Document:

EXHIBIT 10.2.4

 

***Informal
Translation – For Information Purposes Only***

 

No-Name
Products Manufacturing Agreement

 

 

Dated 31 August 2005

 

 

Between

 

 

Samsonite

 

Samsonite NV

 

HB Group

 

Artois Plasturgie SAS

 

 

LEXENS

128, Boulevard Haussmann

75008 Paris

 

 

The present agreement for manufacture of no name products (the “No Name Products Manufacturing Agreement”) is dated 31 August 2005,

 

BETWEEN:

 

1.                  SAMSONITE EUROPE NV, a Belgian company, with a share
capital of EUR 3 665 105.76, having its registered office at Westerring 17, in
9700 Oudenaarde (Belgium), registered with the commercial register of
Oudenaarde under number 16,079, represented by Mr Marc Matton, duly authorised
by the meeting of the board of directors on 18 July 2005

 

(hereafter referred
to as “Samsonite NV”),

 

2.                  SAMSONITE, a company with limited liability,
with a share capital of EUR 720, 000, having its registered office at 27, rue
de la Rochefoucauld, 75009 Paris, registered with the commercial register of
Paris under number 652 024 159 RCS Paris, represented by Mr. Marc Matton

 

(hereafter
referred to as “Samsonite”),

 

3.         ARTOIS PLASTURGIE, a company with limited liability,
with a share capital of EUR 37,000, having its registered office at 128,
Boulevard Hausmann, 75008 Paris, registered with the commercial register of
Paris under number 483 173 308 RCS Paris, duly represented by Mr Jean-Jacques
Aurel, in his capacity of chairman

 

(hereafter
referred to as the “Company”),

 

4.         HB GROUP, a Luxembourg company, with a share
capital of EUR 31,000, having its registered office at rue de l’Industrie, L-3895
FOETZ (Luxembourg), registered with the commercial register of Luxembourg under
number B 109972, represented by Mr Jean-Jacques Aurel, in his capacity of
chairman, duly authorised pursuant to a meeting of the board of directors of the
company on 26 August 2005

 

(hereafter referred to as the “Purchaser” or “HB Group”).

 

Samsonite Europe NV, Samsonite, the Company and the Purchaser are
hereinafter collectively referred to as the “Parties”.

 

 

WHEREAS:

 

1.                                      Samsonite was the owner of and
operated, on the Site, a business consisting of the manufacturing and
production of luggage and plastic products (“produits de
plasturgie”) under the name «SIC ».

 

2.                                      As a result of economic difficulties
experienced in the Activities and so as to avoid the hold of the Activities and
the closure of the Site, Samsonite has transferred the Activities to the
Company, in the framework of a partial contribution of assets. The operation
provides for the conclusion of various agreements organising, amongst others
the conclusion of an agreement of manufacture of “No Name” Products for its own
account and the lending of moulds for such manufacture.

 

3.                                      The Parties agree hereby on the
terms and conditions of the manufacturing of No Name Products and the lending
of the moulds that are necessary for the manufacturing of the No Name Products. This No Name Products Manufacturing
Agreement is a condition precedent for the take-over operation referred to here
above.

 

THE PARTIES HAVE AGREED AS FOLLOWS:

 

Article 1 :                DEFINITIONS AND
INTERPRETATION

 

1.1                     DEFINITIONS

 

Defined terms will have the same meaning as given to them in the
Agreement, in the Products Manufacturing Agreement or hereinafter in the
present No Name Products Manufacturing Agreement:

 

No Name Components refers to all components and equipment (wheels, fabrics, handles,
locks, labels, packaging, etc.) other than the raw materials used for the
manufacture, injection, assembly or the packaging of the No Name Products and
which do not contain any seal, sign, name or trademark used by Samsonite NV or
an Affiliated Company.

 

No Name Exterior Components refers to No Name Components attached to the outside of a No Name
Product (handle, frame, wheel compartments, etc.), which cannot be replaced by
other products existing on the market.

 

No Name Interior Components refers to No Name Components attached to the inside of a No Name Product
(belt, pocket, “dividers”, “clips”, etc.), which can be replaced by other
products existing on the market.

 

Traditional Retailers refers to the shops and stores
specialised in the distribution of leather products, luggage and travel
products.

 

No Name Exterior Components Manufacturers means manufacturers of No Name
Exterior Components, a list of which is included in annex 2.3, which list can
be modified or amended by Samsonite NV.

 

No Name Interior Components Manufacturers means manufacturers of No Name
Interior Components, a list of which is included in annex 2.4, which list can
be modified or amended by Samsonite NV.

 

2

 

Department Stores refers to the establishments of
retailers that have a section specialised in the sale of luggage or
leather goods, with the exclusion of hypermarkets.

 

Agreement refers to the transfer agreement of the shares
of the Company and the subordinated claims relating to the take-over of the
Site Hénin-Beaumont executed on 29 July 2005 between the Parties, as amended pursuant
to the Appendix.

 

Industrial Property Rights refers to all industrial or intellectual property rights of Samsonite
NV or of the Affiliated Companies, their manufacture, their packaging or all
activities connected therewith, notably the Technical Information, patents,
protected or protectable trademarks and know-how, trade names, company name,
rights of conception, data base, rights of reproduction and implementation for
each of the rights enumerated above, as well as the right to dispose of these
rights or of similar rights in other countries.

 

In-Process refers to the goods and products during their
formation in the process of the manufacture of the Products.

 

Technical Information refers to all documents, all
information given by Samsonite NV to the Company, including without
restriction, instructions with respect to the manufacture, the injection, the
labelling, the packaging, the storing, the maintenance and the quality and
conformity inspection of the Products communicated or put at the disposal of
the Subcontractor by the Principal.

 

Trademarks refers to the trademarks and the names used for
the Products

 

Spinner Wheels Model refers to the vertical suitcase
model (“trolley” type) of which more than two wheels can pivot around a
vertical axe.

 

No Name Component Moulds refers to the moulds, of which the reference is listed in Annex 2.2,
temporarily lent to the Company by Samsonite NV to produce the No Name Products
on the Site, always in conformity with the authorisation granted to the Company to manufacture No Name Products within the
framework of the No Name Product Manufacturing Agreement.

 

No Name Moulds
refers to the moulds, of which the reference is listed in Annex 2.1,
temporarily lent to the Company by Samsonite NV to produce and inject the
shells of the No Name Products in conformity with the authorisation granted to the Company in the No Name Product Manufacturing Agreement.

 

Quality level refers to the level of quality of the Products
corresponding to the test results and statistics listed in Annex 3.3.

 

Products has the meaning given to it in the Products
Manufacturing Agreement.

 

No Name Products refers to the leather products and
luggage that do not bear any trademark, that are not well-known in the luggage
sector, leather products sector, fashion sector, and the sports sector
manufactured with the aid of No Name Moulds and/or No Name Mould Components in
accordance with the No Name Products Manufacturing Agreement.

 

Montdidier Site refers to the Montdidier site.

 

1.2                     INTERPRETATION

 

In this No Name Products Manufacturing Agreement, unless otherwise provided
for:

 

(i)                                    references to an article are
references to an article of this No Name Products Manufacturing Agreement;

 

3

 

(ii)                                references to a
provision of the law are references to such provision as applied, modified,
coordinated and include any provisions arising therefrom;

(iii)                            references to words
mentioned in plural include references to the singular form and vice versa;

(iv)                               references to a
person include references to his successors and assignees;

the headings mentioned in this No Name Products
Manufacturing Agreement are used for ease of reference and are not to be
considered in interpreting this No Name Products Manufacturing Agreement;

 

Article 2 :                OBJECT

 

2.1                     Production of No Name
Products on own account

 

In accordance with the terms and conditions of
the No Name Products Manufacturing Agreement, Samsonite NV grants to the
Company the right to manufacture No Name Products on its own account, on the
basis of the shells injected in the model of the No Name Moulds, as well as the
right to assemble and utilise the No Name Components for the manufacturing of
No Name Products.

 

2.2                     Maintenance of production
of the No Name Products on the Site

 

With the exception of the “Valise Horizontale
79 cm” model of which the manufacturing, injection, mounting, labelling,
packaging and assembling can only take place on the Montdidier Site, Samsonite
NV grants the Company a non-exclusive, non-transferable and non-assignable
right to manufacture, inject, mount, and assemble the No Name Products on the
Site.

 

The Company can in no event, without the prior
written approval of Samsonite NV, subcontract, transfer, or assign, in whatever
way, in whole or in part, the fabrication, injection, mounting, labelling,
packaging and the assembly of the No Name Products to a Third Party or perform
these activities somewhere else other than on the Site (with the exception of
the “Valize Horizontal 79 cm” model described above).

 

The obligations stipulated in the above
paragraphs constitute an essential condition of the agreement and engagements
of the Principal in relation to this Agreement and the Related Agreements.

 

2.3                     Supply of Raw Materials and
Components for the No Name Products

 

Subject to the obligations stipulated in the No
Name Products Manufacturing Agreement, the Company is solely responsible for
and is entirely free to organise the manufacturing of the No Name Products and
to obtain raw materials and No Name Components in relation to the
manufacturing, injection, mounting, assembling, labelling, conditioning,
stocking, delivering and sale of the No Name Products and to organise these
operations on the Site (with the exception of the “Valise Horizontale 79 cm”
model described above).

 

4

 

2.4                     Supply of certain No Name
Components

 

Samsonite NV undertakes to instruct and
authorise the Manufacturers of No Name Exterior Components to sell and supply
to the Company No Name Exterior Components, directly and within the terms and
conditions negotiated directly between the Company and the Manufacturers of No
Name Exterior Components, according to the same service level as the one
applying to Samsonite. No margin, commission or remuneration of any kind shall
be due or received by Samsonite NV for the authorisation and access that it
will grant to the Manufacturers of No Name Exterior Components.

 

Samsonite NV undertakes to instruct and
authorise the Manufacturers of No Name Interior Components to sell and supply
to the Company No Name Interior Components, directly and within the terms and
conditions negotiated directly between the Company and the Manufacturers of No
Name Interior Components. No margin, commission or remuneration of any kind
shall be due to or received by Samsonite NV for the authorisation and access
that it will grant to the Manufacturers of No Name Interior Components.

 

Samsonite undertakes to sell and supply to the
Company No Name Interior Components, manufactured in its plant at Oudenaarde,
on the following conditions:

 

•                       Samsonite NV shall use its best
efforts to satisfy the quantities of No Name Interior Components, taking the
own needs of Samsonite into account;

•                       Samsonite NV shall charge and
invoice to the Company handling and logistic costs of 3% and a mark up of 30%
calculated on the basis of Cost of Sales of the No Name Interior Components;

•                       Samsonite NV and the Company shall
agree further on the delivery conditions of the No Name Interior Components.

 

Article 3
:                THE PLACING OF MOULDS AT DISPOSAL

 

3.1 Ownership of the No Name Moulds, No Name
Component Moulds and other moulds.

 

The No Name Moulds, No Name Component Moulds and any other moulds that
are used for the production or manufacturing of No Name Products are and remain
the property of Samsonite NV or the Affiliated Companies. The ownership of
these moulds cannot be disconnected from the Industrial Property Rights of
Samsonite NV and its Affiliated Companies. The Company undertakes not to
contest or affect these property rights in any way.

 

3.2. Loan of moulds necessary for the
manufacturing of the shells of the No Name Products.

 

Samsonite NV grants to the Company the right to use the No Name Moulds,
which it will make available by means of a loan (“prêt à usage”),
for the injection of the shells of the No Name Products.

 

5

 

Samsonite NV also grants to the Company the right to use the No Name
Moulds, which it will make available by means of a loan (“prêt à usage”),
for the fabrication, at the Site, of the No Name Components.

 

These rights of usage are granted for a minimum duration of at least
thirty (36) months and on the condition :

 

•  that the Company observes its
obligations under the No Name Products Manufacturing Agreement, its obligations
to keep the Activities at the Site and the strict performance of all
requirements in connection with the quality of the Products according to the
Products Manufacturing Agreement (including the obligation to order the Raw
Materials and Components with the suppliers authorised by Samsonite NV and the
obligation to respect the Technical Information), as well as the strict
observance of the supply delays according to the Products Manufacturing
Agreement,

 

•  in the event of any violation of
the other obligations under the Products Manufactoring Agreement, where a
notice to cease the violation has been validly served but not complied with
within ten (10) working days from the date of the notice, damages will be
due as from the date of the violation.

 

Samsonite NV undertakes, in the framework of
the present No Name Products Manufacturing Agreement, to put No Name Moulds
Components at the Company’s disposal that are in the possession of
Manufacturers of No Name Exterior Components, as from the moment it ceases to
order the No Name Exterior Components with these manufacturers.

 

This placing disposal will take place at the
Site, or at the site of the Manufacturer of No Name Exterior Components or at
any other place agreed in writing between the Parties.

 

Article 4
:                OBLIGATIONS OF THE PARTIES

 

4.1           Obligations of the Company

 

The Company repeats the obligations undertaken
under the Agreement and declares and guarantees that during the entire duration
of the No Name Product Manufacturing Agreement, it:

 

(i)                                    will not commercialise any No Name Products
in the following countries:

 

1.               until 31 December 2005, in
Germany, Belgium, France and Spain;

2.               for the entire duration of the
present contract and one (1) year after the end of the present contract:
the territories of the United States and Canada;

 

(ii)                                will not commercialise any No Name
Products in the distribution circuits of the Department Stores and the
Traditional Retailers;

 

(iii)                            undertakes not to refer to the
trademarks, products or moulds or any company of the Affiliated Companies, nor
cause any association between its activities,

 

6

 

products and trademarks and the activities, products
and trademarks of the Affiliated Companies;

 

(iv)                               undertakes and guarantees that its
possible wholesalers, agents and retailers that sell the No Name Products will
observe the same obligations and will act in the same manner;

 

(v)                                   will reply immediately to any
information request or will cooperate with any audit request from Samsonite NV
to verify compliance with all of the obligations of the Company under this
paragraph 4.1, including the obligations of its possible wholesalers, agents
and retail sellers;

 

(vi)                               will not transform the No Name
Products manufactured on the basis of the « trolley 74 cm » mould to a
product or model reproducing or imitating the Spinner Wheels Model. The Company
may, however, produce and commercialise No Name Products of the trolley type
with 4 wheels of which two are fixed, on condition that the Company respects
the Industrial Property Rights of Samsonite NV and the Affiliated Companies;

 

(vii)                           will use the moulds lent to it by
Samsonite NV in an appropriate manner, in accordance with their destination and
the rules of art and shall ensure that it keeps them in good condition for
use. It is nevertheless specified that, should the moulds that are made
available have or include an imprint revealing a Trademark, the Company will
have the explicit authority to modify the moulds concerned in order to
eliminate the said imprint;

 

(viii)                       any violation of the above-mentioned
commitments and obligations will lead to the loss of the right to use the
moulds lent to the Company and the obligation to return them to Samsonite NV or
to any Affiliated Company it may appoint, without any delay and without payment
of any compensation by Samsonite NV, and without prejudice to the obligation to
pay a contractual indemnity of fifteen (15) euros for each product distributed
in violation of the said obligations.

 

4.2           Obligations of Samsonite NV

 

Samsonite NV reiterates the obligations
undertaken under the Agreement and declares and guarantess for the entire
duration of the No Name Products Manufacturing Agreement that it:

 

(i)                                    shall not commercialise the Products
that are manufactured from the No Name Moulds in the “hyper” networks in a
different way than under its brands “SAMSONITE” or “American Tourister”;

 

(ii)                                shall give instructions to
sub-contractors to whom No Name Exterior Component Moulds have been made
available, to supply, without any limitation, the Company with No Name
Components, in compliance with the provisions of article 2.4 of the
present No Name Products Manufacturing Agreement.

 

7

 

(iii)                            shall supply the Company with No
Name Components and other components in compliance with the provisions of article 2.4
of the No Name Products Manufacturing Agreement.

 

It is further specified that Samsonite NV may request the Company that
it manufactures via the No Name Moulds. The products manufactured from these
moulds shall be considered to be Products and are to be manufactured, assembled
and stocked like any Product under the Products Manufacturing Agreement.

 

Article 5 :                INDUSTRIAL PROPERTY RIGHTS

 

5.1                     Samsonite NV grants to the Company,
exclusively, a non-exclusive, non-assignable and non-transferable and free
right to use the Technical Information for the sole purpose for the Company to
produce the No Name Products in compliance with the No Name Products
Manufacturing Agreement. To the extent that this right applies to a given No
Name Product, the right will automatically end through the partial termination
or the non-application of the No Name Products Manufacturing Agreement to this
No Name Product. Otherwise, this licence to use will automatically end at the
expiry date. At the expiry of this licence for a given No Name Product, the
Company will return to Samsonite NV the corresponding Technical Information,
without keeping any copy thereof and will destroy all internal documents with
respect to or making reference to such Technical Information.

 

5.2                     Samsonite NV grants to the Company,
exclusively, a non-exclusive, non-assignable, non-transferable and free licence
to use the patents necessary for the manufacturing of the No Name Products in
compliance with the No Name Products Manufacturing Agreement. This licence can
be used on the Site, but also on the Montdidier Site in relation to the “Valise
Horizontale 79 cm”

 

5.3                     The licenses and the rights to use
the Industrial Property Rights granted by the No Name Products Manufacturing
Agreement, for its duration or thereafter, do not grant any property right,
right of reproduction, right to register a Trademark or a trademark which is
similar or which might cause confusion with this Trademark.

 

5.4                     The Company will not have any right
to apply, use or paste any Trademark, name or logo of Samsonite NV or an
Affiliated Company on the No Name Products, in conditions other than those
stipulated in the No Name Products Manufacturing Agreement.

 

Article 6 :                AUTHORISATIONS

 

The Company undertakes to obtain, keep and maintain all necessary
authorisations for the execution of its obligations under the No Name Products
Manufacturing Agreement.

 

8

 

Article 7 :                RESPONSIBILITY

 

7.1            The Company undertakes to bear
solely any damages resulting from faults, prejudice, omissions, breaches and
violations of the obligations under the No Name Products Manufacturing
Agreement committed by its representatives, employees, agents, with the exception
of losses, costs, damages, law suits, claims due to the negligence or the fault
of Samsonite NV or to one of its representatives, employees or agents.

 

7.2            Samsonite NV undertakes to bear
solely any damages resulting from faults, prejudice, omissions, breaches and
violations of the obligations under the No Name Products Manufacturing
Agreement committed by its representatives, employees, agents, with the
exception of losses, costs, damages, law suits, claims due to the negligence or
the fault of the Company or to one of its representatives, employees or agents.

 

7.3            Each party shall notify the other
party in writing and without delay, of claims of Third Parties resulting from
the performance of the No Name Products Manufacturing Agreement, and each party
shall, at the demand of the other party, grant assistance and reasonable
cooperation in solving these disputes.

 

Article 8 :                INSURANCES

 

The Company declares that it is insured with an insurance company of
first rang (“une compagnie d’assurance de premier rang”)
for all damage and all acts for which it might be held responsible, in the
framework of the No Name Products Manufacturing Agreement. The Company
undertakes to maintain the insurance coverage until the expiry of the time
limits of recourse that third parties or Samsonite NV might have in the
framework of the No Name Products Manufacturing Agreement.

 

The Company undertakes to pay all premiums so that Samsonite NV can
assert its rights in its capacity as beneficiary. The Company undertakes to
communicate one sample of the insurance contracts to Samsonite NV on the first
request of the latter.

 

Article 9 :                CONFIDENTIALITY

 

Each of the Parties undertake to observe the most strict confidentiality
with respect to the No Name Products Manufacturing Agreement, the Technical
Information, and other information supplied by Samsonite NV, and to ensure that
its staff and agents observe the same obligation.

 

Each of the Parties undertake to have its personnel, its suppliers and
any and all intervening Third Parties, respect the most strict confidentiality
regarding the elements of the No Name Products Manufacturing Agreement.

 

The provisions of article 9 will remain in force after the
termination of the present No Name Products Manufacturing Agreement for a duration
of ten (10) years.

 

The confidential nature does not apply to information of which the
receiving party already had knowledge prior to the communication thereof, to
information obtained by Third Parties 

 

9

 

through legitimate means and outside of a confidentiality obligation, to
information developed independently or to information made public by the party
that has communicated the information.

 

This obligation of confidentiality does not apply in cases where a
Party, or an Affiliated Company is obliged or held to communicate any
information or document relating to the Agreement or any Related Agreement by
any administrative, judicial, legal, regulatory, financial or stock market
authority (in particular the NSEC or the NASD).

 

Similarly, the Parties shall be entitled to communicate with their usual
bankers, counsels, accountants, auditors any information or document relating
to the Agreement or any Related Agreement, given the fact that these persons
are bound by professional confidentiality towards their clients.

 

Article 10
:         FORCE MAJEURE

 

If a situation of force majeure exists for
more than three (3) months, the No Name Products Manufacturing Agreement
will automatically ipso iure and
without notice be terminated, unless the Parties agree otherwise.

 

Expressly considered as cases of force majeure
or acts of God are those usually upheld by the case law of French Courts and
Tribunals, and more specifically general or partial strikes, inside or outside
the company, or lock-outs, under the condition that it prevents the performance
of the No Name Products Manufacturing Agreement will be considered as force
majeure situations.

 

Article 11 :         DURATION AND TERMINATION

 

With respect of what is provided for in the No Name Products
Manufacturing Agreement, the present No Name Products Manufacturing Agreement
enters into force on the Effective Date and expires on 31 August 2008.

 

The Parties can agree at any time to prolong this duration or to renew
the No Name Products Manufacturing Agreement for a specified period.

 

Each Party can terminate the No Name Products Manufacturing Agreement
before the end of the initial term of the No Name Products Manufacturing
Agreement or before the end of the renewal by written notification to the other
party:

 

(a) in the event of the initiation of proceedings for an ad hoc mandate (“ouverture d’une procédure
de mandat ad hoc”), for recovery (“redressement”)
or for judicial liquidation and if a judicial administrator (“administrateur judiciaire”) is appointed, he will be
entitled to terminate the No Name Products Manufacturing Agreement in
accordance with the legal provisions with respect to collective procedures;

 

(b) in the event of voluntary dissolution or liquidation of the
other party decided by the Court;

 

10

 

(c) in the event of the other Party committing a breach of its
contractual obligations, if the one Party fails to notify a request to the
other Party for compensation for this breach within a delay of thirty (30)
Working Days from the notification of such breach;

 

(d) non-performance and/or violation of essential obligations such
as articles 2.2 and 4.1 of the present agreement, will entail a termination
right with immediate effect.

 

Article 12 :         CONSEQUENCES OF THE TERMINATION

 

Immediately after the total or partial termination of the No Name
Products Manufacturing Agreement, for whatever reason, the Company shall return
the No Name Moulds lent to it within a period of eight (8) Working Days.

 

Article 13 :         COSTS AND EXPENSES

 

Samsonite NV and the Company will bear their own respective costs and
expenses incurred with a view to preparing the No Name Products Manufacturing
Agreement and the realisation of the planned operations under the No Name
Products Manufacturing Agreement, including, without being limited thereto, the
fees and disbursements of the advisors of accounting experts and possible
agents or intermediaries.

 

Article 14 :         APPLICABLE LAW AND COMPETENT JURISDICTION

 

All disputes with respect to the conclusion, execution or interpretation
that arise as a result of the No Name Products Manufacturing Agreement will be
resolved in accordance with French law.

 

All disputes with respect to the conclusion, execution or interpretation
of the No Name Products Manufacturing Agreement will be submitted to the
jurisdiction of the Commercial Court of Paris.

 

Article 15 :         NOTICES

 

All notices and other communications made or exchanged between the
Parties shall be done by registered letter with acknowledgment of receipt or by
hand delivered letter and countersigned as acknowledgment of receipt by the
addressee or by extrajudicial act to the addresses and persons mentioned
hereafter or to any other address or person notified in the forms of the
present article.

 

To
Samsonite :

 

SAMSONITE

Mr
Marc Matton

27,
rue de la Rochefoucauld

75009
Paris

 

11

 

With a copy to :

Mr Frédéric Boucly

LEXENS

128,
Boulevard Haussmann

75008
Paris

 

To
Samsonite NV :

 

SAMSONITE EUROPE NV

Mr
Marc Matton

Westerring
17,

9700
Oudernaarde

Belgium

 

With a copy to :

Mr
Frédéric Boucly

Lexens

128,
Boulevard Haussmann

75008
Paris

 

To
the Purchaser :

 

Mr Jean-Jacques
Aurel

HB
GROUP

Rue de l’Industrie

L-3895 Foetz

 

With a copy to :

Fauvet La
Giraudière & Associés

Avocats à la Cour

92 avenue d’Iéna

75008
Paris

 

To the Company :

Mr Jean-Jacques AUREL

at the Company’s seat

 

With a copy to :

Fauvet La
Giraudière & Associés

Avocats à la Cour

92 avenue d’Iéna

75008 Paris

 

12

 

Article 16 :         MISCELLANEOUS

 

Failure to exercise or delay in the exercise by the beneficiaries of a
right or a recourse that is granted to them by the No Name Products
Manufacturing Agreement, shall never constitute a waiver of this right or
recourse. Likewise, the punctual or partial exercise of any of these rights or
recourses will not prevent the later or different exercise of these rights or
recourses.

 

The rights and recourses granted by the present (agreement) are cumulative
and come in addition to the other rights and recourses provided by law.

 

In the event that one or more provisions of the No Name Products
Manufacturing Agreement is considered illegal, non-written or inapplicable, the
No Name Products Manufacturing Agreement shall be interpreted as if it did not
contain the said provisions and the invalidity or the inapplicability of the
said provisions shall not affect the validity of the other provisions of the No
Name Products Manufacturing Agreement, which will remain valid and fully in
force.

 

Signed in Paris on 31 August 2005

in 4 originals

 

 

	
    /s/ Marc Matton

  	
   

  	
    s/s
  Jean Jacques Aurel

  	
   

  
	
  Samsonite Europe NV

  	
  Artois Plasturgie

  
	
   

  	
   

  
	
   

  	
   

  
	
    /s/ Marc Matton

  	
   

  	
    s/s
  Jean Jacques Aurel

  	
   

  
	
  Samsonite

  	
  HB Group

  

 

13EXHIBIT 10.2.5

 

***Informal
Translation – For Information Purposes Only***

 

Indemnity
Agreement

 

 

DATED 31 AUGUST 2005

 

 

BETWEEN

 

 

Samsonite

 

Samsonite
Europe NV

 

And

 

Artois
Plasturgie SAS

 

HB
Group

 

 

LEXENS

128,
Boulevard Haussmann

75008
Paris

 

 

The present indemnity agreement (the “Indemnity Agreement”) is dated 31 August 2005,

 

BETWEEN:

 

1.               SAMSONITE, a company with limited liability,
with a share capital of EUR 720,000, with registered office at 27, rue de la
Rochefoucauld, 75009 Paris, registered with the commercial register of Paris
under number 652 024 159 RCS Paris, represented by Mr Marc Matton, in
his capacity of chairman,

 

2.               SAMSONITE EUROPE NV, a company incorporated under Belgian
law, with a share capital of EUR 3,665,105.76, with registered office at
Westerring 17, 9700 Oudenaarde (Belgium), registered with the commercial
register of Oudenaarde under number 16.079, represented by Mr Marc Matton, duly
authorised by a meeting of the board of directors on 18 July 2005,

 

(Hereafter together
the “Joint Creditors”),

 

AND:

 

3.               ARTOIS PLASTURGIE, a company with limited liability (société par actions simplifiée), with a share capital of EUR
37,000, with registered office at 128, Boulevard Haussmann, 75008 Paris,
registered with the commercial register of Paris under number 483 173 308 RCS
Paris, duly represented by Mr Jean-Jacques Aurel, in his capacity of chairman,

 

(Hereafter the “Obliger”),

 

In presence of:

 

4.               HB Group, a limited liability company
incorporated under Luxembourg law, with a share capital of EUR 31,000, with
registered office at rue de l’Industrie, L – 3895 FOETZ (Luxembourg), and
registered with the commercial register of Luxembourg under number B109972,
represented by Mr Jean -Jacques Aurel, in his capacity of director, duly
authorised in this respect pursuant to a decision of the meeting of the board
of directors of the company of 31 August 2005,

 

The Joint Creditors, the Obligor and HB Group are hereinafter
collectively referred to as the “Parties”.

 

 

WHEREAS:

 

1.                                     Samsonite is the owner of and
operates on the Site a business consisting of the fabrication and manufacture
of luggage and plastic products under the name « SIC ».

 

2.                                      As a result of economic difficulties
in the fabrication and manufacture of luggage industry, and so as to avoid a
hold of the Activities and the closure of the Site, Samsonite has expressed its
intention to sell and has had various discussions with potential purchasers to
take over the Site.

 

3.                                      HB Group made a take-over
offer on 31 May 2005, for the business as described herein, all moveable
tangible assets attached to the business and to the Activities, the real property on which the
business is operated, as well as the rights that can lead to the ownership of
the afore-mentioned assets, and more generally all assets and rights attached
to the Activities with the exception of intellectual or industrial property
rights and goods incorporating such rights, including trademarks, patents,
designs and models, as well as the moulds used by or the property of Samsonite,
Samsonite Europe NV, the companies or entities of the Samsonite Group or Third
Parties.

 

4.                                      Samsonite accepted this offer on 1 June 2005.

 

5.                                      The labour unions of Samsonite (Central Committee of the Enterprise and Establishment Committee of the
Site), who were advised of the envisaged Take-Over by HB Group
rendered their advice on the envisaged Take-Over by HB Group on 10 June 2005
and 4 July 2005, respectively.

 

6.                                      The Parties have agreed in the
Agreement (as defined hereafter) to set out the terms and conditions of their
respective obligations and agreements in view of the Take-Over of the Site and
to conclude this Indemnity Agreement,

 

7.                                      This Indemnity Agreement constitutes
a condition precedent for the completion of the Take-Over of the Site and a
decisive condition for the consent and commitments of the Joint Creditors.

 

2

 

Article 1 :                          DEFINITIONS AND INTERPRETATION

 

1.1                     Definitions

 

Capitalized terms will have the
same meaning given to them in the Agreement (as defined hereafter), or as
defined in this Indemnity Agreement.

 

	
  Agreement

  	
   

  	
  The transfer
  agreement for the shares of Artois Plasturgie and of the subordinated loans
  resulting in the Take-Over of the Hénin-Beaumont Site, signed on 29 July 2005
  between the Parties as amended by the Appendix.

  

 

1.2                     Interpretation

 

In this Indemnity Agreement, unless otherwise
provided for:

 

(i)                                     References
to an article are reference to an article of the Indemnity Agreement;

 

(ii)                                  References
to a provision of the law are references to such provision as amended,  applied, modified or coordinated and include
any provisions arising there from;

 

(iii)                               References
to words mentioned in plural include references to the singular form and vice versa;

 

(iv)                              References
to a person include his successor, assignee and transferee;

 

(v)                                 The headings mentioned in the Indemnity Agreement are
used for ease of reference and are not to be considered in interpreting the
Indemnity Agreement;

 

(vi)                              References
to any other agreement or document are to be interpreted as applicable to such
other agreement or document as amended, supplemented, restated or novated from
time to time.

 

Article 2 :                          Purpose of the Agreement

 

The Obligor
unconditionally and irrevocably undertakes to indemnify all of the Joint
Creditors for any prejudice, damages or interest resulting from the
non-execution, shortcoming or breach of its commitments and obligations under
the Agreement or under any Related Agreement.

 

The damages will take
into account the financial, commercial and economic conditions, granted by the
Joint Creditors to the Obligor in the framework of the Take-Over of the Site
and the essential nature of the commitments of the Obligor under the Agreement
and the 

 

3

 

Related Agreements,
including the obligation not to dismiss the Transferred Employees, to respect
the quality and delivery dates of the Products and the sub-assemblies.

 

Each of the Joint
Creditors, acting through the Paying Agent of the Joint Creditors, can ask for
repair of the entire prejudice or part of it, which will comprise, amongst
others, all losses, including exploitation losses, or any loss of profits,
foreseeable or not, resulting directly or indirectly from any delay,
shortcoming or breach of the obligations of the Obligor.

 

Article 3 :                          Miscellaneous

 

3.1                     Good faith

 

Each Party undertakes to irrevocably negotiate in good faith any
specification or modification to the contents of the Indemnity Agreement.

 

Each Party shall develop and sign all necessary documents, shall realise
any operation described above or resulting from it, shall carry out any
engagement, decision or measure, shall obtain and vote on any decision of any
corporate body, necessary in this regard.

 

3.2                     Notices

 

All notices and communications made or sent between the Joint Creditors
and the Obligor shall be effected by registered mail with evidence of receipt
or by letter handed over in person and signed for on receipt by the addressee
or by extra-judicial act (acte extrajudiciaire)
to the addresses and persons mentioned hereafter or to any other address or
person notified using the means described in the present article.

 

For the Joint Creditors:

 

SAMSONITE:

Mr Marc Matton

27, rue de la Rochefoucauld

75009 Paris

 

With a copy to:

 

LEXENS

Mr Frédéric Boucly

128, Boulevard Haussmann

75008 Paris

 

4

 

SAMSONITE EUROPE NV

Mr Marc Matton

Westerring 17

9700 Oudenaarde

Belgium

 

With a copy to:

 

LEXENS

Mr Frédéric Boucly

128, Boulevard Haussmann

75008 Paris

 

For the Obligor:

 

Mr Jean-Jacques AUREL

To the Company’s registered office

 

With a copy to:

Fauvet La Giraudière & Associés

Avocats à la Cour

92 avenu d’Iéna

75008 Paris

 

AND
A COPY TO :

 

HB
GROUP

 

Mr Jean-Jacques
Aurel

Rue de l’Industrie L-3895 FOETZ

 

With a copy to:

Fauvet La Giraudière & Associés

Avocats

92 avenue d’Iéna

F-75008 Paris

 

3.3                     Confidentiality - Announcements

 

The Parties shall keep the Indemnity Agreement confidential as against
any Third Party, and shall ensure that their employees and agents comply with
the same obligation.

 

This obligation will not apply if a Party or Affiliated Company
concerned is requested or obliged to communicate any information or a document
regarding the Agreement or a Related 

 

5

 

Agreement, by an administrative, judicial, legal, -financial or stock
exchange authority (including NSEC or NASD).

 

In the same way the Parties will be authorised to communicate with their
usual bankers, their counsel, accountants, auditors who are bound by
professional confidentiality vis-à-vis their clients, any information or
document regarding the Agreement or a Related Agreement.

 

3.4                     Invalidity

 

If any of the provisions of the Agreement and of any of the Related Agreements
are declared to be invalid or void, such provision will, to the extent of its
invalidity or its voidness, cease to have effect and will be considered as no
longer part of the Agreement or of the Related Agreement concerned but can in
no way affect the validity and effectiveness of the other terms and conditions
of the Indemnity Agreement.

 

3.5                     Endorsement and Renunciation

 

No modification to the Indemnity Agreement can be validly made, unless
such modification is done in writing and signed by all Parties.

 

The Parties reserve the right to exercise at all times any right or to
carry out any action to better protect their interest, and any delay by any
Party in the exercise, or lack of exercise, of such rights, cannot be
interpreted as an abandonment or renunciation of such rights or actions.

 

3.6                     Expenses, disbursements
and taxes

 

Each of the Joint Creditors and the Obligor will respectively bear their
own expenses and disbursements encountered during the course of preparation of
the Indemnity Agreement and the realisation of the operations envisaged in
accordance with the terms of the Indemnity Agreement, including, without being
limited thereto, the fees and disbursements of the advisors and offices of
accounting experts and possible agents or intermediaries.

 

3.7                     Tranfer

 

The Indemnity Agreement will bind all of the Parties, their heirs,
successors and assignees. However, no right, interest, asset or obligation
whatsoever of any of the Joint Creditors can form part of a transfer or can be
transferred directly or indirectly, without the express approval of the Paying
Agent of the Creditors.

 

3.8

3.9                     Applicable law and choice of forum

 

Any litigation relating to the conclusion, performance and/or
interpretation of the Indemnity Agreement will be resolved in accordance with
French law.

 

Any litigation relating to the conclusion, performance and/or
interpretation of the Indemnity Agreement will be submitted to the jurisdiction
of the Commercial Court of Paris.

 

6

 

Executed in
Paris, on 31 August 2005

In 5 original
copies

 

 

	
  /s/ Marc
  Matton

  	
   

  	
  /s/ Marc
  Matton

  	
   

  
	
  Samsonite

  	
  Samsonite
  Europe NV

  
	
   

  	
   

  
	
   

  	
   

  
	
    s/s
  Jean Jacques Aurel

  	
   

  	
   

  	
    s/s
  Jean Jacques Aurel

  	
   

  
	
  Artois
  Plasturgie

  	
   

  	
  HB
  Group

  
							

 

7

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