Document:

EXHIBIT 4.N

 

BLAKE DAWSON WALDRON

L A W Y E R S

 

RF Amendment Agreement

Lihir Gold Limited

ABN AMRO Bank N.V.

(Australian Branch)

ABN AMRO Australia Limited

The parties listed in schedule 2

      

      

      

      

 
Level 36 Grosvenor Place

225 George Street

Sydney NSW 2000

Telephone: (02) 9258 6000

Fax: (02) 9258 6999

Execution Version

      

      

 
 
 

                                     2005

Ref: RFF AUC JMHC 02 1379 6955

© Blake Dawson Waldron 2004

 

 

CONTENTS

	 	 	 	 	 	 	 	 	 
	1.	 	INTERPRETATION	 	 	2	 
	 	 	 	 	 
	 	 	 	 
	 	 	1.1	 	Definitions
	 	 	2	 
	 	 	1.2	 	Terms defined in the Syndicated Facility Agreement
	 	 	2	 
	 	 	1.3	 	Rules for interpreting this document
	 	 	2	 
	 	 	 	 	 
	 	 	 	 
	2.	 	CONSIDERATION	 	 	2	 
	 	 	 	 	 
	 	 	 	 
	3.	 	CONDITIONS PRECEDENT	 	 	2	 
	 	 	 	 	 
	 	 	 	 
	4.	 	AMENDMENT	 	 	3	 
	 	 	 	 	 
	 	 	 	 
	5.	 	FEES	 	 	4	 
	 	 	5.1	 	Participation Fee
	 	 	4	 
	 	 	5.2	 	Arranging Fee
	 	 	4	 
	 	 	 	 	 
	 	 	 	 
	6.	 	REPRESENTATIONS AND WARRANTIES	 	 	4	 
	 	 	 	 	 
	 	 	 	 
	 	 	6.1	 	Representations and warranties
	 	 	4	 
	 	 	6.2	 	Reliance on representations and warranties
	 	 	4	 
	 	 	 	 	 
	 	 	 	 
	7.	 	TRANSACTION DOCUMENT	 	 	4	 
	 	 	 	 	 
	 	 	 	 
	8.	 	GENERAL	 	 	4	 
	 	 	 	 	 
	 	 	 	 
	 	 	8.1	 	Governing law
	 	 	4	 
	 	 	8.2	 	Liability for expenses
	 	 	5	 
	 	 	8.3	 	Giving effect to this document
	 	 	5	 
	 	 	8.4	 	Amendment
	 	 	5	 
	 	 	8.5	 	Counterparts
	 	 	5	 
	 	 	8.6	 	Attorneys
	 	 	5	 
	 	 	 	 	 
	 	 	 	 
	Schedule	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	1	 	AMENDMENTS TO THE SYNDICATED FACILTY AGREEMENT	 	 	6	 
	 	 	 	 	 
	 	 	 	 
	2	 	THE FINANCIERS	 	 	9	 

 

 

AMENDMENT AGREEMENT

	 	 	 	 	 	 	 
	DATE

	 	 	2005	 	 	 
	 
	 	 	 	 	 	 
	PARTIES
	 	 	 	 	 	 

Lihir Gold Limited ARBN 069 803 998 (the Borrower)

ABN AMRO Bank N.V. (Australian Branch) ARBN 079 478 612 (the Arranger)

ABN AMRO Australia Limited ABN 78 000 862 797 (the Facility Agent)

The Parties Listed in Schedule 2 (the Financiers)

RECITALS

	A.	 	The Borrower, the Facility Agent and the Financiers are party to a Syndicated Facility
Agreement dated 22 November 2000 under which a credit facility of US$50 million (reduced to
US$40 million on 30 June 2003 and further reduced to US$30 million on 30 June 2004) was made
available to the Borrower (the Syndicated Facility Agreement).
	 
	B.	 	The parties to the Syndicated Facility Agreement wish to amend the Syndicated Facility
Agreement in the manner set out below.

OPERATIVE PROVISIONS

	1.	 	INTERPRETATION

	1.1	 	Definitions
	 
	 	 	The following definitions apply in this document.
	 
	 	 	Effective Date has the meaning given in clause 3.
	 
	 	 	Mandate Letter means the letter between Lihir Gold Limited and ABN AMRO Bank N.V.
(Australian Branch) dated on or about 14 December 2004.

	1.2	 	Terms defined in the Syndicated Facility Agreement
	 
	 	 	Terms that are not defined in clause 1.1 and that are defined in the Syndicated Facility
Agreement (as amended by this document) have the same meaning in this document.

	1.3	 	Rules for interpreting this document
	 
	 	 	The provisions of clauses 1.2, 1.3, 1.4, 1.5 and 20 of the Syndicated Facility Agreement (as
amended by this document) apply as if set out in full in this document.

	2.	 	CONSIDERATION
	 
	 	 	Each party acknowledges that it has received valuable consideration for entering into this
document.

	3.	 	CONDITIONS PRECEDENT

2

 

	 	 	This document takes effect, and the parties agree to be bound by the Syndicated Facility
Agreement as amended by this document, from the date on which the Facility Agent notifies
the Borrower and the Financiers that it has received the following in form and substance
satisfactory to it (the Effective Date):

	 	(a)	 	a copy, certified by an Authorised Representative of the Borrower of:

	 	(i)	 	an extract of minutes of a meeting of the board of directors of
the Borrower approving the amendment and extension of the Facility, the
entering into of this document and the performing of its obligations under this
document and under the Syndicated Facility Agreement as amended by this
document;
	 
	 	(ii)	 	any power of attorney under which this document is executed on
behalf of the Borrower; and
	 
	 	(iii)	 	the Management Transition Plan (as defined in Schedule 1);

	 	(b)	 	evidence of all Authorisations required by the Borrower to ensure the validity
and enforceability of this document and the Syndicated Facility Agreement as amended by
this document;
	 
	 	(c)	 	this document, duly executed;
	 
	 	(d)	 	evidence that political risk insurance satisfactory to the Arranger is in
place;
	 
	 	(e)	 	an opinion of Blake Dawson Waldron, legal advisers to the Borrower, in relation
to the laws of PNG;
	 
	 	(f)	 	an opinion of Mallesons Stephen Jaques, legal advisers to the Facility Agent
and the Financiers;
	 
	 	(g)	 	a technical report from the Independent Engineer;
	 
	 	(h)	 	an audit report from PricewaterhouseCoopers;
	 
	 	(i)	 	a report on the Lihir Strategic Planning Model reconciled to the 5 Year Plan
from KPMG; and
	 
	 	(j)	 	a letter of consent acknowledging the amendments to the Syndicated Facility
Agreement effected by this document from Niugini Mining Limited and Nuigini Mining
(Australia) Pty Limited addressed to the Security Trustee and the Financiers.

	4.	 	AMENDMENT

	 	(a)	 	The Syndicated Facility Agreement is amended with effect on the Effective Date
as set out in schedule 1.
	 
	 	(b)	 	Paragraph (a) does not affect any right or obligation that arises before the
Effective Date.
	 
	 	(c)	 	The parties confirm and ratify the Syndicated Facility Agreement as amended by
this document.

3

 

	 	(d)	 	The Borrower acknowledges and agrees that each of the Security Documents stands
as security for the Borrower’s obligations and liabilities under the Syndicated
Facility Agreement as amended by this document and that each of the Security Documents
continues in full force and effect.
	 
	 	(e)	 	Each party confirms and agrees that the Transaction Documents continue in full
force and effect subject to the amendments effected pursuant to this document.

	5.	 	FEES

	5.1	 	Participation Fee
	 
	 	 	The Borrower shall pay to each Financier having a Commitment equal to or greater than US$10
million under the Syndicated Facility Agreement, as amended by this document, a
participation fee equal to 0.15% of such Financier’s Commitment (as amended) payable, in
each case, on satisfaction of the conditions precedent referred to in clause 3 of this
document.

	5.2	 	Arranging Fee
	 
	 	 	The Borrower shall pay to the Arranger an arranging fee in accordance with the Mandate
Letter payable upon satisfaction of the conditions precedent referred to in clause 3 of this
document.

	6.	 	REPRESENTATIONS AND WARRANTIES

	6.1	 	Representations and warranties
	 
	 	 	The Borrower makes the representations and warranties set out in clause 9.1 of the
Syndicated Facility Agreement (other than the representation and warranty set out in clause
9.1(q)) on the date of this document and on the Effective Date, on the basis of the facts
and circumstances subsisting as at that date. For the avoidance of doubt, any reference to
“Transaction Documents” in clause 9.1 of the Syndicated Facility Agreement shall include
this document.

	6.2	 	Reliance on representations and warranties
	 
	 	 	The Borrower acknowledges that each of the other parties has executed this document and
agreed to take part in the transactions that it contemplates in reliance on the
representations and warranties that are made or repeated in this clause.

	7.	 	TRANSACTION DOCUMENT
	 
	 	 	The parties agree that this document is a Transaction Document for the purposes of the
Syndicated Facility Agreement.

	8.	 	GENERAL

	8.1	 	Governing law
	 
	 	 	This document is governed by the law in force in New South Wales.

4

 

	8.2	 	Liability for expenses
	 
	 	 	The Borrower must reimburse each of the other parties to this document on demand for
reasonable out-of-pocket expenses (including reasonable legal expenses, for each applicable
jurisdiction, of one law firm for all the Financiers) and Taxes incurred in connection with:

	 	(a)	 	the negotiation, preparation, execution, stamping and registration of this
document and any syndication documents relating to the Syndicated Facility Agreement
(as amended by this document);
	 
	 	(b)	 	any amendment to, or any consent, approval, waiver, release or discharge of or
under, this document; and
	 
	 	(c)	 	any amendment to, or any consent or approval in respect of the political risk
insurance referred to in clause 3(d) of this document,

	 	 	including legal expenses on a full indemnity basis and expenses incurred in engaging
consultants.

	8.3	 	Giving effect to this document
	 
	 	 	Each of the parties to this agreement must do anything (including execute any document), and
must ensure that its employees and agents do anything (including execute any document), that
the other parties to this document may reasonably require to give full effect to this
document.

	8.4	 	Amendment
	 
	 	 	This document can only be amended, supplemented, replaced or novated by another document
signed by the parties.

	8.5	 	Counterparts
	 
	 	 	This document may be executed in counterparts.

	8.6	 	Attorneys
	 
	 	 	Each person who executes this document on behalf of a party under a power of attorney
declares that he or she is not aware of any fact or circumstance that might affect his or
her authority to do so under that power of attorney.

5

 

SCHEDULE 1

AMENDMENTS TO THE SYNDICATED FACILITY AGREEMENT

	1.	 	Clause 1.1 definition of “Facility Limit” – delete the words “as reduced under clause 6.1”.
	 
	2.	 	Clause 1.1 definition of “Repayment Date” – delete “2005” and insert in its place “2006”.
	 
	3.	 	Clause 1.1 – following the definition of “Management Agreement” insert the following new
definition:

“Management Transition Plan means the document entitled the “Lihir Gold Transition
Plan Document” as presented to and approved by the board of directors of the
Borrower in January 2005”.

	4.	 	Clause 6 – delete clause 6.1 in its entirety and renumber the remaining sub-clauses of clause
6 and references within the Syndicated Facility Agreement to sub-clauses of clause 6
accordingly.
	 
	5.	 	Clause 10.2(f) – insert the following new subparagraph as a new subparagraph (vii):

“(vii) finance leases associated with the sale and leaseback of certain geothermal
power assets (which arrangement is subject to the approval of the Majority
Financiers which approval will not be unreasonably withheld).”

	6.	 	Clause 12.3 – delete clause 12.3 in its entirety and replace it with the following new clause
12.3:

“12.3 Review Events

	 	(a)	 	If, without the consent of the Facility Agent (acting on the
instructions of all Financiers):

	 	(i)	 	a person not in control of the Borrower on the
date of the Syndicated Facility Agreement acquires control of the
Borrower after the date of the Syndicated Facility Agreement; or
	 
	 	(ii)	 	the Management Transition Plan is:
	 
	 	(A)	 	terminated;
	 
	 	(B)	 	suspended;
	 
	 	(C)	 	amended in a material respect; or
	 
	 	(D)	 	not complied with in any material respect,

then the Borrower shall be obliged to notify the Facility Agent of such
event (in each case, a “Review Event”) promptly after it becomes aware of
the occurrence of such Review Event. The Facility Agent may give a

6

 

notice to the Borrower within 30 days of being notified of the occurrence of
such Review Event requiring that the Facility be restructured in a manner
satisfactory to the Facility Agent and amendments be made to the Transaction
Documents, including, without limitation, by amending the Facility Limit,
the Repayment Date or the Margin.

For the purposes of this clause 12.3, “control” shall have the meaning given
to that term in section 50AA of the Corporations Act 2001 (Cth).

	 	(b)	 	If the Borrower agrees to the restructuring of the Facility,
and the amendments to the Transaction Documents requested by the Facility Agent
under paragraph (a), then the Borrower and the Facility Agent shall amend the
Transaction Documents to effect such restructuring and amendments.
	 
	 	(c)	 	If the Borrower does not agree to the restructuring of the
Facility and the amendments to the Transaction Documents (and the Borrower must
notify the Facility Agent of its acceptance within 10 Business Days of receipt
of a notice under paragraph (a)), then the Borrower agrees that, within 180 days
of receipt of the notice from the Facility Agent under paragraph (a), it will
repay the Principal Outstanding under the Syndicated Facility Agreement at that
time, plus all interest, fees, costs and other amounts payable under the
Transaction Documents.”

7

 

	7.	 	Schedule 1 – Delete the schedule in its entirety and replace with the following
schedule:

“DETAILS OF FINANCIERS

	 	 	 
	FINANCIER DETAILS FOR NOTICES AND US DOLLAR	 	COMMITMENTS    (US$)
	ACCOUNT	 	 
	 
	 	 
	ABN AMRO Australia Limited/ABN AMRO Bank N.V.

ABN AMRO Tower

88 Phillip Street

Sydney NSW 2001

Fax No. 02 8259 5411

Attention: Erwin Estlemann

	 	$15,000,000
	 
	 	 
	Commonwealth Bank of Australia

Level 15

52 Martin Place

Sydney NSW 2000

Fax No. 02 9513 1002

Attention: James Rickward

	 	$15,000,000
	 
	 	 
	Société Générale Australia Branch

Level 21

400 George Street

Sydney NSW 2000

Fax No. 02 92231779

Attention: Charles Loxton

	 	$10,000,000
	 
	 	 
	Macquarie Bank Limited

No. 1 Martin Place

Sydney NSW 2000

Fax No. 02 8232 3590

Attention: Jonathan Rourke

	 	$10,000,000”

8

 

SCHEDULE 2

THE FINANCIERS

ABN AMRO Australia Limited/ABN AMRO Bank N.V.

Commonwealth Bank of Australia

Société Générale Australia Branch

Macquarie Bank Limited

9

 

EXECUTED as a agreement.

The Borrower

	 	 	 
	SIGNED for LIHIR GOLD LIMITEDB 
under power of
attorney in the presence of:

	 	  
	 

	 	 
	 

	 	Signature of attorney
	 
	 	 
	 
	 	 
	 

	 	 
	Signature of witness

	 	Name
	 
	 	 
	 
	 	 
	 

	 	 
	Name

	 	Date of power of attorney

The Facility Agent

	 	 	 
	SIGNED for ABN AMRO AUSTRALIA LIMITED 
under
power of attorney in the presence of:

	 	  
	 

	 	 
	 

	 	Signature of attorney
	 
	 	 
	 
	 	 
	 

	 	 
	Signature of witness

	 	Name
	 
	 	 
	 
	 	 
	 

	 	 
	Name

	 	Date of power of attorney

The Financiers

	 	 	 
	SIGNED for ABN AMRO BANK N.V. 
under power of
attorney in the presence of:

	 	  
	 

	 	 
	 

	 	Signature of attorney
	 
	 	 
	 
	 	 
	 

	 	 
	Signature of witness

	 	Name
	 
	 	 
	 
	 	 
	 

	 	 
	Name

	 	Date of power of attorney

10

 

	 	 	 
	SIGNED for ABN AMRO AUSTRALIA LIMITED

under power of attorney in the presence of:

	 	  
	 

	 	 
	 

	 	Signature of attorney
	 
	 	 
	 
	 	 
	 

	 	 
	Signature of witness

	 	Name
	 
	 	 
	 
	 	 
	 

	 	 
	Name

	 	Date of power of attorney
	 
	 	 
	SIGNED for COMMONWEALTH BANK OF AUSTRALIA

under power of attorney in the presence of:

	 	  
	 

	 	 
	 

	 	Signature of attorney
	 
	 	 
	 
	 	 
	 

	 	 
	Signature of witness

	 	Name
	 
	 	 
	 
	 	 
	 

	 	 
	Name

	 	Date of power of attorney
	 
	 	 
	SIGNED for SOCIÉTÉ GÉNÉRALE AUSTRALIA

BRANCH under power of attorney in the presence of:

	 	   
	 

	 	 
	 

	 	Signature of attorney
	 
	 	 
	 
	 	 
	 

	 	 
	Signature of witness

	 	Name
	 
	 	 
	 
	 	 
	 

	 	 
	Name

	 	Date of power of attorney

11

 

	 	 	 
	SIGNED for MACQUARIE BANK LIMITED 
under
power of attorney in the presence of:

	 	  
	 

	 	 
	 

	 	Signature of attorney
	 
	 	 
	 
	 	 
	 

	 	 
	Signature of witness

	 	Name
	 
	 	 
	 
	 	 
	 

	 	 
	Name

	 	Date of power of attorney

12EXHIBIT 4.4

 

Exhibit 4.4

SHARE PURCHASE AGREEMENT

BY AND AMONG

The Holders of Shares and Stock Options of Setec Oy,

Gemplus Nordic Oy, under formation,

AND

Gemplus International S.A.

Concerning the shares and stock options of

SETEC OY

April 22, 2005

 

 

INDEX

	 	 	 	 	 	 	 
	1

	 	PARTIES
	 	 	7	 
	1.1

	 	Sellers
	 	 	7	 
	1.2

	 	Purchaser
	 	 	8	 
	1.3

	 	Gemplus International S.A.
	 	 	8	 
	2

	 	PREAMBLE
	 	 	8	 
	3

	 	DEFINITIONS
	 	 	8	 
	4

	 	PURCHASE AND SALE
	 	 	11	 
	4.1

	 	Object of the Transaction
	 	 	11	 
	5

	 	PURCHASE PRICE
	 	 	11	 
	5.1

	 	Base Purchase Price
	 	 	11	 
	5.1.1

	 	Amount of the Base Purchase Price
	 	 	12	 
	5.1.2

	 	Payment of the Cash Component of the Purchase Price
	 	 	12	 
	5.1.3

	 	Delivery of Equity Component of the Base Purchase Price
	 	 	12	 
	5.2

	 	Additional Purchase Price
	 	 	12	 
	5.2.1

	 	Amount of the Additional Purchase Price
	 	 	12	 
	5.2.2

	 	Payment of the Additional Purchase Price
	 	 	15	 
	5.2.3

	 	Escrow Agreement
	 	 	16	 
	6

	 	TRANSFER OF TITLE
	 	 	16	 
	6.1

	 	Transfer of Title to Shares and Stock Options
	 	 	16	 
	6.2

	 	Transfer of Title to the GISA Stock
	 	 	16	 
	7

	 	PRE-CLOSING COVENANTS
	 	 	16	 
	7.1

	 	Consents and Approvals
	 	 	16	 
	7.2

	 	Operation of the Group Companies
	 	 	17	 
	7.3

	 	No Inconsistent Negotiations
	 	 	17	 
	8

	 	CLOSING
	 	 	17	 
	8.1

	 	Closing
	 	 	17	 
	8.2

	 	Conditions Precedent to Obligation of the Parties to Proceed with Closing
	 	 	17	 
	8.3

	 	Deliveries by Purchaser and GISA
	 	 	18	 
	8.4

	 	Deliveries by Sellers
	 	 	18	 
	9

	 	DUE DILIGENCE
	 	 	18	 
	10

	 	REPRESENTATIONS AND WARRANTIES OF SELLERS
	 	 	19	 
	10.1

	 	Power and Authorization
	 	 	19	 
	10.2

	 	Shares and Shareholding
	 	 	19	 
	10.3

	 	Organization
	 	 	19	 
	10.4

	 	Corporate Documents
	 	 	20	 
	10.5

	 	Accounts; Dividends; No Indebtedness
	 	 	20	 
	10.6

	 	Bankruptcy, Execution or Reorganization
	 	 	20	 
	10.7

	 	Title to Properties; Encumbrances
	 	 	20	 
	10.8

	 	Assets; Working Order and Condition
	 	 	20	 
	10.9

	 	Material Agreements
	 	 	21	 
	10.10

	 	Labor Relations; Employment Agreements; Pension and Benefits
	 	 	21	 
	10.11

	 	Land, Buildings and other Premises
	 	 	22	 
	10.12

	 	Environmental, Health and Safety Matters
	 	 	22	 
	10.13

	 	Insurance
	 	 	22	 
	10.14

	 	Intellectual Property Rights
	 	 	22	 
	10.15

	 	Litigation and other disputes
	 	 	22	 

2(37)

 

	 	 	 	 	 	 	 
	10.16

	 	Taxation
	 	 	22	 
	10.17

	 	Ordinary Course of Business; Absence of Material Adverse Change
	 	 	23	 
	10.18

	 	Compliance with law; Absence of Violations
	 	 	23	 
	10.19

	 	Qualifications of Representations and Warranties
	 	 	23	 
	10.20

	 	No Implied Representations or Warranties
	 	 	23	 
	10.21

	 	Transactions with Related Parties
	 	 	23	 
	10.22

	 	No Side Agreements with Company Management
	 	 	23	 
	10.23

	 	Restrictions and Consents
	 	 	24	 
	10.24

	 	Compliance with Law
	 	 	24	 
	10.25

	 	No Authority Approvals
	 	 	24	 
	10.26

	 	Setec Danmark A/S
	 	 	24	 
	10.27

	 	No Brokers
	 	 	24	 
	11

	 	REPRESENTATIONS AND WARRANTIES OF PURCHASER AND GISA
	 	 	24	 
	11.1

	 	Capacity and Organization
	 	 	24	 
	11.2

	 	Validity of this Agreement
	 	 	24	 
	11.3

	 	Financing
	 	 	25	 
	11.4

	 	GISA Stock
	 	 	25	 
	11.5

	 	Compliance with Law
	 	 	25	 
	11.6

	 	No Authority Approvals
	 	 	25	 
	11.7

	 	No Brokers
	 	 	25	 
	11.8

	 	Proper Disclosure
	 	 	25	 
	12

	 	INDEMNITY
	 	 	25	 
	12.1

	 	Indemnification by Sellers
	 	 	25	 
	12.2

	 	Indemnification by Purchaser and GISA
	 	 	26	 
	12.3

	 	Limitation of Liability for Sellers, Purchaser and GISA
	 	 	26	 
	12.4

	 	Third Party Claims
	 	 	27	 
	13

	 	ADDITIONAL UNDERTAKINGS
	 	 	28	 
	13.1

	 	Confidentiality
	 	 	28	 
	13.2

	 	Sellers’ and GISA Representative
	 	 	28	 
	13.3

	 	Transfer Tax
	 	 	29	 
	13.4

	 	Expenses
	 	 	29	 
	13.5

	 	Release from Liability of the Directors of the Company
	 	 	29	 
	13.6

	 	Company Management Incentive Program
	 	 	29	 
	13.7

	 	No Side Agreements with Company Management
	 	 	29	 
	13.8

	 	Restriction on Sale of GISA Stock
	 	 	29	 
	13.9

	 	Block Sales of GISA Stock by Institutional Sellers
	 	 	30	 
	13.10

	 	Liability of GISA on the Obligations of the Purchaser
	 	 	30	 
	14

	 	TERMINATION
	 	 	30	 
	14.1

	 	Termination
	 	 	30	 
	14.2

	 	Effect of Termination
	 	 	30	 
	15

	 	MISCELLANEOUS
	 	 	31	 
	15.1

	 	Additional Actions and Documents
	 	 	31	 
	15.2

	 	Notices
	 	 	31	 
	15.3

	 	Non-Assignment
	 	 	33	 
	15.4

	 	Headings
	 	 	33	 
	15.5

	 	No Waiver
	 	 	33	 
	15.6

	 	Severable Provisions
	 	 	34	 
	15.7

	 	Reference to Statutory Provisions
	 	 	34	 
	15.8

	 	Entire Agreement
	 	 	34	 
	15.9

	 	Amendments
	 	 	34	 
	15.10

	 	Governing Law
	 	 	34	 
	15.11

	 	Settlement of Disputes
	 	 	34	 

3(37)

 

LIST OF SCHEDULES

	 	 	 
	Schedule 1.13

	 	Certain Private Persons among Sellers
	 
	 	 
	Schedule 3.2

	 	Accounting Principles
	 
	 	 
	Schedule 3.23

	 	GISA’s Knowledge
	 
	 	 
	Schedule 3.384

	 	Sellers’ Knowledge
	 
	 	 
	Schedule.3.41

	 	Stock Options
	 
	 	 
	Schedule 4.1

	 	Sellers’ Shares and Stock Options
	 
	 	 
	Schedule 5.1.3A

	 	Base Purchase Price
	 
	 	 
	Schedule 5.1.3 B

	 	Sellers Bank Account
	 
	 	 
	Schedule 5.2.1 A.

	 	Order Backlog
	 
	 	 
	Schedule 5.2.1 B

	 	Effective Date Order Backlog
	 
	 	 
	Schedule 5.2.1 C

	 	Material Sales Agreements
	 
	 	 
	Schedule 7.1.A

	 	Application to German Federal Cartel Office
	 
	 	 
	Schedule 7.1.B

	 	Application to Norwegian Competition Authority
	 
	 	 
	Schedule 9 A

	 	Disclosure Materials
	 
	 	 
	Schedule 9 B

	 	Sellers’ Disclosure Letter
	 
	 	 
	Schedule 10.4A

	 	Articles of Association and Trade Register information of the Group Companies
	 
	 	 
	Schedule 10.4B

	 	Share and Shareholder Registers of the Group Companies
	 
	 	 
	Schedule 10.5 A

	 	The Accounts of the Group Companies for the financial periods ending on December 31, 2003 and December 31,
2004
	 
	 	 
	Schedule 10.5 B

	 	List of mortgages, guarantees and financial agreements
	 
	 	 
	Schedule 10.9

	 	Material Agreements
	 
	 	 
	Schedule 10.10A

	 	Key Employment Agreements
	 
	 	 
	Schedule 10.10 B

	 	Pension and Benefit Arrangements
	 
	 	 
	Schedule 10.11

	 	Land, Buildings and other Premises
	 
	 	 
	Schedule 10.14

	 	Intellectual Property Rights
	 
	 	 
	Schedule 10.26

	 	Letter from Poul Kjaerboll

4(37)

 

	 	 	 
	Schedule 13.7

	 	Agreement between the Institutional Sellers and certain members of the management of the Company

5(37)

 

LIST OF EXHIBITS

	 	 	 
	Exhibit 5.2.3

	 	Form of Escrow Agreement
	 
	 	 
	Exhibit 13.6

	 	Form of Company Management Incentive Plan

6(37)

 

SHARE PURCHASE AGREEMENT

	1	 	PARTIES

	 	1.1	 	Sellers

	 	1.1.1	 	Capman Equity VII A L.P. PO BOX 86, Hambro House, St Julian`s
Avenues, St Peter Port GY 13EA, Guernsey Channel Islands; and
	 
	 	1.1.2	 	Capman Equity VII C L.P. PO BOX 86, Hambro House, St Julian`s
Avenues, St Peter Port GY 13EA, Guernsey Channel Islands; and
	 
	 	1.1.3	 	Capman Equity Sweden KB, Grev Turegatan 30, PO BOX 5745, 11487,
Stockholm, Sweden; and
	 
	 	1.1.4	 	Swedestart Tech KB, P.O.BOX 5745, SE-11487, Stockholm, Sweden;
and
	 
	 	1.1.5	 	Maneq Fund 2004 Ky, Korkeavuorenkatu 32, 00130 Helsinki,
Finland; and
	 
	 	1.1.6	 	Maneq 2004 AB, Grev Turegatan 30, PO BOX 5745, SE-11487,
Stockholm; Sweden, and
	 
	 	1.1.7	 	Oy Knowledge Connection Ab, c/o Timo Tiihonen, Merikatu 29 B 7,
00150 Helsinki, Finland; and
	 
	 	1.1.8	 	Yewtree Fund Investments, Private Limited, c/o Temasek Holding
60B, Orchard Road, # 06-18 Tower 2, Singapore 238891, Singapore; and
	 
	 	1.1.9	 	Finnish National Fund for Research and Development (Sitra),
Itämerentori 2, 00180 Helsinki, Finland; and
	 
	 	1.1.10	 	Varma Mutual Pension Insurance Company, Annankatu 18, 00098 VARMA, Finland;
and
	 
	 	1.1.11	 	Sampo Life Insurance Company, Bulevardi 56, 00120 Helsinki, Finland; and
	 
	 	1.1.12	 	Finnish Industry Investment Ltd, Kalevankatu 9 A, 00100 Helsinki, Finland; and
	 
	 	1.1.13	 	Private persons with addresses identified in Schedule 1.13, and
	 
	 	 	 	The parties mentioned above in Sections 1.1.1 – 1.13 are collectively
referred to in this Agreement as “Sellers” or individually as “Seller”.
	 
	 	 	 	The parties mentioned above in Sections 1.1.1 – 1.1.12 are collectively
referred to in this Agreement as “Institutional Sellers” or individually as
“Institutional Seller.
	 
	 	 	 	The parties mentioned above in Sections 1.1.1 – 1.1.8 are collectively
referred to in this Agreement as “Capman Entities”.
	 
	 	 	 	The parties mentioned above in Sections 1.1.13 are collectively referred to
in this Agreement as “Private Sellers” or individually as “Private Seller”.

7(37)

 

	 	1.2	 	Purchaser
	 
	 	 	 	Gemplus Nordic Oy, under formation, Finnish limited liability company under the laws
of Finland with an initial share capital of 8,000 euro (€8,000), and registered
domicile at Helsinki, Finland, address c/o Roschier Holmberg, Attorneys Ltd,
Keskuskatu 7A, 00100 Helsinki, Finland (“Purchaser”).
	 
	 	1.3	 	Gemplus International S.A.
	 
	 	 	 	Gemplus International S.A., a corporation organized and existing under the laws of
Luxembourg, having its registered domicile at 46A, Avenue JF Kennedy, L-1855
Luxembourg, Luxembourg (“GISA”).

	2	 	PREAMBLE
	 
	 	 	Sellers own all of the outstanding shares and stock options entitled to be converted into
shares in Setec Oy, a corporation organized and existing under the laws of Finland (Y-code
0826277-7), with a fully paid share capital of 6,822,530 euro, having its registered
domicile at Vantaa, Finland and engaged in the business of development, manufacturing and
sales of products and services relating to payment, identification and security (hereinafter
referred to as “Company”). The Company owns the remaining 145 issued shares in the Company.
	 
	 	 	Purchaser desires to purchase from Sellers, and Sellers desire to sell and transfer the
Shares and Stock Options, as defined below, to Purchaser, subject to the terms and
conditions set forth hereunder.
	 
	 	 	In consideration of the foregoing premises and the mutual covenants contained herein, the
Parties (as defined below) mutually agree as follows:

	3	 	DEFINITIONS

	 	 	 
	3.1 “Accounts”

	 	shall mean the audited statutory financial statements of the Group
Companies enclosed hereto as Schedule 10.5 for the financial
periods ending on December 31, 2003 and December 31, 2004 prepared
by the Group Companies in accordance with the Accounting
Principles and certified by the external auditors of the Group
Companies.
	 
	 	 
	3.2 “Accounting
Principles”

	 	shall mean generally accepted local accounting principles, as the
case may be, complying with relevant accounting laws, as
consistently applied by the Group Companies and enclosed hereto as
Schedule 3.2.
	 
	 	 
	3.3 “Additional Purchase
Price”

	 	shall mean the additional purchase price defined in Section 5.2.
	 
	 	 
	3.4 “Affiliate”

	 	shall mean any legal entity which, within the meaning of the
Finnish Companies Act (734/1978, as amended), belongs to the same
group of companies as, respectively, Sellers, the Company or
Purchaser.
	 
	 	 
	3.5 “Agreement”

	 	shall mean this Share Purchase Agreement and the Schedules thereto.
	 
	 	 
	3.6 “Base Purchase Price”

	 	shall mean the basic purchase price defined in Section 5.1.
	 
	 	 
	3.7 “Capman
Representative”

	 	shall have the meaning set forth in Section 13.2
	 
	 	 
	3.8 “Cash Component of
the Base Purchase
Agreement”

	 	shall mean the portion of the Basic Purchase Price which shall be
paid in cash as set forth in Section 5.1.1(a).

8(37)

 

	 	 	 
	3.9 “Claim”

	 	shall mean any claim made by Purchaser or GISA against Sellers, or
by Sellers against Purchaser and GISA, respectively, in respect of
any breach of the Warranties.
	 
	 	 
	3.10 “Closing”

	 	shall occur when the Parties effectuate the deliveries
contemplated by Sections 8.3 and 8.4.
	 
	 	 
	3.11 “Closing Date”

	 	shall be the date that is the fifth business day (excluding
national holidays recognized in Finland and weekends) following
the satisfaction of the conditions set forth in Section 8.2.
	 
	 	 
	3.12 “Company”

	 	shall mean Setec Oy, a corporation organized and existing under
the laws of Finland (Y-code 0826277-7), with a fully paid share
capital of 6,906,185 euro, having its registered domicile at
Vantaa, Finland.
	 
	 	 
	3.13 “Confidential
Information”

	 	shall mean any and all information of any kind or nature
whatsoever, whether written or oral, including, without limitation
financial information, trade secrets, client lists and other
proprietary business information regarding the Company, Sellers,
Purchaser or GISA or any of the Affiliates, which information is
not generally available to the public or to persons unaffiliated
with the Company, Sellers, Purchaser or GISA or any of their
respective Affiliates, as the case may be.
	 
	 	 
	3.14 “Disclosure Letter”

	 	shall mean the letter (together with any documents attached
thereto) attached hereto as Schedule 9 issued to Purchaser and
GISA by Sellers on the Effective Date setting out the disclosures
to which the Warranties are subject.

	 
	 	 
	3.15 “Due Diligence
Review”

	 	shall mean the financial, technical, legal, environmental and tax
due diligence review regarding the affairs of the Group Companies conducted by Purchaser and its advisors prior to the Effective
Date as described below in Section 9.
	 
	 	 
	3.16 “Effective Date”

	 	shall be April 22, 2005, the date of execution and delivery of
this Agreement.

	 
	 	 
	3.17 “Equity Component of
Base Purchase Price”

	 	shall mean the portion of the Base Purchase Price which shall be paid by delivering the amount of GISA Stock as consideration to
the Sellers as set forth in Section 5.1.1(b).
	 
	 	 
	3.18 “Escrow Agent”

	 	shall mean Nordea Bank Finland Ltd.
	 
	 	 
	3.19 “Escrow Agreement”

	 	shall mean the Escrow Agreement attached hereto as Exhibit 5.2.3.
	 
	 	 
	3.20 “Gemplus Finance SA”

	 	is a Luxembourg company that is the direct subsidiary of GISA.
	 
	 	 
	3.21 “GISA”

	 	shall mean Gemplus International S.A., a corporation organized and
existing under the laws of Luxembourg, having its registered
domicile at 46A, Avenue JF Kennedy, L-1855 Luxembourg, Luxembourg
	 
	 	 
	3.22 “GISA Stock”

	 	shall mean shares of issued and outstanding common stock of
Gemplus International S.A.

9(37)

 

	 	 	 
	3.23 “GISA’s Knowledge”

	 	shall mean the actual knowledge of the persons listed in Schedule
3.23.
	 
	 	 
	3.24 “Government and
Corporate Business”

	 	shall the business segment of the Company marketing and selling
passports, ID cards, EID cards, travel or immigration visa
stickers, security printing products and associated services.
	 
	 	 
	3.25 “Group Companies”

	 	shall mean Setec Danmark A/S, AB Svenska Pass and the Company and
any corporation or other entity of which more than 50% of the
outstanding securities or other interests having rights to vote,
or otherwise exercise control, are held, directly or indirectly,
by the Company.
	 
	 	 
	3.26 “Intellectual
Property Rights”

	 	shall mean all trademarks, trade or business or domain names,
patents, design rights, trade secrets, know how, rights in
computer software, licenses, inventions, copyrights, including any
registration and applications of such rights, as listed in
Schedule 10.14.
	 
	 	 
	3.27 “Key Employment
Agreements”

	 	shall mean those agreements between the Group Companies and
certain employees listed in Schedule 10.10B.
	 
	 	 
	3.28 “Loss”

	 	shall mean any deficiency, cost, expense, loss or damage
(including reasonable attorneys’ fees and costs but excluding all
indirect, consequential losses or damages)
	 
	 	 
	3.29 “Material Agreements”

	 	shall mean the agreements of the Group Companies listed in
Schedule 10.9.
	 
	 	 
	3.30 “Material Sales
Agreements”

	 	shall mean the legally binding agreements which are listed in
Schedule 5.2.1 C
	 
	 	 
	3.31 “Order Backlog”

	 	shall mean the estimations of future revenue, based on information
made available at the time of estimation, to be recognized by the
Government & Corporate Business of the Group Companies in the
years 2006 and 2007 arising from a legally binding agreement
forming a basis for subsequent orders, or another arrangement
under which there have been at least two orders having been
fulfilled by the Group Companies for each class of applicable
product.
	 
	 	 
	3.32 “Ordinary Course of
Business”

	 	shall mean the day-to-day business of the Group Companies
consistent with past practices and in accordance with good and
prudent business practice.
	 
	 	 
	3.33 “Party ”

	 	shall mean Sellers, Company, Purchaser and/or GISA, as required by
the context, and “Parties” shall be construed accordingly.
	 
	 	 
	3.34 “Pension and Benefit
Arrangement”

	 	shall mean the pension and benefit arrangements of the Group
Companies as set forth in Schedule 10.10C.
	 
	 	 
	3.35 “Private Persons’
Representative”

	 	shall mean Mr. Pekka Eloholma.
	 
	 	 
	3.36 “Purchase Price”

	 	shall mean the purchase price for the Shares as calculated in
accordance with Section 5.
	 
	 	 
	3.37 “Purchaser”

	 	shall mean Gemplus Nordic Oy, under formation, a corporation to
be organized and existing under the laws of Finland with an
initial share capital of 8,000 euro (€8,000) and registered
domicile at Helsinki, Finland.

10(37)

 

	 	 	 
	3.38 “Seller’s Knowledge”

	 	shall mean the actual knowledge of the persons listed in Schedule
3.38.
	 
	 	 
	3.39 “Seller’s
Representative”

	 	shall have the meaning set forth in Section 13.2.
	 
	 	 
	3.40.6 “Shares”

	 	shall mean 40,720 issued and outstanding shares of the Company,
each such share with a nominal value of 169 euro.
	 
	 	 
	3.41 “Stock Options”

	 	shall mean 1,840 issued and outstanding personnel stock options
subscribed by the personnel of the Group Companies entitling each
holder of such stock option to subscribe for one common share of
the Company at the subscription price and on the terms set forth
in Schedule 3.41.
	 
	 	 
	3.42 “Taxes”

	 	shall mean all income taxes, value added taxes, transfer taxes and
any other taxes or social and governmental charges imposed by any
tax authority, including all adjustments, penalties, fines and
interest, which any of the Group Companies is required to pay,
withhold or collect.
	 
	 	 
	3.43 “Third Party Claim”

	 	shall mean any claim by a third party (including tax and other
authorities) against any of the Group Companies.
	 
	 	 
	3.44 “Transaction”

	 	shall have the meaning set forth in Section 4.1.
	 
	 	 
	3.45 “Warranties”

	 	shall mean the representations and warranties of Sellers as
defined in Section 10, on the one hand, and the representations
and warranties of Purchaser and GISA as defined in Section 11, on
the other hand.

Other capitalized terms used herein shall have the meaning given to them below.

	4	 	PURCHASE AND SALE

	 	4.1	 	Object of the Transaction
	 
	 	 	 	On the Closing Date and upon the terms and subject to the conditions set forth
herein, each of the Sellers shall sell and Purchaser shall purchase the Shares and
Stock Options as are set forth opposite the name of such Seller on Schedule 4.1
(hereinafter referred to as the “Transaction”).

	5	 	PURCHASE PRICE
	 
	 	 	The Purchase Price to be paid to the Sellers for the Shares and Stock Options is
composed of the Base Purchase Price and the Additional Purchase Price, if any (the
Base Purchase Price and the Additional Purchase Price together “Purchase Price”), as
set forth below in this Agreement.

	 	5.1	 	Base Purchase Price
	 
	 	 	 	Purchaser shall pay to each of the Sellers the Base Purchase Price, upon the
following terms and conditions:

11(37)

 

	 	5.1.1	 	Amount of the Base Purchase Price
	 
	 	 	 	The Base Purchase Price of the Shares and Stock Options is composed of the
Cash Component and the Equity Component, as follows:

	 	a)	 	the amount of the Cash Component of the Base
Purchase price is thirty million euro (€30,000,000); and
	 
	 	b)	 	the Equity Component of the Base Purchase Price
is the cash equivalent in euro of the market value of nineteen million
(19,000,000) shares of GISA Stock.

	 	5.1.2	 	Payment of the Cash Component of the Purchase Price
	 
	 	 	 	On the Closing Date, subject to satisfaction of the Closing conditions set
forth in Section 8.2, Purchaser shall cause to be paid to a single person or
entity designated by Sellers on or before the Closing the Cash Component of
the Base Purchase Price as set forth in Schedule 5.1.2A, which shall be paid
in immediately available funds by wire transfer to the bank account which the
Sellers have identified in Schedule 5.1.2B, and be in full satisfaction of
the Cash Component of the Base Purchase Price.
	 
	 	5.1.3	 	Delivery of Equity Component of the Base Purchase Price
	 
	 	 	 	On the Closing Date, subject to satisfaction of the Closing conditions set
forth in Section 8.2:

	 	a)	 	Sellers shall subscribe for and accept all of the
GISA Stock representing the Equity Component of the Base Purchase Price;
	 
	 	b)	 	Sellers instruct the Purchaser to transfer and
pay on their behalf the Equity Component in payment for the subscription
of the GISA Stock, and
	 
	 	c)	 	Purchaser shall cause to be delivered to the
Sellers their respective share of the Equity Component of the Base
Purchase Price as set forth in Schedule 5.1.2 A by causing GISA to
transfer the GISA Stock representing the Equity Component of the Base
Purchase Price to the joint book entry account which the Sellers will
identify to the Purchaser prior to Closing, and which shall be in full
satisfaction of the Equity Component of the Base Purchase Price.

	 	5.2	 	Additional Purchase Price
	 
	 	 	 	Purchaser shall pay to each of the Sellers the Additional Purchase Price, upon the
following terms and conditions:

	 	5.2.1	 	Amount of the Additional Purchase Price

	 	a)	 	The Parties agree that the amount of the
Additional Purchase Price may vary from zero euro (€0) to thirty
million euro (€30,000,000) depending on the amount of the Order
Backlog determined and set forth in Schedule 5.2.1 A. Pursuant to
Schedule 5.2.1 A the Parties agree that the amount of the Additional
Purchase Price shall be the maximum of thirty million euro
(€30,000,000) in case the amount of the Order Backlog is one hundred
million euro (€100,000,000) or more (“Full Backlog”). In no event
will the Additional Purchase Price exceed thirty million euro
(€30,000,000).

12(37)

 

	 	b)	 	The Parties agree that the amount of the Order
Backlog as of the Effective Date is set forth in Schedule 5.2.1 B and
exceeds the amount of the Full Backlog (“Effective Date Order Backlog”)
which, if it was the Order Backlog as of December 31, 2005, would result
in the amount of the Additional Purchase Price being thirty million euro
(€30,000,000), subject to Section 5.2.1(c). The Parties agree that
except as expressly agreed below in Section 5.2.1(c), the Effective Date
Order Backlog is a final agreement between the Parties upon the amount
of the Order Backlog. For the avoidance of doubt, the Parties
acknowledge that the inclusion of an item on the Effective Date Order
Backlog is not determinative of whether a subject agreement is valid or
will be valid on December 31, 2005.
	 
	 	c)	 	The Parties agree that on December 31, 2005, when
the final amount of the Order Backlog shall be determined, the only and
sole reason to deduct from the amount of the Effective Date Order
Backlog is that any of the agreements listed in Schedule 5.2.1 C
(“Material Sales Agreements”):

	 	i.	 	has by December 31, 2005 been
terminated in writing or a written notice to terminate the
respective Material Sales Agreement has been delivered to the Group
Companies by the respective contracting party (“Termination”) or
	 
	 	ii.	 	an equivalent event as Termination has
occurred regarding the Material Sales Agreement which can be
objectively expected to finally cause that all of the revenues
based on the Effective Date Backlog pursuant to that respective
Material Sales Agreement will not be generated to the Group
Companies in 2006 or 2007 (“Equivalent Event”). The Parties
acknowledge that a circumstance where the Material Sales Agreement
of the Group Companies is still valid but the respective
contracting party has agreed with a third party upon the same
subject matter could as an example cause that all the revenues of
the respective Material Sales Agreement would not be generated and
would establish the Equivalent Event as well as the case that the
respective Material Sales Agreement would not have been valid
originally.

	 	 	 	The Parties explicitly agree that in case the Termination or the
Equivalent Event is due to or caused by reasons attributable to the
Purchaser, GISA and / or their Affiliates, or the Transaction
contemplated by this Agreement, such Termination or Equivalent Event
will not cause deduction of the amount from the Effective Date Order
Backlog.
	 
	 	 	 	For the avoidance of doubt, the Parties agree that any other
circumstance, fact or effect relating to and/or affecting the Material
Sales Agreement, its content schedules, schedules of the revenues to be
paid on the basis of the Material Sales Agreement will not cause any
change to the Effective Date Order Backlog other than those described in
Section 5.2.1(c).
	 
	 	d)	 	In case the Termination or the Equivalent Event
shall occur, the Purchaser shall inform the Capman Representative in
writing promptly after the Group Company has been informed of such
consequence and explain its knowledge of the reasons for the Termination
or the Equivalent Event. The amount, by which the Effective Date Order
Backlog shall be reduced, shall be the amount by which the respective
Termination or Equivalent Event is objectively expected to decrease the
amount of the revenues of the respective Material Sales Agreement

13(37)

 

	 	 	 	during 2006 and 2007, if any. In case the Parties are not able to agree
upon the amount by which the Termination or Equivalent Event will reduce
the Effective Date Order Backlog, the amount shall be finally determined
in an expedited arbitration proceeding pursuant to Section 15.11 b)
below.
	 
	 	 	 	The amount of the Order Backlog, which is not based on the Effective Date
Order Backlog (“December 2005 Backlog”) shall be determined as follows:

	 	-	 	i. The December 2005 Backlog shall
include the Order Backlog on December 31, 2005 pursuant to same
principles, methodologies, practices and techniques as the
Effective Date Order Backlog has been defined and established and
also fulfilling the requirements set forth in Schedule 5.2.1 A.
For the avoidance of doubt, it is acknowledged and agreed that:
(a) the Effective Date Order Backlog shall not be included in the
December 2005 Backlog; and (b) the entire Order Backlog of the
Group Companies’ Government &Corporate Business shall be included
whether or not the order or assessment of revenue originated from
acts or measures of the Purchaser and / or its Affiliates after
the Effective Date; and
	 
	 	-	 	ii. The December 2005 Backlog
shall be based on the Ordinary Course of Business of the Group
Companies, and the Purchaser, GISA and their Affiliates agree
not to take any action, directly or indirectly, to cause that (a)
the amount of the December 2005 Backlog would be lower than it
would be pursuant to Ordinary Course of Business; or (b) the
orders and assessment of revenues to be included in the December
2005 Backlog would be artificially delayed or postponed with the
purpose that those would not be included in the December 2005
Backlog; and
	 
	 	-	 	iii. Within 10 days prior to the
end of the months of June, September, and November in 2005,
Purchaser shall deliver to the Capman Representative a written
notification (“Order Backlog Note”) in which the amount of the
orders and assessment of revenues as of the respective date is
identified and which also include the following information: For
each Order Backlog Note: if the objective estimation is that the
amount of the Order Backlog exceeds one hundred twenty million
euro (€120,000,000), then the Order Backlog Note need only
state such fact, and identify any Material Sales Agreements that
Purchaser believes has been subject to a Termination or
Equivalent Event since the last report, and provide a description
the basis for Purchaser’s conclusion that such an event has
occurred; or if the Purchaser believes that the amount of the
Order Backlog is less than one hundred twenty million euro
(€120,000,000), then the Order Backlog Note shall include the
Purchaser’s estimation of the amount of the Order Backlog as of
the applicable date and provide the Capman Entities with access
to such information generated by the Company in the Ordinary
Course of Business and access to executive management of the
Company, as is necessary in order to verify the information
contained in the Order Backlog Note.

	 	e)	 	In order to determine the December 2005
Backlog, the Purchaser shall on December 31, 2005, deliver to the
Sellers’ Representative the Order Back

14(37)

 

	 	 	 	log Note in which the actual Order Backlog as of December 31, 2005 is
identified (“Final Order Backlog Note”); and
	 
	 	f)	 	The Parties agree that after December 31,
2005, and until the Parties have agreed upon the amount of the
Additional Purchase Price, one of the Sellers collectively appointed
by the other Sellers and the auditor and legal advisor of such
Seller shall have full access to such tenders, offers, agreements
and books and records of the Group Companies as are necessary in
order to verify that the actual Order Backlog confirms with the
information given by Purchaser in the Order Backlog Note(s) and
Final Order Backlog Note. The Sellers’ Representatives shall give
their comments in writing regarding the amount and content of the
Final Order Backlog Note by January 15, 2006; and
	 
	 	g)	 	In case the Parties are not able to agree
upon the amount of the December 2005 Backlog, it shall be finally
determined in an expedited arbitration proceeding pursuant to
Section 15.11 b) below.

	 	5.2.2	 	Payment of the Additional Purchase Price

	 	a)	 	The Purchaser shall pay the amount of the
Additional Purchase Price calculated in accordance with the above in
full to a single person or entity designated by the Sellers in
writing on the Closing on December 31, 2005, or when the parties
have agreed on the applicable amount. For the avoidance of doubt,
the Parties agree that; (i) in case the Purchaser has not delivered
to the Sellers written notice as referred to above in Section 5.2.1
d) of the occurrence of the Termination or the Equivalent Event by
December 31, 2005, the Additional Purchase Price shall be based on
the Effective Date Order Backlog and the Purchaser shall pay thirty
million euro (€30,000,000) to Sellers; or (ii) in case the
Parties are not able to agree the amount by which the Effective Date
Backlog shall be reduced in accordance with Section 5.2.1(c) and /
or the sum of the Additional Purchase Price payable on the basis of
the December 2005 Backlog, the Purchaser shall, in any case, pay on
December 31, 2005, any undisputed amount of the Additional Purchase
Price to the Sellers; and (iii) the Purchaser is not entitled to
withhold any sum actually payable as the Additional Purchase Price
to the Sellers based on the fulfillment of other obligations of the
Sellers pursuant to this Agreement, or based on a claim made by the
Purchaser against the Sellers pursuant to Section 12.1
(Indemnification by Sellers) of this Agreement.
	 
	 	b)	 	The Purchaser shall pay on December 31,
2005 to the Sellers any Amount of the Additional Purchase Price
which is based on the Final Order Backlog Note delivered by the
Purchaser to the Sellers and required to be paid pursuant to this
Agreement.
	 
	 	c)	 	Any additional amount payable as the
Additional Purchase Price and which is not paid on December 31,
2005, if any, shall be paid by the Purchaser to the Sellers
immediately after the Parties have agreed upon such amount or in
case of a dispute after the arbitrators have given their decision.
	 
	 	d)	 	All payments described hereunder as due
on December 31, 2005, shall be deemed made on that date if made by
January 5, 2006. Should any amounts of the Additional Purchase Price
be paid after January 5, 2006, the Pur

15(37)

 

	 	 	 	chaser shall pay a penalty interest according to the rate calculated
pursuant to the Finnish Law on Penalty Interest from January 5, 2006
until the actual payment date of such amount.

	 	5.2.3	 	Escrow Agreement
	 
	 	 	 	In order to facilitate payment of the Additional Purchase Price, GISA,
Purchaser, Sellers and Nordea Bank Finland Ltd. (“Escrow Agent”), shall, at
the Closing, enter into the escrow agreement attached as Exhibit 5.2.3
(“Escrow Agreement”). According to the Escrow Agreement, on the Closing Date
the Purchaser shall deposit the amount of thirty million euro
(€30,000,000) (“Escrow Amount”) to an account with the Escrow Agent for
the benefit of the Sellers for the payment of the maximum amount of the
Additional Purchase Price. The Escrow Agreement shall stipulate, among other
things, that; (i) in case the Purchaser has not by January 5, 2006 instructed
in writing the Escrow Agent not to release the Escrow Amount to the Sellers,
the Escrow Agent shall release and pay the Escrow Amount to the Sellers, and;
(ii) in case the Purchaser has instructed the Escrow Agent not to release the
Escrow Amount to the Sellers, the Escrow Agent shall release and pay to the
Sellers the undisputable amount of the Escrow Amount identified by the
Purchaser in the respective instruction; and (iii) the Escrow Amount shall
not be used, withheld or attached by the Escrow Agent or the Purchaser or
GISA to fulfill any of the other obligations of the Sellers or other claims
or demands made by the Purchaser or GISA against the Sellers pursuant to this
Agreement.

	6	 	TRANSFER OF TITLE

	 	6.1	 	Transfer of Title to Shares and Stock Options
	 
	 	 	 	On the Closing Date, subject to satisfaction of the Closing conditions set forth in
Section 8.2 and to receipt by the Sellers and the Sellers’ Representative of the
deliveries contemplated by Section 8.3 including but not limited to the receipt of the
Equity Component of the Base Purchase Price to the joint book entry account of the
Sellers as referred to in Section 5.1.3 (c), as well as receipt of the Escrow
Agreement executed by the Escrow Agent, each of the Sellers shall transfer to
Purchaser the full and unrestricted title (free and clear of any encumbrance) to the
Shares and Stock Options.
	 
	 	6.2	 	Transfer of Title to the GISA Stock
	 
	 	 	 	On the Closing Date, subject to satisfaction of the Closing conditions set forth in
Section 8.2 and to receipt by Purchaser and GISA of the deliveries contemplated by
Section 8.4 as well as receipt of the Escrow Agreement executed by the Escrow Agent,
GISA shall transfer to each of the Sellers the full and unrestricted title (free and
clear of any encumbrance, other than pursuant to applicable securities laws or market
regulations) to the GISA Stock representing the Equity Component of the Base Purchase
Price.

	7	 	PRE-CLOSING COVENANTS

	 	 	The Parties hereby covenant and agree with each other as follows:

	 	7.1	 	Consents and Approvals
	 
	 	 	 	Promptly following the execution and delivery of this Agreement: (i) GISA, Purchaser
and the Company shall file with the German Federal Cartel Office (Bundeskartellamt)
an application (the ”German Competition Filing”), attached hereto as Schedule 7.1A,
for approval

16(37)

 

	 	 	 	of the Transaction; (ii) GISA and Purchaser shall file with the Norwegian Competition
Authority (Konkurransetilsynet) a standardized notification (alminnelig melding) (the
”Norwegian Competition Filing”), attached hereto as Schedule 7.1B, for approval of
the Transaction; (iii) the Parties shall cooperate in the prompt filing of additional
forms, notifications, reports and information, if any, required or reasonably deemed
advisable pursuant to applicable statutes, rules, regulations or orders of any
governmental or supragovernmental authority to facilitate approval of the Transaction
contemplated by this Agreement with such authorities; and (iv) use their respective
good faith efforts to cause the approval of the German Competition Filing and the
Norwegian Competition Filing, to cause any applicable waiting periods thereunder to
expire and any objections to the Transaction to be withdrawn, in each instance before
the Closing.
	 
	 	7.2	 	Operation of the Group Companies
	 
	 	 	 	Until and up through the Closing, the Group Companies shall (i) preserve their business
organizations and their present relationships with customers, suppliers, consultants,
employees and any other persons having business relations with them and (ii) maintain all of
their respective Assets in customary repair and condition.
	 
	 	 	 	Except as contemplated by this Agreement or as reasonably required to carry out their
obligations hereunder, the Group Companies shall, through the Closing Date, conduct their
respective businesses only in the Ordinary Course of Business.
	 
	 	7.3	 	No Inconsistent Negotiations
	 
	 	 	 	Until and up through the Closing, none of the Sellers shall, nor shall any of them permit or
authorize any director, officer, employee or other agent of the Group Companies, to (i) take
any action to solicit, initiate or encourage the submission of an offer to purchase the
Company or (ii) participate in any negotiations regarding, or furnish to any other person,
entity or group any non-public information with respect to, or otherwise cooperate in any
way with, or assist or participate in, facilitate, or encourage, any effort or attempt by
any other person, entity or group to do or seek any of the foregoing.

	8	 	CLOSING

	 	8.1	 	Closing
	 
	 	 	 	The Closing shall take place on the Closing Date starting at 10.00 at the offices of
Castrén & Snellman, Attorneys Ltd., Erottajankatu 5 A, 00130 Helsinki.
	 
	 	 	 	The Closing Date shall be the date that is the fifth business day following the
satisfaction of the condition set forth in Section 8.2, or such other date as is
agreed among the Parties.
	 
	 	8.2	 	Conditions Precedent to Obligation of the Parties to Proceed with Closing
	 
	 	 	 	The obligation of the Sellers, the Purchaser and GISA to proceed to Closing hereunder
shall be subject to the conditions precedent that the Parties have received (unless
waived by the relevant authority, person or entity):

	 	a)	 	written approval, from the German Federal Cartel Office, of the
German Competition Filing to approve the Transaction materially as contemplated
by this Agreement;

17(37)

 

	 	b)	 	expiration of the applicable waiting period (constituting
permission to proceed to Closing) or, if a complete notification (fullstendig
melding) is required, written approval by the Norwegian Competition Authority,
of the Norwegian Competition Filing to approve the Transaction materially as
contemplated by this Agreement;
	 
	 	c)	 	written confirmation from each of the Parties addressed to the
other Party(ies) that the Warranties in this Agreement or in any document
furnished by a Party pursuant to this Agreement remain true, accurate, and
correct as of the Closing Date;
	 
	 	d)	 	there are no legal or administrative proceedings involving an
assertion that the Transaction or consummation thereof is unlawful; and
	 
	 	e)	 	the Escrow Agreement, executed by a duly authorized
representative of the Escrow Agent.

	 	8.3	 	Deliveries by Purchaser and GISA
	 
	 	 	 	At the Closing, Purchaser and GISA shall pay or deliver, or cause to be paid, delivered or
executed and delivered (as the case may be) the following:

	 	a)	 	the Cash Component of the Base Purchase Price and the Equity Component of the
Base Purchase Price, to the Sellers;
	 
	 	b)	 	the Escrow Agreement contemplated by Section 5.2.3, executed by a duly
authorized representative of Purchaser and GISA, to the Sellers’ Representative;
	 
	 	c)	 	the Escrow Amount to the Escrow Agent; and
	 
	 	d)	 	such other documents as the Sellers’ Representative may reasonably request to
effectuate the Transaction contemplated by this Agreement.

	 	8.4	 	Deliveries by Sellers
	 
	 	 	 	At the Closing, Sellers shall deliver or execute and deliver (as the case may be)
the following:

	 	a)	 	the Shares and Stock Options, to Purchaser;
	 
	 	b)	 	The Escrow Agreement contemplated by Section 5.2.3, executed by the Sellers’
Representative, to Purchaser and to GISA; and
	 
	 	c)	 	such other documents as Purchaser or GISA may reasonably request to effectuate
the Transaction contemplated by this Agreement.

	9	 	DUE DILIGENCE
	 
	 	 	Prior to the Effective Date, Purchaser and GISA have conducted financial, technical, legal,
environmental and tax due diligence review regarding the affairs of the Group Companies. In
addition, Purchaser and GISA’s professional legal, financial, environmental and technical
advisers have received certain information and documentation on the Company requested by
Purchaser or GISA’s professional advisers in connection with the Due Diligence Review. The
materials made available in the Due Diligence Review are identified in Schedule 9 A (the
“Disclosure Materials”).
	 
	 	 	The liability of Sellers under, and the rights and remedies of Purchaser and GISA in respect
of, the Warranties shall not in general be affected by Purchaser and GISA having conducted
the Due Dili

18(37)

 

	 	 	gence Review, but only the facts, matters, occurrences or events (i) specifically disclosed
by Sellers in the Disclosure Letter attached hereto as Schedule 9 B or (ii) presented to
Purchaser and GISA in the Due Diligence Review in a manner and substance that would have
allowed a diligent purchaser to understand that such facts, matters, occurrences or events
constitute exceptions from the Warranties and make a fair assessment of possible
consequences thereof on the Group Companies shall constitute exceptions to the Warranties
for which Sellers are not liable.
	 
	10	 	REPRESENTATIONS AND WARRANTIES OF SELLERS
	 
	 	 	Sellers acknowledge that Purchaser and GISA are entering into this Agreement in reliance on
the Warranties given herein by Sellers to Purchaser and GISA being true, accurate and
correct in all material respects as of the Effective Date and the Closing Date, and,
consequently, Sellers hereby represent and warrant to Purchaser and GISA the accuracy and
validity of the Warranties, as follows, provided however, that the Warranties are subject to
the qualifications and limitations in Section 12 below.

	 	10.1	 	Power and Authorization
	 
	 	 	 	Each Seller represents and warrants that the Seller has full power and authority; (i) to
own, hold and sell to Purchaser the Shares and/or Stock Options, and; (ii) to execute and
deliver this Agreement and consummate the Transaction. This Agreement is a valid and binding
obligation of each of the Sellers, enforceable against them in accordance with its terms,
and to the Sellers’ Knowledge its execution and delivery do not; (iii) conflict with, or
violate any provision of, any law having applicability to any Group Company; (iv) conflict
with, or result in any breach of, or constitute a default under, any agreement to which any
Group Company is a party; or (v) result in or require the creation or imposition of or
result in the acceleration of any indebtedness, or of any encumbrance upon, or with respect
to, any Group Company.
	 
	 	10.2	 	Shares and Shareholding
	 
	 	 	 	The authorized and issued share capital of the Company is 6,906,185 euro, 169 euro par value
per share divided into 40,865 shares. There exist no stock options, rights of conversion or
other issue of shares or securities that could increase or reduce the number of the shares,
except the Stock Options. There is no outstanding obligation for the Company to redeem or
otherwise acquire any of its shares.
	 
	 	 	 	The issued and outstanding shares of the Company are fully paid-up and all the Shares are
sold and transferred to Purchaser free and clear of any mortgages, charges, pledges, liens,
encumbrances, restrictions (including, but not limited, to restrictions on the ability to
vote the Shares), claims or other security interests of any kind whatsoever. The Company has
not issued share certificates.
	 
	 	 	 	Each Seller represents and warrants that the Seller has, and will have on the Closing Date,
good and marketable title to his Shares and to all of the rights afforded thereby, free and
clear of all options, liens, pledges, guarantees and any other Encumbrances.
	 
	 	10.3	 	Organization
	 
	 	 	 	The Group Companies are duly organized and validly existing corporations under the laws of
their respective jurisdiction of incorporation, have the legal capacity and full authority
to own their property and assets and carry on their business as currently conducted and are
not, by virtue of this Agreement or consummation of the Transaction or otherwise in breach
of their Articles of Association. The Disclosure Letter lists each of the equity and voting
interests held by Company in the Group Companies and in any other person or entity outside
of the Group Companies. Except as set forth in the Disclosure Letter, Company has no equity
investment or other interest in, nor has Company made advances or loans to, any person or
entity other than the Group Companies.

19(37)

 

	 	10.4	 	Corporate Documents
	 
	 	 	 	The Articles of Association and Trade Register information of the Group Companies attached
hereto as Schedule 10.4A are currently in force. All necessary meetings and other corporate
actions of or by the Group Companies, their shareholders and directors have been legally and
properly held or taken, and all resolutions passed by the meetings of shareholders and
directors have been duly recorded in the minutes of the Group Companies.
	 
	 	 	 	The share and shareholder registers of the Group Companies attached hereto as Schedule 10.4B
are accurate, up-to-date, true and complete and all transfer and other taxes levied on or in
relation to the transfers of Shares of the Group Companies have been duly paid.
	 
	 	10.5	 	Accounts; Dividends; No Indebtedness
	 
	 	 	 	The Accounts attached hereto as Schedule 10.5.A have been prepared in accordance with the
Accounting Principles, and are complete and correct in all material respects and truly and
correctly reflect the financial condition, the assets and liabilities and results of the
operations of the Group Companies as of their respective dates and for the periods given.
	 
	 	 	 	As per the Effective Date, there are no unpaid dividends or other payments to shareholders
of the Company, and the dividend authorized by the shareholders of the Company on April 20,
2005 for the amount of 1,363,712.80 euro shall be fully paid to the shareholders of the
Company prior to the Closing Date.
	 
	 	 	 	Schedule 10.5.B lists any mortgages, indentures, notes, guarantees and other agreements for
or relating to borrowed money (including, without limitation and capital leases) each
exceeding the level of fifty thousand euro (€50,000) to which any of the Group Company is
a party or which have been assumed by any of the Group Company or to which any Assets of any
of the Group Company are subject. To the Sellers’ Knowledge the Group Companies have
performed all the obligations required to be performed by any of them to date and are not in
default in any respect under any of the foregoing.
	 
	 	10.6	 	Bankruptcy, Execution or Reorganization
	 
	 	 	 	To the Sellers’ Knowledge, there is no threat of action against any of the Group Companies
to commence bankruptcy, execution or reorganization procedures.
	 
	 	10.7	 	Title to Properties; Encumbrances
	 
	 	 	 	The Group Companies are the owners of each of the properties and assets, tangible and
intangible, included in the Accounts as being owned by the Group Companies, as well as any
properties and assets, tangible and intangible, except to changes due to Ordinary Course of
Business, and have title to all of such properties and assets, tangible and intangible, free
and clear of any lien or other encumbrance.
	 
	 	10.8	 	Assets; Working Order and Condition
	 
	 	 	 	The Group Companies have valid title to all assets respectively owned by them, including,
without limitation, all assets included in the Accounts. To the Sellers’ Knowledge, all
material properties and assets of the Group Companies, including, inter alia, machinery and
equipment owned or used by the Group Companies, are in adequate repair, condition and
working order, taking into account their age and reasonable wear and tear, and have been
maintained normally pursuant to industry practices.

20(37)

 

	 	10.9	 	Material Agreements

	 	a)	 	Schedule 10.9 lists all agreements; (i) with a purchase or lease commitment in
any one year of more than €400,000; and (ii) with a purchase or lease commitment of
more than €1,000,000 over the term of the agreement (the agreements referenced in
(i) and (ii), the “Material Agreements”) currently in effect. Each such Agreement is
in full force and effect and constitutes a legal, valid and binding obligation of, and
is legally enforceable against, the respective parties thereto. To the Sellers’
Knowledge there have been no threatened cancellations thereof and are no outstanding
disputes thereunder. To the Sellers’ Knowledge, the Group Companies are not in
violation of any Material Agreement.
	 
	 	b)	 	To Sellers Knowledge, none of the Group Companies is a party to any oral or
written (i) joint venture agreement, commercial agency agreement or other agreement
involving the sharing of profits, or (ii) other agreement which by its terms does not
terminate or is not terminable by a Group Company within one year or upon one year’s
(or less) notice. None of the Group Companies are a party to an agreement that
reasonably could be interpreted to impose any restriction on any business operations of
any of the Group Companies.
	 
	 	c)	 	No customer of the Group Companies or other person has made a claim based upon
a breach of warranty concerning any products or services which has not been settled,
and there are no facts within Sellers’ Knowledge that may give rise to such a claim,
arising out of a defect in a product or a delay in delivery of a product that would
result in a Loss in excess of the provisions made in the Accounts for warranty claims
for the period ending December 31, 2004.

	 	10.10	 	Labor Relations; Employment Agreements; Pension and Benefits
	 
	 	 	 	The Group Companies have complied and are in compliance with all laws relating to employment
and the workplace.
	 
	 	 	 	Except as disclosed in the Disclosure Letter, all the employment agreements of the Group
Companies are consistent with customary local practices for comparable employment
circumstances and do not provide for exceptional compensation or benefits to the employees
or exceptional liabilities to the Group Companies.
	 
	 	 	 	The Key Employment Agreements listed in Schedule 10.10A are in full force and effect and, To
the Sellers’ Knowledge, none of the Key Employees has given notice to terminate his/her Key
Employment Agreement.
	 
	 	 	 	The consummation of the Transaction will not cause the Purchaser or any of the Group
Companies to incur or suffer any liability relating to, or obligation to pay, severance,
termination or other payments to any person or entity.
	 
	 	 	 	Beyond the Pension and Benefit Arrangements listed in Schedule 10.10B, and except compulsory
pension and benefit arrangements under applicable laws and regulations, none of the Group
Companies (i) maintains or ever has maintained any other pension, benefit or other similar
arrangement or program for its directors, officers or other employees or (ii) is or ever has
been a party to any such arrangements or programs.
	 
	 	 	 	To the extent required by applicable law and the Accounting Principles, provisions have been
made in the Accounts for the full amount of all present and future liabilities in respect of
employment and pension undertakings under the Pension and Benefit Arrangements to be paid to
current or former directors, officers or other employees.

21(37)

 

	 	10.11	 	Land, Buildings and other Premises
	 
	 	 	 	All land, buildings and other premises owned, leased, used or occupied by the Group
Companies being material to the Group Companies and / or their businesses, as well as any
lease, rent and other agreements related to such premises, are specified in Schedule 10.11
attached hereto. Each of the Group Companies is the sole owner of valid title to the land,
buildings and other premises owned by each of them, including, without limitation, all
buildings, structures, fixtures and improvements thereon and all equipment, machinery and
personal property therein, in each case free and clear of any encumbrance. All buildings,
structures, fixtures and other improvements on the land are in normal repair, free of
defects subject however to ordinary wear and tear, normally fitting for the uses to which
they are currently devoted, and conform to applicable laws
	 
	 	10.12	 	Environmental, Health and Safety Matters
	 
	 	 	 	To the Sellers’ Knowledge, the Group Companies have been and continue to be in full
compliance with all applicable environmental, health and safety laws and regulations. To the
Sellers’ Knowledge, none of the Group Companies has any liability under any applicable
environmental, health or safety law. There are no pending or, to the Sellers’ Knowledge,
threatened claims, legal or administrative proceedings or enforcement actions against, or
investigations of, the Group Companies relating to any environmental, health or safety law
or regulation.
	 
	 	10.13	 	Insurance
	 
	 	 	 	The Group Companies have normal and adequate insurance policies of title, asset, fire,
hazard, casualty, liability, life, workers’ compensation and other forms of insurance owned
or held by the Group Companies. The insurance policies currently in effect in respect of the
Group Companies will remain in full force and effect until the Closing Date and nothing has
been done or omitted to be done which could make any of them void or unenforceable.
	 
	 	10.14	 	Intellectual Property Rights
	 
	 	 	 	The Group Companies own the entire right, title and interest in and to the Intellectual
Property Rights listed in Schedule 10.14 attached hereto. To the Sellers’ Knowledge, there
are no pending proceedings or litigation or other adverse claims made in writing with
respect to the Intellectual Property Rights. The rights owned or possessed by Group
Companies have been sufficient to the conduct of the present business of the Group
Companies.
	 
	 	10.15	 	Litigation and other disputes
	 
	 	 	 	There are no suits, or actions, or other legal, administrative, arbitration or alternative
dispute resolution proceedings or governmental investigations pending or, to the Sellers’
Knowledge, threatened, against any of the Group Companies, or their respective business or
assets nor are there any outstanding or threatened orders, judgments, injunctions, awards or
decrees of any governmental body, court or arbitration tribunal against, or brought by, any
of the Group Companies or their respective businesses or assets.
	 
	 	10.16	 	Taxation
	 
	 	 	 	The Group Companies have timely and accurately filed with the appropriate tax authorities
all required tax returns and reports and paid, when due, all Taxes required to be paid. No
Taxes have been levied on any of the Group Companies with respect to events taking place or
having taken place on or prior to December 31, 2004 and until the Closing Date with respect
to taxes other than those arising out of the Ordinary Course of Business.

22(37)

 

	 	 	 	There is no dispute with any tax authority or investigation pending by any tax authority, in
relation to the Group Companies and, to the Sellers’ Knowledge, no circumstances exist that
may give rise to any such dispute or investigation. Company has furnished to Purchaser true
and complete copies of the Group Companies’ tax returns, and any written communications
relating to any such tax returns, with respect to which the applicable statute of
limitations has not expired.
	 
	 	10.17	 	Ordinary Course of Business; Absence of Material Adverse Change
	 
	 	 	 	Since December 31, 2004 there has not been any; (a) material adverse deviation from the
Ordinary Course of Business; (b) material adverse change to the businesses of the Group
Companies; or (c) payment of dividends or other distributions to any shareholders of the
Company, except as set forth in Section 10.5.
	 
	 	10.18	 	Compliance with law; Absence of Violations
	 
	 	 	 	The Group Companies have carried on their business and operations in all material respects
in accordance with the applicable laws and regulations.
	 
	 	 	 	None of the Group Companies is in violation of or default under, nor has it breached, any
term or provision of its articles of association. To Sellers Knowledge, none of the Group
Companies nor any of their officers, directors, or employees have paid, given or received or
have offered or promised to pay, give or receive any bribe or other unlawful payment of
money or other thing of value, or any other unlawful inducement, to or from any person,
business association or governmental official or entity in connection with or in furtherance
of the business of any of the Group Companies.
	 
	 	10.19	 	Qualifications of Representations and Warranties
	 
	 	 	 	The Parties expressly agree and understand that no Claim may be asserted that is based on a
fact, matter or circumstance which has been disclosed to Purchaser in the Disclosure Letter
and Disclosure Materials in the manner set forth in Section 9.
	 
	 	10.20	 	No Implied Representations or Warranties
	 
	 	 	 	Sellers make no representation or warranty whatsoever, express or implied, except for those
expressly stated in this Agreement. In particular, Sellers make no representation or
warranty with respect to any forecast or projections relating to the Group Companies or
their business.
	 
	 	 	 	It is specifically agreed that subparagraphs 1 and 3 of Section 19 of the Finnish Sale of
Goods Act (355/1987) are not applicable to the Transaction.
	 
	 	10.21	 	Transactions with Related Parties
	 
	 	 	 	Neither any present or former officer, director of stockholder of any Group Company, nor any
Affiliate of such officer, director or stockholder, is currently a party to any transaction
with any Group Company, including, without limitation, any agreement providing for the
employment of, furnishing of services by, rental of assets from or to, or otherwise
requiring payments to, any such officer, director, stockholder or Affiliate.
	 
	 	10.22	 	No Side Agreements with Company Management
	 
	 	 	 	Except as set forth in the Disclosure Letter, there are no agreements among any of the
Sellers and any member(s) of management of the Group Companies with respect to the
management or the operation of the Group Companies.

23(37)

 

	 	10.23	 	Restrictions and Consents
	 
	 	 	 	To the Sellers’ Knowledge, there are no agreements, laws or other restrictions of any kind
to which any of the Group Companies is a party or subject that would prevent or restrict the
execution, delivery or performance of this Agreement or result in any penalty, forfeiture,
agreement termination or restriction on business operations of Purchaser, GISA or any Group
Company as a result of the execution, delivery or performance of this Agreement.
	 
	 	10.24	 	Compliance with Law
	 
	 	 	 	To the Sellers’ Knowledge, neither execution nor delivery of this Agreement, the
consummation of the Transaction, nor the fulfillment of the terms hereof will result in a
breach of any judgment, decree or order of any court or government body, or any applicable
law.
	 
	 	10.25	 	No Authority Approvals
	 
	 	 	 	To the Sellers’ Knowledge other than with respect to the German Competition Filing and the
Norwegian Competition Filing, there are no necessary authorisations, approvals, clearances
and consents required from the relevant national or supranational authorities for the lawful
and valid completion of the Transaction.
	 
	 	10.26	 	Setec Danmark A/S
	 
	 	 	 	Schedule 10.26 is a true and correct copy of the letter dated April 1, 2005 and signed by
Poul Kjaerboll.
	 
	 	10.27	 	No Brokers
	 
	 	 	 	The Sellers have not used the services of any broker, finder, financial advisor or other
person, firm or corporation who would be entitled to receive any brokerage or finder’s or
financial advisory fee from Purchaser or the Company in connection with the Transaction
contemplated by this Agreement.

	11	 	REPRESENTATIONS AND WARRANTIES OF PURCHASER AND GISA
	 
	 	 	Purchaser and GISA acknowledge that Sellers are entering into this Agreement in reliance on
the Warranties given herein by Purchaser and GISA to Sellers as being true, accurate and
correct in all material respects as of the Effective Date and the Closing Date, and,
consequently, Purchaser and GISA hereby represent and warrant to Sellers the accuracy and
validity of the Warranties, as follows, provided however, that the Warranties are subject to
the qualifications and limitations in Section 12 below.

	 	11.1	 	Capacity and Organization
	 
	 	 	 	Purchaser and GISA are; (i) duly organized and validly existing under the laws of their
respective jurisdictions of incorporation; (ii) have the legal capacity and corporate
authority to own their property and carry on their business as currently conducted; and
(iii) are neither prohibited nor restrained by their respective articles of association from
either entering into this Agreement or from consummating the Transaction.
	 
	 	11.2	 	Validity of this Agreement
	 
	 	 	 	This Agreement has been duly authorized and approved by all the required corporate actions
of Purchaser and GISA. This Agreement is a valid and binding obligation of Purchaser and
GISA enforceable against each of them in accordance with its terms.

24(37)

 

	 	11.3	 	Financing
	 
	 	 	 	On the Closing Date, the Purchaser shall have sufficient funds available for the payment of
the Purchase Price and to satisfy its other obligations hereunder.
	 
	 	11.4	 	GISA Stock
	 
	 	 	 	All acts, decisions, and measures to issue and deliver the GISA Stock as the payment of the
Equity Component of the Base Purchase Price to the Sellers have been properly and validly
executed and made and are in full force and effect, and there are no matters or
circumstances depending on the Purchaser, GISA, their respective Boards of Directors or
shareholders which could impede the contemplated delivery of the GISA Stock to the Sellers.
	 
	 	11.5	 	Compliance with Law
	 
	 	 	 	To GISA’s Knowledge, neither execution nor delivery of this Agreement, the consummation of
the Transaction, nor the fulfillment of the terms hereof will result in a breach of any
judgment, decree or order of any court or government body, or any applicable law.
	 
	 	11.6	 	No Authority Approvals
	 
	 	 	 	To GISA’s Knowledge, other than with respect to the German Competition Filing and the
Norwegian Competition Filing, there are no necessary authorisations, approvals, clearances
and consents required from the relevant national or supranational authorities for the lawful
and valid completion of the Transaction.
	 
	 	11.7	 	No Brokers
	 
	 	 	 	Purchaser has not used the services of any broker, finder, financial advisor or other
person, firm or corporation who would be entitled to receive any brokerage or finder’s or
financial advisory fee from Sellers or the Company in connection with the Transaction
contemplated by this Agreement.
	 
	 	11.8	 	Proper Disclosure
	 
	 	 	 	To GISA’s Knowledge, since October 31, 2004 there is no material financial information that
GISA is required to publicly disclose under applicable securities laws and regulations and
which GISA has not publicly disclosed.

	12	 	INDEMNITY

	 	12.1	 	Indemnification by Sellers
	 
	 	 	 	In the event of any breach of the Warranties or any other term of this Agreement by Sellers,
where such breach is not cured within sixty (60) business days from the date of the written
notice sent by the Purchaser or GISA, Sellers shall indemnify and hold harmless Purchaser
and GISA for any Loss arising out of such breach, subject to the provisions of this Section
12. The amount of indemnity to which Purchaser is entitled shall, subject to the limitations
set out in this Section 12.3, be the full amount of the Loss suffered by Purchaser as a
result of any breach by Sellers of the Warranties or any other covenants or undertakings
made or to be performed by Sellers under this Agreement.
	 
	 	 	 	Each Seller shall be independently and severally but not jointly liable for any liability
arising out of or in connection with this Agreement. Sellers are liable to indemnify the
Purchaser in the same proportion as they are selling Shares and / or Stock Options to
Purchaser.

25(37)

 

	 	 	 	The Purchaser may make Claims with respect to all other Warranties set forth in Section 10
only by September 30, 2006, except for the Warranties relating to Taxation (Section 10.16)
and Environmental, Health and Safety Matters (Section 10.12) regarding which the Purchaser
may make Claims within three (3) years from the Closing Date, and except for the Warranties
relating to Power and Authorization (Section 10.1 (i) and (ii)), Shares and Shareholding
(Section 10.2) regarding which the Purchaser may make Claims at any time during the statute
of limitations period applicable to the subject matter applicable of such Warranties.
	 
	 	12.2	 	Indemnification by Purchaser and GISA
	 
	 	 	 	In the event of any breach of the Warranties or any other term of this Agreement by
Purchaser, where such breach is not cured within 30 (thirty) business days, Purchaser and
GISA shall indemnify and hold harmless Sellers for any Loss arising out of such breach,
subject to the provisions of this Section 12. The amount of indemnity to which Sellers are
entitled shall, subject to the limitations set forth in Section 12.3, be the full amount of
the Loss suffered by Sellers as a result of any breach by Purchaser or GISA of the
Warranties or any other covenants or undertakings made or to be performed by Purchaser or
GISA under this Agreement.
	 
	 	 	 	Other than with respect to the Warranty relating to Capacity and Organization (Section 11.1)
and GISA Stock (Section 11.4), with respect to which the Sellers may make a Claim at any
time during the statute of limitations period applicable to the subject matter of such
guarantee, the Sellers may make Claims with respect to all Warranties set forth in Section
11 only by September 30, 2006.
	 
	 	12.3	 	Limitation of Liability for Sellers, Purchaser and GISA
	 
	 	 	 	The Parties` respective liability under this Agreement and on the basis of the Warranties is
hereby limited as follows:

	 	(a)	 	A liability, which is contingent, shall not constitute a
deficiency, cost or loss, unless and until such contingent liability becomes an
actual liability;
	 
	 	(b)	 	No claim in respect of any individual event or occurrence shall
be deemed to give rise to any liability unless and until the individual
liability, loss or damage claimed exceeds €60,000, it being understood that
this Section 12.3 (b) shall not apply to any Claim made by Purchaser on the
basis of the Warranties relating to Power and Authorization (Section 10.1 (i)
and (ii)) or Shares and Shareholding (Section 10.2);
	 
	 	(c)	 	No Party shall be entitled to make a Claim hereunder unless and
until the aggregate amount of claims for any liability under clause (b) above
exceeds €600,000, whereupon the claimant shall be entitled to indemnification
for the full amount (and not just the excess) thereof, except for Claims by the
Purchaser against the Sellers on the breach of the Warranty relating to Taxation
(Section 10.16) in which case the Purchaser is entitled to make a Claim
hereunder unless and until the aggregate amount of claims for any liability
exceeds €300,000, whereupon the Purchaser shall be entitled to
indemnification for the full amount and further this Section 12.3 (c) shall not
apply to any Claim made by Purchaser on the basis of the Warranties relating to
Power and Authorization (Section 10.1 (i) and (ii)) or Shares and Shareholding
(Section 10.2);
	 
	 	(d)	 	The aggregate indemnification obligations of Sellers under
Section 12.1 hereinabove or Purchaser under Section 12.2 hereinabove shall not
exceed in the aggregate twenty percent (20%) of the Purchase Price, except for
indemnification for breach of the Warranties by Sellers given in Section 10.1
(i) and (ii) and 10.2 or breach of the Warranties given by Purchaser and GISA in
Section 11.4, for which the respective aggregate indemnification shall not
exceed 100% of the Purchase Price;

26(37)

 

	 	(e)	 	No Claim shall be brought unless notice in writing of any such
Claim, accompanied by all relevant particulars thereof specifying the nature of
the breach and the amount claimed in respect thereof, has been given to the
other Party(ies) within sixty (60) days from the date the claimant Party became
aware of the Claim;
	 
	 	(f)	 	The Parties shall not be liable for indirect, incidental or
consequential damages (such as loss of business reputation, new business
opportunities or loss of value of shares);
	 
	 	(g)	 	There shall be no entitlement to recover more than once in
respect of the same breach of Warranties under this Agreement; and
	 
	 	(h)	 	Claims shall exclude any amounts (i) that have been reserved
against in the Accounts; (ii) of any tax savings accruing to and actually
realized by a Party as a result of the circumstances giving rise to the Loss;
(iii) recoverable form a third party under indemnity or insurance policy; (iv)
resulting from or attributable to any legislation that is not in force on the
Effective Date or any change of law, regulation, directive, requirement or
administrative practice or any change in a tax rate which is not in force on the
Effective Date; and (v) that would not have arisen but for an act, omission or
transaction carried out after the Effective Date by Purchaser or Seller, as the
case may be, or any of its representatives or successors in title.

	 	12.4	 	Third Party Claims
	 
	 	 	 	In the event Purchaser becomes aware of any Third Party Claim constituting a breach
of the Warranties, Purchaser shall:

	 	(i)	 	as soon as reasonably practicable, but in no event later than
thirty (30) days after the date Purchaser became aware of any Third Party Claim,
provide written notice of the Third Party Claim to Sellers’ Representative;
	 
	 	(ii)	 	take such action and give such information and access to
personnel, premises, chattels, documents and records (and allow to take copies
or make photocopies, thereof) to Sellers ’ Representative and its professional
advisers as Sellers’ Representative may reasonably request and
Sellers’
Representative shall be entitled to reasonably require Purchaser or the Company
to take such action and give such information and assistance in order to avoid,
dispute, resist, mitigate, settle compromise, defend or appeal any claim in
respect thereof or adjudication with respect thereto;
	 
	 	(iii)	 	at the request of Sellers’ Representative, allow Sellers’
Representative to take the sole conduct of such actions as Sellers’
Representative may deem reasonably appropriate in connection with any such
assessment or claim in the name of Purchaser or the Company and in that
connection Purchaser shall give or cause to be given to Sellers’ Representative
all such assistance as Sellers’ Representative may reasonably require in
avoiding, disputing, resisting, settling, compromising, defending or appealing
any such claim and shall instruct such professional advisers as Sellers’
Representative may nominate to act on behalf of Purchaser of the Company, as
appropriate, but to act in accordance with Sellers’ Representative sole
instructions;
	 
	 	(iv)	 	not make any admission of liability, agreement or compromise with
any person, body or authority in relation to the Third Party Claim, without
first obtaining the consent of Sellers’ Representative;
	 
	 	(v)	 	take all commercially reasonable steps to mitigate any Loss; and

27(37)

 

	 	(vi)	 	in any action, resist, defend, appeal or, if appropriate and
consented by the Sellers’ Representative settle (in each case at Sellers’
expense, with reasonable attorneys’ fees and costs to be included in Sellers’
expense) such Third Party Claim in the best interest of Sellers.

	 	 	 	In case a Third Party Claim arises that could lead, in Sellers’ Representative’s
reasonable judgment, to a breach of the Warranties, any negotiation, dispute or
litigation relating thereto with any third party shall be handled by Sellers.
	 
	 	 	 	In any event, Sellers shall be entitled at any stage and at its sole discretion to
settle any such third party assessment or claim. Sellers shall notify Purchaser and
GISA of Sellers’ decision to settle such assessment or claim.
	 
	 	 	 	If Sellers have made any payment to Purchaser or GISA as a settlement of any Third
Party Claim and Purchaser or GISA has the right to recover from any third party any
amount payable as a result of facts or circumstances forming the basis of such Third
Party Claim, then Purchaser or GISA shall, upon request of
Sellers’ Representative, either (a) assign that right to
Sellers or, (b) if Sellers’ Representative so
directs, at Sellers’ cost pursue said recovery and account to Sellers for any monies
or property recovered.

	13	 	ADDITIONAL UNDERTAKINGS

	 	13.1	 	Confidentiality
	 
	 	 	 	The Parties undertake not to disclose or use any Confidential Information (except for
purposes of consummating the Transaction) to any person or entity other than
Affiliates of or advisors to the Parties unless a) required to do so by law or b) any
applicable stock exchange regulations, or c) such disclosure has been consented to in
writing by the other Party. The Parties shall prepare public announcements regarding
the signing of this Agreement, and agree in good faith on the time and manner of the
distribution thereof, subject to any mandatory stock exchange requirements.
	 
	 	 	 	The public announcement shall include disclosure of the material terms and conditions
of the Additional Purchase Price.
	 
	 	13.2	 	Sellers’ and GISA Representative
	 
	 	 	 	Wherever contemplated by this Agreement, each of (i) the Private Sellers appoints Mr
Pekka Eloholma and (ii) the Capman Entities appoints Mr Petri Niemi (“Capman
Representative”) act, to act as their lawful representative to take any actions on
Private Sellers’ or Capman Entities’ behalf, respectively, as contemplated by this
Agreement, including the power and authority to confer any approvals or waivers, and
it is furthermore agreed, for the avoidance of doubt, that Purchaser or GISA shall be
deemed to have fulfilled their notice and other obligations, if presenting claims
against Private Sellers under this Agreement, by presenting such claims to Mr Pekka
Eloholma and against Capman Entities by presenting claims to Mr Petri Niemi. Wherever
contemplated by this Agreement, GISA appoints the Purchaser (“GISA Representative”)
to act as their lawful representative to take any actions on GISA’s behalf,
respectively, as contemplated by this Agreement, including the power and authority to
confer any approvals or waivers, and it is furthermore agreed, for the avoidance of
doubt, that Sellers shall be deemed to have fulfilled their notice and other
obligations, if presenting claims against GISA under this Agreement, by presenting
such claims to Purchaser.

28(37)

 

	 	13.3	 	Transfer Tax
	 
	 	 	 	Purchaser shall pay any asset transfer tax and any related fees levied on the
purchase of the Shares and Stock Options. Purchaser shall, at its own expense,
properly file on a timely basis all necessary transfer tax and other documentation
relating to any transfer tax or other applicable tax or fee and provide Sellers
evidence of payment thereof.
	 
	 	13.4	 	Expenses
	 
	 	 	 	Each Party shall bear its own expenses and costs relating to the execution and
delivery of this Agreement and the consummation of the Transaction including the fees
of any legal and financial advisors retained by it.
	 
	 	13.5	 	Release from Liability of the Directors of the Company
	 
	 	 	 	In the Annual General Meeting of Shareholders of the Company in the year 2006
Purchaser undertakes to grant discharge to and release the liability of the members
of the Board of Directors for their administration of their duties as Board members
until the Closing Date, provided that the auditors of the Company do not recommend
against such discharge and release in their report. Immediately following the
Closing, the Purchaser and GISA agree to hold an extraordinary shareholders meeting
of the Company, and elect new members to the Board of Directors of the Company. The
Institutional Sellers shall cause that the present members of the Board of Directors
shall simultaneously resign from the Board of Directors of the Company.
	 
	 	13.6	 	Company Management Incentive Program
	 
	 	 	 	Purchaser and GISA agree to establish a Management Incentive Plan substantially in
the form attached hereto as Exhibit 13.6 being effective on the Closing.
	 
	 	13.7	 	No Side Agreements with Company Management
	 
	 	 	 	Sellers shall not enter into agreements with any member(s) of management of the Group
Companies with respect to the management or the operation of the Group Companies,
provided however that the Purchaser is aware and accepts the agreement entered into
between the Institutional Sellers and certain members of the management of the
Company attached hereto as Schedule 13.7.
	 
	 	13.8	 	Restriction on Sale of GISA Stock
	 
	 	 	 	The Institutional Sellers, either acting alone, in groups or as a collective unit,
shall not sell on any single trading date (“Trade Date”) of the Nasdaq National
Market and the Euronext Paris Market a cumulative number of shares of GISA Stock that
is greater than 500,000 shares.
	 
	 	 	 	The restriction set forth in this Section 13.8 shall expire and the Institutional
Sellers shall be permitted to sell or otherwise dispose (without any restrictions) of
the GISA Stock acquired pursuant to this Agreement (i) after twelve (12) months
following the Closing Date or (ii) after the aggregate amount of the shares of GISA
Stock purchased pursuant to this Agreement that are collectively held by the
Institutional Sellers is less than six million (6,000,000) shares.

29(37)

 

	 	13.9	 	Block Sales of GISA Stock by Institutional Sellers
	 
	 	 	 	Purchaser and GISA shall have a right of first offer in the event of any proposed
sale or transfer of GISA Stock by the Institutional Sellers in a single or series of
related transactions in excess of 5,000,000 shares of GISA Stock to a third party or
third parties in accordance with the terms set forth in this Section 13.9. In the
event of such a proposed sale or transfer, the Institutional Seller(s) shall notify
Purchaser and GISA in writing, at least three (3) business days] prior to the
anticipated sale. GISA shall have two (2) business days after receipt of the purchase
information (including price, terms and conditions) to notify the Seller(s) in
writing whether GISA wishes to exercise its right to acquire in whole or in part the
shares of GISA Stock. In the event that GISA notifies the Sellers’ Representative in
writing within the above two (2) business days periods, or gives a notice to Sellers’
Representative indicating that GISA shall not exercise its purchase right, the
respective Seller(s) shall be entitled to offer the GISA Stock to a third party.
	 
	 	 	 	The restrictions set forth in this Section 13.9 shall expire and the Institutional
Sellers shall be permitted to sell or otherwise dispose (without any restrictions) of
the GISA Stock acquired pursuant to this Agreement (i) after twelve (12) months
following the Closing Date or (ii) after the aggregate amount of the shares of GISA
Stock purchased pursuant to this Agreement that are collectively held by the
Institutional Sellers is less than six million (6,000,000) shares.
	 
	 	13.10	 	Liability of GISA on the Obligations of the Purchaser
	 
	 	 	 	GISA agrees to be fully liable for any and all obligations of the Purchaser as for its
own debt (“omavelkainen takaus”) which are based on this Agreement including but not
limited the obligation to pay and deliver the Purchase Price. The Sellers are entitled
to present claims directly to GISA also in the event such claim is based on the
obligation of the Purchaser pursuant to this Agreement and are not required to make
prior claims, demands or notices to the Purchaser.

	14	 	TERMINATION

	 	14.1	 	Termination
	 
	 	 	 	This Agreement may be terminated before the Closing only (i) by written agreement
among the Parties or (ii) by written notice of termination delivered by the Sellers’
Representative to the Purchaser and GISA, or by Purchaser or GISA to Sellers’
Representative, if the Closing conditions set forth in Section 8.2 have not been
fulfilled by August 31, 2005.
	 
	 	14.2	 	Effect of Termination
	 
	 	 	 	In the event this Agreement is terminated as provided in this Section 14, this
Agreement shall forthwith become wholly void and of no effect, and the Parties shall
be released from all future obligations hereunder; provided, however,
that the obligations of the Parties as to confidentiality provided in Section 13.1,
and the provisions of Sections 13.4 relating to the payment of expenses, shall not be
extinguished but shall survive such termination. The Parties shall have any and all
remedies to enforce such obligations provided at law or in equity (including, without
limitation, specific performance).

30(37)

 

	15	 	MISCELLANEOUS

	 	15.1	 	Additional Actions and Documents

Each of the Parties hereby agrees to take or cause to be taken such further actions
to execute, deliver and file or cause to be executed, delivered and filed such
further documents, and will obtain such consents as may be necessary or as may be
reasonably requested in order to effectuate the purposes, terms and conditions of
this Agreement and the Transaction.

	 	15.2	 	Notices

All notices under this Agreement shall be in writing and shall be sent by facsimile
and e-mail delivery to the Party being served at its facsimile number and e-mail
address and marked to the attention of the person listed below (or to such other
facsimile number, e-mail address or person as the Parties may specify subsequent to
the Effective Date, by due notice as aforesaid to the other) with the fax answerback
confirmation and e-mail delivery confirmation being deemed conclusive, but not
exclusive, evidence of such delivery:

	 	 	 
	If to Sellers:
	 	 
	 
	 	 
	Capman Entities

	 	Petri Niemi
	 

	 	Korkeavuorenkatu 32
	 

	 	00130 Helsinki
	 

	 	Finland
	 
	 	 
	 

	 	Tel. +358-9-615-5800
	 

	 	Facsimile +358-9-6155-8300
	 

	 	E-Mail: petri.niemi@capman.fi
	 
	 	 
	Copy to:

	 	Jari Sonninen
	 

	 	Castrén & Snellman Attorneys Ltd.
	 

	 	Erottajankatu 5 A/P.O. Box 233
	 

	 	00131 Helsinki
	 

	 	Finland
	 
	 	 
	 

	 	Tel. +358-9-228-581
	 

	 	Facsimile +358-9-2285-8458
	 

	 	E-Mail: jari.sonninen@castren.fi
	 
	 	 
	Oy Knowledge Connection Ab
	 
	 	 
	 

	 	Timo Tiihonen
	 

	 	c/o Capman Plc
	 

	 	Korkeavuorenkatu 32
	 

	 	00130 Helsinki
	 

	 	Finland
	 

	 	Tel. +358-9-6155-800
	 

	 	Facsimile: +358-9-6155-8300
	 

	 	E-mail: timo.tiihonen

31(37)

 

	 	 	 
	Yewtree Fund Investments, Private Limited
	 
	 	 
	 

	 	c/o Temasek Holding 60B
	 

	 	Orchard Road
	 

	 	# 06-18 Tower 2
	 

	 	Singapore 238891
	 

	 	Singapore
	 

	 	Tel. +65-
	 

	 	Facsimile +65-
	 

	 	E-mail:
	 
	 	 
	Finnish National Fund for Research and Development
	 

	 	Heikki Ojanperä
	 

	 	Itämerentori 2
	 

	 	00180 Helsinki
	 

	 	Finland
	 
	 	 
	 

	 	Tel. +358-9-618-991
	 

	 	Facsimile +358-9-645-072
	 

	 	E-Mail: heikki.ojanpera@sitra.fi
	 
	 	 
	Varma Mutual Pension Insurance Company
	 
	 	 
	 

	 	Sakari Aaltonen
	 

	 	Annankatu 18
	 

	 	00098 VARMA
	 

	 	Finland
	 

	 	Tel. +358-10-515-13
	 

	 	Facsimile: +358-10-514-4752
	 

	 	E-mail: sakari.aaltonen@varma.fi
	 
	 	 
	Sampo Life Insurance Company
	 

	 	Pekka Lankinen
	 

	 	Bulevardi 56
	 

	 	00120 Helsinki
	 

	 	Finland
	 
	 	 
	 

	 	Tel. +358-9-10-515-225
	 

	 	Facsimile: +358-10-516-0719
	 

	 	E-Mail: pekka.lankinen@sampo.fi
	 
	 	 
	Finnish Industry Investment Ltd
	 
	 	 
	 

	 	Juha Marjosola
	 

	 	Kalevankatu 9 A
	 

	 	00100 Helsinki
	 

	 	Finland
	 
	 	 
	 

	 	Tel. +358-9-680-3680
	 

	 	Facsimile: +358-9-612-1680
	 

	 	E-mail: juha.marjosola@teollisuussijoitus.fi

32(37)

 

	 	 	 
	Private Persons

	 	Pekka Eloholma
	 

	 	Kavallintie 2 D
	 

	 	02700 Kauniainen
	 

	 	Finland
	 

	 	Tel. +358-9-89-411
	 

	 	Facsimile: +358 9 891 887
	 

	 	E-mail: pekka.eloholma@setec.com
	 
	 	 
	If to Purchaser:

	 	Gemplus Nordic Oy
	 

	 	Ulf-Henrik Kull
	 

	 	c/o Roschier Holmberg, Attorneys Ltd
	 

	 	Keskuskatu 7A
	 

	 	00100 Helsinki
	 

	 	Finland
	 
	 	 
	 

	 	Tel. +358-20-506-6000
	 

	 	Facsimile +358-20-506-6100
	 

	 	E-Mail: ulf-henrik.kull@roschier.com
	 
	 	 
	If to GISA

	 	Gemplus International S.A.
	 

	 	General Counsel
	 

	 	46A, Avenue JF Kennedy
	 

	 	L-1855 Luxembourg
	 

	 	Luxembourg
	 
	 	 
	 

	 	Tel. +352-2-6005-226
	 

	 	Facsimile: +352-2-6005-832
	 

	 	E-Mail: Stephen.Juge@gemplus.com

The date of delivery shall be deemed to be date on which the notice was
transmitted.

Each Party shall notify the other Party of any change of address in accordance
with this section.

	15.3	 	Non-Assignment

This Agreement may not be assigned or otherwise transferred in whole or in part
by any Party, without the prior written consent of the other Party.

	15.4	 	Headings

The headings of this Agreement are for convenience of reference only and shall
not in any way limit or affect the meaning or interpretation of the provisions
of this Agreement.

	15.5	 	No Waiver

Except as expressly provided herein, the failure or delay by either Party in
exercising any right or remedy shall not constitute a waiver of such right or
remedy. No waiver of any term or condition of this Agreement or of any right or
remedy arising in connection herewith shall constitute a continuing waiver or a
waiver of any right or remedy relating to a subsequent breach of such provision
or of any other right or remedy hereunder.

33(37)

 

	15.6	 	Severable Provisions

If any part of this Agreement is determined to be invalid or unenforceable, such
determination shall not invalidate any other provision of this Agreement; however,
the Parties shall attempt, through negotiations in good faith, to replace any such
invalid or unenforceable part of the Agreement with a comparable provision that is
enforceable and valid. The failure of the Parties to reach an agreement on such a
replacement provision shall not affect the validity of the remaining provisions of
this Agreement.

	15.7	 	Reference to Statutory Provisions

A reference to any statute or statutory provision shall be construed as a reference
to the same as it may have been, or may from time to time be, amended, modified or
re-enacted except to the extent that any amendment, re-enactment or modification made
after the date of this Agreement would increase or alter the liability of Sellers or
Purchaser under this Agreement.

	15.8	 	Entire Agreement

This Agreement constitutes the entire agreement and understanding among the Parties
pertaining to its subject matter, and supersedes all prior agreements,
understandings, undertakings, negotiations and discussions of the Parties. Neither
Party has relied upon any information relating to the value of any securities to be
delivered hereunder except as expressly set forth herein and publicly disclosed
financial information regarding GISA or the Company, respectively.

	15.9	 	Amendments

No amendment, waiver or termination of this Agreement shall be binding unless
executed and delivered in writing and signed by an authorized representative of each
of the Parties.

	15.10	 	Governing Law

This Agreement shall be governed by and construed in accordance with the laws of
Finland.

	15.11	 	Settlement of Disputes

a) In the event of any dispute(s) or claim(s) arising out of or relating to any
provision of this Agreement or breach thereof, the Parties shall endeavor to settle
those conflicts amicably among themselves in good faith. In the event the Parties are
unable to agree on a mutually acceptable resolution to a dispute after a reasonable
period of good faith negotiations which however do not exceed two months, the Parties
shall submit the matter in dispute for final settlement by arbitration under the
rules of the Arbitration Institute of Stockholm Chamber of Commerce by three (3)
arbitrators appointed in accordance with its rules. For the purposes of this Section
15.11, the Private Sellers shall be treated as one party and represented by Private
Persons’ Representative, as contemplated by Section 13.2 above. The arbitration shall
be held in Stockholm in the English language. Any judgment issued by the Arbitrators
against a Party shall include payment by the non-prevailing Party of the prevailing
Party’s attorneys’ fees and costs, and shall be enforceable against the
non-prevailing Party in the court of such Party’s domicile country (without prejudice
to enforcement in any other jurisdiction).

Either Party, before or during any legal proceedings, may apply to a court having
jurisdiction for a temporary restraining order or preliminary injunction where such
relief is necessary to protect its interests, pending completion of the legal
proceedings.

34(37)

 

b) In the event that the Parties are not able to agree upon the amount by which the
Termination or Equivalent Event will reduce the Effective Date Order Backlog as
referred to in Section 5.2.1 c) above, or the Parties are not able to agree upon the
amount of the December 2005 Backlog, as referred to in Section 5.2.1 d), the
respective disputes will be submitted to be resolved in an expedited arbitration
proceeding under the rules of the Arbitration Institute of Stockholm Chamber of
Commerce by one (1) arbitrator appointed in accordance with its rules in English
language without the Parties being required to conduct negotiations to resolve the
dispute(s). The Parties agree to instruct the arbitrator to handle the matter without
any delays in a manner that the arbitral award can be given within three (3) months
from the date the arbitrator is appointed. The Parties agree to use all reasonable
efforts in order to enable the arbitrator to give the award within the above time.

This Agreement has been made and executed in fifteen (15) counterparts, one (1)
together for the Private Shareholders and one (1) for each other Party.

	 	 	 	 	 	 	 
	 

	 	Helsinki, April 22, 2005
	 
	 	 
	 

	 	Capman Equity VII A L.P.
	 
	 	 
	 

	 	/s/
	 

	 	 
	 

	 	Jari Sonninen by proxy
	 
	 	 
	 

	 	Capman Equity VII C L.P.
	 
	 	 
	 

	 	/s/
	 

	 	 
	 

	 	Jari Sonninen by proxy
	 
	 	 
	 

	 	Capman Equity Sweden KB
	 
	 	 
	 

	 	/s/
	 

	 	 
	 

	 	Jari Sonninen by proxy
	 
	 	 
	 

	 	Swedestart Tech KB
	 
	 	 
	 

	 	/s/
	 

	 	 
	 

	 	Jari Sonninen by proxy
	 
	 	 
	 

	 	Maneq Fund 2004 Ky
	 
	 

	 	/s/
	 

	 	 
	 

	 	Jari Sonninen by proxy

35(37)

 

	 	 	 	 	 	 	 
	 

	 	Maneq 2004 AB
	 
	 	 
	 

	 	/s/
	 

	 	 
	 

	 	Jari Sonninen by proxy
	 
	 	 
	 

	 	Oy Knowledge Connection Ab
	 
	 	 
	 

	 	/s/
	 

	 	 
	 

	 	Jari Sonninen by proxy
	 
	 	 
	 

	 	Yewtree Fund Investments, Private Limited
	 
	 	 
	 

	 	/s/
	 

	 	 
	 

	 	Jari Sonninen by proxy
	 
	 	 
	 

	 	Finnish National Fund for Research and Development (Sitra)
	 
	 	 
	 

	 	/s/
	 

	 	 
	 

	 	Heikki Ojanperä
	 
	 	 
	 

	 	Varma Mutual Pension Insurance Company
	 
	 	 
	 

	 	/s/
	 

	 	 
	 

	 	Jari Sonninen by proxy
	 
	 	 
	 

	 	Sampo Life Insurance Company
	 
	 	 
	 

	 	/s/
	 

	 	 
	 

	 	Jari Sonninen by proxy
	 
	 	 
	 

	 	Finnish Industry Investment Ltd.
	 
	 

	 	/s/
	 

	 	 
	 

	 	Jarkko Viheriävaara by proxy

36(37)

 

	 	 	 	 	 	 	 
	 

	 	Pekka Eloholma on his own behalf and by proxy on behalf of
	 
	 	 
	 

	 	Tom Ahlers
	 
	 	 
	 

	 	Lauri Pesonen
	 
	 	 
	 

	 	Jarmo Rouhiainen
	 
	 	 
	 

	 	Tommi Nordberg
	 
	 	 
	 

	 	Mangus Segercrantz
	 
	 	 
	 

	 	Antti Metsäranta
	 
	 	 
	 

	 	Reijo Nikula
	 
	 	 
	 

	 	Jyrki Nurmi
	 
	 	 
	 

	 	Fred Granberg
	 
	 	 
	 

	 	Tapio Vailahti
	 
	 	 
	 

	 	Jukka Virtamo
	 
	 	 
	 

	 	Tuovi Henttu
	 
	 	 
	 

	 	Liisa Varjokallio
	 
	 	 
	 

	 	Tuula Wäyrynen
	 
	 	 
	 

	 	Jukka Yliuntinen
	 
	 

	 	/s/
	 
	 	 
	 

	 	Gemplus Nordic Oy, under formation
	 
	 	 
	 

	 	/s/
	 

	 	 
	 

	 	Jean-Francois Schreiber
	 

	 	Chairman
	 
	 	 
	 

	 	Gemplus International S.A.
	 
	 	 
	 

	 	/s/
	 

	 	 
	 

	 	Jean-Francois Schreiber by proxy

37(37)

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