Document:

Exhibit
4.8

29 January 2007

Private & Confidential

Addressee only

Mr A G L Alexander

c/o Imperial Tobacco Group PLC

PO Box 244

Upton Road

Bristol  BS99 7UJ

Dear Tony,

Imperial
Tobacco Group PLC (“the Company”) and confirmation of your appointment to the
Board as a Non-Executive Director

My colleagues and I are
pleased to confirm your position as a Non-Executive Director of the Company in
the capacity of Vice Chairman.  This
letter details the main terms attached to this office.

Duties

You will be required to
attend Board meetings of the Company. 
The Board meets five times each year and normally the meetings are held
in Bristol.  The next Annual General
Meeting will be held on 30 January 2007.

You are already aware of
how the Board works and what authorities are delegated to the Group Chief
Executive and his executive director colleagues.

In addition to attending
Board meetings you also currently serve on the Company’s Nominations Committee.  The Company reserves the right to invite you
to serve on the Company’s other Committees. 
You have been informed of the roles of these Committees.  You should attend, wherever possible, all
meetings of the Committees on which you serve.

In addition, you will be expected to devote
the appropriate preparation time ahead of each meeting.  The total time commitment required is
dependent on the Committees on which you are asked to serve but it is
anticipated to be in the region of 24-30 days per year.  By accepting this appointment, you have
confirmed that you are able to allocate sufficient time to meet the
expectations of your role.  The agreement
of the Chairman should be sought before accepting additional commitments that
might impact on the time you are able to devote to your role as a Non-Executive
Director and Vice Chairman of the Company.

I need hardly remind you
that the liabilities and obligations of directors of listed companies are more
onerous and more rigorously enforced than those relating to private
companies.  In common with the rest of
the Board, you are therefore expected to comply with the terms of the Financial
Services Authority’s Model Code for transactions by directors of listed
companies (a copy of which is available from the Company Secretary) and
specifically with any insider dealing rules adopted by the company from time to
time.

Appointment

Following this
confirmation of appointment, your position will be reviewed annually prior to
the AGM.  All appointments and
re-appointments to the Board are, of course, subject to the Company’s Articles
of Association and are contingent on satisfactory performance.

Your appointment is
terminable at the will of the parties.

If you are not re-elected
to your position as a director of the Company by the shareholders at any time
and for any reason then this appointment shall terminate automatically and with
immediate effect.

On termination of the
appointment for any reason you shall only be entitled to such fees as may have
accrued to the date of the termination together with reimbursement in the
normal way of any expenses properly incurred prior to that date.

Remuneration

The fee is at present £75,000
per annum, payable monthly in arrears, subject to UK statutory deductions. I
confirm that, in view of your continuing high level of investment in the
Company, the requirement to reinvest any net of tax fee increases in shares in
the Company has been waived.

Expenses

The Company will
reimburse you for any expenses that you may incur properly and reasonably in
performing your duties.  Such expenses
would include reasonable external professional fees if circumstances should
arise in which it was necessary for you to seek independent professional advice
in order to discharge your responsibilities as a Non-Executive Director of the
Company.  In such a situation, you are
required to discuss the issue either with me or the Senior Independent Director
in advance.

Other than set out in
this letter, the terms of your original letter of appointment continue to
apply.

Please would you sign and
return the enclosed duplicate copy of this letter to the Company Secretary to
confirm your agreement to the above terms.

The Company looks forward
to continuing to work with you in the future.

Yours sincerely

I J G NAPIER

Chairman

For and on behalf of
Imperial Tobacco Group PLC

I, Anthony Alexander, agree
to the above terms of appointment as a Non-Executive Director and Vice Chairman
of Imperial Tobacco Group PLC.

	
  

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2007

  

 

29 January 2007

Private & Confidential

Addressee only

Mr C F Knott

c/o Imperial Tobacco Group PLC

PO Box 244

Upton Road

Bristol  BS99 7UJ

Dear Charles,

Imperial
Tobacco Group PLC (“the Company”) and confirmation of your appointment to the
Board as a Non-Executive Director

My colleagues and I are
pleased to confirm your position as a Non-Executive Director of the Company.  This letter details the main terms attached
to this office.

Duties

You will be required to
attend Board meetings of the Company. 
The Board meets five times each year and normally the meetings are held
in Bristol.  The next Annual General
Meeting will be held on 30 January 2007.

You are already aware of
how the Board works and what authorities are delegated to the Group Chief
Executive and his executive director colleagues.

In addition to attending
Board meetings you currently serve on the Company’s Nominations Committee, the
Remuneration Committee and the Audit Committee.  The Remuneration Committee meets at least
twice a year and the Audit Committee meets at least three times a year.  You have been informed of the roles of these
Committees.  You should attend, wherever
possible, all meetings of the Committees on which you serve.

In addition, you will be expected to devote
the appropriate preparation time ahead of each meeting.  The total time commitment required is
dependent on the Committees on which you are asked to serve but it is
anticipated to be in the region of 20 days per year.  By accepting this appointment, you have
confirmed that you are able to allocate sufficient time to meet the
expectations of your role.  The agreement
of the Chairman should be sought before accepting additional commitments that
might impact on the time you are able to devote to your role as a Non-Executive
Director of the Company.

I need hardly remind you
that the liabilities and obligations of directors of listed companies are more
onerous and more rigorously enforced than those relating to private
companies.  In common with the rest of
the Board, you are therefore expected to comply with the terms of the Financial
Services Authority’s Model Code for transactions by directors of listed
companies (a copy of which is available from the Company Secretary) and
specifically with any insider dealing rules adopted by the company from time to
time.

Appointment

Following this
confirmation of appointment, your position will be reviewed annually prior to
the AGM.  All appointments and
re-appointments to the Board are, of course, subject to the Company’s Articles
of Association and are contingent on satisfactory performance.

Your appointment is
terminable at the will of the parties.

If you are not re-elected
to your position as a director of the Company by the shareholders at any time
and for any reason then this appointment shall terminate automatically and with
immediate effect.

On termination of the
appointment for any reason you shall only be entitled to such fees as may have
accrued to the date of the termination together with reimbursement in the
normal way of any expenses properly incurred prior to that date.

Remuneration

The fee is at present £50,000
per annum, payable monthly in arrears, subject to UK statutory deductions, of
which £10,000 per annum, less statutory deductions, will be applied on your
behalf to the purchase of the Company’s shares on the London Stock Exchange to
be held by a nominee for the duration of your appointment.

Expenses

The Company will
reimburse you for any expenses that you may incur properly and reasonably in
performing your duties.  Such expenses
would include reasonable external professional fees if circumstances should
arise in which it was necessary for you to seek independent professional advice
in order to discharge your responsibilities as a Non-Executive Director of the
Company.  In such a situation, you are
required to discuss the issue either with me or the Senior Independent Director
in advance.

Other than set out in
this letter, the terms of your original letter of appointment continue to
apply.

Please would you sign and
return the enclosed duplicate copy of this letter to the Company Secretary to
confirm your agreement to the above terms.

The Company looks forward
to continuing to work with you in the future.

Yours sincerely

I J G NAPIER

Chairman

For and on behalf of
Imperial Tobacco Group PLC

I, Charles Knott, agree
to the above terms of appointment as a Non-Executive Director of Imperial
Tobacco Group PLC.

	
  

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2007

  

 

29 January 2007

Private & Confidential

Addressee only

Mr I J G Napier

c/o Imperial Tobacco Group PLC

PO Box 244

Upton Road

Bristol  BS99 7UJ

Dear Iain

Imperial
Tobacco Group PLC (“the Company”) and confirmation of your appointment to the
Board as a Non-Executive Director in the capacity as Chairman

My colleagues and I are
pleased to confirm your position as a Non-Executive Director of the Company in the
capacity of Chairman.  This letter
details the main terms attached to this office. 
I am also pleased to confirm your role as Chairman of the Nominations
Committee.

Duties

You will be required to
attend Board meetings of the Company. 
The Board meets at least five times each year and normally the meetings
are held in Bristol.  The next Annual
General Meeting (AGM) will be held on 30 January 2007.

You are already aware of
how the Board works and what authorities are delegated to the Group Chief
Executive and his Executive Director colleagues.

In addition to attending
Board meetings you also currently serve on the Nominations Committee and the
Remuneration Committee.  You have been
informed of the roles of these Committees. 
You should attend, wherever possible, all meetings of the Committees on
which you serve.  The Company reserves
the right to invite you to serve on or attend the Company’s other Committees.

In addition, you will be expected to devote
the appropriate preparation time ahead of each meeting.  The total time commitment required is
dependent on the Committees on which you are asked to serve but it is
anticipated to be in the region of 50 days per year.  By accepting this appointment, you have
confirmed that you are able to allocate sufficient time to meet the
expectations of your role.  The agreement
of the Board should be sought before accepting additional commitments that
might impact on the time you are able to devote to your role as a Non-Executive
Director and Chairman of the Company.

I need hardly remind you
that the liabilities and obligations of directors of listed companies are more
onerous and more rigorously enforced than those relating to private
companies.  In common with the rest of
the Board, you are therefore expected to comply with the terms of the Financial
Services Authority’s Model Code for transactions by directors of listed companies
(a copy of which is available from the Company Secretary) and specifically with
any insider dealing rules adopted by the Company from time to time.

Appointment

Following this
confirmation of appointment, your position will be reviewed annually prior to
the AGM.  All appointments and
re-appointments to the Board are, of course, subject to the Company’s Articles
of Association and are contingent on satisfactory performance.

Your appointment is
terminable at the will of the parties.

If you are not re-elected
to your position as a director of the Company by the shareholders at any time
and for any reason then this appointment shall terminate automatically and with
immediate effect.

On termination of the
appointment for any reason you shall only be entitled to such fees as may have
accrued to the date of the termination together with reimbursement in the
normal way of any expenses properly incurred prior to that date.

Remuneration

The fee is at present £300,000
per annum with respect to your role as Chairman, payable monthly in arrears,
subject to UK statutory deductions, of which £60,000 per annum, less UK
statutory deductions, will be applied on your behalf to the purchase of the
Company’s shares on the London Stock Exchange, to be held by a nominee for the duration
of your appointment.

Expenses

The Company will
reimburse you for any expenses that you may incur properly and reasonably in
performing your duties.  Such expenses
would include reasonable external professional fees if circumstances should
arise in which it was necessary for you to seek independent professional advice
in order to discharge your responsibilities as a Non-Executive Director of the
Company.  In such a situation, you are
required to discuss the issue either with me or one of your Non-Executive
colleagues in advance.

Other than set out in
this letter, the terms of your original letter of appointment continue to
apply.

Please would you sign and
return the enclosed duplicate copy of this letter to the Company Secretary to
confirm your agreement to the above terms.

The Company looks forward
to continuing to work with you in the future.

Yours sincerely

A G L ALEXANDER

Vice Chairman

For and on behalf of
Imperial Tobacco Group PLC

I, Iain Napier, agree to
the above terms of appointment as Chairman of Imperial Tobacco Group PLC.

	
  

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2007

  

 

29 January 2007

Private & Confidential

Addressee only

Mr K Burnett

c/o Imperial Tobacco Group PLC

PO Box 244

Upton Road

Bristol  BS99 7UJ

Dear Ken,

Imperial
Tobacco Group PLC (“the Company”) and confirmation of your appointment to the
Board as a Non-Executive Director

My colleagues and I are
pleased to confirm your position as a Non-Executive Director of the Company.  This letter details the main terms attached
to this office.

Duties

You will be required to
attend Board meetings of the Company. 
The Board meets five times each year and normally the meetings are held
in Bristol.  The next Annual General
Meeting will be held on 30 January 2007.

You are already aware of
how the Board works and what authorities are delegated to the Group Chief
Executive and his executive director colleagues.

In addition to attending
Board meetings you currently serve on the Company’s Nominations Committee.  The Company reserves the right to invite you
to serve on the Company’s other Committees. 
You have been informed of the roles of these Committees.  You should attend, wherever possible, all
meetings of the Committees on which you serve.

In addition, you will be expected to devote
the appropriate preparation time ahead of each meeting.  The total time commitment required is dependent
on the Committees on which you are asked to serve but it is anticipated to be
in the region of 20 days per year.  By
accepting this appointment, you have confirmed that you are able to allocate
sufficient time to meet the expectations of your role.  The agreement of the Chairman should be
sought before accepting additional commitments that might impact on the time
you are able to devote to your role as a Non-Executive Director of the Company.

I need hardly remind you
that the liabilities and obligations of directors of listed companies are more
onerous and more rigorously enforced than those relating to private
companies.  In common with the rest of
the Board, you are therefore expected to comply with the terms of the Financial
Services Authority’s Model Code for transactions by directors of listed
companies (a copy of which is available from the Company Secretary) and
specifically with any insider dealing rules adopted by the company from time to
time.

Appointment

Following this
confirmation of appointment, your position will be reviewed annually prior to
the AGM.  All appointments and
re-appointments to the Board are, of course, subject to the Company’s Articles
of Association and are contingent on satisfactory performance.

Your appointment is
terminable at the will of the parties.

If you are not re-elected
to your position as a director of the Company by the shareholders at any time
and for any reason then this appointment shall terminate automatically and with
immediate effect.

On termination of the appointment
for any reason you shall only be entitled to such fees as may have accrued to
the date of the termination together with reimbursement in the normal way of
any expenses properly incurred prior to that date.

Remuneration

The fee is at present £50,000
per annum, payable monthly in arrears, subject to UK statutory deductions, of
which £10,000 per annum, less statutory deductions, will be applied on your
behalf to the purchase of the Company’s shares on the London Stock Exchange to
be held by a nominee for the duration of your appointment.

Expenses

The Company will
reimburse you for any expenses that you may incur properly and reasonably in
performing your duties.  Such expenses
would include reasonable external professional fees if circumstances should
arise in which it was necessary for you to seek independent professional advice
in order to discharge your responsibilities as a Non-Executive Director of the
Company.  In such a situation, you are
required to discuss the issue either with me or the Senior Independent Director
in advance.

Other than set out in
this letter, the terms of your original letter of appointment continue to
apply.

Please would you sign and
return the enclosed duplicate copy of this letter to the Company Secretary to
confirm your agreement to the above terms.

The Company looks forward
to continuing to work with you in the future.

Yours sincerely

I J G NAPIER

Chairman

For and on behalf of
Imperial Tobacco Group PLC

I, Ken Burnett, agree to
the above terms of appointment as a Non-Executive Director of Imperial Tobacco
Group PLC.

	
  

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2007

  

 

29 January 2007

Private & Confidential

Addressee only

Dr P H Jungels

c/o Imperial Tobacco Group PLC

PO Box 244

Upton Road

Bristol  BS99 7UJ

Dear Pierre

Imperial
Tobacco Group PLC (“the Company”) and confirmation of your appointment to the
Board as a Non-Executive Director

My colleagues and I are
pleased to confirm your position as a Non-Executive Director, Senior
Independent Director of the Company and Chairman of the Remuneration Committee.  This letter details the main terms attached
to this office.

Duties

You will be required to
attend Board meetings of the Company. 
The Board meets at least five times each year and normally the meetings
are held in Bristol.  The next Annual
General Meeting (AGM) will be held on 30 January 2007.

You are already aware of
how the Board works and what authorities are delegated to the Group Chief
Executive and his Executive Director colleagues.

In addition to attending
Board meetings you also currently serve on the Remuneration, Audit and the
Nominations Committees.  The Remuneration
Committee will meet at least twice a year and the Audit Committee at least four
times a year.  You have been informed of
the roles of these Committees.  You
should attend, wherever possible, all meetings of the Committees on which you
serve.

In addition, you will be expected to devote
the appropriate preparation time ahead of each meeting.  The total time commitment required is
dependent on the Committees on which you are asked to serve but it is
anticipated to be in the region of 24-30 days per year.  By accepting this appointment, you have
confirmed that you are able to allocate sufficient time to meet the
expectations of your role.  The agreement
of the Chairman should be sought before accepting additional commitments that
might impact on the time you are able to devote to your role as a Non-Executive
Director and Senior Independent Director of the Company.

I need hardly remind you
that the liabilities and obligations of directors of listed companies are more
onerous and more rigorously enforced than those relating to private
companies.  In common with the rest of
the Board, you are therefore expected to comply with the terms of the Financial
Services Authority’s Model Code for transactions by directors of listed
companies (a copy of which is available from the Company Secretary) and
specifically with any insider dealing rules adopted by the Company from time to
time.

Appointment

Following this
confirmation of appointment, your position will be reviewed annually prior to
the AGM.  All appointments and
re-appointments to the Board are, of course, subject to the Company’s Articles
of Association and are contingent on satisfactory performance.

Your appointment is
terminable at the will of the parties.

If you are not re-elected
to your position as a director of the Company by the shareholders at any time
and for any reason then this appointment shall terminate automatically and with
immediate effect.

On termination of the
appointment for any reason you shall only be entitled to such fees as may have
accrued to the date of the termination together with reimbursement in the
normal way of any expenses properly incurred prior to that date.

Remuneration

The fee is at present £60,000
per annum with respect to your role as a Non-Executive Director and Senior Independent
Directorwith
a further £10,000 per annum attaching to your role as Chairman of the
Remuneration Committee, payable monthly in arrears, subject to UK statutory
deductions, of which £12,000 per annum, less UK statutory deductions, will be
applied on your behalf to the purchase of the Company’s shares on the London
Stock Exchange, to be held by a nominee for the duration of your appointment.

Expenses

The Company will
reimburse you for any expenses that you may incur properly and reasonably in
performing your duties.  Such expenses
would include reasonable external professional fees if circumstances should
arise in which it was necessary for you to seek independent professional advice
in order to discharge your responsibilities as a Non-Executive Director of the
Company.  In such a situation, you are
required to discuss the issue either with the Chairman or one of your Non-Executive
colleagues in advance.

Other than set out in
this letter, the terms of your original letter of appointment continue to apply.

Please would you sign and
return the enclosed duplicate copy of this letter to the Company Secretary to
confirm your agreement to the above terms.

The Company looks forward
to continuing to work with you in the future.

Yours sincerely

I J G NAPIER

Chairman

For and on behalf of
Imperial Tobacco Group PLC

I, Pierre Jungels, agree
to the above terms of appointment as a Non-Executive Director and Senior
Independent Director of Imperial Tobacco Group PLC.

	
  

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2007

  

 

29 January 2007

Private & Confidential

Addressee only

Ms S E Murray

c/o Imperial Tobacco Group PLC

PO Box 244

Upton Road

Bristol  BS99 7UJ

Dear Susan,

Imperial
Tobacco Group PLC (“the Company”) and confirmation of your appointment to the
Board as a Non-Executive Director

My colleagues and I are
pleased to confirm your position as a Non-Executive Director of the Company.  This letter details the main terms attached
to this office.

Duties

You will be required to
attend Board meetings of the Company. 
The Board meets five times each year and normally the meetings are held
in Bristol.  The next Annual General
Meeting will be held on 30 January 2007.

You are already aware of
how the Board works and what authorities are delegated to the Group Chief
Executive and his executive director colleagues.

In addition to attending
Board meetings you currently serve on the Company’s Nominations Committee, the
Remuneration Committee and the Audit Committee.  The Remuneration Committee meets at least
twice a year and the Audit Committee meets at least three times a year.  You have been informed of the roles of these
Committees.  You should attend, wherever
possible, all meetings of the Committees on which you serve.

In addition, you will be expected to devote
the appropriate preparation time ahead of each meeting.  The total time commitment required is
dependent on the Committees on which you are asked to serve but it is
anticipated to be in the region of 20 days per year.  By accepting this appointment, you have
confirmed that you are able to allocate sufficient time to meet the
expectations of your role.  The agreement
of the Chairman should be sought before accepting additional commitments that
might impact on the time you are able to devote to your role as a Non-Executive
Director of the Company.

I need hardly remind you
that the liabilities and obligations of directors of listed companies are more
onerous and more rigorously enforced than those relating to private
companies.  In common with the rest of
the Board, you are therefore expected to comply with the terms of the Financial
Services Authority’s Model Code for transactions by directors of listed
companies (a copy of which is available from the Company Secretary) and
specifically with any insider dealing rules adopted by the company from time to
time.

Appointment

Following this
confirmation of appointment, your position will be reviewed annually prior to
the AGM.  All appointments and
re-appointments to the Board are, of course, subject to the Company’s Articles
of Association and are contingent on satisfactory performance.

Your appointment is
terminable at the will of the parties.

If you are not re-elected
to your position as a director of the Company by the shareholders at any time
and for any reason then this appointment shall terminate automatically and with
immediate effect.

On termination of the
appointment for any reason you shall only be entitled to such fees as may have
accrued to the date of the termination together with reimbursement in the
normal way of any expenses properly incurred prior to that date.

Remuneration

The fee is at present £50,000
per annum, payable monthly in arrears, subject to UK statutory deductions, of
which £10,000 per annum, less statutory deductions, will be applied on your
behalf to the purchase of the Company’s shares on the London Stock Exchange to
be held by a nominee for the duration of your appointment.

Expenses

The Company will
reimburse you for any expenses that you may incur properly and reasonably in
performing your duties.  Such expenses
would include reasonable external professional fees if circumstances should
arise in which it was necessary for you to seek independent professional advice
in order to discharge your responsibilities as a Non-Executive Director of the
Company.  In such a situation, you are
required to discuss the issue either with me or the Senior Independent Director
in advance.

Other than set out in
this letter, the terms of your original letter of appointment continue to
apply.

Please would you sign and
return the enclosed duplicate copy of this letter to the Company Secretary to
confirm your agreement to the above terms.

The Company looks forward
to continuing to work with you in the future.

Yours sincerely

I J G NAPIER

Chairman

For and on behalf of
Imperial Tobacco Group PLC

I, Susan Murray, agree to
the above terms of appointment as a Non-Executive Director of Imperial Tobacco
Group PLC.

	
  

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2007

  

 

15 September 2006

Mr R Dyrbus

Finance Director

Imperial Tobacco Group PLC

PO Box 244

Upton Road

Bristol

BS99 7UJ

Dear Bob

Executive
Directors’ Salary Review

On behalf of the
Remuneration Committee, I have been asked to advise you that at its meeting on
5th September 2006, following a review of the
Company’s current remuneration arrangements for Executive Directors, it was
agreed that your salary be increased to £530,000 per annum, with effect from 1
October 2006.

Yours sincerely

M R Phillips

Secretary of the
Remuneration Committee

15 September 2006

Mr F Rogerson

Corporate Affairs Director

Imperial Tobacco Group PLC

PO Box 244

Upton Road

Bristol

BS99 7UJ

Dear Frank

Executive
Directors’ Salary Review

On behalf of the
Remuneration Committee, I have been asked to advise you that at its meeting on
5th September 2006, following a review of the
Company’s current remuneration arrangements for Executive Directors, it was
agreed that your salary be increased to £380,000 per annum, with effect from 1
October 2006.

Yours sincerely

M R Phillips

Secretary of the
Remuneration Committee

15 September 2006

Mr G Davis

Chief Executive

Imperial Tobacco Group PLC

PO Box 244

Upton Road

Bristol

BS99 7UJ

Dear Gareth

Executive
Directors’ Salary Review

On behalf of the
Remuneration Committee, I have been asked to advise you that at its meeting on
5th September 2006, following a review of the
Company’s current remuneration arrangements for Executive Directors, it was
agreed that your salary be increased to £835,000 per annum, with effect from 1
October 2006.

Yours sincerely

M R Phillips

Secretary of the
Remuneration Committee

15 September 2006

Mr G Blashill

Sales and Marketing Director

Imperial Tobacco Group PLC

PO Box 244

Upton Road

Bristol

BS99 7UJ

Dear Graham

Executive
Directors’ Salary Review

On behalf of the
Remuneration Committee, I have been asked to advise you that at its meeting on
5th September 2006, following a review of the
Company’s current remuneration arrangements for Executive Directors, it was
agreed that your salary be increased to £390,000 per annum, with effect from 1
October 2006.

Yours sincerely

M R Phillips

Secretary of the
Remuneration Committee

15 September 2006

Mr D Cresswell

Manufacturing Director

Imperial Tobacco Group PLC

PO Box 244

Upton Road

Bristol

BS99 7UJ

Dear David

Executive
Directors’ Salary Review

On behalf of the
Remuneration Committee, I have been asked to advise you that at its meeting on
5th September 2006, following a review of the
Company’s current remuneration arrangements for Executive Directors, it was
agreed that your salary be increased to £380,000 per annum, with effect from 1
October 2006.

Yours sincerely

M R Phillips

Secretary of the
Remuneration CommitteeExhibit 4.15

Number 235 of the Roll of Deeds for
2006

Negotiated

at Frankfurt am
Main on August 22, 2006.

Before the undersigned Notary

Johann-Andreas Rossbach

with offices at

Schaumainkai 101-103 in Frankfurt am Main

who upon the request of
the parties to this negotiation had visited the law offices of
Messrs. Hengeler Mueller at Bockenheimer Landstr, 51 in 60325 Frankfurt am
Main,

appeared today:

1.                         Dr. Sebastian
Biedenkopf, Attorney-at-Law,

business address Überseering 18,
22297 Hamburg,

acting not in his own name but as authorized
representative of:

TCHIBO Holding Aktiengesellschaft,

Überseering 18, 22297 Hamburg;

- Seller -

  on the basis of a power
of attorney dated August 21, 2006, the original of which was presented during
notarization and is attached hereto as EXHIBIT.
  2.                         Dr. Hans
Schoneweg, Attorney-at-Law, 
  business address c/o Allen & Overy LLP, Kehrwieder 12, 20457 Hamburg,
  acting not in his own name but as authorized
representative of
  a)                        Reemtsma
Cigarettenfabriken GmbH,
  Max-Born-Str. 4, 22761 Hamburg,
  -
Buyer -
  on the basis of a power
of attorney dated August 14, 2006, the original of which was presented during
notarization and a certified copy of which is attached hereto as EXHIBIT.
  b)                        IMPERIAL
TOBACCO GROUP PLC,
  P.O. Box 244, Upton Road, Bristol BS99 7UJ,
  -
Guarantor -
  on the basis of a power
of attorney dated August 14, 2006, the original of which was presented during
notarization and a certified copy of which is attached hereto as EXHIBIT.
  The person who had
appeared ad 1 proved his identity
by presenting his valid identity card with a facial photograph to the Notary.
  The person who had
appeared ad 2 is personally known
to the notary.
  The persons who had
appeared stated that each of them was acting hereinbelow without assuming any
personal liability.
  Asked as to a prior
involvement of the Notary or one of his associates in the matter which is the
subject of this recording other than acting as a notary (§ 3 subpara 1 No: 7
German Act on the Recording of Documents) the persons who had appeared stated
that this was not the case.

 2
 

    The persons who had
appeared stated that they have agreed to request that this negotiation be
conducted and that this Deed be recorded in the English language and that they
had sufficient knowledge of the English language to follow the negotiation in
this language. The Notary who is in command of the English language convinced
himself in a conversation with the persons who had appeared that same had
sufficient knowledge of the English language and accepted their request.
  The persons who had
appeared further stated that the documents that will be referred to as
Schedules of the share purchase agreement between their principals relating to
the sale and purchase of all of the shares in
  CODE
Kaffee-Handelsgesellschaft mbH, Hamburg

COMPLEMENTA Vermögensverwaltung GmbH, Hamburg

Zida AG, Klosters (Switzerland)
  that is the subject of
the recording in this present Deed and that itself will become an exhibit to
this Deed (“the Share Purchase Agreement”), had been prerecorded in a separate
Deed prior to this negotiation dated August 22, 2006, under Deed Roll No. 234/2006, of the Notary, (the
“Reference Deed”). The original of
the Reference Deed is present and available for inspection during the recording
of this Deed.
  The persons who had
appeared stated that they had full knowledge of the Reference Deed. Following
respective advice of the Notary, the persons who had appeared further stated
that they are waiving the right to have the Reference Deed read out to them and
that they are also waiving the right to have a copy of the Reference Deed
attached as an exhibit to this Deed and that they rather incorporate the documents
which are the Schedules to this Deed by way of reference to the Reference Deed.
The Notary explained the meaning of making such reference.
  Upon these premises, the
persons who had appeared requested the Notary to record the
  SHARE
PURCHASE AGREEMENT
  which they submitted to
the Notary to become part of this negotiation and to be attached to this Deed
as Exhibit I.
  The persons who had
appeared further stated that Schedule 4.2 (a) in the Reference shall be
replaced by the revised Schedule 4.2 (a) that is submitted to as Exhibit II.

 3
 

    The persons who had
appeared further stated that the attachments (Beilagen) to the Due Diligence
Marken DAVIDOFF und ZINO in Bezug auf Zigaretten Unterlagen und Informationen
Dr. Meisser are in the following order in the Reference Deed:
  	  No 14
  	   
  	  (6 pages)
  
	  No 18
  	   
  	  (2 pages)
  
	  No 14a
  	   
  	  (7 pages)
  
	  No 11
  	   
  	  (20 pages)
  
	  No 15
  	   
  	  (19 pages)
  
	  No 19
  	   
  	  (1 page)
  
	  No 12
  	   
  	  (3 pages)
  
	  No 16
  	   
  	  (6 pages)
  
	  No 20
  	   
  	  (18 pages)
  
	  No 13a
  	   
  	  (2 pages)
  
	  No 13b
  	   
  	  (2 pages)
  
	  No 17
  	   
  	  (3 pages)
  

   
  Geheimhaltungserklärung (5 pages)
  This recording was
interrupted on August 22, 2006 at 22:05 hours local time and was resumed on
August 23, 2006 at 9:22 hours local time.

 4

This
protocol including Exhibit I and Exhibit II was read to the persons who had
appeared; the protocol and the exhibits were approved by the persons who had
appeared and the protocol was signed by them and the acting Notary in their own
hands as follows:

[Illegible]

	
  

  	
  

  

 

TCHIBO HOLDING

ARTIENGESELLSCHAFT

Wir, die unterzeichnete Tchibo
Holding AG, bevollmächtigen hiermit

Herrn Dr. Sebastian Biedenkopf,
 geschäftsansässig Überseering 18, 22297 Hamburg

in unserem Namen einen
Vertrag über den Verkauf sämtlicher Geschäftsanteile an der CODE
Kaffee-Handelsgesellschaft mbH, Hamburg, der COMPLEMENTA Vermögensverwaltung
GmbH, Hamburg und der Zida AG, Klosters, Schweiz, abzuschlieBen (das “Share Purchase Agreement”).

Herr Dr. Biedenkopf ist berechtigt, die
Bedingungen des Share Purchase Agreement auszuhandeln
und in unserem Namen sämtliche weiteren Verträge
und Vereinbarungen abzuschlieBen, Handlungen vorzunehmen und Erklärungen abzugeben und entgegenzunehmen, die
im Zusammenhang mit dem Share Purchase
Agreement und seiner Durchführung erforderlich oder zweckmäBig sind. Dies umfasst auch
Vereinbarungen betreffend die Zigarettenmarken “Davidoff” und “Zino” mit der
Oettinger lmex AG und/oder der Zino Davidoff S.A. und/oder mit diesen
Gesellschaften verbundenen Unternehmen.

Herr Dr. Biedenkopf ist berechtigt, Untervollmacht zu erteilen.

Hamburg, 21, August 2006

Tchibo Holding AG 

durch:

	
  /s/ Dr. Arno Mahlert

  	
   

  	
  /s/ ppa. Dr. Thorsten Ohm

  	
   

  
	
  Dr. Arno
  Mahlert

  	
   

  	
  ppa. Dr. Thorsten Ohm

  

 

TCHIBO HOLDING ARTIENGESELLSCHAFT ÜBERSEERING 18 22297 HAMBURG
TELELON (040)6387-0

SITZ:HAMBURG AMTSCHRICHT HAMBURG HRB 21337

VORTSTAND: DIETER AMMER (VORSITZENDER) DR ARNO MAHLERT VORSITZENDER DES
[ILLEGIBLE]

  Beglaubigte Fotokopie
  POWER OF ATTORNEY
  This power of attorney is made on 14 August 2006 by
Reemtsma Cigarettenfabriken GmbH, whose registered office is at
Max-Born-Strasse 4, 22297 Hamburg, Germany, registered with the commercial
register of the local court of Hamburg under HR B 51 53 (the Company).
  The Company hereby appoints each of:
  Robert Dyrbus of P.O Box 224, Upton Road, Bristol,
BS99 7UJ, UK;
  Frank Rogerson of P.O Box 224, Upton Road, Bristol,
BS99 7UJ, UK;
  Matthew Phillips of P.O Box 224, Upton Road, Bristol,
BS99 7UJ, UK;
  Alan Porter of P.O Box 224, Upton Road, Bristol, BS99
7UJ, UK;
  Conrad Tate of P.O Box 224, Upton Road, Bristol, BS99
7UJ, UK;
  Jeremy Parr of Allen & Overy LLP, One New Change,
London EC4M 9QQ, UK;
  Dr Hans Schoneweg of Allen & Overy LLP, Kehrwieder
12, 20457 Hamburg, Germany;
  Christine Bader of Allen & Overy LLP, Kehrwieder
12, 20457 Hamburg, Germany;
  Dr Alessandro L. Celli of Froriep Renggli,
Bellerivestr. 201 CH-8034, Zürich, Switzerland; and
  Nicola Benz of Froriep Renggli, Bellerivestr. 201
CH-8034, Zürich, Switzerland,
  to be its attorney (each an Attorney and together the
Attorneys) with sole
power to represent it in relation to the following:
  (a)       
to sign, execute, deliver and receive on the Company’s behalf in whatever
manner required any document, contract, deed or thing lawfully necessary to
effect the proposed acquisition by the Company of one hundred per cent. (100%)
of the issued shares of CODE Kaffee-Handelsgesellschaft mbH (Code),
COMPLEMENTA Vermögensverwaltung GmbH (Complementa) and Zida AG (Zida)
(Code, Complementa and Zida together the Target Companies), (the Transaction)
including, but not limited to:
  (i)        the
share purchase agreement made between Tchibo Holding Aktiengesellschaft (Tchibo),
the Company and Imperial Tobacco Group Plc (ITG) pursuant to
which the Company and, indirectly, ITG will acquire the shares of the Target
Companies;
  (ii)       the
agreements pursuant to which the shares in the Target Companies will be
transferred by Tchibo to the Company and, indirectly, to ITG;
  (iii)      the co-brand owners agreement made between Oettinger
Imex AG (Oettinger), Davidoff & Cie S.A (Davidoff
&  Cie), Davidoff Trademark Extension BV (Davidoff
Trademark), Athena
IP Vermögensverwaltung GmbH & Co. KG, Lizino Vermögensverwaltung GmbH &
Co. KG, the Company and ITG (the Co-Brand
Owners Agreement);

 1
 

    (iv)     a
delimitation agreement made between Athena IP Vermögensverwaltung GmbH &
Co. KG, Lizino Vermögensverwaltung GmbH & Co. KG, the Company and Zino
Davidoff S.A (the Delimitation Agreement);
  (v)      the
escrow letter in respect of the Co-Brand Owners Agreement and made between
Oettinger, Davidoff & Cie, Davidoff Tradmark, the Company and ITG; and
  (vi)     the
escrow letter in respect of the Delimitation Agreement and made between the
Company and Zino Davidoff S.A.,
  and any other document required in connection with the
Transaction or any of the documents set out in paragraphs (a)(i) to (vi)
(together the Transaction Documents), in each case in such form as the Attorney
in his or her absolute discretion may reasonable deem necessary or desirable;
  (b)       to
do or cause to be done all such acts and things as the Attorney in his or her
absolute discretion may reasonably deem necessary or desirable in order to
carry out and give effect to the Transaction or any related matter including
but not limited to agreeing any amendments to the Transaction Documents; and
  (c)       to
exercise any and all rights as (future) shareholder of Code, Zida and
Complementa, including, but not limited to voting at shareholder’s meetings,
  The Company undertakes to ratify whatever an Attorney
may do in its name or on its behalf in exercising the powers contained in this
document and to indemnify the Attorney against any loss incurred by him in
connection with anything lawfully done by him in the exercise or the purported
exercise of the powers contained in this document, except for any loss which
would not have arisen but for the fraud of the Attorney.
  Each Attorney is released from the restrictions of §
181 of the German Civil Code. They are each authorised to grant a substitute
power of attorney and to release the delegates from the restrictions of § 181
of the German Civil Code.
  This Power of Attorney is revocable at any time.
  This Power of Attorney shall be governed by and
construed in accordance with the laws of the Federal Republic of Germany.
  	  
  	   
  	  /s/ Richard Gretler
  	   
  	   
  	   
  	   
  	  /s/ Peter
  Ohlinger
  
	  For:
  	   
  	  Reemtsma Cigarettenfabriken GmbH
  	   
  	   
  	   
  	  For:
  	  Reemtsma Cigarettenfabriken GmbH
  
	  By:
  	   
  	  Richard Gretler
  	   
  	   
  	   
  	  By:
  	  Peter Ohlinger
  
	  Function:
  	   
  	  Managing Director
  	   
  	   
  	   
  	  Function: Authorised Officer
  

   
  	  

  	  
  	   
  	  

  Die Ubereinstimmung dieser Fotokopie

  mit der Urschrift wird beglaubigt

  
	   
  	   
  	  Frankfurt am Main, 22 Aug, 2006
  
	   
  	   
  	   
  
	   
  	   
  	  Rossbach, Notar
  

   

 2

 

	
  

  	
  Beglaubigte
  FotoKopie

  	
  

  

 

NOTARIAL CONFIRMATION

I, Andrew
Duncan McCallum Gregg, of the City and County of Bristol England notary public
by Royal authority admitted and sworn and practicing in the said City and
County do: -

HEREBY CERTIFY AND
ATTEST AS FOLLOWS:

THAT I have
inspected the corporate documents of IMPERIAL
TOBACCO GROUP PLC kept at the Companies Registry of England and
Wales (as required by law or otherwise) and that, on the basis of said
inspection, I have determined the following:

THAT Gareth Davis
and Robert Dyrbus are fully authorised, acting in accordance with the company’s
Articles of Association to validly execute the attached power of attorney dated
14 August 2006 on behalf of IMPERIAL TOBACCO
GROUP PLC, a company validly incorporated and duly existing under
the laws of England and Wales, having its registered office at P.O. Box 224,
Upton Road, Bristol, BS99 7UJ, England, registered in the Company Registry
under number 3236483.

IN WITNESS WHEREOF I
have hereunto set my hand and seal in Bristol, this 14 day of August, 2006.

	
  /s/ Andrew Gregg

  	
   

  	
  

  
	
  ANDREW GREGG

  	
   

  	
   

  
	
  NOTARY PUBLIC

  	
   

  	
   

  
	
  7 QUEEN SQUARE

  	
   

  	
   

  
	
  BRISTOL

  	
   

  	
   

  
	
  BS1 4JE

  	
   

  	
   

  
	
  Tel : (0117)9069400

  	
   

  	
   

  

 

Andrew Gregg, Notary
Public, 7 Queen Square Bristol BS1 4JE; DX: 7845 Bristol

Tel: 0117 906 9400; Fax: 0117 906 9401;

Web: www.glwrh.co.uk; Email: andrew.gregg@glwrh.co.uk;

This power of
attorney

number 03236483) [illegible]

7 UJ (the [illegible]

APOSTILLE

(Hague Convention
of 5 October 1961 / Convention de La Haye du 5 octobre 1961)

UNITED
KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND

	
  1.

  	
  Country: United Kingdom of Great Britain and
  Northern Ireland

  
	
   

  	
  Pays: Royaume-Uni de
  Grande-Bretagne et d’Irlande du Nord

  
	
   

  	
   

  
	
   

  	
  This public document / Le présent acte public

  
	
   

  	
   

  
	
  2.

  	
  Has been signed by

  	
  Andrew D McCallum Gregg

  	
   

  
	
   

  	
  a été signé par

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  Acting in the capacity of

  	
  Notary Public

  	
   

  
	
   

  	
  agissant en qualité de

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  Bears the seal/stamp of

  	
  The Said Notary Public

  	
   

  
	
   

  	
  est revétu du sceau/timbre de

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Certified/Attesté

  
	
  5.

  	
  at London/á Londres

  	
  6. the/le

  	
  15 August 2006

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  by Her Majesty’s Principal Secretary of State for
  Foreign and Commonwealth Affairs /

  
	
   

  	
  par le Secrétaire d’Etat Principal de Sa Majesté aux
  Affaires Etrangéres et du Commonwealth

  
	
   

  	
   

  
	
  8.

  	
  Number/sous No 

  	
  H111122

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  Stamp:

  	
  10. Signature: J.
  Thethy

  	
   

  
	
   

  	
  timbre:

  	
   

  
	
   

  	
   

  	
   

  
	
  

  	
   

  	
   

  
	
   

  	
   

  
	
  /s/ J. Thethy

  	
   

  	
   

  
	
  For the Secretary of State / Pour le Secrétaire d’Etat

  
	
   

  	
   

  
									

 

If this document is to be used in a country which
is not party to the Hague Convention of 5 October 1961, it should be presented
to the consular section of the mission representing that country An
apostille or legalisation certificate only confirms that the signature, seal or
stamp on the document is genuine. It does not mean that the contents of the
document are correct or that the Foreign & Commonwealth Office approves of
the contents

POWER
OF ATTORNEY

This power of attorney is
made on 14 August 2006 by Imperial Tobacco Group PLC (registered number
03236483) whose registered office is at P.O. Box 244, Upton Road, Southville,
Bristol, BS99 7UJ (the Company).

The Company hereby appoints each of:

Robert Dyrbus of P.O Box 224, Upton Road, Bristol,
BS99 7UJ;

Frank Rogerson of P.O Box 224, Upton Road,
Bristol, BS99 7UJ;

Matthew Phillips of P.O Box 224, Upton Road,
Bristol, BS99 7UJ;

Alan Porter of P.O Box 224, Upton Road, Bristol,
BS99 7UJ;

Conrad Tate of P.O Box 224, Upton Road, Bristol,
BS99 7UJ;

Jeremy Parr of Allen & Overy LLP, One New
Change, London EC4M 9QQ;

Dr Hans Schoenweg of Allen & Overy LLP,
Kehrwieder 12, 20457 Hamburg, Germany;

Christine Bader of Allen & Overy LLP,
Kehrwieder 12, 20457 Hamburg, Germany;

Dr Alessandro L. Celli of Froriep Renggli,
Bellerivestr. 201 CH-8034, Zürich, Switzerland; and

Nicola Benz of Froriep Renggli, Bellerivestr. 201
CH-8034, Zürich, Switzerland,

jointly and severally to
be its attorney (each the Attorney) with the full power and authority of
the Company in relation to the following:

(a)                     to sign,
execute, receive and deliver on the Company’s behalf in whatever manner
required any document, contract, deed or thing lawfully necessary to effect the
proposed acquisition by Reemtsma Cigarettenfabriken GmbH (the Buyer) of one hundred per cent. (100%) of
the issued shares of CODE Kaffee-Handelsgesellschaft mbH (Code),
COMPLEMENTA Vermögensverwaltung GmbH (Complementa) and Zida AG (Zida)
(Code, Complementa and Zida together the Target Companies), (the
Transaction) including,
but not limited to:

(i)                       the share
purchase agreement made between Tchibo Holding Aktiengesellschaft (Tchibo), the Buyer and the Company pursuant to which the Buyer and,
indirectly, the Company will acquire the shares of the Target Companies;

(ii)                    the agreements
pursuant to which the shares in the Target Companies will be transferred by
Tchibo to the Buyer and, indirectly, to the Company;

(iii)                 the co-brand
owners agreement made between Oettinger Imex AG (Oettinger), Davidoff
& Cie S.A (Davidoff & Cie),
Davidoff Trademark Extension BV (Davidoff
Trademark), Athena IP
Vermögensverwaltung GmbH & Co. KG, Lizino Vermögensverwaltung GmbH &
Co. KG, the Buyer and the Company (the Co-Brand
Owners Agreement);

 1
 

(iv)     a delimitation agreement made between
Athena IP Vermögensverwaltung GmbH & Co. KG, Lizino Vermögensverwaltung
GmbH & Co. KG, the Buyer and Zino Davidoff S.A (the Delimitation Agreement);and

(v)      the escrow letter in respect of the
Co-Brand Owners Agreement and made between Oettinger, Davidoff & Cie,
Davidoff Tradmark, the Buyer and the Company,

and any other document
required in connection with the Transaction or any of the documents set out in
paragraphs (a)(i) to (v) (together the Transaction
Documents),in each
case in such form as the Attorney in his or her absolute discretion may
reasonably deem necessary or desirable.

(b)                    to do or cause
to be done all such acts and things as the Attorney in his or her absolute
discretion may reasonably deem necessary or desirable in order to carry out and
give effect to the Transaction or any related matter including but not limited
to agreeing any amendments to the Transaction Documents.

The Company undertakes to
ratify whatever an Attorney may do in its name or on its behalf in exercising
the powers contained in this document and to indemnify the Attorney against any
loss incurred by him in connection with anything lawfully done by him in the
exercise or the purported exercise of the powers contained in this document,
except for any loss which would not have arisen but for the fraud of the
Attorney.

Unless revoked earlier,
this appointment will terminate on 31 December 2006.

This power of attorney is
governed by English law.

IN
WITNESS of which this power of attorney has been executed as
a deed and has been delivered on the date which first appears above.

	
  Executed as a deed by

  	
  )

  
	
  Imperial Tobacco Group PLC

  	
  )

  
	
  acting by

  	
  )

  
	
  and

  	
  )

  

 

	
  /s/ G Davis

  	
   

  	
  /s/ R Dyrbus

  	
   

  
	
  G Davis

  	
  R Dyrbus

  
	
  Director

  	
  Director

  

 

	
  

  	
  

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Andrew Gregg

  	
   

  	
   

  
	
  Andrew Gregg.

  	
   

  
	
   

  	
  ANDREW GREGG

  	
   

  
	
   

  	
  NOTARY PUBLIC

  	
   

  
	
   

  	
  7 QUEEN SQUARE

  	
   

  
	
   

  	
   

  	
  BRISTOL

  	
   

  
	
   

  	
   

  	
  BS1 4JE

  	
   

  
	
   

  	
   

  	
  Tel: (0117)9069400

  	
   

  
					

 

 2

	
  

  	
  Die Übereinstimmung
  dieser Fotokopie

  
	
  mit der
  Urschrift wird beglaubigt.

  
	
   

  
	
  Frankfurt am
  Main, 22. Aug. 2006

  
	
   

  
	
  [ILLEGIBLE]

  
	
  Bossbach, Notar

  

 

SHARE PURCHASE AGREEMENT

	
  between

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  TCHIBO Holding
  Aktiengesellschaft

  	
   

  	
   

  
	
   

  	
  Überseering 18

  	
   

  	
   

  	
   

  
	
   

  	
  22297 Hamburg

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  - hereinafter “Seller”
  -

  
	
  on the one hand

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  and

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  Reemtsma
  Cigarettenfabriken GmbH

  	
   

  	
   

  
	
   

  	
  Max-Born-Str. 4

  	
   

  	
   

  	
   

  
	
   

  	
  22761 Hamburg

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  - hereinafter “Buyer” -

  
	
   

  	
   

  	
   

  
	
  3.

  	
  IMPERIAL TOBACCO
  GROUP PLC

  	
   

  	
   

  
	
   

  	
  P.O. Box 244,
  Upton Road

  	
   

  	
   

  	
   

  
	
   

  	
  Bristol BS99 7UJ

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  hereinafter “Guarantor” -

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  on the other
  hand.

  	
   

  	
   

  	
   

  
						

 

Seller and Buyer and
Guarantor are hereinafter also referred to as “Party”
and, collectively, as the “Parties”.

Table of Contents

	
  

  	
   

  	
  Page

  
	
   

  	
   

  
	
  Preamable

  	
  7

  
	
  Article 1
  Definitions

  	
  7

  
	
  Article 2 The
  Companies

  	
  8

  
	
  2.1

  	
  Registration,
  Activities

  	
  8

  
	
  2.2

  	
  Share Capital

  	
  9

  
	
  2.3

  	
  Sold Shares

  	
  9

  
	
  2.4

  	
  Subsidiaries

  	
  9

  
	
  Article 3
  Purchase and Sale of the Sold Shares

  	
  10

  
	
  3.1

  	
  Agreement to
  Sell and Purchase

  	
  10

  
	
  3.2

  	
  Buyer’s
  Nomination Right

  	
  10

  
	
  3.3

  	
  Share Transfer

  	
  11

  
	
  3.4

  	
  Dividend Rights,
  etc

  	
  11

  
	
  3.5

  	
  Approval of
  Shareholders

  	
  11

  
	
  Article 4
  Purchase Price

  	
  11

  
	
  4.1

  	
  Purchase Price

  	
  11

  
	
  4.2

  	
  Payment of
  Purchase Price

  	
  11

  
	
  4.3

  	
  Default Payment

  	
  12

  
	
  4.4

  	
  Interest
  calculation

  	
  12

  
	
  4.5

  	
  No Right of
  Set-Off or Retention

  	
  12

  
	
  4.6

  	
  Net Cash

  	
  12

  
	
  4.7

  	
  Adjustments on
  the Closing Payment

  	
  13

  
	
  Article 5
  Business of Subsidiaries and Trust Arrangements

  	
  14

  
	
  5.1

  	
  Business of
  Subsidiaries

  	
  14

  
	
  5.2

  	
  Trust Arrangements

  	
  15

  
	
  5.3

  	
  Trademark
  Agreement

  	
  15

  
	
  Article 6
  Reemtsma License Agreement

  	
  15

  
	
  Article 7
  Closing Condition

  	
  16

  
	
  7.1

  	
  Condition to
  Closing

  	
  16

  
	
  7.2

  	
  Rescission

  	
  16

  
	
  Article 8
  Closing

  	
  17

  
	
  8.1

  	
  Time and Place
  of Closing

  	
  17

  
	
  8.2

  	
  Actions at
  Closing

  	
  17

  
	
  Article 9 Representations
  and Warranties of Seller

  	
  18

  
	
  9.1

  	
  Organization of
  Seller and CODE Group

  	
  18

  
	
  9.2

  	
  Ownership of the
  Sold Shares; Shareholdings

  	
  19

  
				

 

 2
 

 

	
  9.3

  	
  Authorization of
  Seller, Non-Contravention, Insolvency

  	
  19

  
	
  9.4

  	
  Financial
  Statements

  	
  20

  
	
  9.5

  	
  Business
  Activities, No undisclosed liabilities

  	
  20

  
	
  9.6

  	
  Intellectual
  Property Rights

  	
  21

  
	
  9.7

  	
  Agreements

  	
  22

  
	
  9.8

  	
  Governmental
  Approvals, Compliance with Law, Grants

  	
  23

  
	
  9.9

  	
  Litigation

  	
  23

  
	
  9.10

  	
  Employees and
  the Labour Matters

  	
  24

  
	
  9.11

  	
  Finders’ Fees

  	
  24

  
	
  9.12

  	
  Balances with
  Tchibo

  	
  24

  
	
  9.13

  	
  Conduct of
  Business since 1 January 2006

  	
  24

  
	
  9.14

  	
  Real Property

  	
  25

  
	
  9.15

  	
  No Other
  Representations and Warranties

  	
  25

  
	
  Article 10
  Representations and Warranties of Buyer

  	
  25

  
	
  10.1

  	
  Authorization of
  Buyer, Non-Contravention

  	
  26

  
	
  10.2

  	
  Litigation

  	
  26

  
	
  10.3

  	
  Financial
  Capability

  	
  26

  
	
  10.4

  	
  Finders’Fees

  	
  27

  
	
  10.5

  	
  No Knowledge of
  Breach

  	
  27

  
	
  Article 11
  Covenants

  	
  27

  
	
  11.1

  	
  Conduct of
  Business until Closing

  	
  27

  
	
  11.2

  	
  Access to
  Information

  	
  28

  
	
  11.3

  	
  Resignations

  	
  28

  
	
  11.4

  	
  Confidentiality/Public
  Announcement

  	
  28

  
	
  11.5

  	
  Filings under
  Merger Control Laws; Other Regulatory Requirements

  	
  29

  
	
  11.6

  	
  Payment of
  Reemtsma license fee/Distribution of Cash

  	
  29

  
	
  11.7

  	
  Transfer of
  patents relating to coffee business

  	
  30

  
	
  11.8

  	
  Reemtsma License
  Agreement/License Fees

  	
  30

  
	
  Article 12
  Indemnification by Seller

  	
  31

  
	
  Article 13
  Indemnification by Buyer

  	
  34

  
	
  Article 14
  Limitation Periods

  	
  34

  
	
  Article 15
  Indemnification Procedures

  	
  35

  
	
  Article 16 No
  Additional Rights or Remedies

  	
  37

  
	
  Article 17 Taxes

  	
  38

  
	
  17.1

  	
  Definitions

  	
  38

  
	
  17.2

  	
  Tax
  Representations

  	
  38

  

 

 3
 

 

	
  17.3

  	
  Preparation of
  Tax Returns and Payment of Tax

  	
  39

  
	
  17.4

  	
  Tax Refunds

  	
  39

  
	
  17.5

  	
  Tax
  Indemnification

  	
  39

  
	
  17.6

  	
  Indemnification
  Procedures

  	
  40

  
	
  17.7

  	
  Limitation
  Period

  	
  41

  
	
  17.8

  	
  Cooperation on
  Tax Matters

  	
  41

  
	
  Article 18
  Assignment

  	
  42

  
	
  Articlel9 Costs

  	
  42

  
	
  19.1

  	
  Transfer taxes,
  other charges, etc

  	
  42

  
	
  19.2

  	
  Merger Control
  Laws, other Regulatory Requirements

  	
  42

  
	
  19.3

  	
  Advisors

  	
  43

  
	
  Article 20
  Entire Agreement/Written Form

  	
  43

  
	
  Article 21
  Severability

  	
  43

  
	
  Article 22 Notices

  	
  43

  
	
  Article 23
  Guarantee

  	
  44

  
	
  Article 24
  interpretation / Schedules / Miscellaneous

  	
  44

  
	
  Article 25
  Governing Law / Jurisdiction

  	
  45

  

 

 4
 

List of Schedules:

	
  Schedule 4.2 (a)

  	
   

  	
  Estimated Net
  Cash

  
	
  Schedule 5.1 (a)

  	
   

  	
  Athena Trust Agreement

  
	
  Schedule 5.1 (b)

  	
   

  	
  Lizino Trust
  Agreement

  
	
  Schedule 5.1 (c)

  	
   

  	
  Zida license
  arrangements

  
	
  Schedule 6

  	
   

  	
  Reemtsma License
  Agreement

  
	
  Schedule 8.2 (i)

  	
   

  	
  Form of notarial
  deed re. transfer of Sold Share I and II

  
	
  Schedule 8.2
  (ii)

  	
   

  	
  Form of transfer
  document re. transfer of Sold Shares III

  
	
  Schedule 8.2 (v)

  	
   

  	
  Draft closing
  protocol

  
	
  Schedule 9.5 (a)

  	
   

  	
  List of business
  activities

  
	
  Schedule 9.5 (b)

  	
   

  	
  Liabilities

  
	
  Schedule 9.6 (c)

  	
   

  	
  Owned
  Intellectual Property Rights

  
	
  Schedule 9.6 (f)

  	
   

  	
  Disclosure re.
  breach of Owned Intellectual Property Rights

  
	
  Schedule 9.6 (g)

  	
   

  	
  Disclosure re.
  violation of third party rights

  
	
  Schedule 9.6 (h)

  	
   

  	
  Disclosure re.
  encumbrances of Intellectual Property Rights

  
	
  Schedule 9.6 (i)

  	
   

  	
  Rights re. Owned
  Intellectual Property Rights granted to third party

  
	
  Schedule 9.7 (a)

  	
   

  	
  List of
  agreements to which Companies and Subsidiaries are a party

  
	
  Schedule 9.7 (b)

  	
   

  	
  Disclosure re.
  Material Agreements

  
	
  Schedule 9.7 (c)

  	
   

  	
  Disclosure re.
  early or additional payments under Material Agreements

  
	
  Schedule 9.8 (b)

  	
   

  	
  Disclosure re.
  compliance

  
	
  Schedule 9.9 (a)

  	
   

  	
  Disclosure re.
  litigation

  
	
  Schedule 9.9 (b)

  	
   

  	
  Disclosure re.
  investigations

  
	
  Schedule 9.12

  	
   

  	
  Outstanding
  credit or debit balances of any member of the CODE Group with members of
  Seller’s group

  
	
  Schedule 9.13

  	
   

  	
  Disclosure re.
  conduct of business since 1 January 2006

  

 

 5
 

 

	
  Schedule 11.1

  	
   

  	
  Disclosure re.
  conduct of business until Closing

  
	
  Schedule 11.3

  	
   

  	
  List of
  resigning persons

  
	
  Schedule 11.7

  	
   

  	
  List of patents
  divested as of Closing

  
	
  Schedule 12.6
  (c)

  	
   

  	
  Certain
  Territories

  
	
  Schedule 17.2
  (a)

  	
   

  	
  Disclosure re.
  tax obligations

  
	
  Schedule 24.5

  	
   

  	
  List of persons
  relevant for Seller’s or Buyer’s knowledge

  

 

 6
 

Preamble

1.         Seller
is the owner of 100% of the issued shares of CODE Kaffee-Handelsgesellschaft
mbH, Hamburg, COMPLEMENTA Vermögensverwaltung GmbH, Hamburg, and Zida AG,
Klosters (Switzerland) (CODE Kaffee-Handelsgesellschaft mbH the “Company”, COMPLEMENTA Vermögensverwaltung
GmbH the “General Partner”, Zida
AG “Zida”, and the Company, the
General Partner and Zida together the “Companies”).

2.         Seller
desires to sell 100% of the issued shares in the Companies to Buyer, and Buyer
desires to purchase such shares in the Companies, upon the terms and subject to
the conditions hereinafter set out.

The Parties hereto agree as follows:

Article
1 

Definitions

For the purposes of this Agreement, each of the
following terms is defined in the article or section set out opposite such
term:

	
  Accrued Reemtsma License Fee

  	
   

  	
  Section 11.8 (c)

  
	
  Athena

  	
   

  	
  Section 2.4 (a) (i)

  
	
  Athena Trust Agreement

  	
   

  	
  Section 5.1 (a)

  
	
  BGB

  	
   

  	
  Section 12.9

  
	
  Business Day

  	
   

  	
  Section 3.2

  
	
  Buyer

  	
   

  	
  Introduction

  
	
  Cash

  	
   

  	
  Section 4.6 (a) (i)

  
	
  Closing

  	
   

  	
  Section 8.1

  
	
  Closing Condition

  	
   

  	
  Section 7.1 (a)

  
	
  Closing Date

  	
   

  	
  Section 8.1

  
	
  Closing Payment

  	
   

  	
  Section 4.2 (a)

  
	
  CODE Group

  	
   

  	
  Section 2.4 (b)

  
	
  Companies

  	
   

  	
  Preamble

  
	
  Company

  	
   

  	
  Preamble

  
	
  Davidoff Trademark

  	
   

  	
  Section 5.1 (a)

  
	
  Encumbrances

  	
   

  	
  Section 9.2 (a)

  
	
  Estimated Net Cash

  	
   

  	
  Section 4.2 (a) (ii)

  
	
  General Partner

  	
   

  	
  Preamble

  
	
  Governmental Permits

  	
   

  	
  Section 9.8 (a)

  
	
  Guarantor

  	
   

  	
  Introduction

  
	
  GWB

  	
   

  	
  Section 7.1 (a)

  
	
  Indemnifiable Tax

  	
   

  	
  Section 17.1

  
	
  Indemnified Party

  	
   

  	
  Section 15.1

  
	
  Indemnifying Party

  	
   

  	
  Section 15.1

  

 

 7
 

 

	
  Intellectual Property Rights

  	
   

  	
  Section 9.6 (a)

  
	
  HGB

  	
   

  	
  Section 2.4 (a) (i)

  
	
  Lizino

  	
   

  	
  Section 2.4 (a) (ii)

  
	
  Lizino Trust Agreement

  	
   

  	
  Section 5.1 (b)

  
	
  Material Agreements

  	
   

  	
  Section 9.7 (b)

  
	
  Meisser Claim

  	
   

  	
  Section 4.6 (b)

  
	
  Meisser Prepayment

  	
   

  	
  Section 4.6 (b)

  
	
  Net Cash

  	
   

  	
  Section 4.6 (a)

  
	
  Nominee

  	
   

  	
  Section 3.2

  
	
  Owned Intellectual Property Rights

  	
   

  	
  Section 9.6 (c)

  
	
  Parties

  	
   

  	
  Introduction

  
	
  Party

  	
   

  	
  Introduction

  
	
  Pre Closing Tax Period

  	
   

  	
  Section 17.1

  
	
  Purchase Price

  	
   

  	
  Section 4.1

  
	
  Reemtsma License Agreement

  	
   

  	
  Section 6

  
	
  Seller

  	
   

  	
  Introduction

  
	
  Sold Shares

  	
   

  	
  Section 2.3 (c)

  
	
  Sold Share I

  	
   

  	
  Section 2.3 (a)

  
	
  Sold Share II

  	
   

  	
  Section 2.3 (b)

  
	
  Sold Shares III

  	
   

  	
  Section 2.3 (c)

  
	
  Subsidiaries

  	
   

  	
  Section 2.4 (b)

  
	
  Trademark Agreement

  	
   

  	
  Section 5.3

  
	
  Tax

  	
   

  	
  Section 17.1

  
	
  Taxing Authority

  	
   

  	
  Section 17.1

  
	
  Tax Loss

  	
   

  	
  Section 17.5 (a)

  
	
  Tax Refund

  	
   

  	
  .Section 17.4 (a)

  
	
  Working Day

  	
   

  	
  Section 3.2

  
	
  Zida

  	
   

  	
  Preamble

  
	
  Zino Trademark

  	
   

  	
  Section 5.1 (b)

  

 

Terms defined in the singular shall have a comparable
meaning when used in the plural, and vice versa.

Article
2

The Companies

2.1      Registration, Activities

(a)       The Company is a German Gesellschaft mit beschränkter Haftung with
business address at Überseering 18, 22297 Hamburg. It is registered in the
commercial register of the local court (Amtsgericht)
Hamburg, under the number HR B 30760. The Company acts as a holding company for
two limited partnerships as set out below.

(b)      The General Partner is a
German Gesellschaft mit beschränkter Haftung
with business address at Überseering 18, 22297 Hamburg. It is
registered in

 8
 

the commercial register
of the local court (Amtsgericht) Hamburg,
under the number HR B 85822. The General Partner acts as general partner for
two limited partnerships as set out below.

(c)       Zida is a Swiss Aktiengesellschaft with business address
c/o Meisser & Partner, Bahnhofstrasse 8, CH-7250 Klosters. It is registered
in the commercial register Graubünden/Switzerland, under the number
CH-350.3.007.884-3.

2.2      Share Capital

(a)       The
registered nominal share capital of the Company amounts to EUR 26,000 in the
aggregate.

(b)      The
registered nominal share capital of the General Partner amounts to EUR 25,000
in the aggregate.

(c)       The
registered nominal share capital of Zida amounts to CHF 100,000.

2.3      Sold Shares

(a)       Seller holds 1 share (Geschäftsanteil) in the Company in the
nominal amount of EUR 26,000, being 100% of the registered share capital (such
share the “Sold Share I”).

(b)      Seller holds 1 share (Geschäftsanteil) in the General Partner in
the nominal amount of EUR 25,000, being 100% of the registered share capital
(such share the “Sold Share II”).

(c)       Seller holds 100 bearer
shares (Inhaberaktien) in Zida in
the nominal amount of CHF 1,000 each, being in the aggregate 100% of the
registered share capital (such shares collectively, the “Sold Shares III”, and together with the
Sold Share I and the Sold Share II, the “Sold
Shares”). No share certificate has been issued.

2.4      Subsidiaries

(a)       The Company is the only
limited partner (Kommanditist) holding
100% of the fixed share capital, and the General Partner is the only general
partner (Komplementär) holding 0%
of the fixed share capital, of each of the following limited partnerships (Kommanditgesellschaften):

(i)        Athena IP
Vermögensverwaltung GmbH & Co. KG, registered in the commercial register of
the local court (Amtsgericht) Hamburg,
under the number HR A 98129, with a registered contribution (Einlage pursuant to Section 172 para. 1 of
the German Commercial Code (Handelsgesetzbuch
- “HGB”)) of EUR
100,000 (“Athena”), and

 9
 

(ii)       LIZINO Vermögensverwaltung
GmbH & Co. KG, registered in the commercial register of the local court (Amtsgericht) Hamburg, under the number HR
A 98042, with a registered contribution (Einlage
pursuant to Section 172 para. 1 HGB) of EUR 100,000 (“Lizino”).

(b)      Athena and Lizino are
collectively referred to as the “Subsidiaries”.
The Companies and the Subsidiaries are hereinafter collectively referred to as
the “CODE Group”.

Article
3

Purchase and Sale of the Sold Shares

3.1      Agreement to Sell and
Purchase

Upon the terms and
subject to the conditions of this Agreement, Seller hereby sells to Buyer and
Buyer hereby purchases from Seller, the Sold Shares.

3.2      Buyer’s Nomination Right

Buyer shall be entitled
to nominate one or more of the directly or indirectly wholly-owned subsidiaries
of Guarantor (each a “Nominee”) to
acquire title to the Sold Shares (but not more than one Nominee per each of the
Companies). Such nomination shall be made in writing to Seller at least two
Business Days prior to the Closing (as defined below) and, if the Nominee is
not an entity incorporated and domiciled in Germany, such nomination shall
include the valid and binding appointment of an agent for service of process
for such Nominee, Upon such nomination, without prejudice to Buyer’s remaining
joint and several liability, each Nominee shall assume all rights and
obligations, and shall assume the position, of Buyer hereunder (Vertragsübernahme), including by being
entitled to assert claims under the representations and warranties in Article
9, with respect to such portion of the Sold Shares for which the respective
Nominee is nominated. If as a result of such nomination more than one person
acquires title to the Sold Shares, all such acquirers shall be joint creditors
(Gesamtgläubiger) with respect to
all of their rights hereunder and, save as provided in the following sentence,
several debtors (Teilschuldner) with
respect to all of their obligations hereunder. Buyer shall in any event remain
jointly and severally liable (Gesamtschuldner)
with each Nominee for the prompt performance of all obligations of such
Nominee(s) hereunder.

For the purpose of this
Agreement, “Business Day”or “Working
Day” means any day on which the banks are open for business in
Frankfurt am Main, Germany, and London, England.

 10

  3.3      Share Transfer
  At Closing, Seller shall
assign and transfer to Buyer (or the Nominee(s), as the case may be) the Sold
Shares in accordance with Article 8.
  3.4      Dividend Rights, etc.
  (a)                    The Sold
Shares shall be sold and transferred with all rights and obligations pertaining
thereto including, in particular, the right to receive all profits of the
Companies for the fiscal year ending after 1 January 2006 and all subsequent
periods.
  (b)                   Subject to
Section 11.6, Buyer shall also be
entitled to receive all profits of the Companies for the fiscal years 2005 and
before, which have not been distributed prior to the date hereof.
  3.5      Approval of Shareholders
  Seller being the only
shareholder of the Companies hereby approves of the sale and transfer of the
Sold Shares as set out herein.
  Article 4

Purchase Price
  4.1      Purchase Price
  The aggregate purchase
price (the “Purchase Price”) to be
paid for the Sold Shares shall equal the amount of
  (i)                       EUR
540,000,000 (in words: Euro five hundred and forty million)
  plus or minus (as the case may be)
  (ii)                    the amount of
the Net Cash.
  4.2      Payment of Purchase Price
  (a)                    An amount
shall be due and payable in Euro on the Closing Date on account of the Purchase
Price being
  (i)                        EUR
540,000,000 (in words: Euro five hundred and forty million)
  plus or minus (as the case may be)
  (ii)                     the estimated
Net Cash amount as set out in Schedule 4.2
(a) (the “Estimated Net Cash”),

 11
 

    resulting
in an amount to be paid at the Closing of EUR 540,067,000 (the “Closing
Payment”).
  (b)                    The Closing
Payment shall be made free of any costs and charges, value as of the “Closing”
Date prior to 11:00 a.m., by wire transfer of immediately available funds to
the following bank account of Seller:
  	  Account Holder:
  	  Tchibo Holding AG
  
	  Account no:
  	  908613400
  
	  Bank:
  	  Dresdner Bank
  
	  Bank code:
  	  200 800 00
  
	  SWIFT:
  	  DRESDEFF200
  
	  IBAN:
  	  DE92200800000908613400.
  

  4.3      Default Payment
  If Buyer fails to pay the
Closing Payment at the Closing Date, interest at a rate of 8% per annum from
and excluding the Closing Date to and including the date of payment shall
become due and payable on the Closing Payment, without prejudice to any other
rights and remedies of Seller arising from such failure.
  4.4      Interest calculation
  Any interest payments due
hereunder shall be calculated daily on the basis of a year of 365 days and the
actual number of days elapsed.
  4.5      No Right of Set-Off or Retention
  Buyer shall not be
entitled to exercise any right of retention or set-off against Seller’s
entitlement to the Purchase Price except with respect to indemnification or
other claims of Buyer conclusively determined by final court decision or
acknowledged by Seller.
  4.6      Net Cash
  (a)                     The amount of
“Net Cash” shall be equal to the
consolidated amount as of the Closing Date (end of day) of the Companies and
the Subsidiaries of
  (i)                       all cash at
hand and at bank and cash equivalents within the meaning of Section 266 para. 2
B. IV. HGB (the “Cash”)
  less
  (ii)                    indebtedness (Verbindlichkeiten) within the meaning of
Section 266 para. 3 C. HGB and provisions and accruals (Rückstellungen) within the meaning of

 12
 

    Section 266 para. 3 B. HGB (including tax accrual on
an accrued basis for the period up to the Closing Date).
  (b)                    The amount of
EUR 100,000 prepaid to Dr. Meisser by Athena (the “Meisser Prepayment”), and costs accrued for
services of Dr. Meisser from the last invoice date (30 April 2006) until
Closing (the “Meisser Claim”), shall
not be included in the Net Cash calculation under (a). The Parties shall ensure
that Athena sets off claims resulting from the Meisser Prepayment against the
Meisser Claim promptly after receipt of the invoice of the Meisser Claim. If
the Meisser Claim exceeds EUR 100,000 or the set off is not possible, Athena
shall be reimbursed by Seller for the Meisser Claim. Buyer shall further ensure
that following the set off described above Athena assigns any remaining claims
against Dr. Meisser resulting from the Meisser Prepayment to Seller.
  (c)                     For the
avoidance of doubt, provisions or accruals will be made in the calculation of
the Net Cash despite the fact that the Closing Date does not fall at the end of
an accounting period.
  4.7      Adjustments on the Closing Payment
  (a)                    In the event
that in the opinion of Buyer or Seller the Estimated Net Cash is not equivalent
to the correct amount of the Net Cash as of Closing, Buyer shall submit to
Seller, or Seller shall submit to Buyer, a written statement within a period of
two months after Closing, setting out in reasonable detail the proposed
adjustment to the Estimated Net Cash. Failing submission of such statement
either by Seller or Buyer, the Estimated Net Cash amount shall be final and
binding on the Parties and be deemed to be the Net Cash amount for purposes of
this Agreement.
  (b)                   Seller and
Buyer shall use best efforts to jointly determine on the basis of such written
statement(s) any adjustments (difference between the estimated amount and the
actual amount) that need to be made to the Estimated Net Cash amount, and
following agreement on such adjustment, Seller shall promptly pay to Buyer or
Buyer shall promptly pay to Seller, as the case may be, the respective
adjustment amount together with 4% interest p.a. from and excluding the day of
Closing to and including the day of payment.
  (c)                    Buyer and
Seller shall be each entitled to receive all information reasonably requested
by it to ascertain the correctness of the calculation of the Estimated Cash
Amount and/or any adjustments proposed by Seller or Buyer.
  (d)                   Should Seller
or Buyer disagree as to the adjustments pursuant to para. (b), each of Seller
and Buyer shall be entitled to request the Institut
der Wirtschaftsprüfer in Deutschland e. V. to appoint an independent
auditor to determine the amount of Net Cash. Such auditor shall act as expert
arbitrator (Schiedsgutachter). The
expert arbitrator shall decide after having heard the

 13
 

    Parties. His decision
shall be final and binding on the Parties and shall state the amount to be paid
by Seller to Buyer or Buyer to Seller, as the case may be, taking into account
the Closing Payment already made.
  (e)                    Promptly after
receipt of the decision of the expert arbitrator, Seller shall pay to Buyer or
Buyer shall pay to Seller, as the case may be, the amounts determined by the
expert arbitrator, together with 4% interest p.a. from and excluding the day of
Closing to and including the day of payment.
  (f)                      For the
purpose of calculating the adjustment (if any) under this Clause 4.7, any new
information becoming available prior to final determination of the adjustment
in relation to the correct amount as of the Closing Date of any item to be
included in the Net Cash calculation shall be taken into account.
  Article 5

Business of Subsidiaries and Trust Arrangements
  5.1      Business of Subsidiaries
  (a)                    Athena is the
legal and beneficial, or beneficial, owner of the trademark “Davidoff” to the
extent used for cigarettes and (to the extent permitted) accessories for
cigarettes in class 34 (“zur Kennzeichnung
von Zigaretten und (soweit
genehmigt) Accessoires für den
Genuss von Zigaretten”, see
Exhibit D to the Athena Trust Agreement) as registered on a world-wide basis,
or to be registered following completion of the last, currently pending
transfers of trademarks in class 34 from Zino Davidoff SA, in the name of
Oettinger Imex AG, Switzerland, or an affiliate thereof (the “Davidoff Trademark”) in accordance with, and subject to the
terms and conditions of, an agreement between (inter
alia) Oettinger Imex AG and Athena dated 18 June 2002 (the “Athena Trust Agreement”) (copy attached as Schedule 5.1 (a)).
  (b)                   Lizino is the
legal and beneficial, or beneficial, owner of the trademark “Zino” to the
extent used for cigarettes and (to the extent permitted) accessories for
cigarettes in class 34 (“zur Kennzeichnung
von Zigaretten und (soweit
genehmigt) Accessoires für den
Genuss von Zigaretten”, see
Exhibit D to the Lizino Trust Agreement) as registered on a world-wide basis,
or to be registered following completion of the last, currently pending
transfers of trademarks in class 34 from Zino Davidoff SA, in the name of
Oettinger Imex AG or an affiliate thereof (the “Zino Trademark”) in accordance with, and subject to the terms
and conditions of, an agreement between (inter
alia) Oettinger Imex AG and Lizino dated 18 June 2002 (the “Lizino Trust Agreement”, copy attached as Schedule 5.1 (b)).
  (c)                    Zida holds a
world-wide subordinated license to manufacture and market cigarettes under the
Davidoff Trademark in accordance with, and subject to

 14
 

    the terms and conditions
of, the amendment to the license agreement of 2 October/6 November 1997
regarding Davidoff cigarettes, as entered into between Davidoff & Cie SA,
Buyer and Zida on 10,18 and 19 March 2003, and a subordinated license agreement
entered into between Davidoff & Cie SA and Zida on 3 and 7 October 2003 for
registration purposes (copies of such amendment and subordinated license
agreement attached as Schedule 5.1 (c)).
  5.2      Trust Arrangements
  Oettinger Imex AG and/or
affiliates thereof are acting as trustees for, and upon instructions by, Athena
with regard to the registration, administration, prosecution and enforcement of
the Davidoff Trademark, and for, and upon instructions by, Lizino with regard
to the registration, administration, prosecution and enforcement of the Zino
Trademark, according to the Athena Trust Agreement and the Lizino Trust
Agreement.
  5.3      Trademark Agreement
  Buyer and Guarantor have
informed Seller that Buyer, Oettinger Imex AG and certain other parties will
enter into an agreement and/or arrangement relating to the Davidoff Trademark and
the Zino Trademark (including certain matters in relation to the Athena Trust
Agreement and the Lizino Trust Agreement) (the “Trademark Agreement”). The Trademark Agreement has not been
disclosed to Seller. The Parties acknowledge and agree that Seller shall not be
responsible for the Trademark Agreement and any adverse consequences that may
result therefrom, including in relation to the position of Buyer, Guarantor,
any of the Companies or any of the Subsidiaries with respect to the Davidoff
Tradmark or the Lizino Trademark, provided, however, that the Seller shall not
be released from any liability (including without limitation under Section 12
relating to Section 9) that it may incur pursuant to the terms of this
Agreement to the extent that such liability would have arisen irrespective of
the existence of the Trademark Agreement.
  Article 6

Reemtsma License Agreement
  Davidoff
& Cie SA (as the licensor) and Buyer (as the licensee) are, inter alia,
parties to the license agreement of 2 October/6 November 1997 and amendments
thereto and an additional agreement of even date with the license agreement
(such license agreement, as amended, and such additional agreement,
collectively referred to as the “Reemtsma
License Agreement”; a copy of the Reemtsma License Agreement is
attached as Schedule 6). Under and
subject to the terms of the Reemtsma License Agreement Buyer has a worldwide
exclusive license to use the Davidoff trademark to produce, market and
advertise cigarette products.

 15
 

    Article
7

Closing Condition
  7.1      Condition to Closing
  (a)                    The obligation
of Seller and Buyer to consummate the sale and purchase of the Sold Shares at
Closing (as defined below) is subject to the satisfaction of the following
condition precedent (“Closing Condition”):
  The German Federal Cartel
Office (Bundeskartellamt) shall have cleared the transaction (i) either by
notifying the Purchaser and/or Seller within the one-month period under Sec. 40
para. 1 of the German Act Against Restraints of Competition (Gesetz gegen Wettbewerbsbeschränkungen – “GWB”) that the conditions for a prohibition
according to Sec. 36 para. 1 GWB are not met, or (ii) by clearing the
transaction within the four months period under Sec. 40 para. 2 sentence 2 GWB
or within the extended waiting period under Sec. 40 para. 2 sentence 4 no. 1
GWB, or (iii) by permitting the time limits according to Sec. 40 para. 1 or 2
GWB to expire without having served the relevant notices or decisions
respectively.
  (b)                   The Parties
shall promptly inform each other of the satisfaction of the Closing Condition.
  7.2      Rescission
  (a)                    Provided it
shall have used reasonable endeavours to seek fulfilment of the Closing
Condition, each of Seller and Buyer is entitled to rescind (“zurücktreten”) this Agreement by giving
written notice to the other Party, if the Closing Condition has not been
fulfilled within six months from the signing of this Agreement.
  (b)                   Buyer is
entitled to rescind this Agreement by giving written notice to be received by
Seller prior to Closing pursuant to Section 22.1, or by personal delivery to
Seller at the Closing, if;
  (i)                        any breach
of any of the warranties or representations set out in Articles 9 or 17.2, or
for any reason a claim under the indemnity in Section 17.5, shall have occurred
prior to Closing or would occur at Closing; and/or
  (ii)                     Seller shall
have breached or failed to fulfil its obligations under Section 11.1,
  but only if such breach
or breaches, or such reason for an indemnity claim under Section 17.5, (if
capable of remedy) to the extent not remedied prior

 16
 

    to Closing, would result
in a claim or claims of Buyer under this Agreement exceeding in aggregate EUR
50 million (Euro fifty million).
  (c)                    If Seller or
Buyer rescinds this Agreement pursuant to paragraphs (a) or (b), all rights and
obligations of all Parties hereunder shall terminate without any liability
(other than for compensation of actual damage caused by breach of this
Agreement prior to such termination) of any Party to the other Party, provided,
however, that Sections 11.4, 19 and 25 shall remain in full force and effect
(to the extent relevant). Seller and Buyer may agree on an extension of the
period set out in paragraph (a). If Seller or Buyer elects not to exercise any
rights of rescission it may have pursuant to paragraphs (a) or (b), such election
shall be without prejudice to and shall have no effect upon its rights
hereunder (other than the right of rescission), which shall continue in full
force and effect.
  Article 8

Closing
  8.1      Time and Place of Closing
  The closing (Vollzug) of the purchase and sale of the
Sold Shares hereunder (the “Closing”)
shall take place at the offices of Allen & Overy LLP, Hamburg on the sixth
Business Day after the Closing Condition has been satisfied, or at such other
time or place as Buyer and Seller may mutually agree (the “Closing Date”).
  8.2      Actions at Closing
  At Closing, Seller and
Buyer shall take, or cause to be taken, the following actions, which shall be
taken simultaneously (Zug um Zug):
  (i)                       execution
by Seller and Buyer of a notarial deed, substantially in the form attached
hereto as Schedule 8.2 (i),
concerning the transfer of the Sold Share I and Sold Share II;
  (ii)                    execution by
Seller and Buyer of transfer document, substantially in the form attached
hereto as Schedule 8.2 (ii),
concerning the transfer of the Sold Shares III;
  (iii)                 delivery by
Seller to Buyer of the duly signed resignation letters of the relevant persons
as set out in Section 11.3;
  (iv)                payment by Buyer
of the Closing Payment as set out in Section 4.2; and
  (v)                   execution by
Seller and Buyer of a closing protocol, substantially in the form attached
hereto as Schedule 8.2 (v).

 17
 

    Article
9 

Representations and Warranties of Seller
  Seller
represents and warrants to Buyer in the form of an independent guarantee (Section 311 German Civil Code) that the
statements set out in this Article 9 are true and correct as of the date hereof
and will be true as of Closing, on the basis of such laws and regulations as
are in force at the date hereof or the Closing Date, respectively, provided,
however, that
  (i)                       representations
and warranties which are subject to Seller’s knowledge or awareness shall only
be true and correct as of the date hereof;
  (ii)                    representations
and warranties which are expressly made as of a specific date shall be true and
correct only as of such date;
  (iii)                 any provisions of
this Agreement relating to the consequences of a breach of any of the
representations or warranties, including the provisions of Article 12 and the
limitations set out in Sections 12.1 to 12.8 (to the extent they apply to a
breach of the representations and warranties), form an integral part of this
guarantee (Inhalt des
Schuldverhältnisses/Bestandteil der Garantieerklärung), and this guarantee is only given subject
to such provisions and limitations;
  (iv)                none of the
representations and warranties contained herein takes into account the
Trademark Agreement (which has not been disclosed to Seller), and nothing
contained in the Trademark Agreement can be invoked as a basis a for breach by
Seller of any such representations or warranties.
  9.1      Organization of Seller and CODE Group
  (a)                    Each of
Seller, and each of the Companies, and each of the Subsidiaries, is a limited
liability company or corporation or limited partnership duly organized and
validly existing under the laws of its respective jurisdiction and has all
requisite corporate power to carry on its business as now conducted.
  (b)                   Each member of
the CODE Group is identified in Article 2, and no member of CODE Group holds
any interests in any company or entity other than set out in Article 2.
  (c)                    The Companies
and the Subsidiaries are not party to equity joint venture agreements or silent
partnership agreements or, as regards the Companies and the Subsidiaries
domiciled in Germany, affiliation agreements (Unternehmensverträge).

 18
 

    9.2      Ownership of the Sold
Shares; Shareholdings
  (a)                    The
information regarding the Companies and the Subsidiaries set out in Article 2
is correct. The Sold Shares and all shares or partnership interests held by the
Companies as set out in Section 2.4, are free and clear of any Encumbrances,
except for rights under statutory law. No member of the CODE Group is obliged
to issue any securities other than to the Companies or a Subsidiary.
  “Encumbrances” shall mean any mortgage,
pledge, lien, option, right of pre-emption or other right of third parties in
relation to the relevant asset, assignment by way of security or any agreement
to create any of the foregoing.
  (b)                   The Sold Shares
and all other shares of the Subsidiaries are duly authorized and validly
issued, and the Sold Shares are fully paid and the relevant capital
contribution (Stammkapital and Einlagen pursuant to Section 172 para. 1
HGB) has not been paid back. The Sold Shares and all other shares or
partnership interests of the Subsidiaries are non-assessable (i.e. there is no shareholder obligation to
make an additional capital contribution).
  (c)                    The Companies
and the Subsidiaries do not hold or own any securities (Beteiligungen) in any corporation other
than shares in a Subsidiary.
  9.3      Authorization of Seller, Non-Contravention,
Insolvency
  (a)                    The execution
and performance by Seller of this Agreement and the consummation of the
transactions contemplated hereby are within Seller’s corporate powers and have
been duly authorized by all necessary corporate action on the part of Seller,
and this Agreement constitutes a valid and binding agreement of Seller.
  (b)                   The execution
and performance by Seller of this Agreement and the consummation of the
transactions contemplated hereby require no action by or in respect of, or
filing with, any governmental body, agency or official other than the
compliance with any applicable requirements under merger control laws.
  (c)                    The execution
and performance by Seller of this Agreement and the consummation of the transactions
contemplated hereby do not and will not (i) violate Seller’s articles of
association, (ii) assuming compliance with any applicable requirements under
merger control laws, violate any applicable law, rule, regulation, judgement,
injunction, order or decree, or (iii) require any consent or other action by
any third party, or constitute a default, under any agreement or other
instrument binding upon Seller.
  (d)                   No insolvency
or similar proceedings concerning any of the Companies or

 19
 

    any of the Subsidiaries,
or the assets of any of them, have been instituted (Eröffnung des Insolvenzverfahrens) and no circumstances
exist which could, pursuant to the Insolvency Code (Insolvenzordnung) or comparable laws of other relevant
jurisdictions, give rise to the institution of insolvency or similar
proceedings concerning any of the Companies or any of the Subsidiaries, or the
assets of any of them.
  9.4                  Financial
Statements
  Buyer has been provided
with copies of financial statements of the Companies and the Subsidiaries for
the fiscal year ending on 31 December 2005. Such financial statements have been
prepared in accordance with German GAAP, and for ZIDA in accordance with Swiss
FER, consistently applied and without changing the valuation principles (Bilanzkontinuität), in each case unless shown otherwise in
the notes to the financial statements. As of the dates as of which they were
prepared, the financial statements present, in accordance with Section 264
para. 2 sentence 1 HGB, German GAAP and the pertinent provisions of the HGB,
and in relation to Zida in accordance with Swiss FER, a realistic view of the
assets, financial and profit situation (ein
den tatsächlichen Verhältnissen entsprechendes Bild der Vermögens-, Finanz- und
Ertragslage).
  9.5                  Business
Activities, No undisclosed liabilities
  (a)                    Except to the
extent disclosed in Schedule 9.5 (a) and
under Articles 2, 5 and 6, and other than pursuing their business activities as
holding companies as specifically set out in this Agreement, the Companies and
the Subsidiaries are not pursuing and have at no time pursued any business
activities, and, save as aforesaid, have not traded and are not trading.
  (b)                   None of the
Companies nor any of the Subsidiaries will, as of the Closing Date, have any
liability or obligation of any kind whatsoever, whether accrued, contingent,
absolute, determined, determinable or otherwise, which would be required by
German GAAP to be included, as indebtedness (Verbindlichkeit), accrual (Rückstellung) or contingent liabilities (Haftungsverhältnisse und/oder
Eventualverbindlichkeiten) in a consolidated balance sheet of CODE
Group as of the Closing Date or disclosed in the notes thereto (had all
relevant facts (including without limitation the outcome of any relevant
proceedings or processes in relation to such facts) been known at the time of
preparing such consolidated balance sheet and notes thereto), other than:
  (i)                        liabilities
included, as indebtedness (Verbindlichkeit), accrual (Rückstellung) or contingent liabilities (Haftungsverhältnisse und/oder
Eventualverbindlichkeiten) in the financial statements of the
companies of CODE Group for the fiscal year 2005 or to the extent disclosed in
the notes thereto;

 20

(ii)                     liabilities
to the extent disclosed in Schedule 9.5 (b);

(iii)                  liabilities to
the extent otherwise disclosed in this Agreement, or

(iv)                 liabilities to
the extent taken into account in the calculation of Net Cash.

9.6                  Intellectual Property Rights

(a)                    “Intellectual Property Rights”shall mean all registered intellectual
property rights (together with all applications for the grant of any of these
rights) anywhere in the world, and whether used or currently not in use,
including patents and trademarks.

(b)                   The information
set out in Articles 5 and 6 is correct, and the Schedules to Articles 5 and, to
Seller’s knowledge, 6 contain true and complete copies of the agreements
purported to be disclosed in such Schedules. Such information and the Schedules
to Articles 5 and 6 are deemed disclosed in relation to this Section 9.6.

(c)                    Schedule 9.6
(c) contains a complete and accurate list, as of the date hereof, of all
Intellectual Property Rights legally and beneficially, or beneficially, owned
and used or held for use by any of the Companies or any of the Subsidiaries
(the “Owned Intellectual Property Rights”)
and all applications for the grant of Owned Intellectual Property Rights,
specifying as to each, as applicable:

(i)                        the nature
of such Owned Intellectual Property Right; and

(ii)                     if
applicable, the jurisdiction in which such Owned Intellectual Property Right
has been registered or in which an application for such issuance or
registration has been filed and the registration or application numbers.

All registrations of
Owned Intellectual Property Rights are or, following completion of the last,
currently pending transfers of trademarks in class 34 from Zino Davidoff SA,
will be in the name of Oettinger Imex AG or affiliates thereof and held on
trust for Athena or Lizino pursuant to the Athena Trust Agreement and the
Lizino Trust Agreement.

(d)                   Athena or
Lizino are the sole legal and beneficial, or beneficial, owners of the Owned
Intellectual Property Rights set out in Schedule
9.6 (c), subject to such arrangements as are set out in Article 5 or
Article 6 and the Schedules thereto, and none of the Companies or the
Subsidiaries have entered into any agreements with third persons pursuant to
which any such Owned Intellectual Property Rights may be terminated or assigned.

 21
 

(e)                    The Companies
and the Subsidiaries and/or their trustees, respectively, have complied in all
material respects with all formalities and paid (or arranged to have paid) all
fees that are due and have, in accordance with the Athena Trust Agreement and
the Lizino Trust Agreement,

(i)                        carried
out all necessary actions which a prudent businessman would take, taking into
consideration the economic significance of the relevant Intellectual Property
Rights, to protect and enforce the Owned Intellectual Property Rights, and

(ii)                     administered
such rights in the ordinary course of business.

(f)                      Except to
the extent disclosed in Schedule 9.6 (f), and
except as set out in the following sentence, to Seller’s knowledge the Owned
Intellectual Property Rights are not being breached by any third party. Seller
has informed Buyer that there exists a large number of forgeries and
unauthorized use of the Owned Intellectual Property Rights of minor
significance, in particular in Asia (which in part have been pursued by Buyer
as licensee of the Davidoff Trademark) which (except to the extent pursued by
Buyer) to Seller’s knowledge are not reasonably expected to result in a loss or
damage in excess of EUR 75,000 in the individual case.

(g)                   Except to the
extent disclosed in Schedule 9.6 (g)
and except for the pending proceedings instigated by the French model Delubac
conducted by Buyer, the use of Owned Intellectual Property Rights by the CODE
Group or (in compliance with the Reemtsma License Agreement assuming the
Reemtsma Licence Agreement is in full force and effect) by the Buyer or its
affiliates does not violate the rights of any third parties.

(h)                   Except to the
extent disclosed in Schedule 9.6 (h), as
of the date hereof no Owned Intellectual Property Right is subject to any
outstanding judgement, injunction, order, decree, agreement or other
encumbrance restricting the use thereof by CODE Group and/or the use thereof
(in compliance with the Reemtsma Licence Agreement assuming the Reemtsma
Licence Agreement is in full force and effect) by Buyer or its affiliates or
restricting the licensing or sub-licensing thereof by CODE Group or by Buyer or
its affiliates (in accordance with the Reemtsma Licence Agreement assuming the
Reemtsma Licence Agreement is in full force and effect) to any third party.

(i)                       Except to
the extent disclosed in Schedule 9.6 (i), no
rights in respect of Owned Intellectual Property Rights have been granted by or
on behalf of any member of CODE Group to any third party.

9.7                  Agreements

(a)                    Except to the
extent disclosed in Articles 5, 6 and Schedule
9.7 (a), the

 22
 

Companies and the Subsidiaries are not a party to any
agreements.

(b)                   Except to the
extent otherwise disclosed in Schedule 9.7
(b), the Athena Trust Agreement and the Lizino Trust Agreement
(together, the “Material Agreements”) are in full force and effect, and none of
the Companies, none of the Subsidiaries or, to Seller’s knowledge, any other
party thereto is in default or breach under any such agreement.

(c)                    Except to the
extent disclosed in Schedule 9.7 (c), no
event or circumstance exists which would allow any party to any Material
Agreement to terminate any Material Agreement or to demand early or additional
payment of any amount under the Material Agreements as a result of the
transaction contemplated in this Agreement.

(d)                   Athena is not
in breach of the Reemtsma License Agreement such as to result in any third
party liability (i.e. a liability of Athena or Buyer or any of its affiliates
to any party other than Buyer or any of its affiliates).

9.8                  Governmental Approvals, Compliance
with Law, Grants

(a)                    The Companies
and the Subsidiaries have obtained all governmental licenses, authorizations,
permits, consents and approvals required to carry on their business as
conducted as of the date hereof (“Governmental
Permits”). No
Governmental Permit has been revoked from any of the Companies or any of the
Subsidiaries and Seller is not aware of any facts which may result in the
cancellation or revocation of any Governmental Permit. The Parties acknowledge and
agree that this Section 9.8 (a) does not relate to tobacco rules and
regulations.

(b)                   Except to the
extent disclosed in Schedule 9.8 (b),
the business of the Companies and each Subsidiary is conducted in compliance
with all applicable laws, regulations, and Governmental Permits, except where
the failure so to comply would not have a material adverse effect on the
business of any of the Companies or any of the Subsidiaries.

(c)                    The Companies
and the Subsidiaries have not received any public grants.

9.9                  Litigation

(a)                    Except to the
extent disclosed in Schedule 9.9 (a),
as of the date hereof,

(i)                        none of
the Companies nor any of the Subsidiaries is involved in any lawsuit,
litigation or arbitration proceedings before any state court, arbitrator or any
governmental body, agency or official;

(ii)                     no such
lawsuit, litigation or arbitration proceedings as referred to in (i) has been
threatened in writing against any of the Companies or any

 23
 

of the Subsidiaries; and

(iii)                  none of the
Companies nor any of the Subsidiaries is subject to any governmental or court
order or decree that limits its ability to operate its business in the ordinary
course.

(b)                   Except to the
extent disclosed in Schedule 9.9 (b),
as of the date hereof none of the Companies nor any of the Subsidiaries are the
subject of any investigation, inquiry or enforcement proceedings by any
governmental or administrative authority or other regulatory body and no such
investigation, inquiries or enforcement proceedings have been threatened in
writing against any of the Companies or any of the Subsidiaries.

9.10           Employees and the Labour Matters

CODE Group does not
employ and has not employed any employees.

9.11           Finders’ Fees

No member of the CODE
Group has any obligation or liability to pay any fees or commissions to any
broker, finder or agent with respect to any of the transactions contemplated by
this Agreement.

9.12           Balances with Tchibo

Except to the extent
disclosed in Schedule 9.12, as of
the Closing Date, there will be no outstanding credit or debit balances of any
member of the CODE Group with members of Seller’s group (other than CODE
Group).

9.13           Conduct of Business since 1 January 2006

Except to the extent
disclosed in Schedule 9.13, and
except for any transactions contemplated by or any facts or events as are set
out in this Agreement, in the period between 1 January 2006 and the date
hereof, the business of the Companies and the Subsidiaries has been operated in
the ordinary course in a manner consistent with past practice and (whether or
not in the ordinary course) there has not been:

(i)                       any
declaration, setting aside or payment of any dividend or other distribution
(including the repayment of reserves) with respect to any shares of any of the
Companies or any of the Subsidiaries;

(ii)                    any repurchase,
redemption, repayment or other acquisition by any of the Companies or any of
the Subsidiaries of any outstanding shares or other securities of any of the
Companies or any of the Subsidiaries;

(iii)                 the incurring,
assumption or guarantee by any of the Companies or any of

 24
 

the Subsidiaries of any
indebtedness for borrowed money other than indebtedness incurred or assumed
towards any member of CODE Group,

(iv)                any making of any
loan, advance or capital contributions to any company, entity or other person (other
than a member of CODE Group);

(v)                   any capital
expenditures, or binding commitments for capital expenditures;

(vi)                any acquisition,
disposal, transfer, lease, license, creation of any Encumbrance over, or other
binding commitments with respect to, any Owned Intellectual Property Rights or

(vii)             agreed or committed
to do any of the foregoing.

9.14           Real Property

The Companies and the
Subsidiaries do not own or lease and have not owned or leased any real
property.

9.15           No Other Representations and Warranties

Seller makes no
representation or warranty and gives no guarantees with respect to the Sold
Shares, the CODE Group, its respective businesses and the transactions
contemplated hereby, except as set out in this Agreement. Without limiting the
generality of the foregoing, Buyer acknowledges that, except as set out in this
Agreement, Seller makes no representation or warranty with respect to (i) any
projections, estimates or budgets delivered to or made available to Buyer of
future revenues, future results of operations (or any component thereof),
future cash flows or future financial condition (or any component thereof) or
the future business and operations of CODE Group or (ii) any other information
or documents made available to Buyer or its counsel, accountants or advisors
with respect to CODE Group or its respective businesses or operations.

Article 10

Representations and Warranties of Buyer

Buyer
represents and warrants to Seller in the form of an independent guarantee (Section 311 German Civil Code) that the
statements set out in this Article 10 are true and correct as of the date
hereof and except as indicated otherwise in the relevant representation or
warranty, will be true as of Closing, provided, however, that any provisions of
this Agreement relating to the consequences of a breach of any of these
representations or warranties of Buyer, including the provisions of Article 13
(to the extent they apply to a breach of the representations and warranties of
Buyer), form an integral part of this guarantee (Inhalt des Schuldverhältnisses/Bestandteil der Garantieerklärung), and this guarantee is only given subject
to such provisions and limitations.

 25
 

10.1           Authorization of
Buyer, Non-Contravention

(a)                    Buyer is a
limited liability company duly organized and validly existing under the laws of
Germany and has all requisite corporate power and all material governmental
licenses, authorizations, permits, consents and approvals required to carry on
its business as now conducted. Each Nominee is a corporation duly incorporated,
validly existing under the laws of its domicile (Sitz)and with
all corporate powers and all material governmental licenses, authorizations,
permits, consents and approvals required to carry on its business.

(b)                   The execution
and performance by Buyer and the performance by the Nominee(s), if any, of this
Agreement and the consummation of the transactions contemplated hereby are
within the corporate powers of Buyer and the Nominee(s), if any, and have been
duly authorized by all necessary corporate action on the part of Buyer and the
Nominee(s), if any. This Agreement constitutes a valid and binding agreement of
Buyer.

(c)                    The execution
and performance by Buyer and the performance by the Nominee(s), if any, of this
Agreement and the consummation of the transactions contemplated hereby require
no action by or in respect of, or filing with, any governmental body, agency or
official other than the compliance with any applicable requirements under
merger control laws.

(d)                   The execution
and performance by Buyer and the performance by the Nominee(s), if any, of this
Agreement and the consummation of the transactions contemplated hereby do not
and will not (i) violate the articles of association of Buyer and the
Nominee(s), if any, (ii) assuming compliance with any applicable requirements
under merger control laws, violate any applicable law, rule, regulation,
judgement, injunction, order or decree to which Buyer or any Nominee is
subject, or (iii) require any consent or other action by any third party, or
constitute a default, under any agreement or other instrument binding upon
Buyer or any Nominee.

10.2           Litigation

At the date of this
Agreement, there is no action, suit, investigation or proceeding pending
against, or to Buyer’s knowledge threatened in writing against, Buyer before
any court or arbitrator or any governmental body, agency or official which in
any manner challenges or seeks to prevent, enjoin, alter or materially delay
the transactions contemplated by this Agreement.

10.3           Financial Capability

Buyer has, or will have
prior to or at the Closing, sufficient immediately available funds or binding
and unconditional financing commitments to enable it to pay the

 26
 

Purchase Price for the
Sold Shares or secure payment of the relevant portions of the Purchase Price by
each Nominee.

10.4           Finders’ Fees

Buyer or any Nominee does
not have any obligation or liability to pay any fees or commissions to any
broker, finder or agent with respect to any of the transactions contemplated by
this Agreement for which Seller could become liable.

10.5           No Knowledge of Breach

To Buyer’s actual
knowledge, at the date hereof, there exist no facts or matters which Buyer
actually knows constitute a breach (taking into account all of the provisions
of this Agreement) of a representation or warranty made by Seller under
Sections 9.6 or 9.7.

Article 11

Covenants

11.1           Conduct of Business
until Closing

From the date hereof
until the Closing, Seller shall ensure, to the fullest extent legally
permissible, that the Companies and the Subsidiaries (i) conduct their
businesses in the ordinary course consistent with past practice, and (ii)
preserve intact their business organizations and relationships with third
parties. Irrespective of the foregoing, from the date hereof until the Closing,
except to the extent disclosed in Schedule
11.1 or contemplated by this Agreement or with the prior written
approval of Buyer, Seller shall ensure that each of the Companies and the
Subsidiaries, to the fullest extent legally permissible, do not:

(i)                       adopt any
change in its certificate of incorporation, articles of association or bylaws
(other than in respect of matters contemplated by this Agreement);

(ii)                    amend the
terms of any outstanding or issued shares or securities of any of the Companies
or any of the Subsidiaries or vary the rights attached to them;

(iii)                 enter into any
corporate restructuring, any voluntary liquidation or dissolution or make any
capital contribution;

(iv)                merge or
consolidate with any other person or buy, lease, license or otherwise acquire
any businesses or any assets, property or real estate from any person;

(v)                   amend any
Material Agreement or enter into any contract or binding

 27
 

commitment (except with Seller’s consent not to be
unreasonably withheld);

(vi)                employ any person;

(vii)             take any of the steps
or do any of the things set forth in Section 9.13;

(viii)          agree or commit to do
any of the foregoing.

11.2           Access to
Information

(a)                    After the
Closing, Buyer will afford promptly to Seller and its representatives
reasonable access to, and allow them to make copies of, books of account,
financial and other records (including, without limitation, accountant’s work
papers), information, employees and, so far as it is able to procure, auditors
of the Companies and the Subsidiaries to the extent necessary for Seller in
connection with any audit, investigation, dispute or litigation relating to
CODE Group or this Agreement or the transactions contemplated herein; provided
that any such access by Seller shall not unreasonably interfere with the
conduct of the business of Buyer or CODE Group and provided that Seller shall
treat all such books, records and information, and information obtained from
such employees, as confidential.

(b)                   In the period
between the date of this Agreement and the Closing Date Seller shall afford
promptly to Buyer and its representatives reasonable access to information of
the Companies and the Subsidiaries to the extent necessary for Buyer in
connection with this Agreement and the transactions contemplated herein provided
that any such access by Buyer shall not unreasonably interfere with the conduct
of the business of Seller or the CODE Group.

(c)                    Seller shall
promptly disclose to Buyer, and Buyer shall promptly disclose to Seller, in
writing any matter or circumstance known to them prior to Closing which might
entitle Buyer or Seller to rescind this Agreement under Section 7.2.

11.3           Resignations

At Closing, Seller will
deliver to Buyer the resignations, effective at or prior to the Closing Date,
of the persons listed in Schedule 11.3 in
their respective capacities.

11.4           Confidentiality/Public
Announcement

(a)                    The Parties
will keep the contents of this Agreement and the matters contemplated hereby
confidential, unless the disclosure of this Agreement is required by applicable
law or the applicable listing rules of any securities

 28
 

exchange. Any public
announcement and/or press statement to be made after the signing of this
Agreement in respect of this Agreement or the matters contemplated hereby shall
be agreed between Buyer and Seller in advance.

(b)                   Each Party
shall be entitled without the consent of the other Parties, to make disclosures
and public announcements with the minimum contents required by law or the
applicable listing rules of any securities exchange.

11.5           Filings under Merger
Control Laws; Other Regulatory Requirements

(a)                    Buyer (and
where separate filings of Seller or joint filings are required by law as
referred to below, Seller) shall use all reasonable endeavours to ensure that
any filings to be made with competent anti-trust authorities in Germany shall
be made as soon as practicable, and in any event within any applicable
statutory time limits, after execution of this Agreement. Such filings shall be
made by Buyer on behalf of Buyer and, upon Seller’s request and where Seller is
also responsible under the local law, also on behalf of Seller and the CODE
Group. If separate filings are made, Seller shall, to the extent reasonably
practicable, make such filings in substantially the same form as Buyer’s filings.
Seller shall closely cooperate with Buyer and provide all reasonable assistance
in the preparation of such filings and in the conduct of the proceedings. Buyer
and Seller shall provide each other promptly with copies of any correspondence
with the anti-trust or other governmental authorities and with copies of any
written statement, order or decision of such authorities.

(b)                   Buyer and
Seller shall closely cooperate in any discussions and negotiations with the
competent authorities and shall in good faith pursue the objective of obtaining
expeditious clearance for the transactions contemplated by this Agreement.
Representatives of Seller and Buyer shall be given opportunity to participate
in any meetings with the merger control authorities. If the competent authority
is prepared to grant its approval of the transaction as notified only subject
to compliance with specific commitments or conditions to be imposed upon Buyer,
it shall not unreasonably refuse to make such commitments or to accept such
conditions. Neither Buyer nor Seller shall be under any obligation to appeal
any decision by the competent anti-trust authority.

11.6           Payment of Reemtsma
license fee/Distribution of Cash

The Parties hereby agree
that the surplus cash of CODE Group shall be transferred to Seller prior to
Closing in accordance with the following and to the extent legally permissible:

(a)                    As part of the
cash management system operated by CODE Group, the Subsidiaries have
transferred surplus liquidity to the Company, and the

 29
 

Company has invested such
amounts with financial institutions.

(b)                   Buyer has
undertaken to pay the Accrued Reemtsma License Fee to Athena in accordance with
Section 11.8 (c).

(c)                    Athena and
Lizino shall waive their claim for repayment of the amounts they have transferred
to the Company in accordance with (a) in an amount of EUR 31,779,530 (Athena)
and EUR 1,319,068 (Lizino), and Athena shall transfer the Accrued Reemtsma
License Fee received from Buyer to the Company as a distribution (Ausschüttung).

(d)                   The Company
shall pay the amount of EUR 48,300,000 plus the amount of the Accrued Reemtsma
License Fee (to the extent received from Buyer) to Seller as a direct payment
out of the capital reserves (Ausschüttung
aus der Kapitalrücklage).

(e)                    Buyer shall
procure that no action is taken following Closing resulting in the equity of
the Company (Eigenkapital pursuant
to Section 266 para. 3 A. HGB) falling below the amount of the stated share
capital (Stammkapital) as of the
end of the first fiscal year ending after Closing.

11.7           Transfer of patents
relating to coffee business

Seller shall ensure that
the Company and/or the Subsidiaries have as of Closing divested of the patents
listed in Schedule 11.7 and that
no member of the CODE Group retains any current or future rights or obligations
under or in connection with the patents listed in Schedule 11.7 (except for
legal recording and bookkeeping purposes).

11.8           Reemtsma License
Agreement/License Fees

(a)                    Buyer will not
invoke or exercise its pre-emptive right under the Reemtsma License Agreement
at the occasion of the transactions contemplated herein.

(b)                   Buyer, Seller,
Davidoff & Cie, Oettinger Imex AG, Zino Davidoff SA, and Dr. David
Meisser and parties related to each of them, have had, between each other,
certain disputes relating to the Reemtsma License Agreement, the Athena Trust
Agreement and the Lizino Trust Agreement, as documented in correspondence
exchanged prior to the date hereof and as expressly discussed at meetings
attended prior to the date hereof by Seller, and Buyer and/or Guarantor. Each
of Buyer and Seller undertakes that it and its related parties will not pursue
such disputes following Closing and hereby waive any and all claims in relation
to such disputes with effect from Closing.

(c)                    Buyer shall
pay to Athena at least four Business Days prior to the anticipated Closing Date
all license fees (irrespective of whether they are

 30
 

due and payable under the
Reemtsma License Agreement) which are attributable on a pro rata temporis basis to the period
until the anticipated Closing Date, and calculated on the basis of the amount
of the license fee payable for the last complete license fee payment period
before Closing (the “Accrued Reemtsma License
Fee”).Seller confirms
(on behalf of itself and Athena) that such payment shall be in full and final
settlement of all license fees owing under the Reemtsma Licence Agreement in
respect of the periods up to the Closing Date.

Article 12

Indemnification by Seller

12.1              In the event of a
breach of any representation or warranty within the meaning of Article 9,
covenant or agreement of Seller contained in this Agreement, except for any
claims of Seller relating to Tax (which shall exclusively be subject to Article
17 except to the extent explicitly stated in Section 12.8, and Section 17.5 in
connection with Section 12.6 (a)), and always subject to the provisions
contained in Articles 12 and 14 to 16, the following shall apply:

(a)                    Seller shall
restore the condition that would have prevailed had the respective
representation and/or warranty been true and/or the respective covenant or
agreement not been breached (Section 249 para. 1 German Civil Code) (Naturalrestitution).

(b)                   Buyer may claim
monetary damages (Schadensersatz in Geld)

(i)                        after
having set an adequate period for restoring such condition by announcing that
it will no longer accept restoration, following expiration of such period; in
this case, upon expiration of the period, the claim for restoration is
excluded, Section 250 of the German Civil Code;

(ii)                     to the extent
physical restoration is not possible or not sufficient to compensate Buyer,
Section 251 para 1 of the German Civil Code.

Seller may choose
monetary damages if physical restoration would require excessive expense,
Section 251 para. 2 sentence 1 of the German Civil Code.

(c)                    For purposes
of determining the scope of restoration or monetary damages as referred to in
Sections 12.1 or 12.2, any losses or damages suffered by any of Buyer’s
affiliates (including the members of the Code Group) deriving from its use of,
or limitations on its use of, the Davidoff Trademark shall be deemed to be a
loss or damage suffered by the Buyer and shall be compensated hereunder if and
to the extent such loss or damage of Buyer would be compensated hereunder.

 31
 

(d)                   In case Buyer demands
monetary damages from Seller, Seller shall pay to Buyer (or, as the case may
be, and following the direction of the Buyer to any of its affiliates
(including the relevant member of the Code Group)) the monetary amount that is
necessary to put Buyer and/or its affiliates (including all members of the CODE
Group) in the financial position that would have existed had the relevant
representation and/or warranty been true and/or the respective covenant or
agreement not been breached.

12.2              Buyer’s claim for
damages shall include reasonable external costs and expenses. It shall further
include lost profits in accordance with Section 252 of the German Civil Code,
but in relation to damages arising solely out of a breach of any representation
or warranty within the meaning of Article 9 shall exclude

(a)                    consequential
damages, including lost profits, of Buyer and/or its affiliates (other than the
lost profits and external costs and expenses of all the members of the CODE
Group and other than the lost profits and external costs and expenses of Buyer
and/or its affiliates arising from or relating to the Davidoff Trademark or
sales of Davidoff cigarettes), and

(b)                   reputational
damages.

12.3              For purposes of
determining Buyer’s claim for damages, the general principles of compensation
of losses by current or future benefits (Vorteilsansgleich), of contributory causation or fault (Mitverursachung/Mitverschulden) and of
loss mitigation (Schadensminderungspflicht)
shall apply.

12.4              Seller shall not be
liable for any damages arising from a breach of a representation and warranty
within the meaning of Article 9

(a)                    to the extent
that the damage is reflected as a write-off, value adjustment, liability,
provision or accrual in the calculation of Net Cash, or

(b)                   given at Closing
if and to the extent such damage was caused by Buyer withholding its consent
under Section 11.1.

12.5              Seller shall only be
liable to Buyer for the breach of any representation or warranty within the
meaning of Article 9

(a)                    with respect
to any such breach relating to an individual fact or matter, if the damage
arising from such breach exceeds an amount of EUR 75,000, (and for such
purposes breaches arising from the same fact or matter shall be deemed a single
breach), and

(b)                   if the damage
arising from all such breaches above the threshold defined in (a) exceeds an
aggregate amount of EUR 2,000,000 (two million).

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In the event that the
conditions set out in (a) and (b) are met, Seller shall be liable for the
entire damage caused and not just the amount in excess of such amount of EUR
75,000 and the aggregate amount of EUR 2 million (it being understood that
Seller will not be liable for a breach as defined in (a) resulting in a damage
not exceeding EUR 75,000). This section 12.5 shall not apply to any damage
arising from breaches of Sections 9.1, 9.2and
9.3 (a) to (c).

12.6              In no event shall

(a)                    the aggregate
total liability of Seller in connection with this Agreement and the
transactions contemplated herein exceed 100% of the Purchase Price,

(b)                   the aggregate
total liability of Seller in connection with any breach of representations or
warranties within the meaning of Article 9, other than a breach of Sections 9.1
to 9.3, 9.5 to 9.7 and 9.12, exceed 25% of the Purchase Price, and

(c)                    the aggregate
total liability of Seller in connection with any breach of the representations
or warranties within the meaning of Article 9 relating to the ability to use
the Davidoff Trademark in any, several or all of the countries listed in Schedule 12.6 (c), exceed 10% of the
Purchase Price.

12.7              Seller shall not be
liable for damages arising from a breach of a representation and warranty
within the meaning of Article 9 if and to the extent that the facts or matters
giving rise to such breach have been disclosed in this Agreement or the
Schedules hereto. Except as set out in the preceding sentence, Section 442 of
the German Civil Code (BGB) shall not apply.

12.8              Payments to be made
by Seller pursuant to Sections 12.1 and 17.5 constitute in the relationship
between Seller and Buyer a reduction of the Purchase Price and, to the extent
they are made (at the Buyer’s direction) directly to a member of CODE Group, in
the relationship between Buyer and such member a capital contribution (Einlage) on behalf of Buyer. Payments by
or on behalf of Buyer pursuant to Section 17.4 constitute in the relationship
between Seller and Buyer an increase of the Purchase Price.

12.9              The limitations
under this Article 12 (except for Section 12.6) and Article 14 shall not apply
to any claim for specific performance (Erfüllung
von Hauptleistungspflichten) pursuant to this Agreement.

12.10        Seller shall not be liable
for a breach of the representations and warranties in Article 9 to the extent
that any damages arising from such breach are attributable to the fact that
Buyer or its affiliates have not used Owned Intellectual Property Rights in
certain territories (as listed in Schedule 12.6 (c)) prior to Closing.

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Article
13 

Indemnification by Buyer

Subject to the provisions
contained in Articles 14 to 16, in the event of a breach of any representation
or warranty, covenant or agreement of Buyer, Buyer shall put Seller in the
position that would have existed had the relevant representation and/or
warranty been true and/or the respective covenant or agreement not been
breached. Sections 249, 250 of the German Civil Code shall apply, provided,
however, that losses which arise solely out of a breach of a representation or
warranty of Buyer under Article 10 shall exclude consequential damages, lost
profits and reputational damages. Buyer’s aggregate liability shall be limited
to 100% of the Purchase Price. For purposes of determining Seller’s claim for
damages, the general principles of compensation of losses by current or future
benefits (Vorteilsausgleich), of contributory causation or
fault (Mitverursachung/ Mitverschulden)
and of loss mitigation (Schadensminderungspflicht)
shall apply.

Article 14

Limitation Periods

14.1     All representations and
warranties of Seller or Buyer (including all claims and remedies with respect
thereto) shall be time-barred (verjährt) on
the later of (i) 30 June 2008 and (ii) in respect of a claim for breach of a
representation and warranty, the day falling three months after the delivery on
or before 30 June 2008 by Buyer to Seller of a notice of such claim in
accordance with Section 15.1 (i) (but not later than 30 September 2008), except
for

(i)        claims relating to
Sections 9.1, 9.2 and 9.3 which shall be subject to a limitation period of ten
years after the Closing Date,

(ii)       claims relating to Sections
9.6 and 9.7 which shall be subject to a limitation period of 5 years after the
Closing Date,

(iii)      the representations,
warranties and indemnities under Article 17 (Taxes), which shall be time-barred
as set out in Section 17.7 below.

14.2     Unless expressly otherwise
provided in this Agreement, all other covenants and agreements by and between
the Parties shall be time-barred upon the expiration of a period of four years
after the Closing Date.

14.3     Any limitation period
pursuant to this Agreement shall re-commence (neu
beginnen) or shall be extended (gehemmt)
in accordance with the applicable provisions of German law. In case of a
re-commencement of the limitation period (Neubeginn
der Verjährung, Section 212 German Civil Code) the new limitation
period shall be the longer of six months or the remainder of the initial
limitation period.

 34
 

Article
15 

Indemnification Procedures

15.1     In the event of a breach of a
representation, warranty or covenant of Seller or Buyer (an “Indemnifying Party”) contained in this
Agreement, any Party to be indemnified and held harmless hereunder (the “Indemnified Party”), shall notify the
Indemnifying Party of any breach as soon as reasonably practicable after
becoming aware of such breach, describe its claim in reasonable detail (as
available) and, to the extent then reasonably feasible, set out the estimated
amount of such claim.

15.2     In the event that any claim
or demand of a third party for which an Indemnifying Party may be liable under
this Agreement is asserted against an Indemnified Party (and/or, if Buyer is
the Indemnified Party, any member of CODE Group), the following procedures
shall apply:

(i)        The Indemnified Party
shall have the right to declare in writing to the Indemnifying Party that it
waives unconditionally any right of recourse which it may have in respect of
such claim or demand against the Indemnifying Party, in which case the conduct
of the defence against such claim or demand shall be the sole responsibility of
the Indemnified Party.

(ii)       Except where either the
Indemnified Party has waived its right of recourse under (i) or the
Indemnifying Party assumes the defence in accordance with (iii), it shall be
for the Indemnified Party to determine the conduct of the proceedings and to
direct the defence, provided that the Indemnified Party shall give the
Indemnifying Party, at its own cost, adequate opportunity to take part in the
defence of the Indemnified Party or CODE Group (as the case may be) against
such claim and consult the Indemnifying Party in relation to the defence of the
claim and take into account all reasonable concerns of the Indemnifying Party.

(iii)      In the event that the
Indemnifying Party acknowledges in writing to the Indemnified Party that it
accepts liability for the relevant third party claim under this Agreement (Anerkennung der Haftung dem Grunde nach), the Indemnifying Party shall have the
right, exercised by notice in writing to the Indemnified Party to assume the
defence of the Indemnified Party or CODE Group (as the case may be) in respect
of such claim and shall, following such notice, have the sole power to direct
and control such defence, provided that the Indemnified Party shall have the
right at any time to declare in writing to the Indemnifying Party that such
assumption or conduct of the defence by the Indemnifying Party would prejudice
its (or if Buyer is the Indemnified Party the CODE Group’s) business or
commercial interests or goodwill, in which event sub-section (ii) shall apply.

(iv)     If the Indemnifying Party
assumes the defence of a third party claim under

 35
 

(iii), the Indemnifying
Party may direct all negotiations and correspondence with the claimant, appoint
counsel and request that the claim be litigated or settled in accordance with
the Indemnifying Party’s instructions, provided that the Indemnifying Party
shall consult the Indemnified Party in relation to the defence of the claim and
take into account all reasonable concerns of the Indemnified Party. All cost
and expenses incurred by the Indemnifying Party, and all costs of the defence
including the costs of counsel appointed by the Indemnifying Party shall be
borne by the Indemnifying Party (subject to receiving the benefit of any cost
compensation awarded by court judgement), and all costs incurred by the
Indemnified Party in relation to being consulted in the course of the defence
of the claim shall be borne by the Indemnified Party.

(v)      If the Indemnifying Party assumes
the defence of a third party claim under (iii), the Indemnified Party shall not
be entitled to settle or acknowledge the claim, or permit any such settlement,
or acknowledgement, without the Indemnifying Party’s prior written consent. The
Indemnifying Party shall keep the Indemnified Party reasonably informed of its
conduct of and negotiations relating to the defence of the claim and shall
provide the Indemnified Party with all documentation as the Indemnified Party
may reasonably request in connection therewith.

(vi)     Except where the Indemnifying
Party has assumed the defence and the Indemnified Party has acted in accordance
with paragraph (iii) to (v), the Indemnifying Party shall not be bound by the
findings of any court judgement in proceedings to which it has not formally
been a party, or by any settlement or waiver or acknowledgement declared by the
Indemnified Party, provided that this shall be without prejudice to any claim
for a breach of representations, warranty, covenant or indemnity by the
Indemnified Party.

(vii)    Except in the event of
paragraph (i), the Indemnified Party shall (at the expense of the Indemnifying
Party) cooperate (and/or, in the case of Buyer, cause CODE Group to cooperate)
with the Indemnifying Party in the defence of any third-party claim, provide
the Indemnifying Party’s representatives access, upon reasonable notice and
during normal business hours, to all relevant business records and documents
and permit the Indemnifying Party and its representatives to consult with the
directors, employees and representatives of the Indemnified Party or CODE Group
(as the case may be).

15.3     The failure of any
Indemnified Party to comply with its obligations under this Article 15 shall
not prevent any claim being made under this Agreement by or on behalf of the
Indemnified Party but the Indemnifying Party shall not be liable in respect of
such claim to the extent that its ability to mitigate the liability shall have
been prejudiced by such failure.

 36
 

Article
16 

No Additional Rights or Remedies

16.1     Seller and Buyer agree that
the rights and remedies which Seller on the one hand and Buyer on the other
hand may have in respect of the breach of a representation, warranty, covenant
or agreement contained in this Agreement are limited to the rights and remedies
contained herein but without prejudice to any claim for specific performance
pursuant to this Agreement. In particular, without limitation, no Party shall
have a right to rescind, cancel or otherwise terminate this Agreement or exercise
any right or remedy which would have a similar effect, except for the
rescission rights set out in Section 7.2.

16.2     Other than the rights and
remedies set out in this Agreement and without prejudice to any claim for
specific performance hereunder, each Party hereby waives any and all rights and
remedies of any legal nature (contractual, quasi-contractual such as culpa in
contrahendo, tort or otherwise), including any claims under
statutory representations and claims for negligent misrepresentation, which it
may otherwise have (in addition to the rights and remedies set out herein)
against the other Party in connection with this Agreement or the transactions
contemplated thereby.

16.3     The provisions of this
Article 16 shall not apply to (i) rights and remedies which Seller may have
under applicable law as a result of Buyer’s failure to pay the purchase price
or any portion thereof in accordance with this Agreement and (ii) any rights
and remedies of any Party against any other Party under applicable law for
fraud or wilful misconduct (Vorsatz).

16.4     Without prejudice to Buyer’s
rights under Articles 9, 12 and 17, Buyer shall procure (dafür einstehen) that following Closing no
claims are asserted by the Companies or any of the Subsidiaries against Seller,
any other shareholder of the Companies, or any of their officers, employees or
representatives, in connection with action taken, or omitted to be taken, by
any such person in their capacity as a shareholder, managing director, officer,
member of a board or other body of the Companies or any of the Subsidiaries and
shall indemnify Seller or any such other person, as the case may be, against
any liabilities, damages and reasonable costs and expenses arising from any
such claim asserted by the Companies or any of the Subsidiaries; provided that
the provisions of this Section 16.4 shall not apply to a liability for wilful
misconduct (Haftung wegen Vorsatzes).

16.5     Seller hereby waives any
rights and remedies which it may have against any of the Companies or any of the
Subsidiaries or any of their directors, officers or employees (to the extent
such directors, officers or employees have a reimbursement claim against any of
the Companies or any of the Subsidiaries) in respect of any misrepresentation,
inaccuracy or omission in or from information provided for the purpose of
assisting Seller to make the representations, warranties, covenants,
agreements, guarantees and indemnities contained in this

 37
 

Agreement or preparing the Schedules hereto.

Article 17

Taxes

17.1    Definitions

The following terms, as
used herein, have the following meanings:

“Indemnifiable Tax” means any Tax imposed
on, and due for payment (whether before or after the Closing Date) by, any of
the Companies or any of the Subsidiaries and not paid or otherwise discharged
prior to the Closing Date. For the avoidance of doubt, the reduction of a Tax
loss carry forward shall not be considered to be an imposition of Tax.

“Pre Closing Tax Period” means any period
ending on or before the Closing Date.

“Tax” means (i) any tax or other like
assessment or charge within the meaning of Section 3 of the German Tax Code (Abgabenordnung)
or the equivalent in any other relevant jurisdiction (including, but not
limited to, withholding on amounts paid to or by any person, and excise or
customs duties in respect of tobacco and/or tobacco products), and (ii) all
social security contributions, in each case together with any interest, penalty
or addition to tax, imposed by any governmental authority (a “Taxing Authority”) responsible for the imposition of such tax.

17.2    Tax Representations

(a)       Seller represents and
warrants to Buyer that as of the date hereof and except as otherwise disclosed
in Schedule 17.2 (a), the
Companies and the Subsidiaries have complied with their obligations in relation
to Taxes, including the filing of Tax returns and the payment of Taxes in all
material respects.

(b)      The Company, Athena and
Lizino have been audited for tax years up to and including 2002 and final
assessment notices have been issued for these years. No Company or Subsidiary
is party to any dispute or appeal with regard to Taxes. No Company or
Subsidiary has obtained any Tax ruling. No Company has been a member of a tax
group or Organschaft. Seller has informed Buyer that Athena and Lizino have
been acknowledged by the tax audit for the years up to 2002 as being asset
managing (vermögensverwaltend) and,
for tax purposes, not engaged in a trade or business.

 38
 

17.3    Preparation of Tax Returns
and Payment of Tax

Seller shall procure that
the Companies and the Subsidiaries will comply with all obligations in relation
to the filing of Tax returns and the payment of Taxes until the Closing Date,
and Buyer shall procure that the Companies will comply with all such
obligations after the Closing Date.

17.4    Tax Refunds

(a)       If any of the Companies or
any of the Subsidiaries will receive a Tax refund (a “Tax Refund”) from a Taxing Authority
relating to any Pre Closing Tax Period the amount of the Tax Refund shall be
paid by Buyer to Seller to the extent that Seller has, at the date of the Tax
Refund, made any payment under 17.5, and except to the extent such Tax Refund
has already been directly or indirectly included in the Net Cash calculation
and has thereby increased the Purchase Price.

(b)      In the event that Seller has
made no payment under Section 17.5 at the date of receipt of the Tax Refund,
the amount of the Tax Refund shall be set off and reduce any claim of Buyer
against Seller, whether asserted at the time of receipt of the Tax Refund or
subsequently, under Section 17.5 (but not against any other claim).

(c)       If Seller makes a payment
under Section 17.5 on the basis of Tax assessments which are not final and
binding, and the amount is eventually paid back (in whole or in part, with or
without interest), Buyer shall arrange that the amount of repayment (including
interest, if any), is promptly after receipt forwarded to Seller.

17.5    Tax Indemnification

(a)       Subject to the provisions
contained in this Article 17 and in Section 12.6 (a), regardless of any
disclosures that may have been made by Seller in relation to any Indemnifiable
Tax, Seller shall indemnify and hold harmless Buyer, or so far as requested by
Buyer, its Nominee, any of the Companies or any of the Subsidiaries from and
against

(i)        any Indemnifiable Tax of
any of the Companies and any of the Subsidiaries having become due and payable
in or being attributable to any Pre Closing Tax Period; an Indemnifiable Tax
shall be deemed attributable to a Pre Closing Tax Period if it should have been
paid before Closing, or included as a liability or tax accrual in the Net Cash
calculation, as though all relevant facts (including without limitation the
final outcome of all relevant tax audits) had been known at that time;

(ii)       any liability of any of the
Companies or any of the Subsidiaries for

 39
 

Taxes arising from a
breach of any Tax representation and warranty contained in Section 17.2
including any reasonable legal fees incurred in connection with the breach of
any Tax representation and warranty in Section 17.2 (a) (only to the extent
relating to the filing of tax returns) and 17.2 (b),

(each such case under (i)
to (ii) is hereinafter referred to as “Tax
Loss”), except to the
extent any Tax Loss (A) is the result of a voluntary act of Buyer, any of the Companies
or any of the Subsidiaries which is not consistent with the Companies’ or any
of the Subsidiaries’ practice (to the extent such practice was in line with
applicable law) prior to Closing, or, (B) is the result of Buyer’s request
under this Section 17.5 (a) to make a payment to any of the Companies or any of
the Subsidiaries (rather than to Buyer).

(b)      Seller shall only be liable
to Buyer for any Tax Loss to the extent that such Tax Loss is not reflected as
a write off, value adjustment, liability, provision or accrual in the Net Cash
calculation.

(c)       Seller shall only be liable
to Buyer for any Tax Loss to the extent that such Tax Loss is not mitigated by
the net present value of corresponding Tax savings. For the purpose of this
Section 17.5 (c), only Tax savings arising for the fiscal years of the
Companies and the Subsidiaries up to and including 2016 shall be taken into
consideration and the net present value of Tax savings shall be calculated by
applying an interest rate of 4.50% per annum.

17.6    Indemnification Procedures

(a)       If, after the Closing, any
Taxing Authority informs Seller, on the one hand, or Buyer, any of the
Companies or any of the Subsidiaries, on the other, of any notice of a proposed
audit, claim assessment or other dispute concerning Taxes with respect to which
Seller may incur liability hereunder, then the Party so informed shall promptly
notify the other Party of such matter.

(b)      If Buyer becomes aware that
a payment is to be made by Seller pursuant to Section 17.5 on account of a Tax
Loss, Buyer shall promptly send Seller a notice stating a reasonable estimate
of the amount of any Tax Loss and of the indemnity payment requested. The
notice referred to in the previous sentence shall be accompanied, so far as
practicable, by evidence reasonably necessary to determine the underlying legal
and factual situation and the amounts involved.

(c)       Buyer shall

(i)        give, and shall cause the
Companies and the Subsidiaries to give,

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Seller the opportunity to
participate in and give Buyer, any of the Companies or any of the Subsidiaries
directions in relation to the conduct of, any audits, disputes, administrative,
judicial or other proceedings to the extent they relate to Indemnifiable Taxes
for Pre Closing Tax Periods and

(ii)       challenge and litigate at
Seller’s expense, or cause the Companies and the Subsidiaries to challenge and
litigate at Seller’s expense, any Tax assessment or other decision of any
Taxing Authority related to such Indemnifiable Taxes, in each case in
accordance with Article 17 and (unless provided for otherwise in this Article
17) Section 15.2,

provided that (A) Buyer’s right not to agree to the
assumption of defence for business, commercial interests or goodwill reasons
under Section 15.2 (iii) shall not apply, and (B) nothing in this Section 17.6
(c) shall require Buyer, any of the Companies or any of the Subsidiaries to act
contrary to applicable law and published practice.

(d)      Buyer’s failure to comply
with any of its obligations set out in Section 17.6 (a) to (c) shall not
prevent a claim being made by Buyer but Seller shall not be liable for a Tax
Loss hereunder to the extent that such Tax Loss was increased, or Seller’s
ability to mitigate the liability was prejudiced, by such failure.

17.7    Limitation Period

Any obligations of Seller
and Buyer under this Article 17 shall be time-barred upon six months after the
binding assessment (bestandskräftiger Bescheid) (or the
equivalent in any other relevant jurisdiction) of the relevant Tax.

17.8    Cooperation on Tax Matters

Buyer and Seller shall,
and shall cause their representatives to, fully cooperate with each other in
connection with any Tax matter including the preparation and filing of any Tax
return or the conduct of any audit, investigation, dispute or appeal in each
case with respect to Indemnifiable Taxes or other Tax matters which a Party
claims to be subject to this Article 17. Cooperation between Buyer and Seller
shall include (but shall not be limited to) providing and making available all
books and records, and the assistance of all officers and employees, of Buyer,
Seller or members of CODE Group, necessary or useful in connection with any Tax
inquiry, audit, examination, investigation, dispute, litigation or any other
tax matter. Buyer agrees to cause the Companies and the Subsidiaries to give
Seller reasonable notice prior to transferring, discarding or destroying any
such books and records relating to Indemnifiable Taxes or other Tax matters
which a Party claims to be subject to this Article 17 and, if Seller so requests,
to take possession of such books and records.

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Article
18

Assignment

18.1    No Assignment

Except as explicitly
contemplated herein, no Party has the right to assign, designate or otherwise
transfer this Agreement or any right or obligation hereunder to a third party
without the prior written consent of the other Parties.

18.2    Intra-group Assignment

Notwithstanding the
provisions of Section 18.1, Buyer may assign the benefit of this Agreement
(together with any cause of action arising in connection with it) in accordance
with this Section 18.2 to any wholly owned body corporate or undertaking
(within the meaning of the English Companies Act 1985, as amended) provided
that in any such event:-

(a)       if any such assignee ceases
to be a wholly owned body corporate or undertaking (as defined above) such
assignee shall forthwith cease to enjoy the benefit of this Agreement which
shall revert to Buyer; and

(b)      Buyer and Nominee(s) shall
continue at all times to be bound by this Agreement in accordance with its terms
save insofar as performed by any such assignee.

Article l9

Costs

19.1    Transfer taxes, other charges, etc.

All transfer taxes
(including real estate transfer taxes), stamp duties, and other charges and
costs which relate to, or result from, this Agreement and the implementation of
the transactions contemplated thereby, and the notarial fees resulting from the
signing of this Agreement and the transfer of the Sold Shares at the Closing,
shall be borne by Buyer. Seller shall not opt to treat the sale and assignment
of the Sold Shares as a supply or service subject to VAT.

19.2    Merger Control Laws, other Regulatory
Requirements

Buyer shall bear all
filing fees which relate to, or result from, the filings under the merger
control laws and in compliance with other regulatory requirements as set out in
Section 11.5, except for separate filings (if any) of Seller the fees for which
shall be borne by Seller. Each of Buyer and Seller shall bear one half of any
other costs and charges which may be incurred in relation to the above.

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19.3    Advisors

Each Party shall bear the charges, costs and fees of
its own advisors.

Article 20 

Entire Agreement/Written Form

This
Agreement constitutes the entire agreement between the Parties with respect to
the subject matter of this Agreement Changes of this Agreement, including a
change of this written form clause, shall require written form, unless a
stronger form requirement applies.

Article 21

Severability

21.1     Should any provision of this
Agreement be or become in whole or in part invalid or unenforceable, the
validity or enforceability of the balance of this Agreement shall not be
effected thereby. In this event, the invalid or unenforceable provision shall
be deemed to be replaced by a valid and enforceable provision which corresponds
to the economic purpose of the invalid or unenforceable provision to the
largest extent possible. This shall also apply in the case of any gaps in this
Agreement.

21.2     Should any provision of this
Agreement be invalid due to its geographical or substantive area of application
or the period of application, the respective provision shall be deemed reduced
to the maximum permissible scope.

Article 22

Notices

22.1     All notices, requests and
other communications to Seller made in connection with this Agreement shall be
made in writing and shall be deemed to be validly given or made if sent by
registered mail or courier to the following address or such other address as is
notified in writing by Seller to Buyer:

TCHIBO Holding AG

Überseering 18

22297 Hamburg

Attn.: Sebastian Biedenkopf

with a copy to: 

Hengeler Mueller

Bockenheimer Landstraße 51-53 

60325 Frankfurt am Main

Attn,: Klaus-Dieter Stephan

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22.2              All
notices, requests and other communications to Buyer made in connection with
this Agreement shall be made in writing and shall be deemed to be validly given
or made if sent by registered mail or courier to the following address or such
other address as is notified in writing by Buyer to Seller:

Imperial Tobacco Group PLC.

PO Box 244

Upton Road, Southville

Bristol BS99 7UJ

Attn,: The Company Secretary

with a copy to:

Allen & Overy LLP

Kehrwieder 12

20457 Hamburg

Attn,: Jeremy Parr and Hans Schoneweg

Article 23

Guarantee

Guarantor
hereby guarantees the prompt fulfilment and discharge by Buyer of all its obligations
and liabilities hereunder in the form of an independent guarantee (Section 311
of the German Civil Code), Guarantor shall be liable under this guarantee to
Seller as if it were the primary obligor, provided that Seller shall only be
entitled to assert a claim against Guarantor under the guarantee after having
requested fulfilment and discharge of the relevant liability or obligation from
Buyer and after the expiry of a period of ten Business Days following such
request.

Article 24

Interpretation / Schedules / Miscellaneous

24.1              The
headings in this Agreement shall not affect the interpretation thereof.

24.2              English
terms to which a German translation has been added shall be interpreted
throughout this Agreement in the meaning assigned to them by the German
translation.

24.3              For
the purpose of any disclosure thresholds in the representations and warranties,
any reference to EUR shall include the equivalent in any foreign currency at
the exchange rate officially determined in Frankfurt a. M. on the date hereof.

24.4              Words
such as “hereof”, “herein” or “hereunder” or similar refer (unless otherwise

 44
 

required by the context)
to this Agreement as a whole and not to a specific provision of this Agreement.
The term “including” shall mean “including, without limitation”. The term “promptly”
shall mean “unverzüglich” as
defined in Section 121 German Civil Code. The term “person” shall mean natural
persons as well as companies, partnerships and any other form of institution.
The term “affiliate” shall mean “verbundene
Unternehmen”, Section 15 of the German Stock Corporation Act, ie,
for the avoidance of doubt in relation to Buyer, Guarantor and all of its
subsidiaries and subsidiary undertakings.

24.5     References to Seller’s or
Buyer’s knowledge shall mean the actual knowledge (positive Kenntnis)
of the persons listed, separately for Seller and Buyer, in Schedule 24.5.

24.6     The Schedules to this
Agreement are an integral part of this Agreement and any reference to this
Agreement includes this Agreement and the Schedules as a whole. The disclosure
of, or reference to, any matter in this Agreement (including any Schedule
thereto) shall be deemed to be a disclosure for all purposes of this Agreement;
provided, however, that no disclosure made outside of Article 17 (including any
Schedule thereto) shall limit Seller’ liability pursuant to Article 17.

Article 25 

Governing Law / Jurisdiction

25.1     This Agreement shall be
governed by, and construed in accordance with, the laws of the Federal Republic
of Germany.

25.2     The courts in Frankfurt am
Main shall have exclusive jurisdiction, to the extent legally permissible, over
all disputes arising out of or in connection with this Agreement.

25.3     Buyer hereby appoints as its
agent for service of process (Zustellungsbevoll-mächtigter) Hans
Schoneweg of Allen & Overy LLP, Hamburg, for all legal proceedings
involving Buyer arising out of or in connection with this Agreement, Buyer
agrees that any document relating to such legal proceedings may be effectively
served on it by service on its agent for service of process. The above agency
shall only terminate upon appointment of another agent for service of process
incorporated and domiciled in Germany reasonably acceptable to Seller. The
replacement appointment as set out in the preceding sentence only becomes
effective if and when notified in writing to Seller by Buyer.

25.4     This Agreement is made in the
English language, and except as agreed between the Parties, any communication
relating to this Agreement shall be made in the English language.

 45

Schedule 4.2 (a)

Estimated Net Cash

Estimated Net Cash for
purposes of Section 4.2 (a) (ii):

EUR 67,000 (Euro sixty-seven thousand)(1)

(1)       Taking into account the
payment of EUR 48,300,000 (Liquidity Athena EUR 31,779,530 plus liquidity
Lizino EUR 1,319,068 plus liquidity Code EUR 15,073,193 plus appr. interest
from 1 August to 4 September 2006 EUR 128,209) and the payment of the Accrued
Reemtsma License Fee pursuant to Section 11.6 (d).

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