law and the Accounting
  Principles, appropriate provisions have been made in the Audited Annual
  Accounts, for the full amount of present and future liabilities in respect of
  pension undertakings to be paid to current or former managing directors, or
  to officers or other employees of the Business. All statutory contributions
  in respect of pension undertakings to current or former managing directors,
  or to officers or other employees engaged in the Business have been made when
  due.

  
	
   

  	
   

  	
   

  
	
  9.10.12

  	
   

  	
  The Business is not a party – be it as plaintiff, defendant or
  otherwise – to any court, arbitration or public authority proceedings
  involving employees, managing directors, works councils, trade unions or
  other employee representatives and, to the best knowledge of the

  

 

40

 

	
   

  	
   

  	
  Warranting Party, the US Transferred Company is in compliance in all
  material respects with all applicable US federal, state and local Laws
  respecting employment, occupational safety and health, employment practices,
  terms and conditions of employment and wages and hours of employment with
  respect to the current and former employees of the US Transferred Companies,
  except as specified in Annex 9.10.12
  or where such non-compliance would not have a material adverse impact on the
  relevant US Transferred Company.

  
	
   

  	
   

  	
   

  
	
  9.10.13

  	
   

  	
  Annex 9.10.13 contains
  a complete list of all “employee benefit plans” within the meaning of section
  3(3) of the U.S. Employee Retirement Security Act of 1974, as amended (“ERISA”), all other employee benefit
  plans, arrangements or policies (including, without limitation, any equity,
  deferred compensation, pension, retirement, savings, profit sharing,
  incentive, bonus, health, life insurance, cafeteria, flexible spending,
  dependent care, fringe benefit, vacation, holiday, disability, unemployment,
  severance, or employee loan arrangement or policy), all employment,
  indemnification, consulting, retention, severance or change of control
  agreements, in each case, that is sponsored or maintained by the US
  Transferred Company or to which the US Transferred Company or any of its
  respective Affiliates contributes or is required to contribute on behalf of
  current or former employees, consultants or directors of the US Transferred
  Company or their beneficiaries or dependents, whether or not written (“US Benefit Plans”). Neither the US
  Transferred Company nor any of its Affiliates has communicated to present or
  former employees of the US Transferred Company or formally adopted or
  authorized any additional US Benefit Plan or any material change in or
  termination of any existing US Benefit Plan. Except as would not be
  reasonably expected to have a material adverse effect on the US Transferred
  Company, each US Benefit Plan has been construed, operated and administered
  in accordance with its terms and all applicable Laws. Each US Benefit Plan
  intended to be Tax-qualified under section 401(a) of the of the U.S.
  Internal Revenue Code of 1986, as amended (the “IRC”), has received a favorable determination letter from
  the U.S. Internal Revenue Service as to its Tax-qualified status under the
  IRC and nothing has occurred since the date of such favorable determination
  letter that would adversely affect the qualified status of such plan.

  
	
   

  	
   

  	
   

  
	
  9.10.14

  	
   

  	
  No US Benefit Plan is a pension plan subject to Title IV of ERISA, or
  a multiemployer plan within the meaning of section 3(37) of ERISA, and the US
  Transferred Company does not have any outstanding liabilities with respect to
  any such plan previously maintained or contributed to by such US Transferred
  Company.

  
	
   

  	
   

  	
   

  
	
  9.10.15

  	
   

  	
  Except as would not be reasonably expected to have a material adverse
  effect on the US Transferred company, there are no actions, suits, or claims
  (other than routine claims for benefits in the ordinary course) with respect
  to any US Benefit Plan that could give rise to a material liability, or to
  the best knowledge of the Warranting Party, threatened, and the 

  

 

41

 

	
   

  	
   

  	
  Warranting Party has no knowledge of any facts which could give rise
  to any such actions, suits or claims (other than routine claims for
  benefits). No US Benefit Plan is currently under governmental investigation
  or audit and, to the best knowledge of the Warranting Party, no such
  investigation or audit is contemplated or under consideration.

  
	
   

  	
   

  	
   

  
	
  9.10.16

  	
   

  	
  No event has occurred and no condition exists with respect to any US
  Benefit Plan which could reasonably be expected to subject the US Transferred
  Company, or any of its employees, agents, directors or affiliates, directly
  or indirectly (through an indemnification agreement or otherwise), to a
  material liability for breach of fiduciary duty, a “prohibited transaction”,
  within the meaning of section 406 of ERISA or section 4975 of the IRC, or a
  material tax, penalty or fine under section 502 or 4071 of ERISA or Subtitle
  D, Chapter 43 of the IRC.

  
	
   

  	
   

  	
   

  
	
  9.10.17

  	
   

  	
  No event has occurred and no condition exists with respect to any
  employee benefit plan or arrangement currently or previously maintained or
  contributed to by any Affiliate of the US Transferred Company that could
  subject the US Transferred Company or any of its employees, directly or
  indirectly (through indemnification or otherwise), to material liability,
  including, without limitation, liability under section 412, 4971 or 4980B of
  the IRC or Title IV of ERISA.

  
	
   

  	
   

  	
   

  
	
  9.10.18

  	
   

  	
  Except as set forth in Annex
  9.10.18, neither the execution of this Agreement nor the
  consummation of the Transaction will (i) increase the amount of benefits
  otherwise payable under any US Benefit Plan, (ii) result in the
  acceleration of the time of payment, exercisability, funding or vesting of
  any such benefits, or (iii) result in any payment (whether severance pay
  or otherwise) becoming due to, or with respect to, any current or former
  employee or director of the US Transferred Company. No payment or series of
  payments that would constitute a “parachute payment” (within the meaning of
  section 280G of the IRC) has been made or will be made by the US Transferred
  Company, directly or indirectly, to any employee in connection with the
  execution of this Agreement or as a result of the consummation of the
  Transaction.

  
	
   

  	
   

  	
   

  
	
  9.11

  	
   

  	
  Material Agreements

  
	
   

  	
   

  	
   

  
	
  9.11.1

  	
   

  	
  Annex 9.11.1
  contains a list of all Material Agreements. “Material Agreements” shall mean any of the following written
  or oral agreements, contracts and arrangements, in each case, as amended from
  time to time:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
  agreements for joint ventures, strategic alliances;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  credit agreements with the Transferred Company as a lender or
  borrower;

  

 

42

 

	
   

  	
   

  	
  (c)

  	
  loans, guarantees, suretyships, letters of comfort, performance or
  warranty bonds and similar instruments in each case (i) issued by any
  third party, including, without limitation, the Warranting Party or the
  Warranting Party’s Affiliates, or the Transferred Company, to secure any
  indebtedness or other obligation of the Business or (ii) issued by the
  Transferred Company to secure any indebtedness or other obligation of a third
  party including, without limitations, the Warranting Party or the Warranting
  Party’s Affiliates;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (d)

  	
  forward sales or purchases, futures, financial swaps, options and
  other financial derivates and combinations thereof;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (e)

  	
  all intra-group agreements not at arm’s length and not in the
  ordinary course of business;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (f)

  	
  non-compete covenants or other restrictive agreements entered into by
  the Transferred Company that may restrict the Transferred Company from
  operating its business as before the date of this Agreement in line with the
  Transferred Company’s business plan or restrict the ability of the
  Transferred Company to compete in any line of business;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (g)

  	
  any agreement relating to any merger, acquisition or disposal,
  amalgamation or consolidation or reorganization involving the Business during
  the last two years or older if there are ongoing contractual obligations;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (h)

  	
  any financial lease agreement entered into by the Transferred Company
  involving an annual lease in excess of EUR 250,000.00;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)

  	
  any factoring agreement or any other sale of receivable entered into
  by the Transferred Company;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (j)

  	
  agreements to sell or otherwise dispose of any fixed assets with a fair
  market value or a replacement value in excess of EUR 250,000.00;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (k)

  	
  Energy Agreements and agreements with suppliers or customers whose
  business with the Business exceeded an aggregate volume of
  EUR 200,000.00 in the year 2007 or are expected or budgeted to exceed
  such volume in 2008;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (l)

  	
  agreements containing minimum purchase requirements in excess of
  EUR 2,000,000.00 per year; and

  

 

43

 

	
   

  	
   

  	
  (m)

  	
  rental,
  lease and other agreements concerning the use of Assets in connection with
  the Business and involving an annual financial burden of more than
  EUR 100,000.00 in each individual case.

  
	
   

  	
   

  	
   

  
	
  9.11.2

  	
   

  	
  All of the Material Agreements are in full force and effect and no
  notices of termination have been given or received in writing or, to the
  Warranting Party’s best knowledge, orally, and to the Warranting Party’s best
  knowledge, the Business is not in material default under any Material
  Agreement and no notices of termination have been given or received.

  
	
   

  	
   

  	
   

  
	
  9.11.3

  	
   

  	
  There are no Material Agreements that could reasonably be expected to
  impede the consummation of the Transaction. No loan or other indebtedness
  will be repayable upon the consummation of the Transaction.

  
	
   

  	
   

  	
   

  
	
  9.11.4

  	
   

  	
  All Material Agreements entered into between the Business and the
  Warranting Party or any Affiliate of the Warranting Party have been entered
  into at arm’s length.

  
	
   

  	
   

  	
   

  
	
  9.12

  	
   

  	
  Suppliers and Customers

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Annex 9.12
  contains a list of the Business’ ten largest suppliers and of the ten largest
  customers in the financial year 2007 and a list of all those suppliers of the
  Business for whose goods and services no alternative source of supply at
  comparable conditions exists. To the Warranting Party’s best knowledge, there
  is no reason to assume that any of these suppliers or customers will
  substantially reduce the extent of their business with the Business.

  
	
   

  	
   

  	
   

  
	
  9.13

  	
   

  	
  Insurance

  
	
   

  	
   

  	
   

  
	
  9.13.1

  	
   

  	
  Annex 9.13.1-1
  contains a list of all insurance policies used in, taken out by, relating to
  or for the benefit of the Business (each an “Insurance Policy” and, collectively, the “Insurance Policies”), which (i) are
  maintained at group level or (ii) relate to property damages, business
  liabilities and environmental liabilities, in each case including the name of
  the insurance provider, the name of the insured, the insured risk, the policy
  number, the date of issuance, the term, the maximum amount of coverage, the
  amount of any deductible and to the extent taken out by the respective
  Transferred Company and not maintained at group level, the annual premium. Annex 9.13.1-2 contains a list of
  all Insurance Policies where coverage will terminate or reduce upon or as a
  result of the consummation of the Transaction.

  
	
   

  	
   

  	
   

  
	
  9.13.2

  	
   

  	
  The Insurance Policies provide coverage that is (i) customary in
  the Business’ industry both with respect to scope and nature and
  (ii) adequate under any contractual or mandatory insurance requirement
  applicable to the Business. Each Insurance Policy is in full force and 

  

 

44

 

	
   

  	
   

  	
  effect and was in full force and effect during the periods of time
  that such Insurance Policy was purported to be in effect, is valid, existing
  and binding and all premiums due thereon have been timely paid (subject to
  changes made in the ordinary course of business that did not materially
  reduce the coverage thereunder). The Business has not received any notices of
  termination or cancellation with respect to any Insurance Policy and the
  consummation of the Transaction will not result in the termination of any
  Insurance Policy, except as described in Annex
  9.13.2.

  
	
   

  	
   

  	
   

  
	
  9.13.3

  	
   

  	
  Annex 9.13.3
  sets forth all outstanding claims made under the Insurance Policies. To the
  Warranting Party’s best knowledge, there are no circumstances or facts that
  would entitle the Business to make any additional claims against any
  insurance provider under any Insurance Policy in excess of EUR 100,000.00.

  
	
   

  	
   

  	
   

  
	
  9.14

  	
   

  	
  Legal
  Disputes

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Transferred Company is not a party – as plaintiff, defendant or
  otherwise – to any court, arbitration or public authority proceedings
  involving a value in dispute of more than EUR 100,000.00 in an
  individual case, except as specified in Annex 9.14.
  The aggregate amount of the values in dispute in all proceedings to which the
  Transferred Company is a party and which are not listed in Annex 9.14 does
  not exceed EUR 250,000.00. There is no indication that any additional
  court, arbitration or public authority proceedings will be commenced after
  the date of this Agreement.

  
	
   

  	
   

  	
   

  
	
  9.15

  	
   

  	
  No Bribery or Corruption, Compliance with U.S. Sanctions

  
	
   

  	
   

  	
   

  
	
  9.15.1

  	
   

  	
  To the Warranting Party’s best knowledge, during the 10 years
  immediately preceding the date of this Agreement, no employee of the
  Transferred Company nor any third party acting on behalf of the Transferred
  Company has, in violation of the applicable Law:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
  offered,
  promised or granted, directly or indirectly, any benefit (e.g. bribes,
  payments in kind or kick-backs) to any person (e.g. a natural or legal person
  or his/her/its representative(s)), in return for obtaining unfair favorable
  treatment vis-à-vis competitors in the supply of goods or commercial
  services, or, to the best of the Warranting Party’s best knowledge, demanded,
  allowed him- or herself to be promised or accepted such benefit for him- or
  herself or a third party for the purpose of obtaining unfair favorable
  treatment vis-à-vis competitors in the supply of goods or commercial
  services;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  offered, promised or granted, directly or indirectly, any benefit
  (cf. section 9.15.1(a)) to a public official, a person with special
  public service obligations or any other

  

 

45

 

	
   

  	
   

  	
   

  	
  person who performs public functions, to or for that person or a
  third person, in return for the fact that he/she performed or will in future
  perform an official act;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)

  	
  made any unlawful political donations; and/or

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (d)

  	
  otherwise used the Transferred Company’s funds for illegal purposes
  in connection with the Business that could expose the Transferred Company or
  its shareholders to the risk of the imposition of a penalty or fine (Geldstrafe oder Geldbuße) payable by, or
  that could lead to an imposition of an obligation upon, or a loss for, the
  Transferred Company or its respective shareholders.

  
	
   

  	
   

  	
   

  
	
  9.15.2

  	
   

  	
  The Business and the Transferred Company is in compliance with
  (i) all relevant sanctions and regulations promulgated by the Office of
  Foreign Asset Control of the U.S. Department of the Treasury, (ii) all relevant
  resolutions or directives of the United Nations and (iii) the relevant
  Laws of the European Union. In addition to the foregoing, the business
  operations do not include any business relations with Cuba, Iran, Syria or
  North Korea or with any person or entity included in the list of specially
  designated nationals and blocked persons of the Office of Foreign Asset
  Control of the U.S. Department of the Treasury except as disclosed in Annex 9.15.2.

  
	
   

  	
   

  	
   

  
	
  9.16

  	
   

  	
  Warranties Specific to Kemira

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Each of the Kemira TiO2’s Finnish pension fund Kemira Pigments Oy:n
  eläkesäätiö and Kemira TiO2’s Finnish sickness fund that manages, inter alia, mandatory benefits in lieu
  of the competent Finnish governmental authority (Kansaneläkelaitos), is fully funded as per
  December 31, 2007.

  
	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  SUPPLEMENTARY
  PROVISIONS REGARDING THE WARRANTIES

  
	
   

  	
   

  	
   

  
	
  10.1

  	
   

  	
  The Warranties together with their annexes also apply – to the extent
  required, mutatis mutandis – to
  the Transferred Company’s consolidated Affiliates listed in Annex 10.1-1. With respect to the
  Transferred Company’s non-consolidated Affiliates listed in Annex 10.1-2, all Warranties are
  given to the  best knowledge of
  the Warranting Party in the meaning of section 10.2 only and without any
  obligation to make any further enquiry.

  
	
   

  	
   

  	
   

  
	
  10.2

  	
   

  	
  Warranties that are given to the Warranting Party’s “best knowledge”
  are given to the actual knowledge of the present members of Kemira’s,
  Rockwood Germany’s or Rockwood’s managing directors / board or directors, as
  applicable, as of the date of this Agreement.

  
	
   

  	
   

  	
   

  
	
  10.3

  	
   

  	
  Except where otherwise expressly set forth in this Agreement, the
  Affected Party (as defined below) shall only be entitled to raise claims
  under the Warranties if and to the extent the 

  

 

46

 

	
   

  	
   

  	
  matter to which the claim relates is not disclosed in this Agreement,
  the Master Agreement, the JV Agreement or their respective annexes.
  Section 442 of the German Civil Code (BGB)
  does not apply. For the sake of clarity, the Parties hereby acknowledge that
  disclosure of any matter in any context other than in this Agreement, the
  Master Agreement, the JV Agreement or their respective annexes (e.g.
  disclosure solely in a data room) is not sufficient to bar an Affected Party
  (as defined below) from raising a claim under the Warranties.

  
	
   

  	
   

  	
   

  
	
  10.4

  	
   

  	
  To the extent that Warranties are limited by the disclosure of facts
  in the relevant Warranty or in an Annex to this Agreement to which it
  expressly refers, the respective limitation applies only to the Warranty to
  which it specifically relates.

  
	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  REMEDIES

  
	
   

  	
   

  	
   

  
	
  11.1

  	
   

  	
  If one or more Warranties are incorrect and/or incomplete, then the
  Party to which such Warranty was given (the “Affected Party”) is in each case entitled to demand from the
  Party breaching such Warranty (the “Breaching
  Party”) that the warranted situation be provided.

  
	
   

  	
   

  	
   

  
	
  11.2

  	
   

  	
  If the Affected Party demands remedy of the warranted situation and
  (i) the warranted situation is not fully provided by the Breaching Party
  within a reasonable period, but in any case within four weeks after receipt
  of the warranty remedy demand, (ii) remedy of the warranted situation
  turns out to be impossible or inexpedient from the Affected Party’s
  reasonable point of view, or (iii) the Breaching Party refuses remedy of
  the warranted situation for any reason, then the Affected Party is entitled
  to demand payment of damages from the Breaching Party to the respective JV
  Group Company affected by the breach in the amount needed for remedy of the warranted
  situation and/or for compensation of other losses, such losses specifically
  excluding:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
  consequential
  damages (Folgeschäden), lost
  profits (entgangener Gewinn),
  internal administration and overhead costs;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  amounts for
  which specific accruals (Rückstellungen)
  have been included in the Annual Audited Accounts;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)

  	
  amounts that
  have been specifically taken into consideration in the evaluation of the
  Transaction as set out in the Financial Information and Valuation (and deducted
  from the EBITDA or enterprise value); and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (d)

  	
  amounts that are compensated pursuant to section 16 (Locked Box
  Concept) which shall prevail over this section 11.

  

 

47

 

	
  11.3

  	
   

  	
  The JV Group Companies shall be obliged to inform the Advisory Board
  of JV Europe and any Party reasonably requesting such information of any
  breach of the Warranties without undue delay after they become aware of such
  breach.

  
	
   

  	
   

  	
   

  
	
  11.4

  	
   

  	
  The liability of the Breaching Party for a breach of Warranty shall
  be limited as follows:

  
	
   

  	
   

  	
   

  
	
  11.4.1

  	
   

  	
  The Affected Party is entitled to raise claims for a breach of
  Warranty only to the extent that any individual claim or a series of related
  claims exceeds EUR 250,000.00 (de
  minimis), except where an individual warranty specified a higher
  or lower minimum amount, in which case such amount shall apply, and only if
  and to the extent the sum of such claims exceeds EUR 4,000,000.00, in
  which case the entire amount can be claimed (Freigrenze).

  
	
   

  	
   

  	
   

  
	
  11.4.2

  	
   

  	
  Subject to section 11.4.3, for all claims resulting from a
  breach of Warranty except for a breach of any Warranty set forth in section
  9.2 (but excluding section 9.2.9), the maximum aggregate liability of the
  Breaching Party equals EUR 25,000,000.00 unless otherwise set out in
  this Agreement.

  
	
   

  	
   

  	
   

  
	
  11.4.3

  	
   

  	
  For claims in respect of fraud or willful misconduct, the statutory
  rules shall apply. Section 444 of the German Civil Code (BGB) remains applicable.

  
	
   

  	
   

  	
   

  
	
  11.5

  	
   

  	
  The Affected Party shall notify the Breaching Party in writing of any
  breach of Warranty within 60 days after the Affected Party became aware of
  such breach, provided that the failure to so notify the Breaching Party as
  provided in this sentence will not relieve the Breaching Party from any liability
  or obligation that it may have pursuant to this Agreement except to the
  extent the Breaching Party shall actually have been materially prejudiced by
  such failure or delay.

  
	
   

  	
   

  	
   

  
	
  11.6

  	
   

  	
  All claims arising pursuant to this section 11 shall be time-barred
  from the earlier of

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
  the first
  anniversary of the Closing Date; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  the
  occurrence of a disposal of all shares in JV Europe (and the respective
  limited liability interest in JV US as required by the JV Agreement) by
  either Kemira and / or Rockwood Germany; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)

  	
  an initial
  public offering of the shares in JV Europe,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (each of (b) and (c) an “Exit
  Event”), provided, however, that to the extent any claim pursuant
  to this section 11 was notified in writing to the Breaching Party in
  accordance with this section 11 and is still pending at the time of the
  earlier of the first anniversary of the Closing Date and an Exit Event, such
  claim shall continue to be subject to the provisions of this section 11
  until such claim is finally resolved.

  

 

48

 

	
  12.

  	
  TAX WARRANTIES AND
  REMEDIES

  
	
   

  	
   

  
	
  12.1

  	
  For the purpose of this section 12,

  
	
   

  	
   

  
	
   

  	
  “Tax”
  or “Taxes” shall refer to:

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  liability for all forms of taxation, including any charge, tax, duty,
  levy, customs, tariffs, withholding or liability wherever imposed for support
  of national, state, federal, municipal or local government or any other
  person, including social insurance contributions, corporation tax, trade tax,
  VAT (including for the avoidance of doubt any non-deductible input VAT),
  payroll tax, solidarity surcharge, antidumping duties, countervailing duties
  and other public law levies;

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  secondary liability for other person’s Taxes (Steuerhaftungsbeträge) based on Law
  (e.g. wage tax, reverse charged VAT, withholding tax, due to tax groups, fiscal
  unities, acquisitions of business);

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  Tax equivalent indebtedness based on (i) contractual
  arrangements (e.g. under a Tax sharing agreement (Steuerumlagen), contractual tax guarantee or indemnity) or
  (ii) Law;

  
	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  any payments for non-compliance with transfer pricing obligations
  especially penalties to be levied;

  
	
   

  	
   

  	
   

  
	
   

  	
  (e)

  	
  any de-grouping charges or similar charges based on law or
  contractual arrangements; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (f)

  	
  any penalty, fine, surcharge, interest, charges or costs payable in connection
  with any taxation within (a) to (e), above.

  
	
   

  	
   

  	
   

  
	
  12.2

  	
  In
  accordance with section 9.1 above, Kemira, Rockwood Germany and Rockwood
  hereby represent and warrant the following:

  
	
   

  	
   

  
	
  12.2.1

  	
  The Transferred Company has filed in good time all Tax returns and
  reports in respect of Taxes with the relevant Tax authorities as are required
  to be filed. For the avoidance of doubt, a tax return is filed in good time
  if it is filed in accordance with (i) a time limit set forth in the
  applicable tax code, or (ii) a time limit set by the relevant tax
  authority in charge. All such Tax returns are true, correct and complete in
  all material respects.

  
	
   

  	
   

  
	
  12.2.2

  	
  All Taxes required to have been paid by the Transferred Company have
  been paid in full in due time.

  

 

49

 

	
  12.2.3

  	
  The Transferred Company has not given any waiver or been granted any
  extension by any Tax authority of any period of limitation governing the time
  of assessment or collection of any Taxes.

  
	
   

  	
   

  
	
  12.2.4

  	
  There are no Tax audits, assessments or deficiencies pending against
  the Transferred Company, and, to the Warranting Party’s best knowledge, no
  such audit, assessment or deficiency is threatened, except as disclosed in Annex 12.2.4.

  
	
   

  	
   

  
	
  12.2.5

  	
  The Transferred Company has withheld, paid or remitted the relevant
  Tax authorities on a timely basis all Taxes required to have been withheld
  and paid in connection with amounts paid or owing to any employee,
  independent contractor, creditor, stockholder or other third party, and the
  Transferred Company has complied with all applicable information reporting
  requirements with respect to such amounts.

  
	
   

  	
   

  
	
  12.2.6

  	
  The Transferred Company is not a party to any Tax sharing or Tax
  allocation agreement that will survive after the Closing Date.

  
	
   

  	
   

  
	
  12.2.7

  	
  There are no material liens for Taxes (other than Taxes not yet due
  and payable) against the assets of the Business.

  
	
   

  	
   

  
	
  12.2.8

  	
  The Transferred Company does not have a permanent establishment
  outside the country of their incorporation that generates income of a capital
  income character.

  
	
   

  	
   

  
	
  12.2.9

  	
  The Warranties under clauses 12.2.1.1 through 12.2.10 shall apply mutatis mutandis to the Transferred
  Company’s consolidated Affiliates listed in Annex 10.1-1.

  
	
   

  	
   

  
	
  12.3

  	
  Remedies

  
	
   

  	
   

  
	
  12.3.1

  	
  In the event one or more of the Warranties given pursuant to this
  section 12 are incorrect and/or incomplete, the Breaching Party (the
  Warranting Party breaching such Warranty) shall indemnify and hold harmless
  the Affected Party (the Party to which such Warranty was given) against any
  liability of any JV Group Company for the payment of any and all Taxes
  arising as a result, for the avoidance of doubt, including interest, penalty
  or addition to Tax charged by the taxing authority relating to such Tax, by
  payment of an amount equal to such Taxes to the relevant JV Group Company.

  
	
   

  	
   

  
	
  12.3.2

  	
  If audits by the relevant Tax authorities or other circumstances
  (including for the avoidance of doubt the filing of tax returns) lead to
  liabilities of any JV Group Company with regard to Taxes being attributable
  to the period up to and including 31 December 2007 (the “Pre-Effective-Date Period”) and such
  Taxes were not paid prior to 1 January 2008, then

  

 

50

 

	
   

  	
   

  	
  (i)

  	
  if and to the extent such Taxes relate to JV Europe or its
  consolidated Affiliates listed in Annex 10.1-1 then Rockwood Germany shall
  indemnify and hold harmless Kemira;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)

  	
  if and to the extent such Taxes relate to Sachtleben Corp then
  Rockwood shall indemnify and hold harmless Kemira; or

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii)

  	
  if and to the extent such Taxes relate to Kemira TiO2, Kemira Inc. or
  their respective consolidated Affiliates listed in Annex 10.1-1 then Kemira
  shall indemnify and hold harmless Rockwood and Rockwood Germany

  
	
   

  	
   

  
	
   

  	
  for and against all Taxes of any JV Group Company arising as a result
  (including any such Taxes paid prior to the signing of this Agreement) by
  payment of an amount equal to such Taxes, and for the avoidance of doubt,
  including interest, penalty or addition to Tax charged by the taxing
  authority relating to such Tax, to the relevant JV Group Company. The Tax is
  attributable to the period up to and including 31 December 2007 if the
  Tax should have been paid on or before 31 December 2007 or should have
  been accounted for under the applicable generally accepted accounting
  principles as a liability or a provision in the financial statement as of 31
  December 2007. Taxes that relate to the Pre-Effective-Date Period and
  are reflected in the Financial Information and Valuation and are paid prior
  to or on 30 April 2008 shall be exempt from indemnification under this
  section 12.

  
	
   

  	
   

  
	
  12.3.3

  	
  If acts of a
  Warranting Party or a Transferred Company that are not connected with the
  Transferred Company’s Business or transactions that were conducted for the
  preparation of the Transaction lead to additional Tax liabilities of any JV
  Group Company for the period after the Pre-Effective-Date Period, the
  Warranting Party engaged in such acts must or, if a Transferred Company
  engaged in such acts then (i) Kemira if Kemira TiO2 and Kemira Inc.
  engaged in such acts, (ii) Rockwood Germany if JV Europe engaged in such
  acts or (iii) Rockwood if Sachtleben Corp engaged in such acts, must
  compensate the relevant JV Group Company for all Taxes arising as a result,
  excluding real estate transfer Tax caused by the Transaction, which shall be
  borne by the respective JV Group Companies, but including any such real
  estate transfer Taxes caused by the Water Carve-Out or the transfer of Closed
  Landfills which shall be borne and reimbursed by Rockwood Germany or Kemira,
  as the case may be.

  
	
   

  	
   

  
	
  12.3.4

  	
  The claims for the breach of any Warranty given pursuant to this
  section 12 and claims under the Tax indemnity shall become time barred
  upon expiration of a period of six months after the final and binding/non
  appealable assessment of the respective Tax.

  
	
   

  	
   

  
	
  12.3.5

  	
  To the extent that Sachtleben Corp is included in any consolidated,
  combined or unitary group with Rockwood or any of its Affiliates for period
  from 1 January 2008 through the

  

 

51

 

	
   

  	
  Closing Date, JV US shall pay to Rockwood an amount equal to the Tax
  liability that Sachtleben Corp would have incurred for such period computed
  as if Sachtleben Corp filed a Tax return for such period on a separate
  company basis, and Rockwood shall otherwise be responsible and shall
  indemnify and hold harmless JV US from any Taxes imposed on the consolidated,
  combined or unitary group.

  
	
   

  	
   

  
	
  12.3.6

  	
  Indemnification or compensation under this section 12 shall be
  excluded with respect to (i) any Tax if and to the extent such Tax can
  be recovered by the Transferred Company under a claim against any other party
  (e.g. claims for reimbursement of VAT against customers, wage tax against
  employees, withholding Tax or claims for compensation or indemnification
  against third parties under contractual arrangements) within three months and
  (ii) any VAT and VAT equivalent indebtedness due to a VAT-group
  including interest and penalties relating thereto (in this section 12.3.6 “VAT”) if and to the extent the
  Transferred Company charged with increased VAT relating to the
  Pre-Effective-Date Period will benefit from correspondingly reduced VAT in
  the period thereafter due to the attribution of taxable events to the
  Pre-Effective-Date Period (temporary differences).

  
	
   

  	
   

  
	
  12.3.7

  	
  If any claim may be made (i) for breach of Warranties or under
  an indemnity under sections 11, 13 or 14 and (ii) under this section 12
  such claim will first be made under Warranties or indemnities pursuant to
  sections 11, 13 or 14. If and to the extent the claim is satisfied under the
  Warranties or indemnities under sections 11, 13 or 14, the liability of a
  Warranting Party under this section 12 will be reduced accordingly. No
  claim of a Party under this section 12 may be indemnified or satisfied more
  than once in respect of the same Tax suffered.

  
	
   

  	
   

  
	
  12.3.8

  	
  In case of any findings, assessments, investigations (including any
  announcement of a Tax audit) or other administrative procedures of the taxing
  authorities or legal procedures which may have an effect on any amount
  payable by the Parties under this section 12 or on any other legal grounds
  (including but not limited to Tax imposed or to be imposed on the Parties due
  to a Tax group or fiscal unity), section 15 shall apply (with the
  indemnifying party being treated as the Warranting Party for purposes of
  section 15).

  
	
   

  	
   

  
	
  12.4

  	
  Sections 10.1, 10.3 and 10.4 and sections 11.1 (except for its
  definitions), 11.2, 11.4.1, 11.4.2 and 11.6 shall not apply to this section
  12.

  
	
   

  	
   

  
	
  13.

  	
  ENVIRONMENTAL WARRANTIES AND REMEDIES

  
	
   

  	
   

  
	
  13.1

  	
  For the
  purpose of this Agreement,

  
	
   

  	
   

  
	
   

  	
  “Environmental Contamination”
  means any pollutants (including, for the avoidance of doubt, copperas),
  contaminants or other dangerous substances as defined in Article 2 para
  2 of European Community Council Directive 67/548/EEC, as amended through the
  Closing 

  

 

52

 

	
   

  	
  Date, or any other substance, material or waste that is regulated
  under any Environmental Law that exist in the air, soil, soil gas, leakage,
  ground- or surface water, sea water or sea bed deposits, in or on buildings,
  technical facilities, other man-made structures, improvements, machinery or equipment
  or parts thereof, as well as waste or decommissioned sub-surface technical
  installations or parts thereof that are relevant pursuant to any
  Environmental Law applicable to the Former Sites and the Properties;

  
	
   

  	
   

  
	
   

  	
  “Environmental
  Laws” shall mean the relevant supranational, federal or state
  Laws, statutes, directives, ordinances, rules, decisions, technical
  directives, regulations, land-use planning or zoning regulations applicable
  in (i) the EU or any of its member states or (ii) the USA or any of
  its states, counties, cities or other political subdivisions applicable to
  the Transferred Company and relating to Environmental Matters as well as
  Landfills which are in force on the date of this Agreement (and not, for the
  avoidance of doubt any Environmental Laws that subsequently come into force
  and become effective);

  
	
   

  	
   

  
	
   

  	
  “Environmental
  Matters” shall mean all matters relating to the protection and
  preservation of the environment, including the soil, land surface, the air,
  ground and surface waters, sea water and sea bed deposits, and human life,
  health, living and working environment as well as plant and animal life, as
  well as matters relating to the emission of gas, dust, steam, solid objects,
  liquids, noise, odor or magnetic, electric, nuclear or other radiation into
  the neighborhood of facilities operated by the Transferred Company; and

  
	
   

  	
   

  
	
   

  	
  “Landfills”
  shall mean a site for the disposal of waste materials;

  
	
   

  	
   

  
	
   

  	
  “Closed
  Landfills” are Landfills that have been closed, or where closure
  procedures have been initiated, or that are in the after-care phase, in all
  cases within the meaning of Art. 13 of Council Directive 1999/31/EC; and

  
	
   

  	
   

  
	
   

  	
  “Pori
  Landfill” shall mean the Landfills at Pori for (i) copperas
  and filter salts/cakes and (ii) ilmenite mud residue.

  
	
   

  	
   

  
	
  13.2

  	
  The
  Transferred Company holds all material environmental permits, licenses and
  approvals of the relevant authorities and agencies that are required for the
  conduct of the Business as it is presently conducted and the consummation of
  the Transaction will not result in the cancellation, suspension, limitation
  or other change to any such permits, licenses or approvals, except where such
  cancellation, suspension, limitation or other change would not have a
  material adverse impact on the Business.

  
	
   

  	
   

  
	
  13.3

  	
  The Business
  has not received written notice of any material violation of any applicable
  Environmental Law binding upon it that has not been substantially corrected,
  except for 

  

 

53

 

	
   

  	
  violations
  that could not reasonably be expected to have a material adverse effect on
  the Business.

  
	
   

  	
   

  
	
  13.4

  	
  The Business
  is in all material respects in compliance with all material applicable
  Environmental Laws, and no investigations, proceedings or enforcement actions
  of any kind have been instituted or are pending or threatened in writing
  against the Transferred Company or the Business with respect to any material
  breach of any Environmental Law.

  
	
   

  	
   

  
	
  13.5

  	
  The permit
  (LSY-2004-Y-393) issued by the Western Finland Environmental Permit Authority
  to Kemira TiO2, dated 31 December 2007, with respect to the
  operation of Kemira TiO2’s Pori site (the “Comprehensive
  Environmental Permit”) enables Kemira TiO2 to conduct its TiO2
  Business in a manner that is materially consistent with past practice and in
  accordance with Kemira TiO2’s business plans for its TiO2 Business which
  includes capital expenditures for the treatment of co-products. The
  Comprehensive Environmental Permit is valid and enforceable and does not
  contain any terms and conditions that unreasonably restrict the operations of
  Kemira TiO2. Kemira TiO2 is not and has not been in default of any of the
  conditions of the Comprehensive Environmental Permit. There are, to Kemira’s
  best knowledge, no events, circumstances or facts currently in existence
  based upon which the Comprehensive Environmental Permit can be withdrawn,
  revoked or cancelled or upon which it will expire without renewal.

  
	
   

  	
   

  
	
  13.6

  	
  The Audited
  Annual Accounts include, in accordance with the Accounting Principles applied
  on the relevant Audited Annual Accounts, specific reservations for all claims
  and costs relating to Environmental Matters, in particular claims relating to
  the investigation, monitoring, containment, remediation or disposal of
  environmental damage (collectively the “Environmental
  Liabilities”).

  
	
   

  	
   

  
	
  13.7

  	
  The Business
  has initiated, from the point of view of a prudent business person, measures
  to comply with all requirements on the implementation under Regulation
  No. 1907/2006 of the European Parliament and of the Council concerning
  the Registration, Evaluation, and Authorisation of Chemicals (REACH), dated
  18 December 2006, as amended as of the date of this Agreement.

  
	
   

  	
   

  
	
  13.8

  	
  There is no
  Environmental Contamination on any site (other than a Closed Landfill)
  formerly used for or by any business operations (including sites that have
  been sold to third parties) of the Transferred Company, but no longer owned
  or used by the Transferred Company as of the date of this Agreement (the “Former Sites”), or on or adjacent to the
  Owned Properties or the Used Properties that would enable the relevant
  authorities to request that the Business remedy, investigate, secure or
  minimize the Environmental Contamination according to applicable
  Environmental Laws.

  

 

54

 

	
  13.9

  	
  There is
  sufficient capacity available for the permitted disposal of any sewage, waste
  and emissions (except for the disposal of Copperas, filter cake and ilmenite
  residue). The Transferred Companies do not own or store (outside the Closed
  Kemira Landfills) Copperas in excess of 100,000 metric tons.

  
	
   

  	
   

  
	
  13.10

  	
  Remedies

  
	
   

  	
   

  
	
  13.10.1

  	
  In the event one or more of the Warranties given under this
  section 13 are incorrect and/or incomplete, the Breaching Party shall
  indemnify and hold harmless the JV Group Companies against any and all
  Environmental Liabilities relating to, resulting from or arising from such
  incorrect and/or incomplete Warranty under this section 13. Where an
  Environmental Liability results in the imposition of a duty to act, the
  Breaching Party shall, at the election of the Affected Party, either properly
  perform such act or reimburse the JV Group Companies, as applicable, for the
  external and internal costs incurred in connection with complying with such
  duty to act, including, but not limited to, the reasonable costs associated
  with the interruption of business operations necessary to satisfy such duty
  to act and similar costs, such costs specifically excluding the items listed
  in section 11.2 (a) trough (d). Where an Environmental Liability results
  in a payment obligation, the Breaching Party shall, at the election of the
  Affected Party, pay the JV Group Companies, as applicable, or the relevant
  authority once such payment obligation comes due.

  
	
   

  	
   

  
	
  13.10.2

  	
  The Affected Party can only claim indemnification under this
  section 13 if and to the extent the Environmental Liabilities have been
  incurred by the Affected Party or one or more of the JV Group Companies and
  provided that the Affected Party or the JV Group Companies, as applicable, is
  required to carry out the relevant measures either:

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  pursuant to
  an unappealable enforceable decision of a competent authority or an
  Environmental Law; or

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  pursuant to
  a final and enforceable court judgment, which is not subject to any appeal,
  resulting from a third-party claim or a claim of a competent authority; or

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  pursuant to a settlement between one of the Parties and a competent
  authority that has been entered into with the prior consent of the Breaching
  Party and avoids a decision described in (a) that could otherwise have
  been legally rendered; or

  
	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  to prevent or mitigate criminal prosecution (including administrative
  offence proceedings); or

  
	
   

  	
   

  	
   

  
	
   

  	
  (e)

  	
  because prompt remediation is required pursuant to any Environmental
  Laws due to an imminent material danger; or

  

 

55

 

	
   

  	
  (f)

  	
  insofar as the Breaching Party consented to it.

  
	
   

  	
   

  
	
   

  	
  In each (a) to (e), the Affected Party shall be entitled to
  carry out only such measures which are compulsory in order to (i) in
  cases (a) to (c) fulfill the legal obligations under the respective
  document and (ii) in cases (d) and (e) avoid the scenario
  described therein. Neither Party shall be entitled to carry out any proactive
  measures prior to the occurrence of (a) through (f), which shall in
  particular include any form of exploration measures (Erkundungsmaßnahmen).

  
	
   

  	
   

  
	
  13.10.3

  	
  If a JV Group Company becomes aware of any facts that are reasonably
  likely to give rise to an indemnification claim under section 13.10,
  such JV Group Company shall notify the Breaching Party thereof in writing
  without undue delay and, to the extent then feasible, set forth the estimated
  amount of such claim, provided that the failure to so notify or a delay in so
  notifying the Breaching Party as provided in this sentence will not relieve
  the Breaching Party from any liability or obligations which it may have
  pursuant to section 13.10.

  
	
   

  	
   

  
	
  13.10.4

  	
  All claims arising pursuant to this section 13 shall be
  time-barred from the fifth anniversary of the Closing Date, provided,
  however, that to the extent any claim pursuant to this section 13 was
  notified in writing to the Breaching Party in accordance with this
  section 13 and is still pending on the fifth anniversary of the Closing
  Date, as applicable, such claim shall continue to be subject to the
  provisions of this section 13 until such claim is finally resolved.

  
	
   

  	
   

  
	
  13.10.5

  	
  Section 10.3 and sections 11.1 (except for its definitions),
  11.5 and 11.6 shall not apply to this section 13. For the avoidance of doubt
  it is hereby set forth that section 11.4 shall apply.

  
	
   

  	
   

  
	
  14.

  	
  FURTHER INDEMNITIES
  AND CARVE-OUT OF CLOSED LANDFILLS

  
	
   

  	
   

  
	
  14.1

  	
  Carve-Out of
  Closed Landfills

  
	
   

  	
   

  
	
  14.1.1

  	
  Sachtleben currently owns the Landfills “Halde I”,
  “Halde IV” and a solid material waste disposal site (Feststoffdeponie, including former
  sludge lagoons) which will be closed in July 2009 , as described in an
  indicative manner in Annex 14.1.1-1
  (the “Sachtleben Closed Landfills”)
  and Kemira TiO2 currently owns the Pori Landfill, as described in an
  indicative manner in Annex 14.1.1-2
  (the “Kemira Closed Landfills”).
  The Parties have agreed to carve out the Sachtleben Closed Landfills and the
  Kemira Closed Landfills from the JV Group Companies and treat the respective
  JV Group Companies as if the Sachtleben Closed Landfills and the Kemira
  Closed Landfills had never been part of the JV Group Companies.

  
	
   

  	
   

  
	
  14.1.2

  	
  Sachtleben will, subject to the condition precedent (aufschiebende Bedingung) of the
  execution by the relevant Parties of the Closing Memorandum at Closing,
  transfer the

  

 

56

 

	
   

  	
  Sachtleben Closed Landfills to Rockwood Germany or one of its
  Affiliates under the terms and conditions of a separate sale and purchase
  agreement between Sachtleben and Rockwood Germany or one of its Affiliates
  incorporating the key terms set out in Annex 14.1.2
  and Kemira TiO2 will, subject to the condition precedent (aufschiebende Bedingung) of the
  execution by the relevant Parties of the Closing Memorandum at Closing,
  transfer the Kemira Closed Landfills to Kemira or one of its Affiliates under
  the terms and conditions of a separate sale and purchase agreement between
  Kemira TiO2 and Kemira or one of its Affiliates incorporating the key terms
  set out in Annex 14.1.2 in
  each case without payment of additional remuneration or assumption of
  liability except as explicitly permitted by this Agreement. The Parties will
  use commercially reasonable efforts to effect the transfer of the Sachtleben
  Closed Landfills and the Kemira Closed Landfills as soon as reasonably
  practicable after the Closing Date. Any cost associated with the transfer of
  the Sachtleben Closed Landfills and/or Kemira Closed Landfills shall be borne
  by Rockwood Germany or its respective Affiliates and Kemira or its respective
  Affiliates, respectively. To the extent required as a pre-condition to
  transfer pursuant to this section 14.1.2, Rockwood Germany or its
  respective Affiliates and Kemira or its respective Affiliates shall obtain
  their own permit with regard to the Sachtleben Closed Landfills and the
  Kemira Closed Landfills, respectively, and notify the competent authorities
  of the Sachtleben Closed Landfill and the Kemira Closed Landfill of the
  indemnities under this Agreement immediately after the Closing Date and of
  the respective transfer immediately after such transfer having taken effect.

  
	
   

  	
   

  
	
  14.1.3

  	
  Rockwood Germany will indemnify and hold harmless Sachtleben against
  any liability of Sachtleben in connection with the Sachtleben Closed
  Landfills and Kemira will indemnify and hold harmless Kemira TiO2 against any
  liability of Kemira TiO2 in connection with the Kemira Landfills (e.g.
  covering, maintenance, structural damages, damages to the cover of the
  Landfill, leakages), in each case including liabilities relating to the time
  before the Closing Date. JV Group Companies shall reimburse (i) Rockwood
  Germany up to an amount of EUR 1,648,000 (allocated as follows:
  Halde I: EUR 0 (zero); Halde IV: EUR 390,000
  and Feststoffdeponie:
  EUR 1,258,000) and (ii) Kemira up to an amount of
  EUR 7,789,000, for indemnifying and holding harmless Sachtleben and
  Kemira TiO2, as the case may be, under this section 14.1.3.

  
	
   

  	
   

  
	
  14.1.4

  	
  Kemira TiO2 on behalf of Kemira and Sachtleben on behalf of Rockwood
  Germany (or their respective Affiliates) shall continue to provide ongoing
  maintenance and monitoring services for the Closed Landfills in the same
  manner and to the same extent as had been conducted in the twelve months
  prior to the Closing Date, excluding for the avoidance of doubt any such
  additional or enhanced measures required by an authority or caused by a
  deterioration of the environmental condition of the Closed Landfill and any
  remediation 

  

 

57

 

	
   

  	
  measures. Kemira TiO2 shall in particular continue to
  (i) collect and monitor the water from the Kemira Closed Landfills, and
  (ii) treat the water pumped from the Kemira Closed Landfills at its own
  costs as further described in Annex 14.1.4.
  For the avoidance of doubt, Sachtleben shall provide services for the
  so-called aftercare phase (ground-water monitoring, maintenance and
  inspection) related to all dump sites, excluding “Halde III/2”, after
  2009, which are reflected in the Sachtleben reserve amounting to
  EUR 282,000.

  
	
   

  	
   

  
	
  14.1.5

  	
  Without prejudice to any rights under this section 14.1, Kemira
  TiO2 may continue to use the Kemira Closed Landfills for the deposit of
  filter cake from its own production until the end of 2008 pursuant to the
  existing permit.

  
	
   

  	
   

  
	
  14.1.6

  	
  Kemira TiO2 provided the Western Finland Environmental Permit
  Authority with a bank guarantee of EUR 7,200,000.00 as security for
  Kemira TiO2’s obligations in relation to the Kemira Closed Landfills. Kemira
  shall procure a replacement of such bank guarantee as soon as practicable.

  
	
   

  	
   

  
	
  14.2

  	
  Other
  Indemnities

  
	
   

  	
   

  
	
  14.2.1

  	
  Kemira with
  regard to the carve-out of a 50 per cent participation previously held by
  Kemira TiO2 in Kemira Chile Commercial Limitada and Rockwood Germany with
  regard to the Water Carve-Out shall indemnify and hold harmless the JV Group
  Companies from all claims, costs, damages, liabilities and expenses relating
  thereto, including any Tax liability.

  
	
   

  	
   

  
	
  14.2.2

  	
  Kemira and
  Rockwood Germany, each with respect to its TiO2 Pigments Business, shall
  indemnify and hold harmless the JV Group Companies against all claims, costs,
  damages, liabilities and expenses due to the breach of any antitrust Laws,
  including European, Finnish, German or United States antitrust Laws, and any
  investigations by a competent competition authority, including but not
  limited to, the European Commission, the Finnish Competition Authority (Kilpailuvirasto), the Federal Cartel
  Office (Bundeskartellamt), the
  Antitrust Division of the United States Department of Justice or the United
  States Federal Trade Commission. If any antitrust Laws are breached before
  the Closing Date and such breach continues after the Closing Date, the claim
  for indemnification shall be limited pro
  rata temporis.

  
	
   

  	
   

  
	
  14.2.3

  	
  Kemira and
  Rockwood Germany, each with respect to its TiO2 Pigments Business, shall
  indemnify and hold harmless the JV Group Companies against all product
  liability claims by third parties relating to products sold before the
  Closing Date.

  
	
   

  	
   

  
	
  14.2.4

  	
  Rockwood
  Germany shall indemnify and hold harmless Sachtleben against all costs and
  damages in excess of EUR 1,616,000 with regard to the recultivation
  obligation associated with “Essenberger Bruch”.

  

 

58

 

	
  14.2.5

  	
  Kemira shall indemnify and hold harmless Kemira TiO2 against the
  potential claim associated with the divestment of Kemira’s titanium dioxide
  in the Netherlands to Tronox (Kerr-McGee) in 2000, as specified in
  Annex 9.14.

  
	
   

  	
   

  
	
  14.2.6

  	
  Rockwood Germany with regard to JV Europe and Finnish HoldCo, and
  Rockwood with regard to JV US, shall indemnify and hold harmless Kemira
  against

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  all
  liabilities incurred by JV Europe, Finnish HoldCo or JV US before the Closing
  Date; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  all
  liabilities arising from JV Europe, Finnish HoldCo or JV US incurring any
  liability before the Closing Date,

  
	
   

  	
   

  
	
   

  	
  other than related to JV Europe’s incorporation, any transfer of the
  shares in JV Europe to Rockwood Germany or in connection with the transaction
  contemplated by this Agreement, the JV Agreement or the Master Agreement.

  
	
   

  	
   

  
	
  14.3

  	
  In the event of an indemnification pursuant to this section 14,
  the indemnifying Party must compensate the JV Group Companies on a Euro by
  Euro basis or on a US Dollar for US Dollar basis, as applicable, without any
  thresholds. Sections 11.3 and 11.5, shall apply to any claim for
  indemnification under this section 13.1.

  
	
   

  	
   

  
	
  15.

  	
  THIRD-PARTY CLAIMS

  
	
   

  	
   

  
	
  15.1

  	
  After receiving written notice of any third-party claim (including
  any governmental authority) that may trigger a claim by a JV Group Company
  against the Warranting Party for indemnification pursuant to sections 11,
  12.3, 13.10 or 14 (each a “Third Party
  Claim”), such JV Group Company shall as soon as reasonably
  feasible give written notice thereof to the Warranting Party, provided that
  the failure to so notify or a delay in so notifying the Warranting Party as
  provided in this section 15.1 will not relieve the Warranting Party from any
  liability or obligations that it may have pursuant to this Agreement, except
  to the extent such Warranting Party shall actually have been materially
  prejudiced by such failure or delay. Such notice shall specify in reasonable
  detail the basis for such Third Party Claim and, to the extent feasible, set forth
  the estimated amount of such Third Party Claim, and shall include a copy of
  any relevant correspondence so far exchanged regarding such matter. If
  without undue delay after having received such notice from a JV Group
  Company, the Warranting Party sends a written notice to such JV Group Company
  in which the Warranting Party finally and bindingly accepts its liability as
  to the Third Party Claim (and specifies the limitations of liability under
  this Agreement, if any, to which such acceptance is limited), the Warranting
  Party shall be entitled to assume control of the defense of such Third Party
  Claim employing its own counsel at its sole risk, cost and expense, including
  all

  

 

59

 

	
   

  	
  related fees and costs of defense (Rechtsverfolgungskosten)
  (e.g. due to courts, witnesses, experts and including the JV Group Company’s
  out of pocket expenses).

  
	
   

  	
   

  
	
  15.2

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

  
	
   

  	
   

  
	
  15.3

  	
  If the Warranting Party does not assume control of the defense of a
  specific Third Party Claim, the JV Group Companies shall have full control of
  such defense and such proceedings and may in their sole discretion contest such
  Third Party Claim at the Warranting Party’s expense. If requested by the JV
  Group Companies, the Warranting Party shall cooperate in good faith with such
  JV Group Companies in order to effectively contest such Third Party Claim at
  the Warranting Party’s sole risk, cost and expense, including all related
  fees and costs of the defense (Rechtsverfolgungskosten)
  (e.g. due to courts,

  

 

60

 

	
   

  	
  witnesses, experts and including each JV Group Company’s out of
  pocket expenses). The Warranting Party shall be entitled, at its own expense,
  to employ its own counsel and to attend, but not actively participate in or
  to control all conferences, meetings and proceedings relating to such Third
  Party Claim. In no event shall the JV Group Companies be entitled to
  acknowledge or settle such Third Party Claim, or permit any acknowledgement
  or settlement of such Third Party Claim without the Warranting Party’s prior
  written consent, which consent shall not to be unreasonably withheld.

  
	
   

  	
   

  
	
  16.

  	
  LOCKED-BOX CONCEPT

  
	
   

  	
   

  
	
  16.1

  	
  If and to the extent (i) any of the JV Group Companies or
  (ii) the Parties with respect to any of the JV Group Companies

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  either

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)

  	
  breached or
  permitted to breach any of the covenants set out in Section 10.1.1 of
  the Master Agreement (the “Covenants”)
  in the time period from the date of this Agreement and until and including
  the Closing Date; or

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)

  	
  have done
  anything or permitted anything during the time period between the Effective
  Date and until and including the date of this Agreement that would have
  constituted a breach of the Covenants, had the Covenant already been
  applicable during this time period;

  
	
   

  	
   

  
	
   

  	
  (each such
  action, a “Breach of the No Leakage
  Provisions”),

  
	
   

  	
   

  
	
   

  	
  (b)

  	
  unless

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)

  	
  the relevant
  Breach of the No Leakage Provisions simultaneously leads to a monetary gain
  by another JV Group Company; or

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)

  	
  the relevant
  Breach of the No Leakage Provisions has been anticipated and the EBITDA and
  consolidated net debt effect resulting from such Breach of the No Leakage
  Provisions is correctly reflected in the valuation pursuant to the Financial
  Information and Valuation; or

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii)

  	
  only in the case of a Breach of the No Leakage Provisions pursuant to
  section (a)(i), a specific accruals (Rückstellungen)
  has been included in the Annual Audited Accounts to cover such Breach of the
  No Leakage Provisions; or

  

 

61

 

	
   

  	
   

  	
  (iv)

  	
  the Breach of the No Leakage Provisions has already been remedied by
  payments that have been made under the Warranties;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  then

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (i) Rockwood
  Germany in case of a Breach of the No Leakage Provisions by Rockwood Germany,
  its Affiliates, JV Europe, Finnish HoldCo, Sachtleben or any of Sachtleben’s
  Affiliates, (ii) Rockwood in case of a Breach of the No Leakage
  Provisions by Rockwood, JV US, Sachtleben Corp or any of Sachtleben Corp’s
  subsidiaries; and (iii) Kemira in case of a Breach of the No Leakage
  Provisions by Kemira TiO2, Kemira Inc., Maybrook, or any of their respective
  subsidiaries shall pay to JV Europe or JV US, as applicable, damages in the
  amount needed to remedy the relevant Breach of the No Leakage Provisions,
  provided that for purposes of this section 16.1 the amount of damages to
  be paid shall be determined in accordance with section 249 et seq. of
  the German Civil Code (BGB).

  
	
   

  	
   

  	
   

  	
   

  
	
  16.2

  	
  For the
  avoidance of doubt, the limitations set out in sections 11 through 13
  shall not apply to such compensation obligations.

  
	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
  TRANSFER OF EMPLOYEES

  
	
   

  	
   

  	
   

  	
   

  
	
  17.1

  	
  With effect
  as of the Closing Date,

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  the
  employment relationships belonging to the Oberhausen Business Unit, which are
  listed in Annex 17.1(a) (the
  “Oberhausen  Transferred Employees”), shall pass to JV
  Europe with all rights and duties pursuant to section 613a of the German
  Civil Code (BGB) as further set
  out in section 17.3;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  the services
  of the employees belonging to the sales network of Kemira’s TiO2 Pigments
  Business, which are listed in Annex 17.1(b) (the
  “Sales Network Employees”),
  shall be provided to the JV Group Companies pursuant to section 17.9 below.

  
	
   

  	
   

  	
   

  
	
  17.2

  	
  The
  employees of the JV Group Companies including the Oberhausen Transferred
  Employees, but excluding the Sales Network Employees, shall continue their employment
  relationships with the respective JV Group Company, (the employees of the JV
  Group Companies and the Oberhausen Transferred Employees and the Sales
  Network Employees together the “Transferred
  Employees”).

  
	
   

  	
   

  
	
  17.3

  	
  If one or more of the Oberhausen Transferred Employees effectively
  object to the transfer of his or her employment relationship, JV Europe shall
  indemnify and reimburse Kemira Germany for all costs and expenses in relation
  to these employees, in particular costs and 

  

 

62

 

	
   

  	
  expenses resulting from the objection against the transfer of the
  employment relationship, including, but not limited to, the costs of
  employment, termination of the employment relationship and related costs and
  legal expenses, but limited to the costs incurred until in respect of each
  Oberhausen Transferred Employee such date upon which the statutory or
  contractual notice period ends had a termination notice been given
  immediately after the objection was received. Kemira Germany will endeavor to
  terminate such employment contracts at the earliest possible date or to
  conclude termination agreements.

  
	
   

  	
   

  
	
  17.4

  	
  If, contrary to the expectations of the Parties, the employment
  relationships of individual Oberhausen Transferred Employees do not pass to
  JV Europe by operation of law (but for reasons other than an objection or by
  an employee giving notice), JV Europe is entitled but not obliged to take
  over such employment relationships on an individual contractual basis.

  
	
   

  	
   

  
	
  17.5

  	
  If
  additional employment relationships transfer to the JV Group Companies, in
  addition to the employment relationships of the Transferred Employees,
  pursuant to Law, Rockwood and Kemira (as applicable) shall bear all of the
  costs and expenses resulting from such transfer, including, but not limited
  to, the costs of terminating the employment contracts with such employees and
  related costs and legal expenses. The respective JV Group Company will
  endeavor to terminate such employment contracts at the earliest possible date
  or to conclude termination agreements.

  
	
   

  	
   

  
	
  17.6

  	
  Any obligations (including vested obligations under pension schemes,
  accrued holiday entitlement, bonuses, stock option plans, old age part-time
  arrangements), relating to periods before the Effective Date in respect of
  Transferred Employees shall as between Rockwood Germany and Rockwood on the
  one hand and Kemira on the other hand be borne and indemnified against by
  Rockwood Germany (in respect of JV Europe and its non-US Affiliates),
  Rockwood (in respect of Sachtleben Corp) and Kemira (in respect of Kemira
  TiO2 and Kemira Inc. and their respective Affiliates), except to the extent
  such obligation is already explicitly mentioned and reflected in the
  Financial Information and Valuation. For obligations that fell due between
  the Effective Date and the Closing Date, the JV Group Companies (JV Europe in
  the case of the Oberhausen Transferred Employees and the relevant JV Europe
  Group company for the Sales Network Employees) shall bear, and indemnify against,
  such obligations except as otherwise set out in this Agreement and the Master
  Agreement, including this section 17, the Warranties and section 16. The
  value of holiday claims of any Transferred Employees in Germany shall be
  calculated in accordance with section 7 para 4 of the Federal
  Holiday Act (Bundesurlaubsgesetz)
  and settled pro rata temporis for
  periods  before and from the
  Closing Date.

  

 

63

 

	
  17.7

  	
  Notifications to Transferred Employees:

  
	
   

  	
   

  
	
  17.7.1

  	
  The JV Group
  Companies shall jointly prepare all necessary notifications to the
  Transferred Employees regarding the transfer of the Kemira TiO2 Shares and
  the Kemira Oberhausen Assets.

  
	
   

  	
   

  
	
  17.7.2

  	
  The Parties shall inform the Oberhausen Transferred Employees in
  Germany about the transfer of the business pursuant to section 613a para
  5 of the German Civil Code (BGB)
  with the letter attached as a draft in Annex 17.7.2
  within 10 Business Days after the date of this Agreement and the conduct
  of the general assembly of employees pursuant to section 17.7.1. The
  facts and plans relating to the Transferred Employees that are notified in
  this letter are correct and complete from today’s point of view. Following
  the expiry of the time-limit for declaration of an objection by the employees
  of the Oberhausen Business Unit pursuant to section 613a para 6 of
  the German Civil Code (BGB)
  with regard to the German Transferred Employees and such other statutory Law
  applicable on other Transferred Employees, the Parties shall inform each
  other without undue delay (unverzüglich)
  about any employees who have objected to the transfer of their employment
  relationship. The Parties shall refrain from acts that could be reasonably
  likely to cause the Transferred Employees to object to the transfer of their
  employment relationships, except to the extent that such acts are
  contemplated by this Agreement.

  
	
   

  	
   

  
	
  17.7.3

  	
  Within 15 days after the date of this Agreement, Kemira and/or
  Kemira Germany, as applicable, shall call a general assembly of employees of
  the Oberhausen Business Unit and give JV Europe the opportunity to inform the
  Transferred Employees about the change of employer.

  
	
   

  	
   

  
	
  17.8

  	
  JV Europe shall bear the remuneration for employees’ invention
  pursuant to sections 9 and 10 of the German Employees’ Invention
  Act (Arbeitnehmererfindungsgesetz)
  payable for the employees’ inventions made by the Oberhausen Transferred
  Employees (whether or not actually transferred) or former employees of the
  Oberhausen technology center, to the extent that (i) after the Effective
  Date these are used and taken advantage of by JV Europe or its direct or
  indirect subsidiaries and (ii) such IP Right or Know-How has been
  transferred to JV Europe, provided that Kemira Germany shall pay all such
  remunerations relating to the time period before the Effective Date.

  
	
   

  	
   

  
	
  17.9

  	
  Effective as
  of the Closing Date, Kemira and its Affiliates provide to the JV Group
  Companies sales services in Italy, Spain, France, Singapore, and Chile
  through their sales network for the duration of one year commencing with the
  Closing Date, to the extent such Sales Network Employees continue to be
  employed with Kemira and its Affiliates and provided further that Kemira
  shall not terminate the employment relationships with an effect

  

 

64

 

	
   

  	
  prior to
  such one-year period other than for cause. The JV Group Companies shall
  indemnify and reimburse Kemira and its Affiliates for all reasonable costs
  and expenses in relation to these sales employees, in particular for all
  contractual payments, incurred by Kemira and/or its respective Affiliate
  during such one-year period commencing with the Closing Date. Kemira shall
  support JV Group Companies if they wish to offer employment to any of these
  sales employees (including e.g. shortening contractual notice period).

  
	
   

  	
   

  
	
  17.10

  	
  Except as otherwise provided in the US Transition Services Agreement
  (as defined in section 17.11), effective as of the Closing Date, (i) all
  employees of the US Companies who continue employment with JV US (“US Transferred Employees”) shall cease
  active participation in the US Benefit Plans, (ii) JV US shall establish
  certain benefit plans (“JV US Benefit Plans”)
  for the benefit of the US Transferred Employees as determined by JV US, and
  (iii) the US Transferred Employees shall commence participation in JV US
  Benefit Plans in accordance with the terms of such plans.

  
	
   

  	
   

  
	
  17.11

  	
  On the Closing Date and at the request of JV US, JV US and the US
  Companies shall enter into a transition services agreement in the form
  attached here as Annex 17.11 (“US Transition Services Agreement”) to
  provide for the continuation of participation by the US Transferred Employees
  for a period of time not to exceed the end of the calendar year in which the
  Closing Date occurs in the applicable US Benefit Plans that provided health
  and welfare benefits to such US Transferred Employees immediately prior to
  the Closing Date.

  
	
   

  	
   

  
	
  17.12

  	
  US Transferred Employees shall be credited for their length of
  service with the applicable US Company for purposes of determining eligibility
  to participate in, satisfying any waiting period, and vesting under JV US
  Benefit Plans, to the extent they earned credit under comparable US Benefit
  Plans. Any preexisting condition clause in any of the health coverages
  (including medical and dental coverage) included in JV US Benefit Plans shall
  be waived for the US Transferred Employees. JV US shall ensure that each US
  Transferred Employee receives credit under any JV US Benefit Plan that is a
  welfare benefit plan for any deductibles or co-payments paid by such US
  Transferred Employee and his or her dependents for the calendar year in which
  the Closing Date occurs under the applicable US Benefit Plan.

  
	
   

  	
   

  
	
  17.13

  	
  JV US shall take all steps necessary to permit each US Transferred
  Employee who has received an eligible rollover distribution (as defined in
  Section 402(c)(4)) of the IRC) from a US Benefit Plan that is a defined
  contribution savings plan to roll over such eligible rollover distribution,
  including any associated loans, as part of any lump sum cash distribution
  into an account(s) under a 401(k) savings plan established and
  maintained by JV US.

  
	
   

  	
   

  
	
  17.14

  	
  After the Closing Date, Kemira TiO2 shall reimburse Kemira for
  payments made to Mr. Del Dotto

  

 

65

 

	
   

  	
  under the earn-out arrangement originating from the Tri-K
  acquisition, provided, however, that such reimbursement shall be limited to
  payments made after 1 April 2008 and shall not exceed USD 1,000,000.00.
  The obligation to reimburse under this section 17.14 shall not be
  treated as an Intercompany Receivable within the meaning of the Master
  Agreement.

  
	
   

  	
   

  
	
  18.

  	
  TRADEMARKS
  AND COMPANY NAME “KEMIRA”

  
	
   

  	
   

  
	
  18.1

  	
  JV Europe,
  Finnish HoldCo, Kemira TiO2 and Kemira Inc. shall refrain from using the
  corporate name and the trademark “KEMIRA” and any derivative or abbreviation
  thereof (the “Kemira Trademarks”)
  that reasonably implies a connection between the Joint Venture Group
  Companies on the one hand and Kemira on the other hand immediately after the
  Closing Date.

  
	
   

  	
   

  
	
  18.2

  	
  The JV Group
  Companies shall, however, be allowed to:

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  sell off products and packaging and use up labels bearing the Kemira
  Trademarks for a period of one (1) year after the Closing Date, provided
  that such products, packaging and labels are held in stock by Kemira TiO2 or
  Kemira Inc. or are part of the Kemira Oberhausen Assets as of the Closing
  Date; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  use up
  business paper and advertising materials bearing the Kemira Trademarks for a
  period of six (6) months after the Closing Date.

  
	
   

  	
   

  	
   

  
	
  18.3

  	
  Kemira TiO2 and Kemira Inc. shall change their company names within
  three (3) months after the Closing Date to new company names that do not
  contain the Kemira Trademarks or any other element that reasonably implies a
  connection between Kemira TiO2 and Kemira Inc. on the one hand and Kemira on
  the other hand. Kemira TiO2 and Kemira Inc. may, however, use a reference to
  their former character as an affiliate of Kemira (e.g. “former Kemira
  Pigments Business”) for a period of one year after the Closing Date.

  
	
   

  	
   

  
	
  19.

  	
  CONFIDENTIALITY

  
	
   

  	
   

  
	
  19.1

  	
  The Parties must keep
  secret the contents of this Agreement to the extent that no statutory
  disclosure obligations exist or the respective other Party has not consented
  to the disclosure. The Parties must also keep secret any information they
  have about each other and about the enterprises affiliated with the
  respective other Party as defined in section 15 of the German Stock
  Corporation Act (AktG), to the
  extent that such information is not known or available to the public, or the
  respective other Party has not consented to the disclosure of the
  information.

  

 

66

 

	
  19.2

  	
  If any disclosure or announcement of confidential matters referred to
  in section 19.1 is required by Law or any governmental or
  quasi-governmental authority, such disclosure may be made by the Party that
  is required to make such disclosure after consultation with the other
  Parties, unless such consultation is not practically possible before a Party
  is required to make a disclosure.

  
	
   

  	
   

  
	
  19.3

  	
  Notwithstanding section 19.1, each Party may disclose the
  content of this Agreement to any of its Affiliates.

  
	
   

  	
   

  
	
  19.4

  	
  Any press release or similar disclosure of any Party concerning the
  Transaction shall require the prior consent of the other Parties except for
  press releases in the meaning of section 18.2.

  
	
   

  	
   

  
	
  20.

  	
  MISCELLANEOUS

  
	
   

  	
   

  
	
  20.1

  	
  This Agreement, the Master Agreement and
  the JV Agreement including their annexes and the documents they refer to,
  contains the entire agreement of the Parties with respect to the subject
  matter hereof. Any supplements or amendments to or a termination of this
  Agreement, as well as any declarations to be made hereunder, shall be valid
  only if made in writing, or if required by Law, in due notarial form. This
  shall also apply to any change to, or cancellation of, this provision.

  
	
   

  	
   

  
	
  20.2

  	
  No Party may assign or otherwise transfer
  any rights or claims under or in connection with this Agreement to a third
  party without the prior written consent of the other Parties.

  
	
   

  	
   

  
	
  20.3

  	
  Unless otherwise explicitly provided for in this Agreement, neither
  this Agreement nor any provision contained in this Agreement is intended
  to confer any rights or remedies upon any person or entity other than the
  Parties.

  
	
   

  	
   

  
	
  20.4

  	
  This Agreement shall be governed
  exclusively by the Laws of the Federal Republic of Germany. The English
  language version shall be determinative (even if a translation is made),
  provided that where German or Finnish expressions are used in brackets, the
  German or Finnish expression, as the case may be, shall be determinative.

  
	
   

  	
   

  
	
  20.5

  	
  In this Agreement:

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  any German
  or Finnish legal term for any action, remedy, method of judicial proceeding,
  legal document, legal status, court, official or any legal concept or thing
  shall, in respect of any jurisdiction other than Germany and Finland, as the
  case may be, be deemed to include what most closely approximates in that
  jurisdiction to the German or Finnish legal term and any reference to any
  German or Finnish statute

  

 

67

 

	
   

  	
   

  	
  shall be construed so as to include equivalent or analogous Laws of
  any other jurisdiction;

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  the headings shall not affect the interpretation of this Agreement;
  and

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  any capitalized terms used but not defined in this Agreement shall
  have the same meaning as ascribed to such terms in the Master Agreement and
  the JV Agreement, as the case may be.

  
	
   

  	
   

  	
   

  
	
  20.6

  	
  All disputes arising in connection with
  this Agreement or its validity shall be finally settled in accordance with
  Arbitration Rules of the International Chamber of Commerce without recourse to the ordinary courts of
  law. The place of arbitration with respect to any claims relating to, arising
  from or in connection with this Agreement shall be Frankfurt am Main,
  Germany. The Arbitral Tribunal shall consist of three arbitrators. The
  language of the arbitral proceedings shall be English.

  
	
   

  	
   

  
	
  20.7

  	
  Unless provided otherwise in this
  Agreement, all declarations (Willenserklärungen)  to be made or notices to be given by
  the Parties pursuant to this Agreement shall be in writing in English and
  delivered by hand, by courier, by facsimile or by e-mail in pdf-format (in
  the latter case only if such e-mail is followed by facsimile or mail
  confirmation within two weeks) to the person at the address set forth below,
  or such other address as may be designated by the respective Party to the
  other Party in the same manner:

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  Notifications to Rockwood Holdings and Rockwood:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Rockwood Specialties Group, Inc.

  
	
   

  	
   

  	
  Thomas J. Riordan, Senior Vice President,
  Law and Administration

  
	
   

  	
   

  	
  100 Overlook
  Center

  
	
   

  	
   

  	
  Princeton NJ
  08540

  
	
   

  	
   

  	
  USA

  
	
   

  	
   

  	
  Facsimile:+1
  (609) 514-8722

  
	
   

  	
   

  	
  E-mail:
  TRiordan@rocksp.com

  

 

68

 

	
   

  	
  (b)

  	
  Notifications to Rockwood Germany:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Rockwood
  Specialties Group GmbH

  
	
   

  	
   

  	
  Udo Pinger

  
	
   

  	
   

  	
  Königsberger Straße 1

  
	
   

  	
   

  	
  60487 Frankfurt am Main

  
	
   

  	
   

  	
  Germany

  
	
   

  	
   

  	
  Facsimile:+49 (69) 7165-5693

  
	
   

  	
   

  	
  E-mail: udo.pinger@rocksp.de

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  Notifications to Sachtleben:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Sachtleben Chemie GmbH

  
	
   

  	
   

  	
  Prof. Dr. Wolf-Dieter
  Griebler

  
	
   

  	
   

  	
  Dr.-Rudolf-Sachtleben-Str. 4

  
	
   

  	
   

  	
  47198 Duisburg

  
	
   

  	
   

  	
  Germany

  
	
   

  	
   

  	
  Facsimile:+49 (2066) 22-3201

  
	
   

  	
   

  	
  E-mail:
  w.d.griebler@sachtleben.de

  
	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  Notifications to
  JV Europe and Finnish HoldCo:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Sachtleben Chemie GmbH

  
	
   

  	
   

  	
  Prof. Dr. Wolf-Dieter
  Griebler

  
	
   

  	
   

  	
  Dr.-Rudolf-Sachtleben-Str. 4

  
	
   

  	
   

  	
  47198 Duisburg

  
	
   

  	
   

  	
  Germany

  
	
   

  	
   

  	
  Facsimile:+49 (2066) 22-3201

  
	
   

  	
   

  	
  E-mail:
  w.d.griebler@sachtleben.de

  
	
   

  	
   

  	
  each with a copy
  to Rockwood Germany and Kemira

  

 

69

 

	
   

  	
  (e)

  	
  Notifications to JV US

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  White
  Pigments LLC

  
	
   

  	
   

  	
  c/o Rockwood
  Specialties Group, Inc.

  
	
   

  	
   

  	
  Thomas J.
  Riordan, Senior Vice President, Law and Administration

  
	
   

  	
   

  	
  100 Overlook Center

  
	
   

  	
   

  	
  Princeton NJ 08540

  
	
   

  	
   

  	
  USA

  
	
   

  	
   

  	
  Facsimile:+1 (609) 514-8722

  
	
   

  	
   

  	
  E-mail: TRiordan@rocksp.com

  
	
   

  	
   

  	
   

  
	
   

  	
  (f)

  	
  Notifications to Kemira, Kemira TiO2 and
  Kemira Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Hannu
  Virolainen, President Kemira Speciality Business Area

  
	
   

  	
   

  	
  Kemira OYJ

  
	
   

  	
   

  	
  Porkkalankatu 3

  
	
   

  	
   

  	
  00180 Helsinki

  
	
   

  	
   

  	
  Finland

  
	
   

  	
   

  	
  Facsimile:+358
  - (0) 10 862 1068

  
	
   

  	
   

  	
  Email: hannu.virolainen@kemira.com

  
	
   

  	
   

  	
   

  
	
   

  	
  (g)

  	
  Notifications to Kemira Germany

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Hermann-Josef Frings, Managing Director

  
	
   

  	
   

  	
  Kemira Germany GmbH

  
	
   

  	
   

  	
  Marie-Curie-Straße 10

  
	
   

  	
   

  	
  51377 Leverkusen

  
	
   

  	
   

  	
  Germany

  
	
   

  	
   

  	
  Facsimile:+49 - (0) 214 20690-250

  
	
   

  	
   

  	
  Email: hermann-josef.frings@kemira.com

  

 

	
  21.

  	
  AUTHORIZED
  AGENT

  
	
   

  	
   

  
	
  21.1

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

  

 

70

 

	
   

  	
  process is an attorney admitted to the German bar (in Deutschland zugelassener Rechtsanwalt)
  and his appointment has been notified to and approved in writing by Rockwood
  (which approval shall not be unreasonably withheld). Kemira and Kemira
  Germany shall upon the appointment of any new agent for service of process
  (as the case may be) issue to the agent a written power of attorney (Vollmachtsurkunde) and shall irrevocably
  instruct the agent to submit such deed in connection with any service of
  process under this Agreement. A certified copy of the power of attorney shall
  be submitted to Rockwood.

  
	
   

  	
   

  
	
  21.2

  	
  Rockwood, Rockwood Holdings and Rockwood Germany hereby appoint the law firm of Clifford Chance
  Partnerschaftsgesellschaft, Mainzer Landstraße 46, 60325 Frankfurt am Main, Germany, as its agent for service of
  process (Zustellungsbevollmächtigter)
  for all legal proceedings arising out of or in connection with this
  Agreement. This appointment shall only terminate upon the appointment of
  another agent for service of process domiciled in Germany, provided that the
  agent for service of process is an attorney admitted to the German bar (in Deutschland zugelassener Rechtsanwalt)
  and his appointment has been notified to and approved in writing by Kemira
  (which approval shall not be unreasonably withheld). Rockwood and Rockwood
  Germany shall upon the appointment of any new agent for service of process
  (as the case may be) issue to the agent a written power of attorney (Vollmachtsurkunde) and shall irrevocably
  instruct the agent to submit such deed in connection with any service of
  process under this Agreement. A certified copy of the power of attorney shall
  be submitted to Kemira.

  
	
   

  	
   

  
	
  22.

  	
  SEVERABILITY

  
	
   

  	
   

  
	
   

  	
  Should any provision of this Agreement, or any provision incorporated
  into this Agreement in the future, be or become invalid or unenforceable, the
  validity or enforceability of the other provisions of this Agreement shall
  not be affected thereby. The invalid or unenforceable provision shall be
  deemed to be substituted with retroactive effect by a suitable and equitable
  provision that, to the extent legally permissible, comes as close as possible
  to the intent and purpose of the invalid or unenforceable provision. The same
  shall apply: (i) if the Parties have, unintentionally, failed to address
  a certain matter in this Agreement (Regelungslücke);
  in case a suitable and equitable provision shall be deemed to have been
  agreed upon with retroactive effect and which comes as close as possible to
  what the Parties, in the light of the intent and purpose of this Agreement,
  would have agreed upon if they had considered the matter; or (ii) if any
  provision of this Agreement is invalid because of the scope of any time
  period of performance stipulated herein; in this case a legally permissible
  time period or performance shall be deemed to have been agreed which comes as
  close as possible to the stipulated time period or performance.

  

 

71

 

* * *

 

	
  Rockwood Holdings, Inc.

  	
   

  
	
   

  	
   

  
	
  BY: 

  	
  /s/ CLEMENS ALFRED ROLLMAN

  	
   

  
	
   

  	
  Clemens Alfred Rollman

  
	
  Rockwood Specialties Group, Inc.

  	
   

  
	
   

  	
   

  
	
  BY: 

  	
  /s/ CLEMENS ALFRED ROLLMAN

  	
   

  
	
   

  	
  Clemens Alfred Rollman

  
	
  Deukalion
  Einhundertvierundzwanzigste Vermögensverwaltungs GmbH

  
	
   

  	
   

  
	
  BY: 

  	
  /s/ CLEMENS
  ALFRED ROLLMAN

  	
   

  
	
   

  	
  Clemens Alfred Rollman

  
	
  White Pigments Holding Oy

  	
   

  
	
   

  	
   

  
	
  BY: 

  	
  /s/ CLEMENS ALFRED ROLLMAN

  	
   

  
	
   

  	
  Clemens Alfred Rollman

  
	
  White Pigments LLC

  	
   

  
	
   

  	
   

  
	
  BY: 

  	
  /s/ CLEMENS ALFRED ROLLMAN

  	
   

  
	
   

  	
  Clemens Alfred Rollman

  
	
  Kemira Oyj

  	
   

  
	
   

  	
   

  
	
  BY: 

  	
  /s/ VERENA HÜGEL

  	
   

  
	
   

  	
  Verena Hügel

  
	
  Kemira Pigments Oy

  	
   

  
	
   

  	
   

  
	
  BY: 

  	
  /s/ VERENA HÜGEL

  	
   

  
	
   

  	
  Verena Hügel

  
				

 

 

72

 

	
  Kemira Germany GmbH

  	
   

  
	
   

  	
   

  
	
  BY: 

  	
  /s/ VERENA HÜGEL

  	
   

  
	
   

  	
  Verena Hügel

  
	
  Rockwood Specialties Group GmbH

  	
   

  
	
   

  	
   

  
	
  BY: 

  	
  /s/ LEIF U. SCHRADER

  	
   

  
	
   

  	
  Leif U. Schrader

  
	
  Sachtleben Chemie GmbH

  	
   

  
	
   

  	
   

  
	
  BY: 

  	
  /s/
  LORENZO MATTHAEI

  	
   

  
	
   

  	
  Lorenzo Matthaei

  
				

 

73

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