Document:

EX-10.1

DATED            April 24, 2009 

BRITISH WATERWAYS BOARD (1)

- and -

CTI BILLING SOLUTIONS LIMITED (2)

LEASE

of

Office Suites 502, 504 and 506, Daisyfield Business Centre,

Appleby Street, Blackburn, Lancashire

LEASE PARTICULARS

	 	 	 
	Date:
	 	

	“Landlord”
	 	BRITISH WATERWAYS BOARD of 64 Clarendon Road, Watford, Hertfordshire, WD17 1DA

	“Tenant”
	 	CTI BILLING SOLUTIONS LIMITED (company number  02815983) whose registered office is at

Suite 504, Daisyfield Business Centre, Appleby Street, Blackburn, BB1

3BL                                        

	“Premises”
	 	Office Suites 502, 504 and 506, Daisyfield Business Centre, Appleby Street, Blackburn,

Lancashire forming part of the Building including:

	 	 	(a) the interior plaster and other finishes of the external walls of such premises (but

excluding any other part of such walls);

(b) the interior plaster and other finishes of the internal loadbearing walls dividing such

premises from other parts of the Building (but excluding any other part of such walls);

(c) the ceiling finishes and any suspended or false ceilings and any voids between the

ceiling and any suspended or false ceiling (but excluding any other part of the ceilings);

(d) the internal surfaces of the doors and windows and door and window frames and fittings

at such premises and the glass within such doors and windows;

(e) the Landlord’s fixtures from time to time within such premises but if those fixtures

are conduits then only if they fall within Clause (g) below together with all carpets and

floor coverings provided by the Landlord (and the carpets and floor coverings renewing

those so provided);

(f) the Conduits within and exclusively serving such premises and which are owned by the

Landlord (but excluding any other Conduits)

	 	 	but excluding the Main Structure and Excluded Items (as later defined)

	“Contractual Term”
	 	3 years commencing on and including the Term Commencement Date

	“Rent”
	 	Seventy Four Thousand Eight Hundred and Fifty Pounds (£74,850) per annum from and including

1 January 2009 until and including 31 December 2009, Seventy Five Thousand Eight Hundred

and Fifty pounds (£75,850) per annum from and including 1 January 2010 to and including

31 December 2010 and Seventy Six Thousand Eight Hundred and Fifty pounds (£76,850) per

annum from and including 1 January 2011 to and including 31 December 2011 exclusive of VAT

	“Rent Payment Date”
	 	1st January, 1st April, 1st July and 1st October

	“Rent Start Date”
	 	1 July 2009

	“Permitted Use”
	 	offices within use Class B1 of the Schedule to the Town & Country Planning (Use Classes)

Order 1987

	“Break Date”
	 	the first anniversary of the commencement of the Contractual Term and the second

anniversary of the commencement of the Contractual Term

	“Subjections”
	 	All rights (whether public or private) easements quasi-easements privileges restrictions

covenants licences bye-laws wayleaves and stipulations of whatever nature affecting the

Premises including without limitation The rights easements quasi-easements privileges

restrictions covenants licences and stipulations contained mentioned or referred to in the

property, proprietorship and charges registers at the Land Registry to title number A

124150 and LA 897811

	“Term Commencement

Date”
	 	1 January 2009

THIS LEASE made on the date shown in the Lease Particulars above (which are incorporated herein)
between (1) the Landlord and (2) the Tenant [and (3) the Surety

1

1

DEFINITIONS AND INTERPRETATION

	 	1.1	 	In this Lease where the context so admits the words and expressions set out in
the Lease Particulars shall have the meanings there set out and the following words and
expressions shall mean:

	 	 	 
	“Building”
	 	the Building know as Daisyfield Business Centre, Appleby

Street, Blackburn as shown edged blue on plan 1

	“Common Parts”
	 	the roads, paths, loading and bin areas, Conduits shared car

parks, forecourts and other parts of the Estate (other than

the Premises) and the entranceways, passages, staircases and

lifts (if any) of the Building all of which are intended for

common use other than any part of the Estate or the Building

specifically demised to a tenant on terms such that a tenant

is to be responsible for the same

	“Conduits”
	 	pipes drains gutters flues channels wires and other

conducting media and ancillary apparatus in or serving the

Estate

	“Estate”
	 	Daisyfield Business Centre, Appleby Road, Blackburn,

Lancashire and associated land and includes any variations

or extensions made by the Landlord from time to time on the

Estate, as shown edged red on plan 1

	“Excluded Items”
	 	the items contained in Schedule 4 of this Lease

	“Insured Risks”
	 	fire lightning explosion aircraft (not being hostile

aircraft) and articles dropped therefrom storm tempest flood

burst water pipes and any other insurable risks against

which the Landlord shall from time to time deem it desirable

to insure subject in each case to:

	 	 	1 insurance for any risk being reasonably obtainable on

normal commercial terms

2 such exclusions and limitations as may be imposed by the

insurers

	“Interest Rate”
	 	the base rate of National Westminster Bank plc or such other

bank as the Landlord may nominate from time to time or if

the base rate shall cease to exist such other rate of

interest as is most closely comparable with it as may be

specified by the Landlord

	“Landlord”
	 	the Landlord named in the Lease Particulars and where the

context so admits the reversioner for the time being

expectant upon the termination of the Lease hereby created

	“Main Structure”
	 	the roof sky lights foundations floor structures beams and

columns of the Building

	“Services”
	 	the services to be provided by the Landlord pursuant to

Schedule 3 of this Lease

	“Tenant”
	 	the Tenant named in the Lease Particulars and where the

context so admits its successors in title to the Lease

hereby created

	“Term”
	 	the Contractual Term

	“VAT”
	 	value added tax chargeable under the Value Added Tax Act

1994 or any similar replacement or additional tax

and in this Lease where the context so admits

	 	1.2	 	Where the Landlord or the Tenant for the time being are two or more persons
obligations expressed or implied to be made by or with such persons are deemed to be
made by or with such persons jointly and severally.

	 	1.3	 	Words importing one gender include all other genders and words importing the
singular include the plural and vice versa.

	 	1.4	 	References to “the last year of the Term” include the last year of the Term if
the Term shall determine otherwise than by effluxion of time and references to “the
expiration of the Term” include such other determination of the Term.

	 	1.5	 	References to any right of the Landlord to have access to the Premises shall be
construed as extending to any superior Landlord and to all persons authorised by the
Landlord and any superior Landlord (including agents, professional advisers,
contractors, workmen and others).

	 	1.6	 	Any covenant by the Tenant not to do an act or thing shall be deemed to include
an obligation to use all best endeavours not to permit or suffer such act or thing to
be done by another person.

	 	1.7	 	Any provisions in this Lease referring to the consent or approval of the
Landlord shall be construed as also requiring the consent or approval of any superior
Landlord where such consent shall be required but nothing in this Lease shall be
construed as implying that any obligation is imposed upon any superior Landlord not
unreasonably to refuse any such consent or approval.

	 	1.8	 	References to “consent of the Landlord” or words to similar effect mean a
consent in writing signed by or on behalf of the Landlord and to “approved” and
“authorised” or words to similar effect mean (as the case may be) approved or
authorised in writing by or on behalf of the Landlord.

	 	1.9	 	The terms the “parties” or “party” mean the Landlord and/or the Tenant.

	 	1.10	 	Any references to a specific statute include any statutory extension or
modification, amendment or re-enactment of such statute and any regulations or orders
made under such statute and any general reference to “statute” or “statutes” includes
any regulations or orders made under such statute or statutes.

	 	1.11	 	References in this Lease to any clause or schedule or the Particulars without
further designation shall be construed as a reference to the Clause Schedule or
Particulars to this Lease so numbered.

	 	1.12	 	The clause paragraph and schedule headings do not form part of this Lease and
shall not be taken into account in its construction or interpretation.

	 	 	 
	2	 	DEMISE AND RENT RESERVATION
	 	 	In consideration of the rents reserved in this Lease and the covenants on

the Tenant’s part contained in this Lease the Landlord HEREBY DEMISES

unto the Tenant the Premises TOGETHER WITH the easements and rights

specified in Schedule 1 (if any) EXCEPT AND RESERVED unto the Landlord

and others the easements and rights specified in Schedule 2 TO HOLD the

Premises unto the Tenant for the Contractual Term SUBJECT TO the

Subjections (if any) YIELDING AND PAYING therefore to the Landlord with

effect from the Rent Start Date yearly and proportionately for any

fraction of a year the rents set out hereunder

	 	2.1	 	the Rent to be paid by equal quarterly payments in advance on or before each
Rent Payment Date the first payment (apportioned in respect of the period from the Rent
Start Date up to and including the day immediately preceding the next following rent
Payment Date after the Rent Start Date) to be paid on the 1st July 2009;

	 	 	 	 	 	 	 	 	 
	 	 	 	 	2.2

2.3
	 	all interest payable under this Lease; and

all other sums due under this Lease

	 	3	 	 	TENANT’S COVENANTS
	 	

	 	 	 	 	THE Tenant HEREBY COVENANTS with the Landlord throughout the Term as follows:
	 	 	 	 	 	3.1	 	 	To pay rent

	 	3.1.1	 	To pay the reserved rents at the times and in manner aforesaid
without any deduction or set off

	 	3.2	 	Interest

If any rents or other sums payable hereunder shall be due but unpaid to pay interest
thereon calculated on a daily basis from the due date until receipt by the Landlord
at the rate of 2 per centum per annum (except as otherwise provided herein) over the
Interest Rate compounded on the Rent Payment Dates (which rate shall apply before as
well as after any judgment of the Court) Provided that this sub-clause shall not
prejudice any other right or remedy in respect of such rents

	 	3.3	 	Outgoings

	 	3.3.1	 	To indemnify the Landlord against all charges for electricity
gas and water consumed or used at or in relation to the Premises including
meter rents and statutory charges and to comply with the lawful requirements
and regulations of the suppliers. The Landlord shall use its best endeavours
to obtain the lowest cost supply for electricity gas and water

	 	3.3.2	 	To comply with the requirements of the supply authorities
relating to any mains, water, electricity and gas for the Premises and not to
do anything which may result in the Landlord incurring any penalty, danger,
compensation or expenses

	 	3.3.3	 	To be responsible for all rates, taxes, assessments, duties,
charges, impositions and outgoings which are now or during the Term shall be
charged, assessed or imposed upon the Premises or upon the owner or occupier of
them or all proper proportions of them as determined by the Landlord

	 	3.4	 	To repair

	 	3.4.1	 	To keep in good and substantial repair and condition the
Premises (damage caused by any of the Insured Risks excepted save to the extent
that payment is withheld or refused due to any act neglect or default of the
Tenant or anyone at the Premises expressly or impliedly with the authority of
the Tenant)

	 	3.4.2	 	(unless this function is provided by the Landlord as part of
the provision of the Services) to service regularly in accordance with
statutory requirements the heating installations within the Premises

	 	3.5	 	To paint and redecorate

In the last 3 months of the Term in a proper and workmanlike manner and to the
reasonable satisfaction of the Landlord to paint all the inside parts in the
Premises previously painted with 2 coats of good quality paint in colours and
materials previously approved by the Landlord and at the same time to oil varnish or
treat all parts thereof previously or requiring to be so treated and to wash down
all washable surfaces

	 	 	 
	3.6	 	To yield up
	 	 	At the expiration or sooner determination of the Term:

	 	3.6.1	 	peaceably to yield up to the Landlord the Premises with vacant
possession in good repair and decorated in accordance with the several
covenants herein contained

	 	3.6.2	 	to give up all keys of the Premises to the Landlord

	 	3.6.3	 	to remove all Tenant’s chattels and all rubbish from the
Premises and all Tenant’s fixtures and fittings and to make good immediately
any damage caused by the removal

	 	 	 	 	 	 	 
	3.7	 	Compliance with law
	 	 	 	3.7.1	 	 	The Tenant shall comply with all laws relating to:

	 	3.7.1.1	 	the Premises and the occupation and use of the Premises by the
Tenant

	 	3.7.1.2	 	the use of all Conduits and machinery and equipment at or
serving the Premises

	 	3.7.1.3	 	any works carried out at the Premises; and

	 	3.7.1.4	 	all materials kept at or disposed from the Premises

	 	3.7.2	 	Without prejudice to any obligation on the Tenant to obtain
any consent or approval under this Lease, the Tenant shall carry out all works
that are required under any law to be carried out at the Premises whether by
the owner or the occupier

	 	3.7.3	 	Within fourteen days after receipt of any notice or other
communication affecting the Premises (and whether or not served pursuant to any
law) the Tenant shall:

	 	3.7.3.1	 	send a copy of the relevant document to the Landlord; and

	 	3.7.3.2	 	in so far as it relates to the Premises, take all steps
necessary to comply with the notice or other communication and take
any other action in connection with it as the Landlord may require

	 	3.7.4	 	The Tenant shall not:

	 	3.7.4.1	 	apply for or implement any planning permission (whether
expressly granted or deemed) in respect of the Premises; nor

	 	3.7.4.2	 	enter into any planning obligation in respect of the Premises

	 	3.7.5	 	The Tenant shall not carry out any works at the Premises in
respect of which the Construction (Design and Management) Regulations 2007
apply without the consent of the Landlord.

	 	3.7.6	 	As soon as the Tenant becomes aware of any defect in the
Premises, it shall give the Landlord notice of it. The Tenant shall indemnify
the Landlord against any liability under the Defective Premises Act 1972 in
relation to the Premises by reason of any failure of the Tenant to comply with
any of the tenant covenants in this Lease

	 	3.7.7	 	The Tenant shall keep the Premises equipped with all fire
prevention, detection and fighting machinery and equipment and fire alarms
which are required under all relevant laws or required by the insurers of the
Premises or reasonably recommended by them or reasonably required by the
Landlord and shall keep that machinery, equipment and alarms properly
maintained and available for inspection

	 	3.7.8	 	The Tenant shall comply with all planning conditions and
planning obligations relating to or affecting the Premises (whether relating to
or affecting the Premises exclusively or as part of the Estate) to the extent
and in the manner required by such planning conditions or planning obligations
and if required by the Landlord shall do so in conjunction with the Landlord
and/or with other tenants or occupiers of the Estate

	 	3.8	 	To permit entry to examine and do repairs

To permit entry to the Premises or any part thereof at all reasonable hours in the
daytime on reasonable prior notice being given (or without prior notice and at any
time in emergency):

	 	3.8.1	 	by the Landlord and all persons so authorised to view the same
to examine the state and condition thereof to take inventories of the fixtures
and fittings therein and to make any inspection which may be required for the
purposes of the Landlord and Tenant Acts 1927 and 1954 or any other enactments
for the time being affecting the Premises the Estate or the owner or occupier
thereof and for any other purpose connected with the interest of the Landlord
in the Estate or its disposal charge or demise

	 	3.8.2	 	by the Landlord and (with the previous authority of the
Landlord) the tenants and occupiers of any adjoining premises so as to execute
repairs decorations or alterations to the Premises or the adjoining premises or
the Estate and which cannot otherwise reasonably be executed without such entry
and to empty cleanse renew or repair any of the Conduits belonging to the
Premises or such adjoining premises or the Estate

subject in all such cases to the persons so entering making good in a reasonable
manner any damage thereby occasioned to the Premises

	 	3.9	 	To repair on notice

To repair and make good to the satisfaction of the Landlord all breaches of covenant
defects and wants of repair for which the Tenant may be liable within two calendar
months after the giving of notice to the Tenant or sooner if requisite

	 	3.10	 	Landlord may repair on Tenant’s default

That if the Tenant shall at any time default in the performance of any of the
covenants herein contained relating to the repair decoration cleansing or condition
of the Premises or any part thereof of which notice has been given as aforesaid it
shall be lawful for the Landlord following the expiry of such notice (but without
prejudice to the right of re-entry hereinafter contained) to enter upon the Premises
and repair and restore the same and all expenses incurred thereby (which expression
shall include but not be limited to the proper fees of professional advisers) shall
be a debt immediately payable by the Tenant to the Landlord on demand

	 	3.11	 	Landlord’s costs

To pay to the Landlord on an indemnity basis all solicitors’ counsels’ surveyors’
and other costs expenses and fees incurred by the Landlord:

	 	3.11.1	 	in or in contemplation of any proceedings relating to the Premises whether or
not under Sections 146 or 147 of the Law of Property Act 1925 or the
preparation and service of a notice thereunder (whether or not any right of
re-entry or forfeiture has been waived by the Landlord or a notice served on
the Tenant has been complied with or the Tenant has enjoyed relief under the
provisions of the Law of Property Act 1925 or forfeiture is avoided otherwise
than by relief granted by the Court)

	 	3.11.2	 	incidental to the enforcement of any of the Tenant’s covenants in this Lease
and in particular in the preparation and service of a schedule of dilapidations
at any time during or after the Term and in the inspection of the works which
are the subject of such schedule whether during or after the carrying out
thereof

	 	3.11.3	 	in connection with the recovery of any arrears

	 	3.11.4	 	in respect of any application for consent required by this Lease whether or
not such consent is granted

	 	3.12	 	Insurance

	 	3.12.1	 	Not to do or omit any act whatsoever whereby any insurance effected on the
Premises or anything therein or on the Estate or on any adjoining or
neighbouring premises of the Landlord or of any associated company of the
Landlord may become void or voidable or the premiums payable for such insurance
increased

	 	3.12.2	 	To the extent that any insurance premium payable in respect of any such
adjoining or neighbouring premises or the Estate is increased by any use act or
omission of the Tenant (or anyone at the Premises expressly or impliedly with
the authority of the Tenant or any undertenant) to pay to the Landlord on
demand the full amount of such increase (and not only the proportion which the
Premises bears to any such adjoining or neighbouring premises or the Estate)

	 	3.12.3	 	In the event of such adjoining or neighbouring premises or the Estate or any
part thereof being destroyed or damaged by any of the Insured Risks and the
insurance money being wholly or partly irrecoverable by reason of any act
neglect omission or default of the Tenant (or anyone at the Premises expressly
or impliedly with the authority of the Tenant) then and in every such case the
Tenant will pay to the Landlord forthwith on demand the whole or (as the case
may require) a fair proportion of the cost of completely rebuilding and
reinstating the same

	 	3.12.4	 	To comply with the reasonable requirements and recommendations of the
Landlord’s insurers and not to store on the Premises any specially inflammable
explosive combustible or deleterious or otherwise hazardous substance and not
to release any such substance on to the Premises or on to or into any other
land air or water

	 	3.12.5	 	Not to effect any insurance in respect of a risk against which the Landlord
shall insure under clause 4.2 hereof and not to request the insurers to make a
note of the interest of the Tenant or the Tenant’s mortgagee on any policy
effected by the Landlord

	 	3.12.6	 	To maintain full and adequate public liability and third party insurance in
respect of the Premises and the Tenant’s use of the Premises

	 	3.13	 	Alterations

	 	3.13.1	 	Not to make any alterations to the Premises except internal non-structural
alterations for which the Landlord shall have given its prior written consent
(such consent not to be unreasonably withheld or delayed)

	 	3.13.2	 	To remove alterations made to the Premises or any demountable partitions
installed therein at the expiration of the Term and to make good any part or
parts of the Premises which may be damaged by such removal

	 	 	 	 	 	 	 	 	 	 	 
	3.14	 	Permitted Use	 	 	 	 
	 	 	 	 	Not to use and occupy the Premises other than for the Permitted Use
	 	3.15	 	 	Prohibited uses
	 	

	 	

	 	 	 	 	 	3.15.1	 	 	Not to use any part of the Premises for:
	 	 	 	 	 	 	 	 	3.15.1.1

3.15.1.2

3.15.1.3

3.15.1.4
	 	any public meeting exhibition or entertainment; or

any illegal immoral or noxious purpose; or

the purposes of a club; or

any sale by auction; or

	 	3.15.1.5	 	the playing of any sound-producing instrument or apparatus
audible outside the Premises; or

	 	3.15.1.6	 	as a sleeping place for any person; or

	 	3.15.1.7	 	betting or gaming

	 	3.15.2	 	Not to block or impede or suffer to be blocked or impeded any part of the
Common Parts

	 	 	 	 	 
	3.16	 	Smoking
	 	3.17	 	 	Not to permit smoking on any part of the Premises

Advertising signs and posters

Not without the previous written consent of the Landlord to place display in or upon
the Premises any aerial sign advertisement notice poster display of lights or other
object or notification whatsoever other than sign boards displaying the name and
business of the Tenant of a reasonable size and appropriate to such business and on
the expiration or sooner determination of the Term to remove or efface the same and
to make good any damage caused

	 	3.18	 	Nuisance

	 	3.18.1	 	Not to do on the Estate any act matter or thing which is or may become
dangerous noxious noisome or offensive or which may annoy or disturb the
Landlord or other occupiers of the Estate nor to retain litter or refuse
anywhere in the Estate otherwise in accordance with the Landlord’s regulations

	 	3.18.2	 	Not to behave or permit any employee or invitee of the Tenant to behave in
any manner which shall be unreasonable unneighbourly objectionable noisy unruly
or unsightly and in all matters to act in regard to the Premises and the Estate
in a responsible manner so as to cause the least possible interference with the
use and enjoyment of other occupiers of the Estate or the Landlord’s adjoining
premises and so as to cause no additional expense for the upkeep thereof

	 	3.18.3	 	Upon receiving notice from the Landlord of anything done on or brought onto
the Premises or the Estate to discontinue or remove the same and to take all
steps necessary to prevent any recurrence of all matters mentioned in any such
notice

	 	3.18.4	 	To take all necessary and reasonable precautions (whether by the installation
and maintenance of devices for consuming or absorbing fumes noise or vibrations
or for catching intercepting or precipitating noise or dust or other particles
or by some other means) to reduce to a minimum the amount of noise vibrations
fumes dust and other matter emanating from the Premises PROVIDED always that
nothing in this sub-clause contained shall be deemed to be an authorisation by
the Landlord of the commission of a nuisance

	 	3.19	 	To clean windows and clear refuse

To clean the inside of the windows of the Premises as often as occasion shall
require and at least once in every calendar month

	 	3.20	 	Easements

To preserve unobstructed and undefeated all rights of light and other easements
appertaining to the Premises and not to permit (but give notice to the Landlord of)
any act whereby a new easement or encroachment might come to be made into against
over or upon the Premises and to do all such things as the Landlord may reasonably
require to prevent the same

	 	3.21	 	Alienation etc

Not to assign, underlet, charge, part with possession, share possession, part with
occupation or share occupation of the Premises or hold the Premises in trust for any
person without the prior written consent of the Landlord such consent not to be
unreasonably withheld or delayed.

	 	3.22	 	Not to overload premises nor obstruct Conduits

	 	3.22.1	 	Not to overload any part of the Premises or to impose a weight or strain in
excess of that which the Premises are constructed to bear with due margin for
safety

	 	3.22.2	 	Not to stop up or obstruct in any way whatsoever or permit oil grease hair or
other harmful or excessive matter or substance to enter the washbasin or
lavatory basins or the drains and sewers of the Estate

	 	3.23	 	To comply with regulations

To conform with all regulations reasonably made by the Landlord for the proper
management of the Estate and notified to the Tenant in writing from time to time and
to conform to all such regulations as the Landlord may from time to time make or
give for the regulation of vehicular traffic within the curtilage of the Estate and
not to park any vehicle therein or on any adjoining or neighbouring property of the
Landlord without the express written authority of the Landlord

	 	 	 
	3.24	 	Indemnity
	
 
	 	To be responsible for and to indemnify the Landlord against all claims arising directly out of

	 	3.24.1	 	any act omission or negligence of the Tenant or anyone at the Premises
expressly or impliedly with the Tenant’s authority or

	 	3.24.2	 	any breach by the Tenant of the provisions of this Lease

PROVIDED THAT the Tenant shall not be liable for any loss for which the Landlord is
obliged to insure under the terms of this Lease

	 	3.25	 	VAT

	 	3.25.1	 	To pay the Landlord VAT chargeable in respect of any taxable supplies made by
the Landlord to the Tenant in connection with this Lease (whether or not at the
election of the Landlord)

	 	3.25.2	 	Where the Tenant has agreed in this Lease to reimburse the Landlord for the
costs or expenses of any supplies provided to the Landlord by a third party
(but in respect of which the Landlord makes no taxable supply to the Tenant)
the Tenant shall also at the same time reimburse the Landlord with an amount
equivalent to the VAT incurred by the Landlord

	 	 	 	 	 	 	 
	4	 	LANDLORD’S COVENANTS	 	 
	 	 	THE Landlord HEREBY COVENANTS with the Tenant as follows:
	 	 	 	4.1	 	 	Quiet enjoyment

That the Tenant paying the rents hereby reserved and observing and performing the
covenants conditions and agreements on the part of the Tenant herein contained shall
and may quietly hold and enjoy the Premises during the Term without any interruption
by the Landlord or persons lawfully claiming under the Landlord Provided that it
shall not be a breach of this covenant nor a derogation from the Landlord’s grant
for the Landlord to carry on its business and exercise its powers in such manner as
appears to it to be necessary for the performance of its statutory duties or for
water from the Landlord’s waterway to seep into flood or erode the Premises

	 	4.2	 	To insure

	 	4.2.1	 	The Landlord covenants to insure in some insurance office of
repute (unless such insurance is vitiated by any act neglect or default of the
Tenant or anyone at the Premises expressly or impliedly with the authority of
the Tenant)

	 	4.2.1.1	 	the Premises and all Landlord’s fixtures and fittings and plant
therein of an insurable nature against destruction or damage by the
Insured Risks in such sum as shall be determined from time to time
by the Landlord to represent the reinstatement cost thereof
together with all professional and other fees and expenses and the
cost of site clearance and other incidental expenses

	 	4.2.1.2	 	for the loss of three years Rent caused by any of the Insured
Risks

	 	4.2.2	 	To supply a summary of such insurance and evidence of the
current premium on request once yearly

	 	4.3	 	Services

Subject to the Tenant first paying the rents hereby reserved and observing and
reforming the covenants and conditions on the part of the Tenant in this Lease the
Landlord will provide the Services

	 	 	 	 	 	 	 	 	 	 	 
	 	5	 	 	PROVIDED ALWAYS THAT and it is hereby agreed as follows:
	 	 	 	 	 	5.1	 	 	Forfeiture and re-entry

	 	

	 	 	 	 	 	 	 	 	That this Lease is made upon the express condition that if:

	 	 	 	 	 	 	 	 	5.1.1

	 	any reserved rents shall be unpaid for fourteen days after the due or

	 	5.1.2	 	any Tenant’s covenant shall not have been observed or
performed in the case where the Landlord has provided to the Tenant 28 days
notice of the intention to forfeit the Lease or

	 	5.1.3	 	in respect of a Tenant (not being a company):

	 	5.1.3.1	 	an application is made for an interim order under Part VIII of
the Insolvency Act 1986 or

	 	5.1.3.2	 	bankruptcy petition is presented or there is made against him a
bankruptcy order or

	 	5.1.3.3	 	there is summoned any meeting of creditors or the Tenant makes
any proposal to his creditors for a composition in satisfaction of
debts or proposes or enters into any arrangement of whatever nature
with his creditors or

	 	5.1.4	 	in respect of a Tenant (being a company):

	 	5.1.4.1	 	it enters into liquidation whether compulsory or voluntary
(other than for the purposes of an amalgamation or reconstruction
resulting in a solvent company) or

	 	5.1.4.2	 	a petition is presented for a winding up order or an
administration order (or the company or its directors resolve to
present either) or it is wound up or

	 	5.1.4.3	 	there is summoned any meeting of creditors or the Tenant (or its
directors) makes any proposal to the creditors for a composition in
satisfaction of its debts or proposes or enters into any
arrangement of whatever nature for the benefit of the creditors or
its members or

	 	5.1.4.4	 	there is appointed a receiver or a receiver and manager or an
administrator or an administrative receiver (or a person becomes
entitled to exercise any such powers) or

	 	5.1.4.5	 	the commencement of a voluntary winding-up in respect of the
Tenant except a winding-up for the purpose of amalgamation or
reconstruction of a solvent company in respect of which a statutory
declaration of solvency has been filed with the Registrar of
Companies or

	 	5.1.4.6	 	the striking-off of the Tenant from the Register of Companies or
the making of an application for the Tenant or the Surety to be
struck-off or

	 	5.1.4.7	 	the Tenant otherwise ceasing to exist

	 	5.1.5	 	the Tenant has any distress or execution levied on any goods
at the Premises

then it shall be lawful for the Landlord or its authorised agent to re-enter upon
the Premises and to re-possess and enjoy the same as if this Lease had not been made
but without prejudice to any right of action or remedy of any party in respect of
any antecedent breach of any of the covenants herein contained

	 	5.2	 	Rent cesser

If the Premises or any part thereof or all access thereto shall be destroyed or
damaged by any of the Insured Risks so as to make the Premises unfit for occupation
or use then (unless the insurance moneys shall have been wholly or partly withheld
due to any act neglect or default of the Tenant or anyone at the Premises expressly
or impliedly with the authority of the Tenant or due to any exclusion or limitation
to which the policy of insurance may be subject) the Rent or a fair proportion
thereof according to the nature and extent of the damage sustained shall be
suspended until the Premises shall again be fit for occupation and use or access
shall be restored or until the expiration of the period for which insurance for loss
of Rent is effected whichever shall be the earlier and any dispute shall be referred
to the award of a single arbitrator to be appointed in default of agreement upon the
application of either party by the President for the time being of the Royal
Institution of Chartered Surveyors in accordance with the provisions of the
Arbitration Act 1996

	 	5.3	 	Termination

	 	5.3.1	 	If, following damage to or destruction of the Premises, the
Landlord considers that it is impossible or impractical to reinstate the
Premises, the Landlord may terminate this Lease by giving notice to the Tenant.
On giving notice this Lease shall determine but this shall be without prejudice
to any right or remedy of the Landlord in respect of any breach of the tenant
covenants of this Lease. Any proceeds of the insurance (other than any
insurance for plate glass) shall belong to the Landlord

	 	5.3.2	 	Provided that the Tenant has complied with its obligations in
this Lease, the Tenant may terminate this Lease by giving notice to the
Landlord if, following damage or destruction of the Premises by an Insured
Risk, the Premises has not been reinstated so as to be fit for occupation and
use within three years after the date of damage or destruction. On giving this
notice this Lease shall determine but this shall be without prejudice to any
right or remedy of the Landlord in respect of any breach of the tenant
covenants of this Lease. Any proceeds of the insurance (other than any
insurance for plate glass) shall belong to the Landlord

	 	5.4	 	Disputes

Any dispute arising as between the Tenant and the lessee or occupier of any part of
the Estate or any adjacent or neighbouring premises belonging to the Landlord as to
any easement right or privilege enjoyed or used in common shall be decided by the
Landlord whose decision shall be binding upon all parties to the dispute

	 	5.5	 	Service of notices

	 	5.5.1	 	Any demand or notice under this Lease shall be properly served
if left at or sent by fax or post to

	 	5.5.1.1	 	the recipient’s address herein contained (or such substituted
address as shall have been notified in writing) or

	 	5.5.1.2	 	its registered office where the recipient is a company or

	 	5.5.1.3	 	the Premises where the recipient is the Tenant

	 	5.5.2	 	The provisions as to service by post as contained in section
196 of the Law of Property Act 1925 as amended by the Recorded Delivery Service
Act 1962 shall apply

	 	5.6	 	Compensation for disturbance

So far as the Landlord and Tenant Act 1954 shall allow no compensation shall be
payable on determination of the tenancy hereby created

	 	5.7	 	Rights and easements

The operation of section 62 of the Law of Property Act 1925 is excluded from this
Lease and the only rights granted to the Tenant are those set out in Schedule 1

	 	5.8	 	Jurisdiction

This Lease is governed by the laws of England and (save where otherwise provided
herein) the parties hereto submit to the exclusive jurisdiction of the English
courts in relation to any claim dispute or difference which may arise hereunder

	 	5.9	 	Landlord’s liability

Only the Landlord for the time being shall be liable to observe and perform the
Landlord’s covenants herein

	 	5.10	 	Damage and Accidents

The Landlord shall not in any circumstances be responsible or liable to the Tenant
or (unless otherwise provided by statute) to persons in or calling upon the Premises
for (i) any damage or loss suffered by the Tenant or such others through any defect
in the Estate or in the Building and (ii) any accident happening or injury
(including death) suffered or any damage or loss sustained on the Premises or the
Estate or to the Building

	 	5.11	 	Appropriation

The Landlord shall be entitled to credit all or any sums received from the Tenant
against such items or arrears owing to the Landlord (as the Landlord shall in its
absolute discretion think fit and in particular shall be entitled to credit monies
most recently received against the longest outstanding arrears

	 	5.12	 	Goods left on the Property

If after the expiration of the Term any goods or other property of the Tenant
remains in or on the Premises an the Tenant fails to remove it within seven days
after the Landlord requests it to do so then the Landlord may as the Tenant’s agent
(and the Tenant hereby appoints the Landlord to act in that behalf) sell such goods
or property and shall hold the sale proceeds (after deducting the costs and expenses
of removal storage and sale reasonable and properly incurred by it and any other
debts owed by the Tenant to the Landlord) to the Tenant’s order for a period of two
months after such sale whereafter such sale proceeds belong to the Landlord
absolutely PROVIDED THAT the Tenant will indemnify the Landlord against any
liability it incurs to any third party whose property the Landlord sells in the bona
fide mistaken belief (which shall be presumed unless proved otherwise) that such
property belonged to the Tenant

	 	5.13	 	No wavier

No receipt of rent or other payment paid by direct debit standing order or otherwise
inadvertently accepted by the Landlord or its personnel after notice or knowledge of
any breach of any of the Tenant’s Covenants shall operate as a waiver wholly or
partially of any such breach

	6	 	ENTIRE AGREEMENT AND EXCLUSION OF REPRESENTATIONS

	 	6.1	 	This lease constitutes the entire agreement and understanding of the parties
relating to the transaction contemplated by the grant of this Lease and supersedes any
previous agreement between the parties relating to this transaction

	 	6.2	 	The Tenant acknowledges that in entering into this Lease it has not relied on
nor shall have any remedy in respect of any statement or representation made by or on
behalf of the Landlord

	 	6.3	 	Nothing in this Lease constitutes or shall constitute a representation or
warranty that the Premises or the Common parts may lawfully be used for any purpose
allowed by this Lease

	7	 	CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

No term of this Lease shall be enforceable under the Contracts (Rights of Third Parties) Act
1999 by a third party but this does not affect any right or remedy of a third party which
exists or is available apart from under that Act

	 	 	 
	8	 	NEW TENANCY
	
 
	 	The tenancy hereby created is a new tenancy as defined in the Landlord and Tenant (Covenants) Act 1995
	9

	 	RIGHT TO DETERMINE

	 	9.1	 	If the Tenant shall desire to determine the Term and shall give not less than 3
months written notice expiring on the relevant Break Date to the other party of such
its desire (and where the Tenant wishes to determine it shall comply with the
requirements of clause 9.2) then on the relevant Break Date the present demise and
everything herein shall cease and determine but without prejudice to the rights of the
Landlord against the Tenant in respect of any antecedent claims for breach of any
obligation hereunder

	 	9.2	 	If the Tenant serves notice on the Landlord pursuant to clause 9.1 then such
notice will be ineffective and will not determine this Lease unless at the relevant
Break Date

	 	9.2.1	 	The Tenant has paid the rents hereby reserved and

	 	9.2.2	 	The Tenant gives the Landlord vacant possession of the
Premises

THIS LEASE is executed by the parties on the date stated in the Lease Particulars.

2

Schedule 1

THE SCHEDULE OF RIGHTS

	 	 	 
	1	 	Support
	2

3
	 	The right of support and protection for such parts of the Premises as require the same from the Building

Passage of utilities

The right to passage of water soil gas and electricity and telephone lines (in common with the Landlord and other tenants of

the Estate and all other persons entitled thereto) through the Conduits

Use of Common Parts

The right for the Tenant its agents employees and licensees in common with the Landlord and all

others so entitled to use the Common Parts, of access to and egress on foot from and to the

Premises through the corridors, landings, staircases and entrances of the Building and with or

without vehicles over the roads of the Estate to and from the Building and in case of

emergency to use on foot such fire escape routes as the Landlord shall from time to time

designate

3

Schedule 2

THE SCHEDULE OF RESERVATIONS

	 	 	 	 	 	 	 
	1	 	Support	 	 
	 	 	 	 	The right of support and protection from the Premises for such parts of the Building as require such support and protection

	 	2	 	 	Passage of utilities

	 	

	 	 	 	 	The right to uninterrupted passage of water soil gas electricity and telephone lines through the Conduits for the time

	 	 	 	 	being belonging to or running through or under the Premises or any land and premises over which the Tenant enjoys rights

	 	 	 	 	hereunder from and to the remainder of the Estate or any adjoining or adjacent premises of the Landlord AND the right to

	 	 	 	 	enter upon the Premises or other land aforesaid at all reasonable times for the purpose of making connections thereto or

	 	 	 	 	to inspect cleanse repair renew or remove the same making good any damage thereby caused to the Premises

	 	3	 	 	Easements

	 	

	 	 	 	 	All rights and easements privileges in the nature of easements or quasi-easements now existing in or over the Premises for

	 	 	 	 	the benefit of the Estate or any adjoining or adjacent premises of the Landlord

	 	4	 	 	Right of entry

	 	

	 	 	 	 	The right at reasonable times and on reasonable notice (except in emergency) to enter the Premises for the purposes of:

	 	 	 	 	4.1

4.2

	 	inspecting the condition and state of repair thereof

carrying out any works for which the Landlord or the Tenant is liable under this Lease or by statute

	 	4.3	 	carrying out any works to any property adjoining the Premises or to any party
structure Conduits or other thing used by the Tenant in common with others subject to
the persons so entering making good any physical damage to the Premises caused by such
entry

	 	 	 	 	 
	5	 	Right to alter
	 	6	 	 	The right at any time without making any compensation to build on alter

or add to the exterior of the Premises or build on alter add to extend

erect demolish or redevelop any other part of the Building and/or the

Estate or any adjoining or neighbouring premises notwithstanding any

interference caused to the Premises or any access of light and air

thereto

Subjections

The benefit of all rights and easements in the nature of subjections.

4

Schedule 3

SERVICES

	1	 	Landlord to provide Services

The Landlord shall not be liable to the Tenant for:

	 	1.1	 	the interruption of a Service for reasons of inspection maintenance repair or
other works (in which event the Landlord will restore the Service as soon as reasonably
practicable)

	 	1.2	 	failure to provide a Service due to damage breakdown inclement weather shortage
of fuel or water or any other cause beyond the Landlord’s reasonable control (although
the Landlord will then take all reasonable steps to restore such Service or provide an
alternative Services as soon as reasonable practicable)

	 	1.3	 	withdrawal of a Service if the Landlord reasonably considers it is no longer
appropriate or

	 	1.4	 	any act omission or negligence of any employee of the Landlord or other person
providing or purporting to provide any Service

Part 1 – The Services

	 	(a)	 	the lighting of any of the Common Parts

	 	(b)	 	the repair maintenance and replacement from time to time of the roads, paths
parking areas and loading bays or other Common Parts any estate name boards and party
walls or structures or walls or fences enclosing the Estate and all Conduits not used
exclusively by a particular tenant on the Estate

	 	(c)	 	the cultivation of any planted or grassed areas on the Estate

	 	(d)	 	the provision of suitable refuse bins in the Common Parts and the collection
and removal of refuse

	 	(e)	 	discharging all rates, taxes, assessments, duties and impositions payable in
respect of the Common Parts

	 	(f)	 	security services including equipment

	 	(g)	 	servicing of heating apparatus within the Building other than that which is the
responsibility of the Tenant under this Lease or other tenants from time to time of the
Building

	 	(h)	 	providing such other services or carrying out any other work which the Landlord
shall from time to time consider necessary for the benefit of the Building and/or the
Estate or the tenants or other occupiers of the Estate or otherwise in keeping with the
principles of good estate management

	 	(i)	 	administering the services provided including the accounts and records thereof

	 	(j)	 	the repair maintenance and renewals of the Building except those parts which
are the responsibility of the Tenant under this Lease or other tenants from time to
time of the Building

	 	(k)	 	the repair maintenance and repair from time to time of the entranceways,
passages, staircases and lifts (if any) communal toilets and washrooms and kitchens of
the Building intended for common use

	 	(l)	 	lighting and heating of the Common Parts

	 	(m)	 	the cleaning of the Common Parts

	 	(n)	 	the provision of a reception facility to the Building where considered
appropriate in the interests of good estate management

	 	(o)	 	supplying, maintaining, repairing and renewing as need be such fire fighting
and alarm equipment in or on the Common Parts as the Landlord may deem desirable or
necessary or as may be required to be supplied and maintained by it by statute or by
the relevant fire authority or the Landlord’s Insurers

	 	(p)	 	maintenance, repair and replacement in the Building of an internal phone system
and a burglar alarm system if deemed appropriate to provide same by the Landlord in the
Building

	 	(q)	 	for the Premises during usual business hours in so far as they are not
separately supplied and metered reasonable heating, lighting and electric power

	 	(r)	 	any other services provided by the Landlord to the Building from time to time
in accordance with the principles of good estate management and not expressly mentioned
herein

PROVIDED ALWAYS that the Landlord may withhold, add to extend, vary, terminate or make any
alteration in the provision of the Services referred to in this Schedule 9 from time to time if the
Landlord deems it desirable to do so

5

Schedule 4

EXCLUDED ITEMS

Schedule of items to be excluded from tenants repair obligations

Unit 502 level 5:

3 x offices

1 x meeting room (adjacent to gents’ toilets)

Vertical blinds to windows

Trunking for power and network cabling

Door access system

Unit 502 level 6:

2 x meeting room / offices

Blinds to velux windows

Diffusers to lights (damaged due previous water ingress and / or builders)

Trunking for power and network cabling

Unit 504 level 5:

2 x meeting rooms created with demountable partitioning

Air conditioning unit including inverter mounted on roof

Vertical blinds to windows

Trunking for power and network cabling

Door access system

Unit 504 level 6:

Trunking for power and network cabling

Diffusers to lights (damaged due previous water ingress and / or builders)

Blinds to velux windows

Unit 506 level 5:

Vertical blinds to windows

Trunking for power and network cabling

Door access system

Unit 506 level 6:

Trunking for power and network cabling

Diffusers to lights (damaged due previous water ingress and / or builders)

Blinds to velux windows

6

	 	 	 
	SIGNED on behalf of BRITISH WATERWAYS

	BOARD by:

	 	

	Authorised Signatory:

	 	/s/ R. Smith
	Name (in block capitals)

	 	R. Smith

7

	 	 	 

SIGNED on behalf of the Tenant by:
Authorised Signatory:   /s/ John Birbeck
Name (in block capitals)    JOHN BIRBECK
SIGNED on behalf of the Tenant by:

	Authorised Signatory:	 	/s/ John Birbeck
	Name (in block capitals)	 	JOHN BIRBECK

8exv10w1

    Exhibit 10.1

 

    Articles
    of Association of Fresenius Medical Care AG & Co.
    KGaA

 

		
	
    I. 
	
    General
    Terms

 

    Art. 1
    Name and Registered Office

 

		
	    (1) 	
    The Company is a partnership limited by shares (KGaA).
    The name of the Company is

 

    Fresenius
    Medical Care AG & Co. KGaA

 

		
	    (2) 	
    The registered office of the Company is in Hof an der Saale.

 

    Art. 2
    Objects of the Business

 

		
	    (1) 	
    The objects of the Company are:

 

			
	 	    a) 
	
    the development, production and distribution of as well as the
    trading in health care products, systems and procedures,
    including dialysis;

	 
	 	    b) 
	
    the projecting, planning, establishment, acquisition and
    operation of health care businesses, including dialysis centers,
    also in separate enterprises or through third parties as well as
    the participation in such dialysis centers;

	 
	 	    c) 
	
    the development, production and distribution of other
    pharmaceutical products and the provision of services in this
    field;

	 
	 	    d) 
	
    the provision of advice in the medical and pharmaceutical areas
    as well as scientific information and documentation;

	 
	 	    e) 
	
    the provision of laboratory services for dialysis and
    non-dialysis patients and homecare medical services.

 

    The Company will operate itself or through subsidiaries at home
    and abroad.

 

		
	    (2) 	
    The Company shall be entitled to enter into any and all business
    transactions and take any and all measures which seem to be
    necessary or useful to achieve the objects of the Company and
    may, in particular, participate in other enterprises of the same
    or similar kind, take over the management
    and/or the
    representation of such enterprises, transfer company divisions,
    including essential company divisions, to enterprises in which
    the Company holds an interest and establish branches at home and
    abroad.

 

    Art. 3
    Notifications and Publications

 

		
	    (1) 
	    All notifications of the Company shall be made in the electronic
    Federal Gazette (Elektronischer Bundesanzeiger).

	 
	    (2) 
	    English short versions of the invitations to general meetings
    which must provide for the place, date and time and the items on
    the agenda of the general meeting and the prerequisites of
    participation in the meetings as well as English short versions
    of the other notifications shall also be published in The Wall
    Street Journal and in The New York Times. The newspapers
    mentioned above are not journals used by the Company for
    notifications in the sense of Article 3 paragraph (1); such
    publications shall not be a pre-condition for a valid
    notification of the Company. With the consent of the supervisory
    board the general partner may determine deviations from this
    provision.

    

    1

 

 

		
	
    II. 
	
    Capital
    and Shares

 

    Art. 4
    Capital

 

		
	    (1) 	
    The capital of the Company amounts to EUR 297,742,576.00
    (in words: two hundred ninety seven million seven hundred forty
    two thousand five hundred seventy six Euro) and is divided into
    293,932,036 (in words: two hundred ninety three million nine
    hundred thirty two thousand thirty six) bearer ordinary shares
    and 3,810,540 (in words: three million eight hundred ten
    thousand five hundred forty) non-voting bearer preference shares.

 

    In case of issuance of non-voting bearer preference shares,
    particulars thereof are set forth in Article 19.

 

    No consent of the preferred shareholders shall be required for
    the issuance of non-voting bearer preference shares which, for
    the distribution of the profits or the corporate assets, will be
    equal to or be preferred to the non-voting bearer preference
    shares existing from time to time, if and to the extent that the
    subscription rights of the preference shareholders are not
    excluded.

 

		
	    (2) 	
    The capital stock in the amount of DM 100,000.00 (in words:
    one hundred thousand Deutsche Mark) available at the
    transformation of the Company into a Stock Corporation was
    raised through change of the legal form of the legal entity of
    previous legal form, Fresenius Medical Care GmbH with registered
    office in Hof an der Saale.

 

    The capital stock in the amount of EUR 250,271,178.24 (in
    words: two hundred and fifty million two hundred and seventy one
    thousand one hundred seventy eight Euro and twenty four Cent)
    available at the transformation of the Company into a
    partnership limited by shares (KGaA) was raised through change
    of the legal form of the legal entity of previous legal form,
    Fresenius Medical Care AG with registered office in Hof an der
    Saale.

 

		
	    (3) 
	    The general partner is authorized, in the period up to
    29 August 2010, with the approval of the supervisory board,
    to increase, on one or more occasions, the capital of the
    Company by up to a total of EUR 35,000,000.00 (in words:
    thirty five million Euro) for cash by the issue of new bearer
    ordinary shares (Authorized Capital I). The number of shares
    must increase in the same proportion as the capital. The general
    partner is further authorized, with the approval of the
    supervisory board, to decide on the exclusion of
    shareholders’ pre-emption rights. Exclusion of pre-emption
    rights is admissible, however, only for fractional amounts. The
    new shares may also be taken up by credit institutions to be
    specified by the general partner, with the obligation to offer
    them to the shareholders (indirect pre-emption rights). The
    general partner is further authorized, with the approval of the
    supervisory board, to determine the further details of the
    implementation of the capital increase out of Authorized Capital
    I. The supervisory board is authorized to amend the Articles of
    Association after complete or partial implementation of the
    capital increase out of Authorized Capital I or after the expiry
    of the authorized period in accordance with the amount of the
    capital increase out of Authorized Capital I.

	 
	    (4) 
	    The general partner is authorized, in the period up to
    29 August 2010, with the approval of the supervisory board,
    to increase, on one or more occasions, the capital of the
    Company by up to a total of EUR 25,000,000.00 (in words:
    twenty five million Euro) for cash
    and/or
    contributions in kind by the issue of new bearer ordinary shares
    (Authorized Capital II). The number of shares must increase in
    the same proportion as the capital. The general partner is
    further authorized, with the approval of the supervisory board,
    to decide on the exclusion of shareholders’ pre-emption
    rights. Exclusion of pre-emption rights is admissible, however,
    only if

 

			
	 	    • 
	
    in the case of a capital increase for cash the amount of capital
    attributable to the new shares does not exceed 10% of the share
    capital at the time of the issue of the new shares and the issue
    price for the new shares is not significantly lower than the
    stock exchange price of the listed shares of the same class and
    rights at the time of the final determination of the issue price
    by the general partner, or

	 
	 	    • 
	
    in the case of a capital increase for contributions in kind the
    grant of shares should be for the purpose of acquiring an
    enterprise, parts of an enterprise or a participation in an
    enterprise.

    

    2

 

 

    The general partner is further authorized, with the approval of
    the supervisory board, to determine the further details of the
    implementation of the capital increase out of Authorized Capital
    II. The supervisory board is authorized to amend the Articles of
    Association after complete or partial implementation of the
    capital increase out of Authorized Capital II or after the
    expiry of the authorized period in accordance with the amount of
    the capital increase out of Authorized Capital II.

 

		
	    (5) 
	    The capital of the Company is conditionally increased by up to
    EUR 3,398,945.00 (in words: three million three hundred
    ninety eight thousand nine hundred forty five Euro) by the issue
    of up to 3,059,664 (in words: three million fifty nine thousand
    six hundred sixty four) new non-voting bearer preference shares
    and by up to 339,281 (in words: three hundred thirty nine
    thousand two hundred eighty one) new bearer ordinary shares. The
    conditional capital increase will be implemented only to the
    extent that, in accordance with the employee participation
    program resolved on by the general meeting of 24.09.1996
    convertible bonds relating to non-par value shares will be
    issued and the holders of convertible bonds exercise their right
    of conversion. The new non-voting bearer preference shares and
    the new bearer ordinary shares shall participate in profits from
    the beginning of the fiscal year in which they arise by the
    exercise of the right of conversion.

	 
	    (6) 
	    The capital of the Company is conditionally increased by up to
    EUR 2,401,677.00 (in words: two million four hundred one
    thousand six hundred seventy seven Euro) by the issue of up to
    2,301,036 (in words: two million three hundred one thousand
    thirty six) new non-voting bearer preference shares and by up to
    100,641 (in words: one hundred thousand six hundred forty one)
    new bearer ordinary shares. The conditional capital increase
    will be implemented only to the extent that, in accordance with
    the share option program resolved on by the general meetings of
    10.06.1998 and 30.05.2000, share options relating to non-par
    value shares have been issued and the holders exercise their
    options. The new non-voting bearer preference shares and bearer
    ordinary shares shall participate in profits from the beginning
    of the fiscal year in which they are issued.

	 
	    (7) 
	    The capital of the Company is conditionally increased by up to
    EUR 7,249,902.00 (in words: seven million two hundred forty
    nine thousand nine hundred two Euro) by the issue of up to
    3.185.640 (in words: three million one hundred eighty five
    thousand six hundred forty) new non-voting bearer preference
    shares and by up to 4,064,262 (in words: four million sixty four
    thousand two hundred sixty two) new bearer ordinary shares. The
    conditional capital increase will be implemented only to the
    extent that, in accordance with the international employee
    participation program resolved on by the general meeting of
    23.05.2001 convertible bonds relating to non-par value shares
    have been issued and the holders of convertible bonds exercise
    their right of conversion. The new non-voting bearer preference
    shares and the new bearer ordinary shares shall participate in
    profits from the beginning of the fiscal year in which they
    arise by the exercise of the right of conversion.

	 
	    (8) 
	    The capital of the Company is conditionally increased by up to
    EUR 15,000,000.00 (in words: fifteen million Euro) by the
    issue of up to 15,000,000 (in words: fifteen million) new bearer
    ordinary shares. The conditional capital increase will be
    implemented only to the extent that options have been issued in
    accordance with the Stock Option Program 2006 under the
    resolutions of the general meeting of 9 May 2006 and
    15 May 2007, the holders of options exercise their right
    and the Company for the satisfaction of the options does not
    grant any of its own shares, for the granting and processing of
    options of members of the management board of the general
    partner, its supervisory board is exclusively competent. The new
    bearer ordinary shares participate in profits from the beginning
    of the financial year in which they are issued.

	 
	    (9) 
	    In case of a capital increase, the profit participation may be
    determined in derogation from Section 60 (2) German
    Stock Corporation Act (AktG).

 

    Art.
    5 Shares

 

		
	    (1) 
	    The shares will be non-par value bearer shares.

	 
	    (2) 
	    The Company shall be entitled to issue share certificates made
    out to bearer each evidencing a plurality of shares (collective
    share certificates). There is no claim of the shareholders to
    share certificates with respect to their individual
    participation.

    

    3

 

 

		
	    (3) 
	    The form of the share certificates and of the dividend coupons
    and renewal coupons shall be determined by the general partner
    with the consent of the supervisory board.

	 
	    (4) 
	    The Company shall take the necessary measures to achieve that
    its shares will, preferably, be admitted for official quotation
    on the stock exchange in Frankfurt am Main and in suitable
    form – e.g. as American Depositary Shares –
    on the New York Stock Exchange and that such admissions will be
    maintained. With the consent of the supervisory board which must
    decide unanimously on such consent, the general partner may
    determine deviations from this provision.

 

		
	
    III. 
	
    Constitution
    of the Company

 

    A.
    General Partner

 

    Art. 6
    General Partner, Capital Contribution, Legal Relationships and
    Resignation

 

		
	    (1) 	
    General partner of the Company is

 

    Fresenius
    Medical Care Management AG

 

    with registered office in Hof an der Saale.

 

		
	    (2) 
	    The general partner has not made a capital contribution. It
    shall neither participate in the profit or the loss of the
    Company nor in its assets.

	 
	    (3) 
	    The general partner will cease to be general partner of the
    Company if and when all shares in the general partner are no
    longer held directly or indirectly by a person holding more than
    25 per cent of the capital of the Company, directly or
    indirectly via a controlled enterprise in the sense of
    Section 17 (1) German Stock Corporation Act
    (AktG); this will not apply if and when all shares in the
    general partner are held directly or indirectly by the Company.

 

    Additionally, the general partner will cease to be general
    partner of the Company, if the shares in the general partner are
    acquired by a person

 

			
	 	    • 
	
    who does not acquire shares of the Company in the amount of more
    than 25 per cent of the capital of the Company or

	 
	 	    • 
	
    who had not, within three months after the effectiveness of such
    acquisition, submitted a voluntary or mandatory takeover offer
    to the shareholders of the Company according to the rules of the
    German Takeover Act (WpÜG); the fair consideration offered
    to the shareholders must also reflect the consideration which
    the purchaser had paid for the share in the general partner, if
    the amount for such consideration is above the amount of its
    equity capital.

 

    The other grounds for withdrawal as provided for by law remain
    unaffected with respect to the general partner.

 

		
	    (4) 	
    If the general partner withdraws from the Company or if such
    withdrawal can be foreseen, the supervisory board is authorized
    and obliged to admit immediately, or at the time of the
    withdrawal of the general partner, as new general partner of the
    Company a corporation whose shares are fully owned by the
    Company. If the general partner withdraws from the Company while
    no new general partner is admitted simultaneously as aforesaid,
    the Company shall for the time being be continued by the limited
    shareholders of the Company alone. In such case, the supervisory
    board shall immediately apply for the appointment of a
    substitute representative who will represent the Company until
    the admission of a new general partner according to sentence 1
    of this paragraph, in particular with respect to the acquisition
    or formation of such new general partner.

 

    The supervisory board is authorized to adjust the version of the
    Articles of Association so as to reflect the change of the
    general partner.

    

    4

 

 

		
	    (5) 	
    In the case of the continuing of the Company pursuant to
    Article 6 paragraph (4) of these Articles of
    Association or in the case that all shares in the general
    partner are held directly or indirectly by the Company an
    extraordinary general meeting or the next annual general meeting
    shall decide about the transformation of the Company into a
    stock corporation (Aktiengesellschaft). The resolution
    with respect to such transformation can be taken with a simple
    majority of the votes cast. The general partner is obliged to
    consent to such transformation decided by the general meeting.

 

    Art. 7
    Management and Representation of the Company, Reimbursement of
    Expenses

    and Remuneration

 

		
	    (1) 
	    The Company shall be represented by its general partner.
    Vis-à-vis the general partner the Company shall be
    represented by the supervisory board.

	 
	    (2) 
	    The general partner shall be responsible for management of the
    Company. The general partner’s management authority also
    encompasses exceptional management measures. The right of the
    shareholders to consent to exceptional management measures at
    the general meeting is excluded.

	 
	    (3) 
	    The general partner shall be reimbursed for any and all expenses
    in connection with management of the Company’s business,
    which includes remuneration of the members of its executive
    bodies. The general partner shall invoice its expenses monthly;
    it is entitled to claim payment in advance.

	 
	    (4) 
	    As consideration for assuming the management of the Company and
    the liability, the general partner shall receive a
    non-profit-and-loss-based annual remuneration of 4 per cent
    of its equity capital.

	 
	    (5) 
	    The general partner is not authorized to undertake transactions
    for its own or for another’s account outside the scope of
    its responsibilities within the Company.

 

    B.
    Supervisory Board

 

    Art. 8
    Election and Term of Office of the Supervisory Board

 

		
	    (1) 	
    The supervisory board consists of six (6) members.

 

    All six (6) members shall be elected by the general meeting
    according to the provisions of the German Stock Corporation Act
    (AktG). The resolution can only be taken with a majority
    of a minimum of 75 per cent of the votes cast.

 

		
	    (2) 
	    Unless expressly otherwise resolved by the general meeting, the
    supervisory board members shall be appointed to hold office
    until the end of the ordinary general meeting which resolves on
    the discharge for the fourth fiscal year after commencement of
    the term of office. The year in which the term of office
    commences shall not be considered for this calculation.
    Re-election of supervisory board members shall be permissible.

	 
	    (3) 
	    If a member elected by the general meeting withdraws from the
    supervisory board before expiration of his term of office, a new
    member is to be elected in the next general meeting to replace
    the withdrawing member. The newly elected member shall hold
    office for the remaining term of office of the withdrawing
    member.

	 
	    (4) 
	    The general meeting may, for the supervisory board members to be
    elected by it, appoint substitute members who will become
    members of the supervisory board on the basis of a specific
    order to be determined upon election if and when supervisory
    board members withdraw before expiration of their term of
    office. Their position as substitute members shall revive if and
    when the general meeting elects a new member instead of the
    withdrawing supervisory board member replaced by such substitute
    member. The term of office of the substitute member shall end
    upon completion of the general meeting in which an election
    according to Article 8 paragraph (3) is made.

	 
	    (5) 
	    Each member of the supervisory board may resign from office by
    giving one month’s written notice even without good cause.

    

    5

 

 

    Art. 9
    Constitution of the Supervisory Board

 

		
	    (1) 
	    Following the general meeting in which the supervisory board has
    been newly elected, the supervisory board shall hold a meeting
    without special notice of meeting and, where necessary, shall
    elect in such meeting from among its members a chairman and a
    deputy chairman for the whole term of office of the elected
    persons as supervisory board members.

	 
	    (2) 
	    If the chairman or his deputy resigns his office before
    expiration of his term of office, the supervisory board shall
    immediately hold a new election to replace the resigning
    chairman/deputy.

 

    Art. 10
    Meetings and Resolutions of the Supervisory Board

 

		
	    (1) 
	    The meetings of the supervisory board shall be called by the
    chairman by notice subject to a notice period of fourteen
    (14) days. The meetings may be called in writing, by fax or
    by other electronic means of communication. The items on the
    agenda must be stated in the invitation to the meeting.
    Notwithstanding sentence 2, in urgent cases, this period may be
    shortened and the meeting may be called by telegram, telex or
    telephone.

	 
	    (2) 
	    The meetings of the supervisory board shall in the regular case
    be by personal attendance. It is, however, admissible that
    meetings of the supervisory board be held by way of a video
    conference or that individual supervisory board members
    participate by way of video link, provided that in these cases
    the passing of resolutions also takes place by way of a video
    conference or video link. Outside of meetings, resolutions in
    writing, telegraph, telex, fax, telephone or electronic
    communication
    (e-mail
    etc.) are admissible, if this is ordered by the chairman of the
    supervisory board, or in the event of his being unable to act,
    by his deputy.

	 
	    (3) 
	    The supervisory board shall constitute a quorum if half the
    members making up the entire board take part in the adoption of
    the resolution.

	 
	    (4) 
	    If members of the supervisory board are prevented from attending
    the meeting, they may have another member of the supervisory
    board submit their written votes. Such delivery of the written
    vote shall be deemed to be participation in the adoption of the
    resolution.

	 
	    (5) 
	    Resolutions of the supervisory board shall require the majority
    of the votes cast unless otherwise provided by law or the
    Articles of Association. In case of a tie, a new vote shall be
    taken on the same issue at the request of the chairman of the
    supervisory board or of another member of the supervisory board.
    In the event that such new vote leads again to a tie, the
    chairman of the supervisory board shall have two (2) votes
    (to the legally permissible extent, this shall apply also to
    committees of the supervisory board of which he is a member).
    Article 10 paragraph (4) shall be applicable to the
    casting of the second vote. The deputy chairman of the
    supervisory board shall not be entitled to such second vote.

	 
	    (6) 
	    Minutes of the meetings of the supervisory board shall be
    prepared in the English language. The minutes shall be signed by
    the chairman of the meeting. Any minutes to be prepared outside
    of the meeting by personal attendance
    (Präsenzsitzung), as outlined in Article 10
    paragraph (2) with respect to resolutions shall be signed
    by the chairman of the supervisory board. On demand of a member
    of the supervisory board a German translation of the minutes
    shall be prepared.

 

    Art. 11
    Rights and Duties of the Supervisory Board

 

		
	    (1) 
	    The supervisory board shall have the rights and duties defined
    by mandatory legal provisions and these Articles of Association.

	 
	    (2) 
	    The supervisory board shall, at any time, have the right to
    supervise the entire management of the general partner and to
    inspect and audit all books and records, including the minutes
    of the meetings of the management board of the general partner,
    as well as the assets of the Company. This right to inspect and
    audit can also be claimed by any individual supervisory board
    member. The supervisory board member must direct his request to
    the chairman of the supervisory board who shall pass the request
    on to the chairman of the

    

    6

 

		
		
    management board of the general partner or, in the case that a
    chairman does not exist, to the management board of the general
    partner.

 

		
	    (3) 
	    The general partner shall regularly report to the supervisory
    board. In addition, the supervisory board may request the
    submission of a report if and when there is reasonable cause
    therefore including where such cause relates to a business event
    at an affiliated company which has become known to the general
    partner and which may substantially influence the situation of
    the Company. Article 11 paragraph (2), sentences 2 and 3
    apply mutatis mutandis with the proviso that a report only to
    the supervisory board can be demanded.

	 
	    (4) 
	    If the Company holds a participation in its general partner, all
    rights of the Company under and with respect to such
    participation (e.g. voting rights, information rights etc.) will
    be exercised by the supervisory board.

	 
	    (5) 
	    The supervisory board shall be entitled, without resolution of
    the general meeting, to make any amendments to the Articles of
    Association which concern only the wording.

 

    Art. 12
    Rules of Procedure of the Supervisory Board, Audit and

    Corporate Governance Committee

 

		
	    (1) 
	    The supervisory board shall, within the statutory provisions and
    the Articles of Association, provide itself with rules of
    procedure which shall, in particular, also take account of the
    interests of the non-German speaking supervisory board members.

	 
	    (2) 
	    The supervisory board has an audit and corporate governance
    committee. The audit and corporate governance committee has
    three members at least two of whom are independent members.
    Independent members are persons who, apart from their membership
    of the supervisory board of the general partner or of Fresenius
    AG, have no significant business, professional or personal
    relations with the Company or any of its affiliates. The audit
    and corporate governance committee reviews the report of the
    general partner on relations to affiliates without affecting the
    competence of the supervisory board. The report of the
    supervisory board is to contain a report on the activity of the
    audit and corporate governance committee and its proposals. The
    rules of procedures of the audit and corporate governance
    committee shall provide more detailed provisions.

 

    Art. 13
    Remuneration of Supervisory Board Members

 

		
	    (1) 
	    The members of the supervisory board shall be reimbursed for the
    expenses incurred in the exercise of their office, including any
    value-added tax.

	 
	    (2) 
	    Each member of the supervisory board shall receive a fixed fee
    of USD 80,000.00 per annum for each full fiscal year,
    payable in four equal instalments at the end of each calendar
    quarter.

 

    In the event that the general meeting, taking into consideration
    the annual results, resolves a higher remuneration by a three
    fourths majority of the votes cast, such higher remuneration
    shall be payable.

 

		
	    (3) 
	    The chairman of the supervisory board shall receive additional
    remuneration in the amount of USD 80,000.00 and his deputy
    additional remuneration in the amount of USD 40,000.00.

	 
	    (4) 
	    As a member of a committee, a supervisory board member shall
    receive, in addition, USD 30,000.00 per year, or as
    chairman of a committee, USD 50,000.00 per year, payable in
    each case in four equal installments at the end of each calendar
    quarter.

	 
	    (5) 
	    If a fiscal year is not a complete calendar year, the
    remuneration shall be paid on a pro rata temporis basis.

	 
	    (6) 
	    To the extent that a member of the supervisory board is at the
    same time member of the supervisory board of the General Partner
    Fresenius Medical Care Management AG and receives remuneration
    for his services as member of the supervisory board of Fresenius
    Medical Care Management AG, the remuneration according to
    Article 13 (2) will be reduced to half of it. The same
    shall apply in relation to additional remuneration of the
    Chairman and his deputy according to Article 13 (3) if
    such person is, at the same time, the chairman or his deputy,
    respectively, of the supervisory board of Fresenius Medical Care
    Management AG. If the deputy of the chairman of the supervisory
    board of the Company is at the same time chairman of the
    supervisory board

    

    7

 

		
		
    of Fresenius Medical Care Management AG he shall not receive
    additional remuneration according to Article 13
    (3) for his services as deputy of the chairman of the
    Company.

 

		
	    (7) 
	    The Company shall pay the remuneration of the supervisory board
    members subject to statutory deductions.

	 
	    (8) 
	    The Company shall provide the members of the supervisory board
    with an insurance protection regarding the fulfilment of their
    duties as such members of the supervisory board which is subject
    to an appropriate deductible.

 

    C.
    Joint Committee

 

    Art. 13a
    Joint Committee

 

    The Company has a joint committee consisting of two members of
    the supervisory board of the general partner delegated by the
    general partner and two members of the supervisory board of the
    Company (Joint Committee). The general partner shall appoint one
    of its delegates to be chairman of the Joint Committee.

 

    Art. 13b
    Appointment and Period of Office of Members of the Joint
    Committee

 

		
	    (1) 
	    Section 103 (2) German Stock Corporation Act
    (AktG) shall apply to the members of the joint committee
    to be delegated by the general partner.

	 
	    (2) 
	    The members of the supervisory board of the Company on the joint
    committee will be appointed by resolution of the general
    meeting. For the appointment and removal of members of the
    supervisory board of the Company in the joint committee, the
    provisions on the election and removal of members of the
    supervisory board in Sections 103 (1) and (5), 124
    (3) sent. 1, 127, 137, 285 (1) sent. 2 No. 1
    German Stock Corporation Act (AktG) apply accordingly. If
    a member of the supervisory board of the Company on the joint
    committee leaves the joint committee prior to the expiry of his
    period of office and no replacement member is appointed, the
    supervisory board of the Company shall appoint a replacement
    member from among its members, the period of office of whom will
    end at the ending of the next ordinary general meeting of the
    Company.

	 
	    (3) 
	    For the members of the joint committee Section 103
    (3) sent. 1 and 4 German Stock Corporation Act
    (AktG) apply accordingly. The joint committee shall
    decide on resolutions with a simple majority.

	 
	    (4) 
	    The provisions in Art. 8 (2) to (5) shall apply to the
    election and periods of office of members of the joint committee
    unless otherwise provided in subsecs. (1) and (2).

 

    Art. 13c
    Rights and Duties of the Joint Committee

 

		
	    (1) 	
    The general partner requires the approval of the joint committee
    for the following matters:

 

			
	 	    a) 
	
    transactions between the Company and companies controlled by it
    on the one hand and a company which controls the Company or a
    company which is controlled by the controlling company, without
    at the same time being controlled by the Company on the other
    side, if considerable importance is attributed to them and the
    consideration in the transaction in a single case or –
    in the case of long-term transactions – the annual
    expense exceeds 0.25% of the group turnover. The group turnover
    as shown in the group financial statements of the Company
    presented most recently to the general meeting according to
    Sections 278 (3), 176 (1) sent. 1 German Stock
    Corporation Act (AktG) is decisive.

	 
	 	    b) 
	
    The acquisition and sale of significant participations and parts
    of companies;

	 
	 	    c) 
	
    the spin-off of significant parts of the business from the
    assets of the Company or of a company in which it holds directly
    or indirectly all the shares;

	 
	 	    d) 
	
    part mergers which refer to a significant part of the business;

	 
	 	    e) 
	
    conclusion of inter-company agreements between a company
    significantly under the control of the Company and a third party;

    

    8

 

 

			
	 	    f) 
	
    conclusion of leases of operations with third parties insofar as
    the subject matter of the lease is a significant part of the
    business;

	 
	 	    g) 
	
    the stock market flotation of significant companies controlled
    by the Company;

	 
	 	    h) 
	
    the conclusion of profit-sharing agreements between a company
    significantly controlled by the Company and a third party.

 

		
	    (2) 
	    Matters referred to in (1) b) to h) are
    significant if 40% of the group turnover, the group balance
    sheet total and the group profit (annual surplus prior to
    interest and tax/EBIT) is affected by the matter. The
    significance shall be determined on the basis of the
    mathematical average of the said figures in the audited and
    unreservedly certified group accounts of the Company in the
    previous three financial years.

	 
	    (3) 
	    The competences and rights of the general meeting under statute
    and the Articles of Association remain unaffected.

 

    Art. 13d
    Meetings and Resolutions of the Joint Committee

 

		
	    (1) 
	    Meetings of the joint committee will be called by its chairman
    stating the matter which is to be the subject of a resolution.

	 
	    (2) 
	    The chairman of the joint committee shall with the invitation,
    but at the latest the third day prior to the meeting of the
    joint committee, transmit a report of the general partner on the
    matters which are the subject matter of resolutions. The report
    shall conclude with a draft resolution of the general partner.

	 
	    (3) 
	    Every member of the joint committee can demand information on
    all affairs of the Company which are the subject matter of
    resolutions, from the general partner. At the request of two
    members of the joint committee, the members of the joint
    committee are to be granted the facility to inspect the books
    and documents of the Company if and to the extent a reference to
    the subject matter of the resolution exists.

	 
	    (4) 
	    The joint committee has a quorum if at least three members
    participate in the taking of the resolution. If a resolution is
    not passed because of the lack of a quorum, the chairman of the
    joint committee shall again call a meeting of the joint
    committee with notice of at least one week, which shall then
    have a quorum if at least two members participate in the taking
    of the resolution. The joint committee decides by a majority of
    the votes. Every member of the joint committee has one vote. In
    the case of a tie, a new vote on the same subject is to be taken
    on the application of the chairman or another member of the
    joint committee. In that vote, if there is also a tie, the
    chairman of the joint committee has two votes.

	 
	    (5) 
	    Unless otherwise provided in (1) to (4), Art. 10 of the
    Articles of Association shall apply to the meetings and the
    resolutions of the joint committee.

 

    Art. 13e
    Rules of Procedure, Report, Remuneration

 

		
	    (1) 
	    The joint committee can, subject to mandatory legal provisions
    and the Articles of Association of the Company give itself rules
    of procedure which will, in particular, take account of the
    interests of the non-German speaking members of the joint
    committee.

	 
	    (2) 
	    If the joint committee has met, it shall report to the general
    meeting on its activities. Section 171 (2) sent. 1 and
    2 (first half sentence) German Stock Corporation Act
    (AktG) and Section 176 (1) sent. 1 German Stock
    Corporation Act (AktG) shall apply mutatis mutandis. If
    resolutions are passed by the exercise of the second vote of the
    chairman of the joint committee, this is to be disclosed in the
    report.

	 
	    (3) 
	    The members of the joint committee shall receive
    USD 3,500.00 for a meeting. Art. 13 (1), (7) and
    (8) of the Articles of Association apply accordingly.

    

    9

 

 

    Art. 13f
    Duty of Care and Responsibility of the Members of the Joint
    Committee

 

    Section 116 German Stock Corporation Act (AktG)
    applies to the members of the joint committee mutatis mutandis.

 

    D.
    General Meeting

 

    Art. 14
    Calling of the General Meeting

 

		
	    (1) 
	    The general meeting shall be called no later than thirty days
    before the day by the end of which the shareholders must
    register according to Article 15, unless a shorter period
    is permitted by law. In calculating such period, the day the
    general meeting is called and the day by the end of which the
    shareholders must register before the meeting shall not be
    counted; if the end of that period is a Sunday, an official
    holiday at the registered office of the Company or a Saturday,
    such day will be replaced by the preceding working day.

	 
	    (2) 
	    No later than on the last day of the convocation period, also
    the English short version pursuant to Article 3 paragraph
    (2) shall be published, if necessary.

	 
	    (3) 
	    The general meeting shall be held at the place where the
    registered office of the Company is located, or in a German city
    where a stock exchange is situated or at the place where the
    registered office of a domestic affiliated company is located.

 

    Art. 15
    Attendance at the General Meeting

 

		
	    (1) 
	    Only those shareholders shall be entitled to attend the general
    meeting who have registered in writing (Textform) in the German
    or English language at the location given in the calling of the
    general meeting no later than on the fifth day before the
    general meeting.

	 
	    (2) 
	    Further, shareholders are required to provide evidence of their
    entitlement to attend the general meeting and to vote. This
    requires certification showing ownership of their shares to be
    issued by the depository bank. Certification must refer to the
    beginning of the twenty-first day before the general meeting,
    0.00 hours at the registered office of the Company.
    Certification must be received by the Company in writing
    (Textform) in the German or English language at the location
    given in the calling of the general meeting no later than on the
    fifth day before the general meeting.

	 
	    (3) 
	    The members of the management board of the general partner and
    of the supervisory board should personally attend the general
    meeting. If it is not possible for a member of the supervisory
    board to attend at the place of the general meeting, in
    particular, because he is abroad for cause, he may participate
    in the general meeting by sound and picture transmission.

	 
	    (4) 
	    If a voting right is to be exercised by a proxy, authorization
    in writing (Textform) shall be sufficient.

 

    Art. 16
    Date of the Ordinary General Meeting

 

    The general meeting which resolves on the adoption of the annual
    financial statement and on the discharge of the general partner
    and the supervisory board and on the disposition of the profits
    (ordinary general meeting) shall be held within the first eight
    (8) months of a fiscal year.

 

    Art. 17
    Chairmanship at the General Meeting and Voting

 

		
	    (1) 	
    The general meeting shall be chaired by the chairman of the
    supervisory board or, if he is prevented or at the request of
    the chairman of the supervisory board, by another supervisory
    board member to be designated by the chairman of the supervisory
    board. If and when no such designation has been made and the
    chairman of the supervisory board is prevented, another member
    to be designated by the supervisory board shall preside over the
    general meeting.

    

    10

 

 

		
	    (2) 
	    The chairman shall chair the meeting and determine the order of
    items to be dealt with as well as the kind and form of the
    voting. The chairman is entitled to reasonably limit the
    speaking time of the shareholders and the time to ask questions
    from the beginning of the general meeting on, if such limitation
    is allowed by law.

	 
	    (3) 
	    The majorities of the votes cast and of the capital stock
    represented for the adoption of the resolution which are
    required for the resolutions of the general meeting shall be
    governed by the statutory provisions, unless otherwise provided
    for in these Articles of Association. In case of a tie, a
    proposal shall be deemed denied.

	 
	    (4) 
	    Each ordinary share shall grant one (1) vote at the general
    meeting. The preference shares have no voting rights, unless
    otherwise required by mandatory legal provisions; otherwise,
    sentence 1 of this paragraph shall apply mutatis mutandis.

	 
	    (5) 
	    The chairman can decide that the entire general meeting or
    extracts therefrom be transmitted in sound
    and/or
    picture. Such transmission can even be in a form to which the
    public has unlimited access. The form of the transmission should
    be made known in the invitation.

	 
	    (6) 
	    To the extent that the resolutions of the general meeting are
    subject to the consent of the general partner, the general
    partner shall declare at the general meeting whether consent to
    the resolutions will be given or will be refused.

 

		
	
    IV. 
	
    Annual
    Financial Statement and Disposition of Profits

 

    Art. 18
    Fiscal Year, Rendering of Accounts

 

		
	    (1) 
	    The fiscal year shall be the calendar year.

	 
	    (2) 
	    Within the first three (3) months of the fiscal year but no
    later than within the maximum period required by mandatory legal
    provisions, the general partner shall prepare the annual
    financial statement and the management report for the preceding
    fiscal year and submit the same to the supervisory board without
    delay. The general partner may allocate in the annual financial
    statement a part of the annual net profit up to the half of the
    annual net profit to other revenue reserves.

	 
	    (3) 
	    The supervisory board shall commission the audit by the auditors
    of the financial statements. Before the audit report of the
    auditors is forwarded to the supervisory board, the general
    partner shall be given the opportunity to express its opinion.

	 
	    (4) 
	    At the same time as the submission of the annual financial
    statement and the management report the general partner shall
    provide the supervisory board with the proposal on the
    appropriation of the net profits.

	 
	    (5) 
	    The annual financial statement shall be approved by a resolution
    of the general meeting with the consent of the general partner.

	 
	    (6) 
	    Article 18 paragraphs (2) and (3) shall apply
    correspondingly to group financial statements and to a report on
    the economic group position, as far as Section 170
    (1) sent. 2 German Stock Corporation Act (AktG) is
    applicable to the Company as Parent Company.

 

    Art. 19
    Disposition of Profits

 

		
	    (1) 
	    The general meeting shall resolve on the disposition of the
    balance sheet profits subject to the following paragraphs
    (2) to (4) of this Article.

	 
	    (2) 
	    Out of the annual balance sheet profits, the non-voting bearer
    preference shares shall receive a dividend which exceeds that
    for the ordinary shares by an amount of EUR 0.02 per
    preference share, but at least a dividend in an amount of
    EUR 0.04 per preference share.

	 
	    (3) 
	    The minimum dividend of EUR 0.04 per preference share shall
    take precedence over the distribution of a dividend on the
    ordinary shares.

    

    11

 

 

		
	    (4) 	
    In the event that the balance sheet profits for one or more
    fiscal years are insufficient to distribute EUR 0.04 per
    preference share, the lacking sums shall be paid subsequently
    without interest out of the balance sheet profits for the
    following fiscal years, i.e. after distribution of the minimum
    dividend on the preference shares for these fiscal years and
    before distribution of a dividend on the ordinary shares. The
    right to subsequent payment shall be part of the profit share
    for the fiscal year from the balance sheet profits of which the
    subsequent payment on the preference shares is made.

 

		
	
    V. 
	
    Miscellaneous

 

    Art. 20
    Partial Invalidity

 

    Should any of the provisions of these Articles of Association be
    or become ineffective in whole or in part, or should these
    Articles of Association have a regulatory gap, the validity of
    the remaining provisions hereof shall not be affected. The
    Parties shall replace any such ineffective provision by an
    adequate provision that, as far as legally possible, comes
    closest to the intent and purpose of these Articles of
    Association; The same shall apply in case of a regulatory gap.

 

    Art. 21
    Formation Expenses

 

		
	    (1) 
	    The formation expenses (Notary’s fees, court costs, costs
    of notification) amount up to DM 5,000.00 (in words: five
    thousand German Marks).

	 
	    (2) 
	    Additionally, the Company has to bear the expenses for the
    transformation of Fresenius Medical Care AG into Fresenius
    Medical Care AG & Co. KGaA in an amount up to
    EUR 7,500,000.00 (in words: seven million five hundred
    thousand Euro).

    

    12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]