Document:

Sublease Agreement

 Exhibit 10.09 
  
 SUBLEASE 
  
 BETWEEN 
  
 AVAYA INC. 
  
 SUBLANDLORD 
  
 and 
  
 INTERSIL CORP. 
  
 SUBTENANT 
  
 Premises: 
  
 1001 Murphy Ranch Road 
 2nd Floor of Building 3 
 Milpitas, California 95035 
  
 Dated:
                    , 2004 

 * * * * 
  
 The mailing, delivery or negotiation of this Sublease shall not be deemed an offer to enter into any transaction or to enter into any other relationship,
whether on the terms contained herein or on any other terms. This Sublease shall not be binding nor shall either party have any obligations or liabilities or any rights with respect thereto, or with respect to the premises, unless and until both
parties have executed and delivered this Sublease and the Prime Landlord has consented in writing to this Sublease. Until such execution and delivery of, and consent to this Sublease, either party may terminate all negotiation and discussion of the
subject matter hereof, without cause and for any reason, without recourse or liability. 
  
 * * * * 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 SUBLEASE
	  	1
		
	 INTRODUCTORY STATEMENTS
	  	1
			
	 1.
	  	SUBLEASE; DEFINITION OF SUBLEASED PREMISES	  	1
			
	 2.
	  	PRIME LEASE	  	2
			
	 3.
	  	DEFINITIONS	  	3
			
	 4.
	  	PERFORMANCE BY PRIME LANDLORD	  	3
			
	 5.
	  	TERM; END OF TERM; EARLY ACCESS	  	4
			
	 6.
	  	BASE RENT; ADDITIONAL RENT	  	5
			
	 7.
	  	USE OF SUBLEASED PREMISES	  	7
			
	 8.
	  	DEFAULT OF SUBTENANT; SUBLANDLORD’S REMEDIES	  	9
			
	 9.
	  	SECURITY DEPOSIT	  	12
			
	 10.
	  	CONDITION OF PREMISES	  	12
			
	 11.
	  	ALTERATIONS	  	13
			
	 12.
	  	REPAIRS AND MAINTENANCE	  	13
			
	 13.
	  	UTILITIES AND SERVICES	  	14
			
	 14.
	  	ASSIGNMENT AND SUBLEASING	  	15
			
	 15.
	  	INSURANCE	  	16
			
	 16.
	  	COMPLIANCE WITH LAWS	  	16
			
	 17.
	  	LIMITATIONS ON SUBLANDLORD’S LIABILITY	  	17
			
	 18.
	  	ESTOPPEL CERTIFICATES	  	17
			
	 19.
	  	SUBORDINATION	  	18
			
	 20.
	  	CASUALTY AND CONDEMNATION	  	18
			
	 21.
	  	CONSENT OR APPROVAL OF PRIME LANDLORD	  	18
			
	 22.
	  	NOTICES	  	19
			
	 23.
	  	BROKERS	  	20
			
	 24.
	  	SUBLANDLORD’S AND SUBTENANT’S POWER TO EXECUTE	  	20
			
	 25.
	  	TABLE OF CONTENTS - CAPTIONS	  	21

  

 - i - 

 TABLE OF CONTENTS 
  
 (continued) 
  

					
	 	  	 	  	Page

	 26.
	  	CONSENT TO SUBLEASE BY PRIME LANDLORD	  	21
			
	 27.
	  	ENTIRE AGREEMENT	  	21
			
	 28.
	  	HOLDING OVER	  	21
			
	 29.
	  	RULES AND REGULATIONS	  	22
			
	 30.
	  	GOVERNING LAW	  	22
			
	 31.
	  	NO AUTHORITY	  	22
			
	 32.
	  	SUCCESSORS	  	22
			
	 33.
	  	PERSONAL PROPERTY	  	23
			
	 34.
	  	PARKING	  	23
			
	 35.
	  	SUBTENANT’S TERMINATION OPTION	  	23
			
	 36.
	  	SIGNAGE	  	24
			
	 37.
	  	MISCELLANEOUS	  	24
		
	 EXHIBIT A DESCRIPTION OF SUBLEASED PREMISES (2ND FLOOR)
	  	26
		
	 EXHIBIT A-1 SPACE PLAN SHOWING BUILDING 3 LOBBY AREA AND CAFETERIA SPACE
	  	27
		
	 EXHIBIT B PRIME LEASE
	  	28
		
	 EXHIBIT C LIST OF PERSONAL PROPERTY
	  	29
		
	 EXHIBIT D PARKING
	  	30
		
	 EXHIBIT E SIGNAGE STANDARDS
	  	31

  

 - ii - 

 SUBLEASE 
  
 This Sublease is entered into as of this          day of November, 2004, by
and between AVAYA INC., a Delaware corporation, with offices at 211 Mount Airy Road, Basking Ridge, New Jersey 07920 (hereinafter “Sublandlord”), and INTERSIL CORP., a Delaware corporation, on behalf of itself and its
subsidiaries, with offices at Attn: Contracts Department, 2401 Palm Bay Road, N.E., m/s 53-170, Palm Bay, FL 32905 (hereinafter “Subtenant”). 
  

INTRODUCTORY STATEMENTS 
  
 A. By Agreement of Lease dated October     , 2001 (the “Prime Lease”), Lucent Technologies Inc.
(“Lucent”) leased to Sublandlord approximately 70,019 rentable square feet in Building 1, 69,324 rentable square feet in Building 2, and 43,140 rentable square feet (consisting of 35,273 square feet located on the 2nd floor and 7,867 square feet located on the ground floor) in Building 3, located at 1001 Murphy Ranch Road, Milpitas,
California (hereinafter called the “Project”). Lucent subsequently assigned its interest in the Prime Lease to The Prudential Insurance Company of America (the “Prime Landlord”). 
  
 B. Subtenant desires to sublease the 43,140 square feet in Building 3, as
such premises are more particularly described in Exhibit A (showing space on 2nd floor) and Exhibit A-1
(showing Building 3 Lobby Area and Cafeteria Space) annexed hereto and made a part hereof (the “Subleased Premises”) to Sublandlord, and Sublandlord desires to sublease the Subleased Premises to Subtenant on the terms and
conditions hereinafter set forth. 
  
 C. So long as Sublandlord
operates the Cafeteria Space, it shall maintain the furniture, fixtures and equipment in the Cafeteria Space at its sole cost pursuant to the Prime Lease. 
  
 WITNESSETH 
  
 NOW, THEREFORE, Sublandlord and Subtenant, in consideration of the mutual promises and covenants contained herein and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, and each with intent to be legally bound, for themselves and their respective successors and assigns, agree as follows: 
  
 1. SUBLEASE; DEFINITION OF SUBLEASED PREMISES 
  
 (a) Sublandlord, for and in consideration of the Subtenant’s payment of
the rent and performance of the covenants contained in this Sublease, does hereby demise and lease to Subtenant, and Subtenant does hereby hire from Sublandlord, the Subleased Premises, together with the non-exclusive right to use the portions of
the Building intended for common use, for the Term (as hereinafter defined) and upon and subject to the terms, conditions and limitations hereinafter set forth. 
  

 - 1 - 

 (b) The ground floor of Building 3 includes a lobby area (“Lobby Area”) and a cafeteria
(“Cafeteria Space”), as depicted on Exhibit A-1 attached hereto. Subtenant shall have the right to install or share a reception desk in the Lobby Area, at a location and in a matter mutually acceptable to Prime Landlord,
Sublandlord and Subtenant. In addition, Subtenant shall have the right to use the Cafeteria Space as a customer of the cafeteria during the Term of this Sublease provided that Sublandlord continues to operate the Cafeteria Space for
Sublandlord’s employees and subject to the rights of Prime Landlord as set forth in Paragraph 2.1(d) of the Prime Lease. Sublandlord shall have no liability to Subtenant whatsoever and no right to any reduction or abatement of Rent in
the event Sublandlord, for any reason whatsoever, discontinues operation of the Cafeteria Space. Notwithstanding the foregoing, in the event Prime Landlord terminates Sublandlord’s use of the Cafeteria Space pursuant to Paragraph 2.1(d)
of the Prime Lease and, as a result thereof, Sublandlord is entitled to a reduction in Rent, then Subtenant shall be entitled to its proportionate share of such reduction. [see also Paragraph 37(d)]. 
  
 (c) As additional consideration for entering into this Sublease, Subtenant
shall pay Sublandlord Five Hundred Thousand Dollars ($500,000.00) in certified funds upon the Prime Landlord’s approval of this Sublease after it has been executed by both parties. This Sublease shall not be effective until said Five Hundred
Thousand Dollars ($500,000.00) payment is made to Sublandlord. 
  
 2. PRIME LEASE 
  
 (a) A true copy of the
Prime Lease (with certain financial provisions deleted for reasons of confidentiality) is attached hereto as Exhibit B. Where not expressly inconsistent with the terms hereof and except as otherwise stated herein to the contrary, this
Sublease shall be subject and subordinate to all of the terms and conditions contained in the Prime Lease as said terms and conditions affect the Subleased Premises, and all of the terms and conditions of the Prime Lease (except to the extent that
they are inapplicable to, or modified by the provisions of, this Sublease, or inapplicable to the Subleased Premises) are hereby incorporated into this Sublease and shall be binding upon Subtenant with respect to the Subleased Premises to the same
extent as if Subtenant were named as tenant and Sublandlord as landlord under the Prime Lease. If any of the express provisions of this Sublease shall conflict with any of the provisions of the Prime Lease incorporated by reference, such conflict
shall be resolved in every instance in favor of the express provisions of this Sublease. For purposes of this Sublease, references in the Prime Lease to the “term” shall mean the Term of this Sublease and references to the
“premises” in the Prime Lease shall mean the Subleased Premises. References to the Building shall mean Building 3 only. Except as otherwise provided herein, when any fraction, factor or formula, which is based on the number of square feet
leased, is expressed in the Prime Lease, it will be adjusted by substituting the number of square feet of the Subleased Premises for the number of square feet of the Premises leased in the Prime Lease. The Sublandlord represents and warrants to
Subtenant that, as of the date of execution of the Sublease, to the best of Sublandlord’s knowledge, there are no Defaults on the behalf of Prime Landlord or Sublandlord and Sublandlord is not aware of any facts or circumstances which could
result or lead to the Default of the Prime Lease by Prime Landlord or Sublandlord. 
  

 - 2 - 

 (b) Each party agrees that it shall not do or omit to do anything which would result in a Default under
the Prime Lease, and each party agrees to indemnify and hold the other harmless from and against all claims, demands or liabilities resulting from such party’s breach, violation or nonperformance of any of its obligations under the Prime Lease,
as incorporated herein. With the exceptions set forth herein, Subtenant shall be entitled to all of the rights and privileges of the Sublandlord as tenant under the terms of the Prime Lease with respect to the Subleased Premises. 
  
 (c) In order to facilitate the coordination of the provisions of this
Sublease with those of the Prime Lease, the time periods contained in provisions of the Prime Lease that are incorporated by reference into this Sublease and for which the same action must be taken under the Prime Lease and this Sublease (such as,
for example and without limitation, the time period for the curing of a Default under this Sublease that is also a Default under the Prime Lease or for the response to a request by Subtenant for consent to an action for which consent of the Prime
Landlord is also required), are changed for the purpose of incorporation by reference by shortening or lengthening that period in each instance by five (5) days so that in each instance Subtenant shall have much less time to observe or perform
hereunder than Sublandlord has as tenant under the Prime Lease and Sublandlord shall have that much more time to observe, perform, consent, approve or otherwise act hereunder than the Prime Landlord has under the Prime Lease. In instances in which
the same action is not required under both the Prime Lease and this Sublease, the time periods contained in provisions of the Prime Lease that are incorporated by reference are not changed. 
  
 Only those provisions of the Prime Lease applicable to Building 3 shall apply to this
Sublease. The following provisions of the Prime Lease shall not be incorporated into this Sublease: 1 (all Basic Lease Provisions except 1.4 and 1.7), 2.1(a), 2.1(c)-(h), 2.2 (except definition of Common Areas), 3, 4.1, 5, 7.3(a), 7.3(b), 7.3(j),
7.3(m), 8.2, 12, 13.1, 13.3, 13.5, 16, 17, 26.1, 27, 64, 66, Exhibit A, Exhibit A-2, Exhibit C, Exhibit D, Exhibit E, Exhibit F, Exhibit G. 
  
 3. DEFINITIONS 
  
 All terms not expressly defined in this Sublease shall have the meanings given to them in the Prime Lease. 
  
 4. PERFORMANCE BY PRIME LANDLORD 
  
 Subtenant agrees to look solely to the Prime Landlord, and not to
Sublandlord, for the performance of all services and obligations of the Prime Landlord under the Prime Lease with respect to the Subleased Premises. Sublandlord does not assume any obligation to perform the terms, covenants and conditions contained
in the Prime Lease on the part of the Prime Landlord to be performed. In the event Prime Landlord shall fail to perform any of the terms, covenants and conditions contained in the Prime Lease on its part to be performed, Sublandlord shall 

  

 - 3 - 

 
cooperate with Subtenant in seeking to obtain the performance of Prime Landlord under the Prime Lease but Sublandlord shall have no obligation to supply such
services or incur any cost or expense in connection therewith. A Default by Prime Landlord under the Prime Lease shall not excuse Subtenant’s performance under this Sublease. 
  
 5. TERM; END OF TERM; EARLY ACCESS 
  
 (a) The term of this Sublease (the “Term”) shall commence on December 1, 2004 (the
“Commencement Date”); provided, however, that prior thereto Prime Landlord has consented to this Sublease in writing pursuant to Paragraph 21 below. If Prime Landlord’s consent has not been obtained on or before the
Commencement Date then the Commencement Date shall be postponed until one (1) business day following the date Prime Landlord’s consent is obtained pursuant to Paragraph 21 below. Subtenant and Sublandlord agree to confirm the actual
Commencement Date in writing after such consent is given and Sublandlord shall submit a statement to Subtenant confirming the actual Commencement Date and Subtenant agrees to sign such statement; however, the failure to so confirm shall not affect
the Commencement Date. The term of this Sublease shall expire at midnight on March 30, 2012 (“Expiration Date”). The Term is subject to the term of the Prime Lease. In the event that the term of the Prime Lease expires or is
terminated at any time, the Term of this Sublease shall terminate one (1) day prior to the termination or expiration of the term of the Prime Lease. 
  
 (b) Upon the expiration or other termination of the term of this Sublease, Subtenant shall peaceably quit and surrender to Sublandlord the Subleased
Premises and all alterations and additions thereto, broom clean, in good order, repair and condition excepting only ordinary wear and use and damage by fire or other casualty for which, under other provisions of this Sublease, Subtenant has no
responsibility of repair or restoration. Subtenant shall remove all of its property and, to the extent specified by Sublandlord, all alterations, additions and other personal property made by Subtenant and other personal property and all partitions
wholly within the Subleased Premises, and shall repair any damage to the Subleased Premises or the Building caused by their installation or by such removal. Within five (5) days prior to the expiration or other termination of the term of this
Sublease, Sublandlord or its agents shall have the right, but not the obligation, to conduct a walk-thru of the Subleased Premises to determine the condition of the Subleased Premises and to prepare a punch-list for Subtenant of the items Subtenant
is required to repair and restore pursuant to this Subparagraph 5(b). Subtenant’s obligation to observe or perform this covenant shall survive the expiration or other termination of this Sublease. Subtenant will remove any personal property
from the Building and the Subleased Premises as required by this sublease prior to the expiration or termination of this Sublease and any such property which shall remain in the Building or the Subleased Premises thereafter shall be conclusively
deemed to have been abandoned, and may either be retained by Sublandlord as its property or sold or otherwise disposed of in such manner as Sublandlord may see fit. If any part thereof shall be sold, that Sublandlord may receive and retain the
proceeds of such sale and apply the same, at its option, against the expenses of the sale, the cost of moving and storage, any arrears of Rent, additional or other charges payable hereunder by Subtenant to Sublandlord and any damages to which
Sublandlord may be entitled pursuant to this Sublease. 
  

 - 4 - 

 (c) Provided Prime Landlord has consented to this Sublease as set forth in Paragraph 21 below,
Subtenant may, at any time after execution of this Sublease and prior to the Commencement Date, without incurring any liability for payment of Rent, measure the Subleased Premises, design and layout the any tenant improvements and place and install
its personal property, furniture, furnishings, signs, telecommunication equipment, equipment and trade fixtures, in the Subleased Premises at Subtenant’s risk and expense and provided that Subtenant does not occupy the space during this time
for business operations. Subtenant’s indemnity of Sublandlord shall apply to Subtenant’s entry under this Paragraph 5. 
  
 6. BASE RENT; ADDITIONAL RENT 
  
 (a) Commencing on the Commencement Date and on the first day of each and every month during the Term thereafter, Subtenant shall pay to Sublandlord base
rent (“Base Rent”) as follows: 
  

																												
	 TERM
 PERIOD

	  	 12/01/04
 - 8/31/05

	  	 9/01/05
 -8/31/06

	  	9/01/06 -
11/30/06

	  	 12/1/06
 -8/31/07

	  	 9/1/07
 -8/31/08

	  	 9/1/08-
 8/31/09

	  	 9/1/09-
 8/31/10

	  	 9/1/10-
 8/31/11

	  	 9/1/11-
 3/30/12

	 MONTH
	  	$	0.00	  	$	47,238.30	  	$	0.00	  	$	48,655.45	  	$	50,115.11	  	$	51,618.57	  	$	53,167.12	  	$	54,762.14	  	$	56,405.00
	 ANNUALIZED
	  	$	0.00	  	$	566,859.60	  	$	0.00	  	$	583,865.40	  	$	601,381.32	  	$	619,422.84	  	$	638,005.44	  	$	657,145.68	  	$	676,860.00
	 $ PER SF
	  	$	0.00	  	$	13.14	  	$	0.00	  	$	13.53	  	$	13.94	  	$	14.36	  	$	14.79	  	$	15.23	  	$	15.69

  
 As set forth above,
Subtenant shall not be required to pay Base Rent for the period of the Commencement Date to August 31, 2005 and the period of September 1, 2006 to November 30, 2006 (collectively, “Free Rent Periods”), but Subtenant shall be
required to pay Additional Rent (as hereinafter defined) during the Free Rent Periods. 
  
 Base Rent for any period during the Term hereof which is for less than one month shall be prorated based upon the actual number of days of the calendar month involved. 
  
 Upon execution of this Sublease, Subtenant shall pay to Sublandlord (in
addition to the Security Deposit) the first month’s rent which shall be applied to the Base Rent payment due on July 1, 2005. 
  
 (b) Commencing on the Commencement Date of this Lease, Subtenant shall pay to Sublandlord (as and when due under Paragraphs 4.2 and 10 of the Prime
Lease), as additional rent, (i) 23.64% of any increase over a 2005 base year in “Common Area Operating Expenses” (as defined in Paragraph 4.1(b) of the Prime Lease) due by Sublandlord under the Prime Lease, which increase
shall be capped at 5% annually, (ii) 100% of any increase over a 2005 base year in “Building 3 Operating Expenses” (as defined in Paragraph 4.1(b) of the Prime Lease) due by Sublandlord under the Prime Lease, which increase
shall be capped at 5% annually, and (iii) 100% of any increases in Real Estate Taxes with respect to Building 3 incurred by Sublandlord under the Prime Lease as a result of a sale, refinance, change in 

  

 - 5 - 

 
ownership, new construction or any other “triggering” event during the term of this Sublease or any extension thereof. The sums due under this
Subparagraph 6(b), together with all other costs, and expenses which Subtenant assumes or agrees to pay pursuant to this Sublease shall be deemed additional rent (collectively, “Additional Rent”). Sublandlord shall bill Subtenant
for its share of Operating Expenses in accordance with Paragraph 4.2(e) of the Prime Lease except that Sublandlord shall have one (1) year and six (6) months following the end of the calendar year to deliver the Statement (as defined in
Paragraph 4.2(e) of the Prime Lease) to Subtenant before Sublandlord’s right to receive such amounts is waived. Subtenant shall pay any pro-rata utility charges directly to the Prime Landlord but in the event that Subtenant fails to pay
such charge timely, Sublandlord shall have the right but not the obligation to pay such charges to the Prime Landlord. 
  
 (c) The Base Rent and Additional Rent are sometimes referred to herein collectively as “Rent” or “rent” and shall include all sums due
from Subtenant to Sublandlord under the terms of this Sublease. Subtenant shall pay all Base Rent and Additional Rent when due and, in the case of Base Rent, without notice of any kind, and without any abatement, deduction or set-off for any reason
whatsoever. All Rent shall be payable at the office of the Sublandlord at the following address: 
  
 Regular Mail: 
  
 CB Richard Ellis Corp. Facilities 
 Mgmt. on behalf of Avaya Inc. 
 P.O. Box 414289 
 Boston, MA 02241-4289

  
 Overnight Service: 
  
 CB Richard Ellis AAF Avaya Inc. 
 4400 MacArthur Boulevard, Suite 500 
 Newport
Beach, CA 92660 
  
 or at such other address as directed by written notice from
Sublandlord to Subtenant. 
  
 (d) Subtenant’s obligations to
pay the Additional Rent provided for in this Paragraph 6 shall survive the expiration or earlier termination of this Sublease but shall expire upon the final determination payment and acceptance of all Rent due hereunder. The parties hereto agree
that Sublandlord shall have all of the rights and remedies with respect to the nonpayment by Subtenant of Additional Rent and all other costs, charges and expenses to be paid by Subtenant in this Sublease or by law in the case of nonpayment of Base
Rent provided for hereunder. 
  

 - 6 - 

 (e) Timely payment is of the essence of this Sublease and Subtenant may not delay or refuse any payment
of Rent for any reason. If Subtenant shall fail to pay any installment of Rent within ten (10) days after the date on which such payment is due, as provided in this Sublease, then a late charge equal to three percent (3%) of the amounts overdue
shall become immediately due and payable, as additional rent, to Sublandlord as liquidated damages (not as a penalty) for Subtenant’s failure to make prompt payment. In addition, Subtenant shall pay to Sublandlord, on demand, interest at a rate
that is equal to the lessor of (x) two percent (2%) above the then current prime rate charged by Citibank, NA or its successor, and (y) the maximum rate permitted by applicable law, on the amounts overdue from the date on which they became due and
payable until the date they are paid, which interest shall be considered additional rent. No failure by Sublandlord to insist upon the strict performance by Subtenant of Subtenant’s obligations to pay delinquency service charges and interest
shall constitute a waiver by Sublandlord of its rights to enforce the provisions of this Paragraph in any instance thereafter occurring. The provisions of this subparagraph shall not be construed in any way to extend any time period provided for in
this Sublease. 
  
 7. USE OF SUBLEASED PREMISES

  
 (a) The Subleased Premises shall only be used as
permitted under the Prime Lease, and Subtenant shall not, without the Sublandlord’s prior written consent, use, suffer or permit the use of all or any portion thereof for any other purpose. The Subtenant shall use the Subleased Premises and all
parking areas, sidewalks, hallways or other similar facilities or areas of the Building or the land on which the Building is located (“Building Parcel”) available for use by the Subtenant in common with other occupants of the
Building (collectively, “Common Areas”) in a careful, lawful, safe and proper manner and in accordance with all requirements of any governmental or quasi-governmental body and, in addition, shall comply with such reasonable rules
and regulations as the Prime Landlord may from time to time impose, as may be permitted under the Prime Lease, upon written notice to Subtenant. The Subtenant shall not use the Subleased Premises or any of the Common Areas for any use or activity
which is hazardous or which would constitute a nuisance or which: (i) would violate any covenant, agreement, term, provision or condition of the Prime Lease or this Sublease, (ii) is in contravention of the certificate of occupancy for the Subleased
Premises or the Building, (iii) would violate any requirement of any governmental or quasi-governmental body or (iv) may in any way impair or interfere with any of the Building services or the proper and economic heating, air conditioning, cleaning
or other servicing of the Subleased Premises or the Building, the Common Areas or the Building Parcel or any portion thereof or impair or interfere with the use of any of the Common Areas by, or occasion discomfort, inconvenience or annoyance to,
other occupants of the Building or their employees, guests or invitees (including, without limitation, the Sublandlord) or impair the appearance of the Building. 
  
 (b) If any governmental license or permit shall be required for the proper and lawful conduct of any business or other
activity carried on in the Subleased Premises (including but not limited to a Certificate of Occupancy), the Subtenant shall, at the Subtenant’s sole expense, procure and thereafter maintain such license or permit, shall promptly submit a copy

  

 - 7 - 

 
thereof to the Sublandlord, and shall comply with the terms and conditions thereof. Notwithstanding the foregoing, Sublandlord acknowledges that Subtenant
shall not be required to perform any work outside of the Subleased Premises which may be required in order to obtain a Certificate of Occupancy for the Subleased Premises. 
  
 (c) As between Sublandlord and Subtenant, Subtenant shall be solely responsible for the performance of those items of
maintenance and repair of the Subleased Premises specified as being the responsibility of the Sublandlord as tenant under the Prime Lease. In this regard, the Subtenant shall, to the same extent as required by Sublandlord as tenant under the Prime
Lease: 
  
 (i) Promptly comply with all laws, orders, rules and
requirements of governmental authorities, insurance carriers, board or fire underwriters, or similar groups. 
  
 (ii) Maintain the Subleased Premises and all equipment and fixtures in it in good repair and appearance, ordinary wear and tear excepted. 
  
 (iii) Make all necessary repairs to the Subleased Premises and all equipment
and fixtures in it, except structural repairs. 
  
 (iv) Maintain
the Subleased Premises in a neat, clean, safe, and sanitary condition, free of all garbage. 
  
 (v) Use all electric, plumbing and other facilities in the Subleased Premises safely. 
  
 (vi) Use no more electricity than the wiring or feeders to the Subleased Premises can safely carry. 
  
 (vii) Promptly replace all broken glass in the Subleased Premises.

  
 (viii) Do nothing to destroy, deface, damage, or remove any
part of the Subleased Premises. 
  
 (ix) Keep nothing in the
Subleased Premises which is inflammable, dangerous or explosive or which might increase the danger of fire or other casualty. 
  
 (x) Do nothing to destroy the peace and quiet of the Sublandlord, other tenants, or persons in the neighborhood. 
  
 (xi) Avoid littering in the Building or on its grounds. 
  
 The Subtenant shall pay any and all expense involved in complying with the above. 

 
 (d) The Subtenant shall indemnify and hold the Sublandlord harmless from
and against any fine, penalty, cost, expense (including, without limitation, reasonable attorneys’ 

  

 - 8 - 

 
fees) or other damage or loss suffered by the Sublandlord as a result of the Subtenant’s failure to perform its obligations under the Prime Lease or
this Sublease, including without limitation this Paragraph 7. All of the Subtenant’s obligations under this Paragraph 7 shall survive termination of this Sublease and surrender of the Subleased Premises to the Sublandlord. 
  
 (e) The Sublandlord shall indemnify and hold Subtenant harmless from and
against any fine, penalty, cost, expense (including, without limitation, reasonable attorneys’ fees) or other damage or loss suffered by the Subtenant in its use of the Subleased Premises as a result of Sublandlord’s negligence or willful
misconduct. 
  
 8. DEFAULT OF SUBTENANT; SUBLANDLORD’S
REMEDIES 
  
 (a) Any of the following events shall be a
Default of the Subtenant: 
  
 (i) if Subtenant shall fail to
make any payment of Rent as and when due (all such payments being due on the first of each month), where such failure shall continue for a period of eight (8) days after written notice thereof from Sublandlord to Subtenant (provided, however, that
if Sublandlord gives Subtenant more than two (2) such notices in any 12 month period, then Subtenant shall not be entitled to any notice or cure period under this Subparagraph 8(a) for the 12 months following the giving of the third such notice);

  
 (ii) if Subtenant shall Default in the observance or
performance of any other term, covenant or condition of this Sublease on Subtenant’s part to be observed or performed and Subtenant shall fail to remedy such Default within fifteen (15) days after written notice thereof from Sublandlord to
Subtenant of such Default, or if such Default is of such a nature that it cannot be completely remedied within said period of fifteen (15) days and Subtenant shall have failed to commence curing such breach within such 15-day period and to proceed
with due diligence and in good faith to complete the curing thereof; 
  
 (iii) if Subtenant shall abandon the Subleased Premises and fail to timely pay Rent; 
  
 (iv) if Subtenant shall make a general arrangement or general assignment for the benefit of creditors; if Subtenant becomes a “debtor” as defined in 11 U.S.C. 101 or any successor statute thereto (unless, in
the case of a petition filed against Subtenant the same is dismissed within sixty (60) days); or the appointment of a trustee or receiver to take possession of substantially all of Subtenant’s assets located at the Subleased Premises or of
Subtenant’s interest in this Sublease, where possession is not restored to Subtenant within thirty (30) days; or the attachment, execution or other judicial seizure of substantially all of Subtenant’s assets located at the Subleased
Premises or of Subtenant’s interest in this Sublease, where such seizure is not discharged within thirty (30) days; or the insolvency of Subtenant. 
  
 (b) Upon any Default of the Subtenant as set forth in this Paragraph, the Sublandlord, at the Sublandlord’s sole option, may elect and enforce any
one or more of the remedies described in subparagraphs (i) through (v) below; provided, however, that the 

  

 - 9 - 

 
Sublandlord may, at the Sublandlord’s sole option, elect and enforce multiple remedies from among those remedies to the extent such remedies are not
legally mutually exclusive and to the extent that the Sublandlord, in the Sublandlord’s reasonable judgment, deems the enforcement of such multiple remedies to be necessary or appropriate to indemnify and make the Sublandlord whole from any
loss or damage as a result of the Default or Defaults of the Subtenant. 
  
 (i) Termination and the Subtenant’s Liabilities. The Sublandlord shall have the right to terminate this Sublease upon notice of such termination given by the Sublandlord to the Subtenant in accordance with the
notice provisions of this Sublease, whereupon the Subtenant’s right to possession, use and enjoyment of the Subleased Premises shall cease, and the Subtenant shall immediately quit and surrender the Subleased Premises to the Sublandlord, but
the Subtenant shall remain liable to the Sublandlord as hereinafter provided. Upon termination of this Sublease following such notice, the Sublandlord may at any time thereafter re-enter and resume possession of the Subleased Premises and remove the
Subtenant and/or other occupants and the goods and chattels thereof. In any case where the Sublandlord has recovered possession of the Subleased Premises by reason of the Subtenant’s Default, the Sublandlord may, at the Sublandlord’s
option, reenter the Subleased Premises and cause the Subleased Premises to be redecorated, altered, divided, consolidated with other adjoining Subleased Premises, or otherwise changed or prepared for reletting, and may relet the Subleased Premises
or any part thereof as agent of the Subtenant or otherwise, for a term or terms to expire prior to, at the same time as, or subsequent to, the original expiration date of this Sublease, at the Sublandlord’s sole option, and the Sublandlord
shall receive the rent therefor. Rent and other payments so received shall, up to an amount equivalent to the rent and other payments required of the Subtenant hereunder, be applied as follows: (i) first to the payment of such expenses as the
Sublandlord may have incurred in connection with the recovery of possession, redecorating, altering, dividing, consolidating with other adjoining Subleased Premises, or otherwise changing or preparing for reletting, and the reletting, including
brokerage and attorney’s fees; (ii) next to the payment of damages in amounts equal to the Rent, Additional Rent and any other payments required of the Subtenant hereunder (whether or not specifically designated as Rent or Additional Rent) and
to the costs and expenses of performance of the other covenants of the Subtenant as herein provided. The Subtenant agrees, in any such case, whether or not the Sublandlord has relet the Subleased Premises, to immediately pay to the Sublandlord on an
accelerated rent basis such damages equal to the rent and other sums required under this Sublease to be paid by the Subtenant without any obligation on Sublandlord’s part to bring separate actions to recover the monthly installments of rental
due hereunder, but subject to Sublandlord’s duty to mitigate its damages hereunder. Sublandlord agrees that in the event that Subtenant’s payment of accelerated rent precedes Sublandlord’s receipt of mitigation rent for the Subleased
Premises, Sublandlord shall pay to Subtenant the amounts to which it would otherwise be entitled to as a credit or offset hereunder; provided, however, that Sublandlord’s failure to immediately re-let the Subleased Premises shall not act to
prevent Sublandlord’s exercise of any of its rights hereunder, including but not limited to acceleration of Subtenant’s rental obligation. In the event any reletting is at a rental amount greater than that amount reserved herein at the
time of Subtenant’s Default, the Subtenant shall not be entitled to receive, by way of direct payment or credit against the Subtenant’s obligations, any surplus accruing as a result of any such reletting. In attempting to 

  

 - 10 - 

 
relet the Subleased Premises as aforesaid, the Sublandlord may grant rent and other concessions. No such reletting shall constitute a surrender and
acceptance or be deemed evidence thereof. In no event shall occupancy by the Sublandlord be construed as a release of the Subtenant’s liability hereunder. 
  

(ii) Acceleration. The Sublandlord shall have the right upon the Subtenant’s Default to declare the entire remaining unpaid Rent and all other
then known Additional Rent and other payments required of the Subtenant by this Sublease for the full balance of the Term to be immediately due and payable. Such declaration of acceleration shall be made by written notice by the Sublandlord to the
Subtenant in accordance with the notice provisions of this Sublease. Upon receipt of such declaration of acceleration, the Subtenant shall immediately pay to the Sublandlord, without further demand or notice, an amount equal to the sum of the entire
remaining unpaid Rent provided for under this Sublease for the entire Term, plus the entire remaining balance of all unpaid Additional Rent required under this Sublease for the entire Term to the extent the amount of such other payments are then
known or reasonably determinable. Upon timely payment of all the sums hereinabove provided in this Subparagraph (b), the Subtenant shall have the right to continue to possess, occupy and enjoy the Subleased Premises for the remaining balance of the
then current term, subject to strict observance by the Subtenant of all the covenants, conditions and other provisions of this Sublease and the timely payment of all other payments required by the Subtenant by this Sublease, and so long as the
Subtenant has not vacated or abandoned the Subleased Premises. If Subtenant has vacated the Subleased Premises, Sublandlord shall be entitled to terminate this Sublease, re-enter and relet the Subleased Premises pursuant to the provisions of
subparagraph (a), above, but shall retain its right to accelerate the rent. If the Sublandlord shall declare an acceleration as provided in this Subparagraph (b) and the amounts due hereunder shall not be paid within ten (10) days following the
Subtenant’s receipt of such declaration, the Sublandlord, at the Sublandlord’s sole option, may exercise the Sublandlord’s right to terminate this Sublease as provided in Subparagraph (a) hereof, in which event the Sublandlord shall
be entitled to the full benefits and enforcement of Subparagraph (a). 
  
 (iii) Waiver of Jury Trial and Right of Redemption. The Subtenant hereby waives its right to a jury trial and waives all right of redemption to which the Subtenant or any person under the Subtenant or any successor in interest to the
Subtenant might be entitled by any law now or hereafter in force. 
  
 (iv) Right to Distraint. Upon five (5) days prior notice to Subtenant, the Sublandlord may distrain against any personal property of the Subtenant in or on the Subleased Premises in the event of a monetary Default. The Subtenant hereby
specifically and expressly waives any and all right to a hearing prior to the Sublandlord’s exercise of such distraint remedy. Notwithstanding anything herein to the contrary, Sublandlord shall not use its right of distraint as set forth in
this Subparagraph 8(b)(iv) until after it has exercised its rights as set forth in Subparagraph (8)(b)(i) or 8(b)(ii) and all of the notice and cure periods have expired without Subtenant effecting a cure. 
  

 - 11 - 

 (v) Other Remedies. The remedies provided to the Sublandlord under this Sublease are cumulative and are
in addition to any remedies allowed by law or in equity. 
  
 9.
SECURITY DEPOSIT 
  
 (a) Concurrently with execution
of this Sublease, Subtenant shall deposit with Sublandlord the sum of Fifty Six Thousand Four Hundred Five and 00/100 Dollars ($56,405.00), the same to be held by Sublandlord as security for the full and faithful performance of every portion of this
Sublease to be performed by Subtenant. If Subtenant Defaults after the expiration of all notice and cure periods with respect to any provision of this Sublease, Sublandlord may use, apply or retain all or any portion of this security deposit as is
necessary to remedy such Default. If any portion of said deposit is so used or applied, Subtenant shall, within ten (10) business days after notice from Sublandlord, promptly deposit cash with Sublandlord in an amount sufficient to restore the
security deposit to its original amount, and Subtenant’s failure to do so shall be a material breach of this Sublease. Sublandlord shall not be required to keep this security deposit separate from its general funds, and Subtenant shall not be
entitled to interest on such deposit. Subtenant shall have no right to use all or any portion of the Security Deposit as a rental payment unless consented to by Sublandlord in writing. 
  
 (b) Provided that Subtenant is not in Default at the expiration or other termination of this Sublease, the security deposit,
or any balance thereof, shall be returned to Subtenant within thirty (30) days after both the (i) Expiration Date and (ii) return of the Subleased Premises to Sublandlord in the condition required by this Sublease, less only that portion, if any,
accessed and retained by Sublandlord pursuant to Paragraph 9(a) above. In the event of an assignment of the Prime Lease by Sublandlord, Sublandlord shall have the right to transfer the Security Deposit to the assignee, the assignee shall
recognize Subtenant’s rights under this Sublease, and upon notice thereof to Subtenant, Sublandlord shall thereupon be released by Subtenant from all liability for the return of such Security Deposit only after such new sublandlord or other
transferee has acknowledged in writing to Subtenant that it has taken possession of the full amount of the Security Deposit, or Sublandlord provides to Subtenant other evidence reasonably satisfactory to Subtenant that such Security Deposit has been
delivered to the transferee; and then Subtenant agrees to look to the new sublandlord solely for the return of said Security Deposit; and it is agreed that the provisions hereof shall apply to every transfer or assignment made of the Security
Deposit to a new sublandlord. 
  
 (c) Subtenant further covenants
that it will not assign or encumber or attempt to assign or encumber the monies deposited herein as Security Deposit, and that neither Sublandlord nor its successor or assigns shall be bound by any such assignment, encumbrance, attempted assignment
or attempted encumbrance. 
  
 10. CONDITION OF PREMISES

  
 Subtenant acknowledges that it has examined the Subleased
Premises and is taking the Subleased Premises, including all existing leasehold improvements of Sublandlord 

  

 - 12 - 

 
existing on the date of this Sublease, in their “AS IS” condition on the date hereof, with no representations or warranties by Sublandlord of any
kind as to the condition of the Subleased Premises or its suitability for any particular use. Without limiting the foregoing, Subtenant acknowledges that it has inspected (i) the condition and capacities of all Building Systems, (ii) all structural
components of the Buildings, including the foundation, load bearing walls, and roof supports, (iii) the roof membrane of the Buildings, (iv) all interior partitions walls, interior doors, exterior doors, door hardware, lobby areas, basements,
mechanical rooms, stairways, equipment closets, interior and exterior windows, fixtures, paint, wall coverings, cabinets, millwork, window treatments, carpeting and other flooring. Subtenant agrees that Sublandlord has no construction obligations
whatsoever with respect to Subtenant’s occupancy of the Subleased Premises, nor is Sublandlord required to contribute any money in connection with any tenant improvement work to be performed by Subtenant (which work is subject to Sublandlord
and Prime Landlord’s prior written approval as provided elsewhere in this Sublease). To the best of Sublandlord’s knowledge, there are no material defects in the Subleased Premises which would affect the habitability of the Subleased
Premises. All references in this Sublease to the “actual knowledge” or “knowledge” of Seller shall refer only to the current (i.e., upon execution of this Sublease) actual knowledge of the Designated Representative (as
hereinafter defined), and shall not be construed to refer to the knowledge of any other office, officers, agent or employee of Sublandlord or any affiliate thereof or, except for the inquiry set forth above, to impose upon such Designated
Representative any duty to investigate the matter to which such actual knowledge, or the absence thereof, pertains. The representations and warranties hereunder are made ONLY as to the actual knowledge of the Designated Representative and NOT
as to or based upon the contents of any such files, documents, materials or any other files, documents or materials in the other office of Sublandlord. For purposes of this Sublease, the term “Designated Representative” shall mean Craig
Schuck. 
  
 11. ALTERATIONS 
  
 Subtenant shall not make any alterations, improvements or installations in
or to the Subleased Premises (including any initial alterations to prepare the Subleased Premises for Subtenant’s occupancy) without first obtaining the written consent of (i) Sublandlord, and (ii) Prime Landlord, where required pursuant to the
Prime Lease. Any alterations, improvements or installations consented to by Sublandlord and Prime Landlord shall be made at the sole cost and expense of Subtenant. Subtenant shall have a duty to restore the Subleased Premises to the condition as was
originally delivered by Sublandlord to Subtenant, which will require the removal of Subtenant’s alterations, at Subtenant’s sole cost and expense, unless Prime Landlord agrees in writing that no restoration is required. 
  
 12. REPAIRS AND MAINTENANCE 
  
 Any repair and maintenance obligations with respect to the Subleased
Premises which are the responsibility of the Sublandlord, as tenant under the Prime Lease, shall be performed by Subtenant at Subtenant’s sole cost and expense. Subtenant agrees that it will notify Sublandlord promptly of the need for any
repair to the Subleased Premises, even if Sublandlord 

  

 - 13 - 

 
is not responsible for any such repair. Notwithstanding anything contained herein to the contrary, in the event that a condition exists in the Subleased
Premises that Prime Landlord is obligated to repair under the terms of the Prime Lease, Subtenant shall so advise Sublandlord, and Sublandlord, in turn, shall promptly advise Prime Landlord thereof and Sublandlord shall reasonably cooperate with
Subtenant to encourage Prime Landlord to perform its obligations under the Prime Lease. Sublandlord shall have no liability to Subtenant for Prime Landlord’s failure to make any such repair and Subtenant shall not be entitled to any rent
abatement or reduction as a result of Prime Landlord’s failure. 
  
 13. UTILITIES AND SERVICES 
  
 (a)
Subtenant shall be entitled to all those services and utilities which Prime Landlord is required to provide under the terms of the Prime Lease. Subtenant shall look solely to the Prime Landlord for the provision of such services and utilities, and
Sublandlord shall not be responsible for Prime Landlord’s failure to provide the same nor shall any such failure constitute an abrogation of any other terms or conditions of this Sublease. Subtenant shall pay 100% of Sublandlord’s
charges for Building 3 utilities under the Prime Lease directly to Prime Landlord. To the extent that Prime Landlord charges Sublandlord for any services or utilities or increases the cost of such services or utilities and such charge or increase is
due to Subtenant’s use of the Subleased Premises or such utilities or services, Subtenant agrees to pay the charges therefore promptly upon receipt of Sublandlord’s bill. 
  
 (b) Sublandlord and Subtenant acknowledge and agree that, pursuant to Paragraph 11.2 of the Prime Lease, Sublandlord
is entitled to a proportionate abatement of Rent due under the Prime Lease if the Premises are rendered untenantable, in whole or in part, for a period of two (2) consecutive business days (“Eligibility Period”) by the making of
repairs, replacements or additions by Prime Landlord that interrupt utility services to the Premises. Sublandlord and Subtenant agree that if the Base Rent due under the Prime Lease is abated pursuant to the terms of Paragraph 11.2 of the
Prime Lease, and the Subleased Premises are untenantable in whole or in part for a period equal to or greater than the “Eligibility Period”, then the Base Rent due hereunder shall also abate in proportion to the rentable square footage of
the Subleased Premises which is untenantable, bears to the total rentable square footage of the Subleased Premises, to the extent Sublandlord is similarly excused from the obligation to pay rent for such portion of the Sublet Space under the Prime
Lease. 
  

 - 14 - 

 14. ASSIGNMENT AND SUBLEASING 
  
 (a) Subtenant shall not have the right to assign this Sublease or sublet the
Subleased Premises, in whole or in part, without the prior written consent of Sublandlord, which consent shall not be unreasonably withheld, conditioned or delayed provided that Prime Landlord consents to such assignment or sublease.
Subtenant’s right to assign or sublet is subject to Prime Landlord’s recapture right pursuant to subparagraph 12.1 of the Prime Lease. 
  
 (b) The consent by Sublandlord to any assignment or to any sublease or occupancy of the Subleased Premises by any other party than Subtenant, or any part
thereof, shall not be deemed to relieve or release (i) Subtenant from the full performance and observance by Subtenant of all of its obligations under this Sublease, or (ii) Subtenant or any assignee or sublessee of Subtenant from the obligation of
obtaining the consent in writing of Sublandlord and Prime Landlord to any further assignment, sublease or occupancy. Subtenant shall pay to Sublandlord upon demand, (x) any cost, expense or fee of Prime Landlord charged to Sublandlord or to
Subtenant which is required to be paid in connection with any assignment, subletting or occupancy pursuant to this Paragraph 14, and (y) any reasonable actual cost or expense of Sublandlord which is incurred by Sublandlord in connection with any
request for consent to any assignment, subletting or occupancy pursuant to this Paragraph, including but not limited to attorneys’, architects’ accountants’, or other consultants’ fees. 
  
 (c) In the event that Subtenant shall desire Sublandlord’s consent to an
assignment of this Sublease or to a subletting of all or any part of the Subleased Premises, Subtenant shall request such consent by submitting to Sublandlord a proposal setting forth the terms and conditions of the assignment or sublease and
financial information with respect to the assignee or sublessee, and such other information as Sublandlord may reasonably require. 
  
 (d) In the event that Sublandlord and Prime Landlord shall grant their consent to subletting all or part of the Subleased Premises or an assignment of
this Sublease, Subtenant shall, in consideration therefor, promptly pay to Sublandlord as additional rent, as and when received by Subtenant, fifty percent (50%) of the Net Profit (as hereinafter defined), if any, and deliver to Sublandlord an
executed copy of such assignment or sublease. The term, “Net Profit” shall mean (i) in the case of a sublease, the amount by which the amounts payable to Subtenant by any subtenant of Subtenant for rent and additional rent or other
consideration paid under the sublease (including, but not limited to, sums paid for the sale or rental of Subtenant’s fixtures, leasehold improvements, equipment, furniture, furnishings or other personal property, to the extent that such sums
are in excess of the fair market value thereof) exceed the amounts payable by Subtenant to Sublandlord for Base Rent and additional rent in connection with the sublet portion of the Subleased Premises, and (ii) in case of an assignment, an amount
equal to any amounts paid by any assignee of Subtenant, to Subtenant, as consideration for said assignment (including, but not limited to, sums paid for the sale or rental of Sublandlord’s fixtures, leasehold improvements, equipment, furniture,
furnishings or other personal property) less, in either case, the reasonable and customary real estate brokers commissions, marketing expenses, any improvement allowance or other economic concession (planning allowance, moving expenses, etc.), paid
by Subtenant to its sublessee or assignee and attorneys’ fees incurred by Subtenant in connection therewith. 
  

 - 15 - 

 (e) If this Sublease shall be assigned or if the Subleased Premises, or any part thereof, shall be sublet
or occupied by any person or persons other than Subtenant, whether or not such assignment, sublet or occupancy was made with the consent of Sublandlord, Sublandlord may after an event of Default by Subtenant, collect rent from the assignee,
subtenant or occupant and apply the net amount collected to the rent herein reserved, but no such assignment, subletting, occupancy or collection of rent shall be deemed a waiver of any of the covenants, terms or provisions contained in this
Section, nor shall it be deemed an acceptance of the assignee, subtenant or occupant as subtenant hereunder, or a release or Subtenant from the full performance and observance by Subtenant of all of the covenants and obligations contained in this
Sublease on the part of Subtenant to be performed or observed. 
  
 15. INSURANCE 
  
 Subtenant agrees to
comply with all of the insurance requirements and obligations of Sublandlord as set forth in the Prime Lease and to name both Sublandlord and Prime Landlord as additional insureds on any required insurance policies. Subtenant shall furnish to
Sublandlord a certificate or certificates of insurance at or before the Commencement Date and, on request, at reasonable intervals thereafter. 
  
 16. COMPLIANCE WITH LAWS 
  
 (a) In addition to any obligations under the Prime Lease, Subtenant shall promptly comply with all statutes, ordinances, rules, orders, regulations and
requirements of the Federal, State and municipal Governments and of any and all their Departments and Bureaus applicable to the use and occupancy of the Subleased Premises by Subtenant or any subtenant or assignee of Subtenant, for the correction,
prevention and abatement of nuisances, violations or other grievances, in, upon or connected with the Subleased Premises during the Term or any renewal thereof, including without limitation all laws relating to environmental matters and the
Americans with Disabilities Act, and shall also promptly comply with, and execute all rules, orders and regulations of the Board of Fire Underwriters for the prevention of fires (collectively referred to as “Legal Requirements”) at
its own cost and expense. Nothing in this paragraph shall be deemed a consent to the alteration, subletting or assignment of all or any portion of the Subleased Premises or of all or any of Subtenant’s interests in this Sublease. 
  
 (b) If Subtenant shall fail or neglect to comply with the aforesaid Legal
Requirements, or if Subtenant shall fail or neglect to make any repairs required by the terms of this Sublease, then Sublandlord or its agents may (but shall not be obligated to) enter the Subleased Premises and take such actions as necessary to
cure the breach and comply with any and all of the said Legal Requirements, at the cost and expense of Subtenant; and, in case of Subtenant’s failure to pay therefor, the said cost and expense shall be added to the next month’s Rent and be
due and payable as such. 
  

 - 16 - 

 (c) Sublandlord represents and warrants that as of the Commencement Date it has not received written
notice of any violation of any Legal Requirement with respect to the Subleased Premises. 
  
 17. LIMITATIONS ON SUBLANDLORD’S LIABILITY 
  
 (a) Subtenant acknowledges that Sublandlord has made no representations or warranties with respect to the Building or the Subleased Premises except as provided in this Sublease and Subtenant accepts the Subleased
Premises in its “AS IS” condition. 
  
 (b) If
Sublandlord assigns its leasehold estate in the Building, Sublandlord shall have no obligation to Subtenant arising after the date of such assignment provided that Sublandlord’s assignee recognizes Subtenant’s rights under this Sublease.
Subtenant shall then recognize Sublandlord’s assignee as Sublandlord of this Sublease. 
  
 (c) Sublandlord shall not be required to perform any of the covenants and obligations of the Prime Landlord under the Prime Lease, and insofar as any of the obligations of the Sublandlord hereunder are required to be
performed under the Prime Lease by the Prime Landlord thereunder, Subtenant shall rely on and look solely to the Prime Landlord for the performance thereof. If the Prime Landlord shall Default in the performance of any of its obligations under the
Prime Lease or breach any provision of the Prime Lease pertaining to the Subleased Premises, Subtenant shall have the right, at Subtenant’s expense and upon prior notice to Sublandlord, and in the name of Sublandlord to make any demand or
institute any action or proceeding, in accordance with and not contrary to any provision of the Prime Lease, against the Prime Landlord under the Prime Lease for the enforcement of the Prime Landlord’s obligations thereunder. Subtenant shall
defend, indemnify and hold Sublandlord harmless from and against any suit, action, cost, expense, damage or liability which arises out of or results from or is alleged to arise out of or result from Subtenant’s exercise of its rights under this
paragraph. Sublandlord shall, at no cost to Sublandlord, cooperate with Subtenant in enforcing the its rights under the Prime Lease. 
  
 18. ESTOPPEL CERTIFICATES 
  
 Either party hereto (the requested party) agrees that from time to time upon not less than ten (10) days prior notice by the other party (requesting
party), the requested party or its duly authorized representative having knowledge of the following facts will deliver to the requesting party, or to such person or persons as the requesting party may designate, a statement in writing certifying (a)
that this Sublease is unmodified and in full force and effect (or if there have been modifications, that the Sublease as modified is in full force and effect); (b) the date to which the Rent and other charges have been paid; (c) that to the best of
the requested party’s knowledge, the requesting party is not in Default under any provision of this Sublease or if in Default, the nature thereof in detail. 
  

 - 17 - 

 19. SUBORDINATION 
  
 (a) This Sublease shall be automatically subject and subordinate to the Prime Lease, any ground lease and to any mortgage or
deed of trust thereon or on the fee simple interest in the Building or the land on which the Building is located. This Paragraph 19 shall be self-operative and no further instrument of subordination shall be required, it being understood that
neither Prime Landlord nor Sublandlord shall be obligated to provide Subtenant with any non-disturbance agreement. To confirm such subordination, Subtenant shall execute within ten (10) days after demand, or such shorter period as may be required
under the Prime Lease, any reasonable certificate, agreement or instrument that Prime Landlord requests Subtenant to execute pursuant to the terms of the Prime Lease. 
  
 (b) Notwithstanding anything contained herein to the contrary, Sublandlord shall use commercially reasonable efforts to
obtain and deliver to Subtenant a written subordination and non-disturbance agreement (“SNDA”) from Prime Landlord providing that so long as Subtenant performs all of the terms, covenants and conditions of this Sublease and agrees
to attorn to Prime Landlord, Subtenant’s rights under this Sublease shall not be disturbed and shall remain in full force and effect for the Term in the event the Prime Lease is terminated as a result of a Default by Sublandlord. Sublandlord
shall have no liability to Subtenant for the failure of Prime Landlord to deliver a SNDA and Sublandlord’s failure to obtain the SNDA shall in no way delay the Commencement Date or otherwise affect Subtenant’s obligations under this
Sublease. 
  
 20. CASUALTY AND CONDEMNATION

  
 If the Prime Lease is terminated with respect to the
Subleased Premises pursuant to the provisions of the Prime Lease, this Sublease shall automatically terminate at the same time and Subtenant shall have no claim against Sublandlord or Prime Landlord for the loss of its subleasehold interest or any
of Subtenant’s property. If the Prime Lease is not terminated with respect to the Subleased Premises upon the occurrence of a casualty or condemnation, the provisions of the Prime Lease with respect to casualty or condemnation shall apply to
this Sublease and the Subleased Premises. 
  
 21. CONSENT OR
APPROVAL OF PRIME LANDLORD 
  
 If the consent or approval
of Prime Landlord is required under the Prime Lease with respect to any matter relating to the Subleased Premises, Subtenant shall be required first to obtain the consent or approval of Sublandlord with respect thereto and, if Sublandlord grants
such consent or approval, Sublandlord or Subtenant may forward a request for consent or approval to the Prime Landlord, but Sublandlord shall not be responsible for obtaining such consent or approval. Sublandlord shall have no liability to Subtenant
for the failure of Prime Landlord to give its consent. 
  

 - 18 - 

 22. NOTICES 
  
 All notices given pursuant to the provisions of this Sublease shall be in writing, addressed to the party to whom notice is
given and sent registered or certified mail, return receipt requested, in a postpaid envelope or by nationally recognized overnight delivery service as follows: 
  
 To Subtenant: 
  
 INTERSIL CORP. 
 Attn: Contracts Dept.

 2401 Palm Bay Rd. NE, m/s 53-170 
 Palm Bay, FL 32905 
  
 With copies to: 
  
 INTERSIL CORP. 
 Attn: V.P. of Operations 
 933 Murphy Ranch
Road 
 Milpitas, CA 95035 
  
 and 
  
 INTERSIL CORP. 
 Attn: Legal Dept.

 2401 Palm Bay Rd., NE, m/s 53-209 
 Palm Bay, FL 32905 
  
 and 
  
 Wayne C. Lamb 
 CRESA Partners 
 610 Newport Center Drive,
Fifth Floor 
 Newport Beach, CA 92660 
  

 - 19 - 

 To Sublandlord at the following address: 
  
 Avaya Inc. 
 c/o CB Richard Ellis, Inc. 
 c/o CB Richard Ellis Lease Advisors 
 1080 Nimitzview Drive, Ste 304 
 Cincinnati,
Ohio 45230 
  
 With copies to: 
  
 Avaya Inc. 
 Vice President – Corporate and Securities 
 211 Mount Airy Road 
 Basking Ridge, New Jersey 07920 
  
 -and- 
  
 Avaya Inc. 
 Director of Global Real Estate

 211 Mount Airy Road 
 Basking
Ridge, New Jersey 07920 
  
 It is understood and agreed that
unless specifically modified by this Sublease, Sublandlord shall be entitled to the length of notice required to be given Prime Landlord under the Prime Lease plus five (5) days and shall be entitled to give Subtenant the amount of notice required
to be given tenant under the Prime Lease less five (5) days. All notices shall be deemed given upon receipt or rejection. 
  
 Either party by written notice to the other may change or add persons and places where notices are to be sent or delivered. 
  
 23. BROKERS 
  
 The parties warrant that they have had no dealings with any real estate
broker or agent in connection with this Sublease other than CB Richard Ellis and The Staubach Company and Cresa Partners-West (collectively, the “Broker”). Each party covenants to pay, hold harmless and indemnify the other from and against
any and all costs, expenses or liabilities for any compensation, commissions and charges claimed by any other broker or agent with respect to this Sublease or the negotiation thereof, based upon alleged dealings with the indemnifying party.
Sublandlord agrees to pay the commission of the Broker in accordance with separate agreements. 
  
 24. SUBLANDLORD’S AND SUBTENANT’S POWER TO EXECUTE 
  
 Sublandlord (subject to Prime Landlord’s consent) and Subtenant covenant, warrant and represent that they have full power and proper authority to
execute this Sublease. 
  

 - 20 - 

 25. TABLE OF CONTENTS - CAPTIONS 
  
 The Table of Contents and the captions appearing in this Sublease are
inserted only as a matter of convenience and do not define, limit, construe or describe the scope or intent of the sections of this Sublease nor in any way affect this Sublease. 
  
 26. CONSENT TO SUBLEASE BY PRIME LANDLORD 
  
 This Sublease shall not become operative until and unless the Prime Landlord has given to Sublandlord its consent hereto.
Sublandlord shall not be responsible for Prime Landlord’s failure to consent to this Sublease. Should Prime Landlord not consent to this Sublease, each party shall be released from all obligations with respect hereto and neither party shall
have any further rights in law or in equity with respect to this Sublease. 
  
 27. ENTIRE AGREEMENT 
  
 This Sublease (which includes each of the Exhibits attached hereto) contains the entire agreement between the parties and all prior negotiations and agreements are merged into this Sublease. This Sublease may not be changed, modified,
terminated or discharged, in whole or in part, nor any of its provisions waived except by a written instrument which (a) shall expressly refer to this Sublease and (b) shall be executed by the party against whom enforcement of the change,
modification, termination, discharge or waiver shall be sought. 
  
 28. HOLDING OVER 
  
 If Subtenant holds
over after the Expiration Date or the earlier termination of the Term of this Sublease without the express written consent of Sublandlord, Subtenant shall become a tenant of sufferance only, at a rental rate determined as follows: (i) if such
holdover does not cause Sublandlord to hold over under the Prime Lease, then such rental rate shall be one hundred fifty percent (150%) of the Rent payable to Sublandlord for the immediately preceding calendar month, and (ii) if such holdover causes
Sublandlord to hold over under the Prime Lease, then such rental rate shall be one hundred fifty percent (150%) of all holdover rent that Sublandlord is required to pay to Prime Landlord under the Prime Lease. Sublandlord hereby advises Subtenant
that the Term of the Prime Lease ends one day after the Expiration Date, and Subtenant acknowledges the importance to Sublandlord of regaining possession of the Subleased Premises at the Expiration Date. Nothing in this Sublease to the contrary
shall limit Sublandlord’s remedies hereunder or Sublandlord’s right to recover damages from Subtenant accruing to Sublandlord as tenant under the Prime Lease, in the event Subtenant holds over in the Subleased Premises after the expiration
of the Term of this Sublease. If Subtenant fails to surrender the Subleased Premises to Sublandlord on or before the Expiration Date, Subtenant shall indemnify and hold Sublandlord harmless from all loss or liability, including without limitation,
any claim made by Prime Landlord or any successor tenant resulting from Subtenant’s failure to surrender the Subleased Premises and any attorneys fees and costs incurred by Sublandlord and Prime Landlord. 
  

 - 21 - 

 29. RULES AND REGULATIONS 
  
 Subtenant shall comply with all rules and regulations regarding the Subleased Premises and the Building as may be prescribed
by Sublandlord and Prime Landlord including without limitation, the rules and regulations set forth in the Prime Lease provided, however, the rules and regulations prescribed by the Sublandlord shall not adversely effect the Subtenant’s ability
to use and occupy the Subleased Premises for the purposes set forth herein. 
  
 30. GOVERNING LAW 
  
 The exercise, validity, construction, operation and effect of the terms and provisions of this Sublease shall be determined and enforced in accordance with the laws of the state where the Subleased Premises is located. 
  
 31. NO AUTHORITY 
  
 The Subtenant has no authority to contact or make any agreement with the
Prime Landlord about the Subleased Premises or the Prime Lease, unless agreed to by all the parties. No purported agreement between Prime Landlord and Subtenant shall be binding upon Sublandlord, and shall not act to increase or modify
Sublandlord’s obligations or liabilities under the Prime Lease, unless and except Sublandlord has documented its agreement in a signed writing. The Subtenant may not pay rent or other charges to the Prime Landlord, but only to the Sublandlord,
unless otherwise instructed in a written notice signed by Sublandlord. 
  
 32. SUCCESSORS 
  
 Unless otherwise
stated, the Sublease is binding on all parties who lawfully succeed to the rights or take the place of the Sublandlord or the Subtenant. 
  

 - 22 - 

 33. PERSONAL PROPERTY 
  
 Subtenant and Sublandlord have agreed that Subtenant shall have the right to use at no additional charge to
Subtenant, certain furniture, equipment and other items currently located in the Subleased Premises as more specifically set forth on Exhibit C (the “Personal Property”) attached hereto and made a part hereof. Subtenant shall
pay any personal property taxes with respect to the Personal Property during the Term of this Sublease. The Subtenant will bear the risk of loss of all items of the Personal Property from theft, fire or other casualty from the Commencement Date of
this Sublease. The Subtenant acknowledges that the Subtenant has made a full and complete inspection of the Personal Property, and the Subtenant accepts the Personal Property in its present “AS IS” condition as of the Commencement Date of
this Sublease. The Sublandlord disclaims all warranties, express or implied, with regard to the Personal Property. The Sublandlord specifically disclaims any warranty of merchantability or fitness for a particular purpose. If Subtenant desires to
move or dispose of the Personal Property or reconfigure the furniture systems at anytime during the Term of this Sublease, Subtenant must provide prior written notice to Sublandlord and Sublandlord shall have the right to withhold its consent in its
reasonable discretion. If required by Sublandlord, Subtenant shall dispose of, at its sole cost and expense, the Personal Property at the end of the Term of this Sublease. At the end of the Term, Subtenant shall have the right to purchase the
Personal Property to the extent and on the terms permitted by the Prime Lease. 
  
 34. PARKING 
  
 During the Term, and subject to the rules and regulations attached to the Prime Lease as Exhibit B and incorporated into this Sublease, Subtenant shall be entitled to use 23.64% of the unreserved parking spaces available to Sublandlord
(which the parties agrees equals 109 spaces at the execution of this Sublease) in the parking area of the Project at the locations shown more particularly on Exhibit D attached hereto without charge. Subtenant’s parking area may be
relocated from time to time by the Sublandlord (if required by Prime Landlord) or Prime Landlord for a period not to exceed sixty (60) days, provided that the parking spaces remain within the Project. If Subtenant commits or allows in the parking
areas any of the activities prohibited by the Prime Lease or this Sublease, then Sublandlord shall have the right, without notice, in addition to such other rights and remedies that it may have, to remove or tow away the vehicle involved and charge
the cost to the offending vehicle owner. Subtenant shall not transfer or assign its parking rights separate and apart from this Sublease. 
  
 35. SUBTENANT’S TERMINATION OPTION 
  
 (a) Notwithstanding anything to the contrary contained in this Sublease, on the condition that Subtenant is not in Default after the expiration of all
applicable notice and cure periods of its covenants or obligations under this Sublease following notice and an opportunity to cure, both as of the time that Subtenant gives Subtenant’s Termination Notice (as hereinafter defined) and as of the
Effective Termination Date (as hereinafter defined) then Subtenant shall have the right (“Subtenant’s Termination Right”), to terminate the term of this Sublease at 

  

 - 23 - 

 
anytime after September 29, 2009 (“Effective Termination Date”) provided that (i) Subtenant provides no less than nine (9) months written
notice to Sublandlord (“Subtenant’s Termination Notice”) and (ii) Subtenant pays to Sublandlord concurrently with Subtenant’s Termination Notice a termination fee equal to Three Hundred Eighty Six Thousand Nine Hundred
Eighty Six Dollars and 08/100 ($386,986.08) (“Termination Fee”). 
  
 (b) If Subtenant timely and properly exercises Subtenant’s Termination Right hereunder and timely pays to Sublandlord the Termination Fee, then the term of this Sublease shall terminate as of the Effective
Termination Date, and Rent and other charges shall be apportioned as of said Effective Termination Date. If Subtenant fails timely to exercise Subtenant’s Termination Right or fails timely to pay the Termination Fee, then, in addition to any
other remedies to which Sublandlord is entitled, Sublandlord shall have the right to render Subtenant’s Termination Notice void and of no force or effect. 
  

36. SIGNAGE 
  
 Subject to the consent of Prime Landlord, Subtenant shall have the right to an interior lobby sign on the first floor, shared wall signage at the entrance
of Building 3 and its pro-rata share of monument signage at the central entrance to the Project. Subtenant shall be responsible for the installation, maintenance, repair and removal of such signage at its sole cost and expense. The sign standards
are attached hereto as Exhibit E. 
  
 37.
MISCELLANEOUS 
  
 (a) The headings of the articles and
the numbers of the items in this Sublease are inserted as a matter of convenience to the parties and shall not affect the construction of this Sublease. 
  
 (b) The terms, conditions, covenants and provisions of this Sublease shall be deemed to be severable. If any clause or provision herein contained shall be
adjudged to be invalid or unenforceable by a court of competent jurisdiction or by operation of any applicable law, it shall not affect the validity of any other clause or provision herein, but such other clauses or provisions shall remain in full
force and effect. In addition, Sublandlord may pursue the relief or remedy sought in any invalid clause, by conforming the said clause with the provisions of the statutes or the regulations of any governmental agency in such case made and provided
as if the particular provisions of the applicable statutes or regulations were set forth herein at length. 
  
 (c) In all references herein to any parties, person, entities or corporations the use of any particular gender or the plural or singular number is
intended to include the appropriate gender or number as the context of the within instrument may require. All the terms, covenants and conditions herein contained shall be for and shall inure to the benefit of and shall bind the parties hereto, and
their respective heirs, executors, administrators, personal or legal representatives, successors and assigns. 
  

 - 24 - 

 d) Should Sublandlord discontinue operation of the Cafeteria Space pursuant to Paragraph 1(b)
herein, Subtenant shall have the right, but not the obligation, to either: (i) assume operation of the Cafeteria Space, subject to Prime Landlord’s approval under Paragraph 2.1(c) of the Prime Lease, or (ii) convert such space to an
alternate, authorized usage pursuant to Paragraph 7(a) herein, neither of which affect Sublandlord’s obligation for the payment of rent on the Cafeteria Space. 
  
 IN WITNESS WHEREOF, the parties hereto have caused this Sublease to be properly executed as of the day and year first above
written. 
  

					
	ATTEST/WITNESS:	 	SUBLANDLORD
	 	 	AVAYA INC.
			
	 /s/

	 	By:	 	 /s/

		
	 Pamela R. Klinger, Real Estate Paralegal

	 	 Andy Fellows, V.P.

	Name and Title	 	Name and Title
		
	ATTEST/WITNESS:	 	SUBTENANT
	 	 	INTERSIL CORP.
			
	 /s/

	 	By:	 	 /s/

		
	 Douglas A. Balog, Asst. Secretary

	 	 W.L. Strahlo, Director -Contracts

	Name and Title	 	Name and Title

  

 - 25 - 

 EXHIBIT A  
  
 DESCRIPTION OF SUBLEASED PREMISES 
  
 (PHYSICAL LAYOUT OF THE 2ND FLOOR) 
  

 - 26 - 

 EXHIBIT A-1  
  
 SPACE PLAN SHOWING BUILDING 3 
  

(PHYSICAL LAYOUT OF THE LOBBY AREA AND CAFETERIA SPACE) 
  

 - 27 - 

 EXHIBIT B  
  
 PRIME LEASE 
  
 (incorporated by reference to Exhibit 10.2 to the Quarterly 
 Report of Xicor, Inc. on Form 10-Q, November 13, 2002) 
  

 - 28 - 

 EXHIBIT C  
  
 LIST OF PERSONAL PROPERTY 
  
 (description of office furniture) 
  

 - 29 - 

 EXHIBIT D 
  
 PARKING 
  
 (Exhibit C to the Prime Lease) 
  

 - 30 - 

 EXHIBIT E  
  
 SIGNAGE STANDARDS 
  
 (photographs of monument signs and building signs) 
  

 - 31 -Sale and Purchase Agreement

 Exhibit 10.41 
  
 Sale and Purchase Agreement 
  
 This agreement is entered into this 12TH day of August, 2004 
  
 BY AND AMONG 
  

	•	 	RÜTGERS RAIL S.p.A., a company duly organized and existing under the laws of Italy, having its registered office in 83100 Avellino, at Via Pianodardine, Fiscal Code 01905290167
hereinafter referred to as “Seller” or “Rütgers Rail SpA”, which is subject to the direction and co-ordination of Rütgers AG, a German company with its registered office in Essen (Germany) hereby
represented by Dr. Bertrand Falque (President of the Board of Directors of Seller) and Dr. Thomas Altenbach, (member of the Board of Directors of the Seller). 

  
 - on one side - 
  
 AND 
  

	•	 	WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION, a company duly organized and existing under the laws of Delaware, having its principal office at 1001 Air Brake Avenue, Wilmerding,
PA 15148, (hereinafter referred to as “Purchaser”), hereby represented by Mr. Anthony J. Carpani, duly authorized; 

  
 - on the other side -. 
  
 Seller and Purchaser are also severally referred to as “Party” and collectively as “Parties”. 
  
 RECITALS 
  

	A.	Whereas, Seller is in the business of designing, developing, manufacturing, marketing and selling in Europe brake shoes, brake pads and related products and windows and interior
fittings for rail cars (the “Business”). 

  

	B.	Whereas, Purchaser wishes to purchase (directly or indirectly through a subsidiary) from Seller, and Seller wishes to assign, convey and transfer to Purchaser, substantially all of
the assets and properties held by Seller primarily relating to, used or held for use in connection with the Business upon the terms and subject to the conditions hereinafter set forth; 

 NOW, THEREFORE, the Parties hereby agree as follows: 
  
 ARTICLE 1 
  
 Premises, Enclosures and Schedules 
  
 The above recitals, as well as the enclosures and Schedules annexed to this Agreement and referred herein shall form an integral and substantial part hereof, and shall be
binding upon the Parties. 
  
 ARTICLE 2

  
 Certain Definitions 
  
 In addition to any other term defined in other parts of this Agreement, the following terms
shall have, for the purposes of this Agreement, the meanings set forth below. 
  

	2.0	“Accounting Principles” shall mean: (i) as to RÜTGERS Rail SpA, the Italian Accounting Principles (as defined below), which have been consistently applied by
RÜTGERS Rail SpA in respect of its last 2 (two) audited annual financial statements; (ii) as to any Subsidiary incorporated in a jurisdiction other than Italy, the accounting principles generally accepted in the country in which the relevant
company is incorporated, as consistently applied (in the case of Abex Rail S.A. in respect of its last 2 (two) audited annual financial statements), (iii) in all cases as amended and supplemented by the accounting principles and the application and
construction criteria set forth in Schedule 2.0 hereto, provided that, however, in any case such principles shall be sound and correct and applied in compliance with applicable Legal Requirements and (iv) Seller’s past practices consistently
applied. 

  

	2.1	“Affiliate” shall mean any entity or individual that directly or indirectly controls, is controlled by or is under common control with another entity or individual.
“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management policies of an entity whether through ownership of voting securities, by contract or otherwise.

  

	2.2	“Agreement” shall mean this agreement for the purchase and sale of the Business. 

  

 - 2 - 

	2.3	“Business Days” shall mean the days in which banks in Milan, Italy, are open for business. 

  

	2.4	“Cash” shall mean at the relevant date, the aggregate consolidated amount of any cash at hand and cash equivalents of Seller and the Subsidiaries. “Cash
equivalents” shall include, without limitation, any cheques, deposits with banks and other financial institutions, marketable securities of any kind (whether debt, equity or other), money market funds, other liquid and marketable investments,
or marketable shares in other investment funds. Cash shall also include any pre-payment of any tax made by the Seller and the Subsidiaries prior to the Effective Date with respect to any tax period ending after the Effective Date as specifically
described on Schedule 2.4. 

  

	2.5	“Closing” shall mean the actual transfer and delivery of the Assets to Purchaser and/or any person indicated by the Purchaser pursuant to Article 2.15, as well as the
other actions set forth under Article 7. 

  

	2.6	“Effective Date” shall mean 23.59 hours of the day before the day on which the Closing occurs. 

  

	2.7	The “Effective Date Net Worth” shall be calculated on the basis of the Effective Date Consolidated Balance Sheet, applying the same criteria as applied in the calculation
of the Reference Date Net Worth. 

  

	2.8	“Financial Statements” shall mean the audited financial statements of Seller together with the report thereon of PricewaterhouseCoopers LLP, independent certified
accountants, and Abex Rail S.A., together with the report thereon of KPMG, independent certified accountants, prepared in accordance with the respective Italian or French Accounting Principles as of and for the year ended December 31, 2003, as well
as the unaudited pro forma financial statements of the Rütgers Rail GmbH and the pro forma consolidated financial statements of Seller, Abex Rail S.A. and Rütgers Rail GmbH, together with the report thereon of PricewaterhouseCoopers LLP,
independent certified accountants, (the balance sheet included in such pro forma consolidated financial statements is hereinafter also referred to as “pro forma consolidated Reference Date Balance Sheet”) and all attached under Schedule
2.8 hereto. 

  

	2.9	“Independent Accountant” shall mean the firm of certified accountants named PricewaterhouseCoopers LLP, failing acceptance by such firm, the firm of certified accountants
named Deloitte & Touche, failing acceptance by such firm, the firm of certified accountants KPMG. 

  

	2.10	“Italian Accounting Principles” shall mean the Italian generally accepted accounting principles of the Consigli Nazionali dei Dottori Commercialisti e dei Ragionieri, and
in the lack of any such principles, the accounting principles of the International Accounting Standards Committee (IASC) consistently applied. 

  

 - 3 - 

	2.11	“Legal Requirement” shall mean any binding international, national, regional, provincial or local law, regulation or treaty. 

  

	2.12	“Liability” shall mean with respect to any person or entity, any liability or obligation of such person or entity of any kind, character or description, whether known or
unknown, absolute or contingent, accrued or unaccrued, disputed or undisputed, liquidated or unliquidated, secured or unsecured, joint or several, due or to become due, vested or unvested, executory, determined, determinable or otherwise, and
whether or not the same is required to be accrued on the financial statements of such person or entity. 

  

	2.13	“Material Adverse Change” shall mean the occurrence of any events or changes that result in, or may be reasonably likely to result in, (1) a loss, destruction or decrease
in value (other than normal wear and tear) of the assets of the Business, (2) additional Liabilities of the Business (other than Excluded Liabilities and other than contracts entered into in the ordinary course of business), (3) an effect on the
results of operations or financial condition of the Business as a whole or (4) changes in the Contracts, provided, that any of (i) through (iv) shall have a negative net effect individually of at least Euro 500,000, and in the aggregate of at least
Euro 1,400,000. For purposes of calculating the effects of such events or changes, the following principles shall apply: (i) the net aggregate effect of the changes or events shall be measured based on a 24 month period beginning on the date of
Closing, (ii) the individual net effect of any individual changes or events shall be measured based on any rolling twelve (12) month period within the 24 month period beginning on the date of Closing, (iii) a delay of a Contract of no more than 12
months shall not be considered to be a “negative effect,” and (iv) “Material Adverse Change” shall not include any change or effect attributable to general economic or industry conditions. “Net effect” shall mean any
negative effect offset by any new Contracts entered into prior to Closing.  

  

	2.14	“Proceeding” shall mean any action, arbitration, audit, hearing, investigation, litigation or suit (whether civil, criminal, administrative, judicial or investigative)
commenced, brought, conducted or heard by or before any governmental body or arbitrator. 

  

	2.15	“Purchaser” shall mean Westinghouse Air Brake Technologies Corporation, as better identified above, and/or that other entity controlled by Purchaser, in any case being
part of its group, which Purchaser reserves the possibility and right to designate according to Article 1401 of the Italian Civil Code, by and no later than fifteen (15) Business Days prior to Closing (hereinafter referred to as the
“Designated Purchaser”). Upon such designation and relevant acceptance by the Designated 

  

 - 4 - 

 Purchaser, all and any of Purchaser’s rights and all and any of Purchaser’s obligations
deriving from this Agreement shall be respectively automatically transferred and assigned to the Designated Purchaser, effective as of the date hereof, as if the Designated Purchaser originally executed this Agreement in place of Purchaser, it being
understood that Purchaser shall not be released of any of its obligations under this Agreement and shall be jointly and severally liable with the Designated Purchaser with respect to the Seller for any obligations arising from this Agreement.

  

	2.16	“Reference Date” shall mean December 31, 2003. 

  

	2.17	“Reference Date Net Worth” shall mean the amount equal to the difference between (i) the amount shown on the pro forma consolidated Reference Date Balance Sheet under the
heading “Total Assets” (disregarding any items reflected on the pro forma consolidated Reference Date Balance Sheet not transferred to Purchaser) and (ii) the amount shown on the pro forma consolidated Reference Date Balance Sheet under
the heading “Total Liabilities” (disregarding any Liabilities that are not Assumed Liabilities, even if reflected on the pro forma consolidated Reference Date Balance Sheet). 

  

	2.18	“Schedule” shall mean any schedule attached to this Agreement. 

  

	2.19	“Seller” shall have the meaning set forth in the Preamble. 

  

	2.20	“Sellers’ Knowledge” shall mean the knowledge of any member of the Board of Directors of Seller and the Subsidiaries and Thomas Altenbach, Michael Delansaye, Bertrand
Falque, Dr. Ing Sergio Russo, Karl Kever and Juergen Schroeder. 

  

	2.21	“Subsidiary” shall have the meaning set forth in Section 3.1(n). 

  

	2.22	“Tax” shall mean any form of taxes, assessments, charges, duties, fees, levies or other governmental charges including those relating to income, franchise, capital stock,
real property, personal property, tangible, withholding, employment, payroll, social security, social contribution, unemployment compensation, disability, transfer, sales, use, excise, gross receipts, value-added and all other taxes of any kind
levied pursuant to any applicable law by any governmental, regional, provincial or local government or municipality together with any interest or penalty thereto, but excluding any deferred tax. 

  

	2.23	“Tax Asset” shall mean any credit or tax item that can be carried forward or back as a tax loss to reduce any Tax. 

  

	2.24	“Tax Authority” shall mean any governmental authority in charge of imposing any Tax. 

  

 - 5 - 

	2.25	“Tax Period Before Effective Date” shall mean any Tax assessment period ending on or before the Effective Date. 

  

	2.26	“Tax Refund” shall mean any repayment of any Tax received by any Party and any claim for repayment of any Tax assessed in favour of any Party by a Tax Authority.

  

	2.27	“Tax Return” shall mean any return or declaration relating to any Tax, which must be made to a Tax Authority under applicable laws. 

  

	2.28	“Tax Saving” shall mean any decrease of any assessed Tax, including any increase of loss carry forwards, any depreciable, amortizable or accruable item or amount relevant
for the assessment of any present or future Tax, or any corporation tax credit. 

  

	2.29	“Transfer Agreements” shall mean the final agreements of sale and purchase of the Assets and Assumed Liabilities to be executed between the Seller and the Purchaser in
accordance with the applicable law. 

  
 ARTICLE
3 
  
 Sale and Purchase of the Assets, Purchase
Price 
 and Other Related Matters 
  

	3.1	Sale and Purchase. Upon the terms and subject to the conditions of this Agreement, at Closing, the Seller shall sell, assign and deliver to Purchaser, and Purchaser
shall purchase from the Seller, all right, title and interest of the Seller in and to the properties, assets and assignable rights of every nature, kind and description, tangible and intangible (including goodwill), whether now existing or acquired
by the Closing (other than the Excluded Assets) primarily relating to, used or held for use in connection with the Business on the Effective Date (collectively, the “Assets”), including without limitation the following items:

  

	 	(a)	all machinery, equipment, furniture, furnishings, automobiles, trucks, vehicles, tools, dies, molds and parts and similar property (including, but not limited to, any of the
foregoing purchased subject to any conditional sales or title retention agreement in favor of any other individual or entity), including those items described on Schedule 3.1(a); 

  

	 	(b)	all inventories of raw materials, work in process, finished products, goods, spare parts, replacement and component parts, and office and other supplies (collectively, the
“Inventories”), including without limitation Inventories held at any location controlled by the Seller or the Subsidiaries, Inventories previously purchased by the Seller and in transit to the Seller or the Subsidiaries at such
locations or otherwise held on behalf of the Seller at any other location, including those items described on Schedule 3.1(b); 

  

 - 6 - 

	 	(c)	all rights in and to products sold or leased by the Business (including, but not limited to, products hereafter returned or repossessed and unpaid Seller rights of rescission,
replevin, reclamation and rights to stoppage in transit); 

  

	 	(d)	all rights (including any and all IP Rights) in and to any products or applications under research or development prior to or on the Effective Date; 

  

	 	(e)	to the extent the assignment from the Seller to the Purchaser is admitted under applicable statutory or contractual provisions, or the respective other party or parties agree to and
do not oppose such assignment, all of the rights of Seller under all contracts, arrangements, licenses, leases and other agreements relating to the Business, including those items described in Schedule 3.1(e) (the “Contracts”) and
including, without limitation, the employment relationships with the members of the workforce in Avellino and Montefredane, any right to receive payment for products sold or services rendered, and to receive goods and services, pursuant to such
Contracts and to assert claims and take other rightful actions in respect of breaches, defaults and other violations of such Contracts and otherwise; 

  

	 	(f)	all credits, prepaid expenses, deferred charges, advance payments, security deposits and prepaid items relating to the Assets or the Business but excluding all such items of the
Seller which fall under the definition of Cash; 

  

	 	(g)	all accounts receivable held by Seller and all notes, bonds and other evidences of indebtedness of and rights to receive payments from any individual or entity held by Seller
including those items described in Schedule 3.1(g) but excluding all such items of the Seller which fall under the definition of Cash; 

  

	 	(h)	all intangible rights and property of Seller (including all IP Rights), relating to, used or held for use in connection with the Business, including, but not limited to, rights to
sue for and remedies against past, present and future infringements thereof, and rights of priority and protection of interests therein under the laws of any jurisdiction worldwide and all tangible embodiments thereof but excluding the name and
trademark “Rütgers” (whether used independently or as a component of names or trademarks) pursuant to Section 3.2 (together with all IP Rights included in the other clauses of this Section 3.1, the “Intellectual Property
Assets”); 

  

 - 7 - 

	 	(i)	all books, records, manuals and other materials (in any form or medium) relating to the Business, including, without limitation, all records and materials maintained at any office
of Seller or its Affiliates, advertising matter, catalogues, price lists, correspondence, mailing lists, lists of customers, distribution lists, photographs, production data, sales and promotional materials and records, purchasing materials and
records, personnel records, manufacturing and quality control records and procedures, blueprints, research and development files, records, data and laboratory books, IP disclosures, media materials and plates, accounting records, sales order files
and litigation files, except to the extent any of the aforesaid documents must, under the applicable Legal Requirements, continue to be kept by Seller, in which case, Seller shall provide a copy of such documentation to Purchaser in due course after
Closing; 

  

	 	(j)	to the extent their transfer is permitted by law, all permits, licenses, registrations or other instruments issued by any governmental body or agency relating to the Assets or the
Business, including all applications therefor; 

  

	 	(k)	all rights to causes of action, lawsuits, judgments, claims and demands of any nature available to or being pursued by Seller with respect to the Business or the ownership, use,
function or value of any Asset, whether arising by way of counterclaim or otherwise; 

  

	 	(l)	all guarantees, warranties, indemnities and similar rights in favor of Seller with respect to the Business or any Asset; 

  

	 	(m)	the real property set forth on Schedule 3.1(m) hereto, together with any permits or licenses related thereto, to the extent their transfer is permitted by law; and

  

	 	(n)	all of Seller’s shares in its subsidiaries (i) Abex Rail S.A., a company duly organized and existing under the laws of France, having its registered office in 18100
Vierzon, 26 Rue de la Société, Fiscal Code and VAT no. FR 30 349 181 479 and a registered share capital of Euro 100,000 which is divided into 2,500 shares, each with a nominal value of Euro 40, of which 2,494 are owned by Seller; and
the obligation of Seller to cause the transfer the remaining six shares held by six individuals and (ii) RÜTGERS Rail GmbH, a company duly organized and existing under the laws of Germany, having its registered office in 45329 Essen, at
Schnieringshof 10-14, registered with the Companies’ Register of Essen under no. HRB 17485, Fiscal Code and VAT no. DE 813 885 410 (hereinafter referred to as “RÜTGERS Rail GmbH”) and a registered share capital of Euro
25,000 (together, the “Subsidiaries”). 

  

 - 8 - 

 Subject to the terms and conditions hereof, at the Closing, the Assets shall be transferred or otherwise
conveyed to Purchaser free and clear of all Encumbrances (as defined in Section 8.2.4(b)) (“Encumbrances”) other than customary title retention rights as specifically described on Schedule 3.1 and the Assumed Liabilities shall be
transferred. 
  

	3.2	Excluded Assets. Seller will retain and not transfer, and Purchaser will not purchase or acquire, certain retained liabilities (the “Retained
Liabilities”) listed on Schedule 3.2(a) and the assets listed on Schedule 3.2(a) including but not limited to, (a) the capital stock of the Seller; (b) the name or trademark “Rütgers”; and (c) the Cash held by the Seller on
the Effective Date (collectively, the “Excluded Assets”). The Cash held by the Subsidiaries is addressed by Sections 2.4 (Definitions) and 3.3 and 3.9 of this Agreement 

  

	3.3	Provisional Purchase Price, Additional Purchase Price . On the terms and subject to the conditions set forth in this Agreement, Purchaser agrees to pay to Seller
€ 28,000,000 (Twenty Eight Million Euro) (the “Provisional Purchase Price”) plus an amount equal to the Cash held by the Subsidiaries as of the Effective Date the “Additional Purchase Price”). The Provisional
Purchase Price shall be payable to the Seller at the Closing, by wire transfer. The Additional Purchase Price shall be payable according to Section 3.9. 

  

	3.4	Allocation of Purchase Price. The Parties agree to allocate the Provisional Purchase Price among the Assets (including goodwill created by the transactions
contemplated under this Agreement) and the Liabilities in accordance with an allocation balance sheet/ transfer balance sheet. The Parties shall, and shall cause their respective accountants to begin preparation of this allocation jointly on or
before 20th October 2004 and to be updated and finalized within one month after the later date on which the
Additional Purchase Price becomes payable and the adjustment, if any, of the Purchase Price according to Article 3.7 has become binding between the Parties. 

  

	3.5	Assumed Liabilities. At the Closing, as an effect of the Transfer Agreements, Purchaser shall assume and agree to discharge and perform when due, only the following
Liabilities of Seller (collectively, the “Assumed Liabilities”): 

  

	 	(a)	all Liabilities for future performance arising out of the Contracts assigned to the Purchaser pursuant to Article 3.1, including the mandatory severance payment (“trattamento
di fine rapporto”) due under Italian employment laws which are inter alia described in Schedule 3.5(a) and any severance liabilities of the Seller toward 

  

 - 9 - 

 Franco Pani under the agency relationship but excluding any Liability arising out of the operation of
the Business prior to the Closing such as any warranty or product liability claims; 
  

	 	(b)	any trade account payables of the Business as set forth in the Financial Statements that remain unpaid as of the Effective Date, except for those that are overdue by more than 30
days from the due date as defined in the respective invoice (The overdue-exception does not apply to trade accounts payable which have not been paid yet for the reason of a good faith contestation or set-off relating to the Business). Any trade
account payable owed by the Seller to any Affiliate of Seller other than the Subsidiaries shall be excluded, except as set forth on Schedule 3.5(b); 

  

	 	(c)	any trade account payable of the Business incurred after the date of the Financial Statements but on or before the Effective Date in the ordinary course of business consistent with
past practices that remains unpaid at the Effective Date, except for those that are overdue by more than 30 days from the due date as defined in the respective invoice (The overdue-exception does not apply to trade accounts payable which have not
been paid yet for the reason of a good faith contestation or set-off relating to the Business), as of the Effective Date. Any trade account payable owed the Seller to any Affiliate of Seller other than the Subsidiaries shall be excluded, except as
set forth on Schedule 3.5(c); 

  

	 	(d)	Liabilities of the Business under written purchase orders or offers and sales orders or offers relating primarily to the Business, which have not been performed prior to the
Effective Date as set forth on Schedule 3.1(a) (Attachments A and B); 

  

	 	(e)	Liabilities for a prorated share (based on relative number of days of ownership) for Taxes arising out of the operation of the Business, which if paid on a timely basis, are due
after the Effective Date (the “Assumed Taxes”); 

  
 Purchaser shall not be deemed to have assumed or agreed to pay, perform or discharge any Liability of the Seller, its Affiliates or the Business other than the Assumed Liabilities and all such other Liabilities of the
Seller or the Business (other than the Assumed Liabilities) shall remain the responsibility of, and shall be retained, paid, performed, and discharged by Seller or its Affiliates (the “Excluded Liabilities”). Where the Purchaser
incurs or suffers Losses as a consequence of Excluded Liabilities, Article 9, including Art. 9.2.2, of this Agreement shall apply. 
  

	3.6	Transfer Agreement. The sale and purchase of the Business shall be finalized through the Transfer Agreement to be executed at Closing, before an Italian notary and in
the Italian language, substantially in the form shown in Schedule 3.6. It is understood that the Transfer Agreements will not supersede nor novate this Agreement. In particular, 

  

 - 10 - 

 all clauses of this Agreement providing for any obligation to be performed after Closing shall remain in
full force and effect thereafter in accordance with their respective terms without necessity for any of the Parties to reiterate or otherwise confirm its commitment with respect thereto. 
  

	3.7	Post-Closing Adjustment. 

  

	 	(a)	As promptly as practicable (but in no event later than forty-five (45) Business Days after the Effective Date), Seller shall deliver to Purchaser a consolidated balance sheet for
the Business as of the Effective Date (the “Effective Date Consolidated Balance Sheet”) and an accompanying closing statement (the “Closing Statement”) reasonably detailing Seller’s determination of the
Reference Date Net Worth of the Business, the Effective Date Net Worth of the Business and of the difference between the Effective Date Net Worth and the Reference Date Net Worth. It is understood that in preparing the Effective Date Consolidated
Balance Sheet, the Accounting Principles used for the preparation of the Financial Statements and Seller’s internal accounting policies and practices shall be applied consistent with past practice. The core of these Accounting Principles are
shown in Schedule 2.0. During the said forty-five (45) Business Day period, Purchaser shall grant Seller and its accountants full access upon reasonable notice at all reasonable times during normal business hours to Purchaser’s books and
records needed to prepare the Effective Date Consolidated Balance Sheet. The accounting procedures used to prepare the Effective Date Consolidated Balance Sheet shall include, at either Parties’ request, the joint taking of a physical inventory
by the Parties and their independent public accountants at the first Business Day after the Effective Date; 

  

	 	(b)	the Effective Date Consolidated Balance Sheet and the calculation of the difference between the Effective Date Net Worth and the Reference Date Net Worth so delivered by Seller
shall be final and binding upon the Parties unless a written notice of disagreement with respect thereto (hereinafter referred to as the “Notice of Disagreement”), specifying in detail the nature and reasons of such disagreement, is
notified by Purchaser to Seller within forty-five (45) Business Days following the date on which the Effective Date Consolidated Balance Sheet and the calculation of the difference between the Effective Date Net Worth and the Reference Date Net
Worth is delivered; 

  

	 	(c)	if a Notice of Disagreement is notified as provided in Paragraph (b) preceding, during a period of thirty (30) Business Days following the delivery of such notice, Seller and
Purchaser shall attempt to resolve any disagreement which they may have with respect to any matter specified in such Notice of Disagreement, and to lay down such solution in writing; 

  

 - 11 - 

	 	(d)	if, at the end of such 30-Business-Day period, any matters remain which are the subject matter of the Notice of Disagreement but on which Seller and Purchaser failed to reach an
agreement in writing, then all of such matters to which agreement is not so reached, will, at request of one Party, be submitted to and reviewed by the Independent Accountant; 

  

	 	(e)	the Independent Accountant shall formally accept in writing the mandate to settle and determine the disputed matters as soon as possible after the date on which the disputed matters
are submitted to it and – in accepting such mandate – shall expressly undertake in writing to: 

  

	 	(i)	consider only the disputed matters; 

  

	 	(ii)	determine the disputed matters by interpreting, if necessary any agreements between the Parties and making any adjustments required to the calculation of the difference between the
Effective Date Net Worth and the Reference Date Net Worth; 

  

	 	(iii)	summarily justify in writing its determinations with respect to each of the disputed matters; and 

  

	 	(iv)	to carry out the above tasks (i) through (iii) within thirty (30) Business Days from the acceptance of the mandate; 

  

	 	(f)	the Independent Accountant shall have access to the books, records, personnel and any other information of the Parties to the maximum extent required, in its reasonable judgment and
prior consultation of the Parties, to perform the services contemplated hereby; 

  

	 	(g)	upon resolution of all disputed matters, the Independent Accountant shall deliver to the Parties a revised Reference Date Net Worth and Effective Date Net Worth appropriately
adjusted as described in the preceding paragraph (e) (ii); 

  

	 	(h)	the determinations of the Independent Accountant prepared and delivered in accordance with the preceding paragraphs (e) (ii) and (g) shall be final and binding upon the Parties for
the purposes of Article 3.8 and shall not be subject to appeal; 

  

	 	(i)	all fees and disbursements of the Independent Accountant due in connection with the resolution of the disputed matters pursuant hereto and with the provision of the services
contemplated hereby shall be borne by Purchaser and Seller equally. 

  

 - 12 - 

	3.8	Payment of Adjustment to Purchase Price. Seller and Purchaser shall settle any difference between the (i) Reference Date Net Worth, and (ii) the Effective Date
Net Worth as finally agreed among the parties or determined in accordance with Article 3.7 within ten (10) Business Days after the differences between the Reference Date Net Worth and the Effective Date Net Worth has been finally agreed between the
Parties or determined in accordance with Article 3.7, as follows: 

  

	 	(a)	If the Effective Date Net Worth is higher than the Reference Date Net Worth, Purchaser shall pay to Seller an amount equal to the excess amount. 

  

	 	(b)	If the Effective Date Net Worth is lower than the Reference Date Net Worth, Seller shall pay to Purchaser an amount equal to the shortfall. 

  

	3.9	Payment of the Additional Purchase Price. The Purchaser shall pay to the Seller within twenty (20) Business Days after Closing the Additional Purchase Price.

  

	3.10	Payment modalities. All payments to be made pursuant to this Agreement shall be made in immediately available funds by irrevocable wire transfer to the bank account to
be designated in writing by Seller or by Purchaser, as the case may be, at least two (2) Business Days prior to the date on which payment is due. 

  

	3.11	Interest. The payments under this Article 3 shall bear interest as follows: 

  

	 	(a)	Any settlement payment pursuant to Article 3.8 shall bear interest at a rate of 6% on the amount of the payment pursuant to Section 3.8 multiplied by the number of days from and
including the Effective Date to and including the date on which the amount is paid pursuant to Section 3.8, divided by 365; 

  

	 	(b)	In the case of delay by any Party, the outstanding amount shall bear interest at a rate of 10% per annum from (and including) the due date to (and including) the date of payment.

  
 Interest shall be calculated on the basis of a
year of 365 days and shall become payable together with the amount to which it relates. 
  

 - 13 - 

 ARTICLE 4 
  
 Pre-Closing Filings 
  

	4.1	Each Party covenants and agrees to, and to cause its Affiliates to: 

  

	 	(a)	if required under the law, promptly file, or cause to be promptly filed, with any Italian or foreign agency and/or authority, or any European Union, national or local governmental
body and/or agency and/or authority, including but not limited to the competent antitrust authority/ies (hereinafter referred to as the “Antitrust Authority”), all such notices, applications or other documents as may be necessary to
consummate the transactions contemplated hereby; 

  

	 	(b)	provide a copy to the other Party of any notices, applications or other documents under (a) above, as well as of receipt of any notice from agency and/or authority, or any European
Union, national or local governmental body and/or agency and/or authority, within five (5) Business Days of the date of delivery or receipt, as the case may be; and 

  

	 	(c)	thereafter, diligently pursue all consents or approvals from any such agencies and/or bodies and/or authorities as may be necessary to consummate the transactions contemplated
hereby, keeping each other Party duly and timely informed about the relevant process. 

  

	4.2	In the event that not all the required antitrust clearances, if any, are issued within four (4) months after the date of this Agreement, then either of the Parties may terminate
this Agreement and, in that event, this Agreement (except for the provisions of Articles 11.9 and 11.10) shall cease to have any effect and shall no longer be binding on the Parties. 

  

	4.3	In the event that the Antitrust Authority only approves the transactions contemplated hereby imposing specific conditions or restrictions, not satisfactory to Seller or Purchaser,
affecting such transactions or any of the Parties, that Party shall have the right to accept or refuse such conditions or restrictions. Should the conditions or restrictions be refused by that Party, the Parties will negotiate in good faith any
amendments to this Agreement which may be necessary to make the transactions contemplated hereby suitable for both of them, in view of the conditions or restrictions imposed. If a new agreement is not reached within one month following the date on
which the Antitrust Authority has notified its conditional favorable decision, the affected Party may choose not to complete the said transactions, without any liability vis-à-vis the other Party. In this case, this Agreement (except
for the provisions of Articles 11.9 and 11.10) shall cease to have any effect and shall no longer be binding on the Parties. 

  

 - 14 - 

	4.4	Should Purchaser come to the conclusion, that no filings with Antitrust Authorities are required, then the Purchaser shall make available to the Seller letters from Purchaser’s
counsel stating the non-necessity of any such filings, by and no later than 10th September 2004. 

  
 ARTICLE 5 
  
 Conditions Precedent to Closing 
  

	5.1	Merger Control Clearances. Closing shall be subject to the condition precedent that all required merger control clearances are obtained. 

  

	5.2	Board Approvals. Closing shall be subject to the further conditions precedent that (a) both management boards (Vorstände) and both supervisory boards
(Aufsichtsräte) of RÜTGERS Aktiengesellschaft and its ultimate parent company RAG Aktiengesellschaft, as well as the board of directors of the Seller have all approved this Agreement (the “Seller’s Board
Approvals”) and (b) the Purchaser’s board of directors shall have approved this Agreement (the “Purchaser’s Board Approval”). 

  

	5.3	Guarantees. The guarantors as mentioned in the Limited Joinder and Guaranty shall have executed and delivered such Limited Joinder and Guaranty in the form attached as
Schedule 5.3. 

  

	5.4	Labor Union Notices and Approvals. The Seller and the Purchaser shall have notified each labor union required to be notified under any applicable Legal
Requirement and shall have met with such labor unions as required under applicable Legal Requirements; in particular, the Seller and the Purchaser shall have fully complied with the procedure provided under Section 47 of Law 428/1990.

  

	5.5	Customer and Other Approvals. The written consents, waivers, approvals, licenses and authorizations of (i) Trenitalia and (ii) of other third parties as described in
Schedule 5.5 shall have been obtained. 

  

	5.6	Tax Certificate. Seller shall have delivered to Purchaser the certificate required under Section 10.2.2 of this Agreement. 

  

	5.7	Further Conditions Precedent to Parties’ Obligation to Close. The Parties’ respective obligation to sell and purchase the Assets and to pay the Purchase
Price and to take the other actions required to be taken by them at the Closing are subject to the satisfaction, at or prior to the Closing, of each of the following conditions (any of which may be waived by the Seller or the Purchaser, as the case
may be, in whole or in part): 

  

	 	(a)	The other Party’s representations and warranties in this Agreement shall have been accurate in all material respects as of the date of this Agreement, and shall be accurate in
all material respects as of the time of the Closing as if then made (after giving effect to the Supplements to the Schedules in accordance with Section 6.2). 

  

 - 15 - 

	 	(b)	The covenants and obligations that the other Party is required to perform or to comply with pursuant to this Agreement at or prior to the Closing, shall have been duly performed and
complied with in all material respects. 

  

	5.8	Pre-Closing. If all the conditions precedent set forth in Art. 5.1 to 5.6 are fulfilled except the condition precedent in Art. 5.5 (i) (approval of Trenitalia) and
Trenitalia takes the position that it will only conduct the approval procedure on the basis of a notarial agreement not subject to conditions precedent except Trenitalia’s approval, then the Parties will execute such notarial document (and the
date on which they will do so shall hereinafter be referred to as “Pre-Closing”). As soon as that condition precedent under Art. 5.5(i) has been fulfilled, the Parties shall proceed to Closing under Article 7.

  

	5.9	Termination. This Agreement may be terminated on written notice by either the Seller or the Purchaser if the Closing shall have not occurred on or before the close of
business on January 31, 2005, unless such date shall be extended by the mutual written consent of Seller and Purchaser. A Party shall not have the right to terminate this Agreement under Art. 5.9 in the event that the failure to fulfill such
conditions precedent shall be due to the failure of that Party to perform or comply with any of the covenants, agreements or conditions hereof to be performed or complied with by it prior to the Closing. Upon termination under Art. 5.9, this
Agreement (except for the provisions of Articles 6.4, 6.5, 11.9 and 11.10) shall cease to have any effect and shall no longer be binding on the Parties. 

  
 ARTICLE 6 
  
 Covenants 
  

	6.1	Conduct of Seller. From and after the date hereof, and until the Closing, unless otherwise contemplated by this Agreement or consented to by Purchaser in writing,
Seller shall, and shall cause the Subsidiaries to: 

  

	 	(a)	conduct the Business in the ordinary and usual course, consistent with past practices; 

  

 - 16 - 

	 	(b)	pay all accounts and trade payables of the Business when they become due and payable in the ordinary course; 

  

	 	(c)	continue to insure all insured Assets, whether owned or leased, and use, operate, maintain and repair all such Assets in the ordinary and usual course, consistent with past
practice; 

  

	 	(d)	use reasonable efforts to preserve its current business organization, keep available the services of its officers, employees, self-employed persons, representatives, suppliers,
customers, landlords or any other person or entity having a material business relationship with the Business; 

  

	 	(e)	perform in all material aspects all of its obligations under any Contract and refrain from doing any act or omitting to do any act, or permitting any act or omission, that shall
cause a breach of any Contract; 

  

	 	(f)	maintain and keep the facilities, machinery, equipment and other tangible Assets in normal operating condition and repair, except for ordinary wear and tear, in accordance with past
practice; 

  

	 	(g)	consult with Purchaser regarding all significant developments, transactions, proposals or agreements relating to the Business and prior to implementing any material operational
decision relating to the Business or the Assets; 

  

	 	(h)	not (i) enter into or assume any material contract, arrangement, license, lease or other agreement, (ii) enter into or permit any material amendment, waiver, supplement or
modification of any Contract; (iii) grant any increase in the compensation (including incentive, bonus or severance) of any employee employed by the Business (other than regularly scheduled increases, which shall not exceed, in the aggregate, the
greater of (A) 5% of such employee’s compensation prior to the date of this Agreement or (B) any increases according to applicable collective labor agreements) or enter into any new, or amend any current, employment agreement, compensation or
benefit plan or arrangement or collective bargaining agreement applicable to any employee of the Business; (iv) not take any action or omit to take any action that would result in a Material Adverse Change; 

  

	 	(i)	not (i) incur any Liability on the books or records of the Seller or the Subsidiaries outside the ordinary course of business, consistent with past practice) or (ii) incur or extend
the timing of its payment of any payables or other due and accrued Liabilities outside of the ordinary course of business; 

  

 - 17 - 

	 	(j)	not make any distribution of assets to its shareholders; 

  

	 	(k)	change any payment terms of, or change any payment practices consistent with past practice; or 

  

	 	(l)	grant any Encumbrance upon any of the Assets, except ordinary retention of title in the case of purchases of Assets. 

  

	6.2	Notification and Updates to Schedules. 

  

	 	(a)	Seller and Purchaser shall promptly notify to each other in writing should they become aware of the existence or occurrence of any condition which would make any representation or
warranty in this Agreement untrue, any breach of any covenant of Seller or Purchaser in this Agreement or which might prevent or delay the Closing. 

  

	 	(b)	Attached hereto is Schedule 6.2(b), which includes a column of schedules to this Agreement entitled “Missing Information” (the “Missing Schedules”). Seller shall
provide complete copies of these Missing Schedules to Purchaser on or before September 3, 2004. Purchaser shall be entitled to review and object (but not unreasonably) to any Missing Schedules within five (5) Business Days after Purchaser’s
receipt of such Missing Schedules. Seller shall provide to Purchaser’s satisfaction revised Missing Schedules within three (3) Business Days after Seller’s receipt of Purchaser’s objections. Upon the agreement of Purchaser, the
Missing Schedules, (as revised under this Article 6.2(b)) shall be incorporated into the Schedules to the Agreement. In addition, Schedule 3.6 (the Transfer Agreements) shall be revised and updated as agreed by counsel to the parties on or before
the Closing. Schedule 6.6 shall be updated by September 3, 2004 to include the Subsidiaries’ performance bonds. 

  

	 	(c)	Purchaser shall provide Schedule 5.5 to Seller on or before September 3, 2004; provided, that, such Schedule may only include consents where the third party’s approval is a
legal or contractual requirement to the transfer of the applicable Contract from the Seller to the Purchaser. 

  

	 	(d)	Seller shall provide updates of Schedules 3.1(a) (assets), 3.1(b) (inventory) and 3.1(g) (accounts receivable) (the “Financial Schedules”) to the Purchaser to reflect
changes in those schedules incurred in the ordinary course of business pursuant to Article 6.1 from the date of this Agreement to the Closing, which shall automatically be deemed to update and replace the prior Financial Schedules.

  

 - 18 - 

	 	(e)	with respect to any other schedules attached to or contemplated under this Agreement (the “Other Schedules”), Seller may provide updated Other Schedules to Purchaser from
time to time on or before Closing. Purchaser shall be entitled to review and object (but not unreasonably) to any revised Other Schedule. Purchaser’s consent shall be required before any revised or updated Other Schedules shall be incorporated
into the Schedules and the Agreement. 

  

	6.3	No Negotiation. From the date of this Agreement until the end of 31st August 2004, and then again from the moment in which Purchaser communicates to Seller in writing that Purchaser has obtained Purchaser’s Board Approval, neither the Seller nor any of its
Affiliates shall directly or indirectly solicit, encourage or discuss any inquiry, proposal or offer from any person or entity relating to any business combination transaction involving the Seller, the Business or the Assets, including sale of the
Seller’s stock, the merger or consolidation of or the sale of the Business or any of the Assets (other than in the ordinary course of business), or participate in any discussions or negotiations relating to any such transaction or consider the
merits of any such transaction. 

  

	6.4	Board Approvals of Purchaser. If by the close of 19th September 2004 Purchaser neither notifies Seller that it has obtained Purchaser’s Board Approval nor that
Purchaser’s board of directors has disapproved of this Agreement within the meaning of Article 5.2, then the condition precedent to Closing consisting in such board approval shall be deemed not to have been fulfilled, and Purchaser shall pay
Seller a compensation of EURO five hundred thousand (500,000). 

  

	6.5	Board Approvals of Seller. If Purchaser has obtained Purchaser’s Board Approval by the close of 19th September 2004, but Seller has neither notified Purchaser that Seller has obtained all of Seller’s Board Approvals or that Seller has obtained part of
Seller’s Board Approvals and that Seller is not required to obtain any remaining Seller’s Board Approvals in accordance with Seller’s and its Affiliates’ organizational documents or under applicable Legal Requirements by the
close of 24th September 2004, then the condition precedent to Closing consisting in such board approval shall be deemed not to have been fulfilled, and Seller shall pay to Purchaser a compensation of EURO five hundred thousand (500.000). In the case
of the aforementioned sentence the Seller shall be bound the following further covenant: Should Seller sell part or all of the Business (other than sales in the ordinary course of business) to a third party prior to 30th September 2005, then the Seller shall pay to Purchaser the higher of (i) € 1 (one) Million or (ii) the excess amount of
the gross proceeds of the sale to the third party over € 28 (twenty eight) million. 

  

 - 19 - 

	6.6	Replacement of Performance Bonds. The Seller or the Subsidiaries have in relation to the Business, provided for certain performance bonds to be issued by several
banks, as shown in the Schedule 6.6, which relate to ongoing obligations under the Contracts being transferred to the Purchaser under this Agreement. Purchaser shall use its commercially reasonable efforts (subject to the consent and approval of the
customers of the Business) to replace by Closing these performance bonds with similar performance bonds, as required under the respective Contracts being transferred to Purchaser at Closing to which the performance bonds pertain. In the event that
Purchaser is unable to obtain the consent of any third party to replace any performance bonds (the “remaining performance bonds”), Seller will continue to maintain the applicable remaining performance bond until the later of (1) six months
from the Effective Date and (2) the date on which Purchaser is able to obtain a replacement letter of credit or performance bond. Purchaser shall indemnify and hold Seller harmless for (a) Seller’s out-of-pocket expenses related to maintaining
such remaining performance bonds and (b) any draws made by the respective third parties on the remaining performance bonds for reasons or causes which have occurred after the Closing. 

  

	6.7	Mutual Cooperation. Each Party shall use its reasonable best efforts and closely cooperate with the other in order to make the Closing Conditions set forth in Articles
5.1, 5.3 through 5.6 happen as quickly as possible in accordance with Art. 7.3. 

  

	6.8	Access, Investigation and Further Information. Between the date of this Agreement and the Effective Date, and upon reasonable notices, Seller shall, and shall cause
the Subsidiaries to, afford Purchaser and its representatives and agents access upon reasonable notice to the Seller’s and the Subsidiaries’ facilities, personnel, books, records, agents, representatives and Seller shall, and shall cause
its Subsidiaries to furnish any information regarding the Business or the Subsidiaries as the Purchaser may request. In addition, Seller shall provide to Purchaser on a monthly basis, Seller’s management reports relating to the Business. On or
before August 30, 2004, Seller shall provide to Purchaser the financial statements of RBV and RAG (as defined in the Limited Joinder and Guaranty). 

  

	6.9	Defence against Warranty/Product Liability. Any warranty or product liability claim related to products of the Business delivered to third parties prior to Closing
will be handled by Purchaser on behalf of the Seller. Any external costs of Purchaser incurred under this Art. 6.9 will be refunded by Seller. Any internal direct costs of Purchaser incurred under this Art. 6.9 (such as material, labor and
consumable goods) plus a 15% surcharge shall be refunded by Seller. 

  

 - 20 - 

 ARTICLE 7 
  
 Closing 
  

	7.1	Closing. The Closing shall take place at the offices of KPMG in Milan, Via Vittor Pisani 25, within five (5) Business Days of receipt by any of the Parties of the
notification of the fulfillment or waiver of the conditions precedent under Article 5 or on a date mutually agreed by the Parties, but in no event later than the last day of the month in which the conditions in Article 5 are satisfied. At Closing
the Parties shall take the necessary steps to duly and validly effect the transfer to Purchaser of the Assets in the form and manners provided by applicable law provisions. 

  

	7.2	Closing Actions. At Closing, 

  

	 	(a)	the Purchaser and Seller shall execute, substantially in the form shown in Schedule 3.6, the Transfer Agreement and such other deeds, certificates, instruments necessary to convey,
assign or transfer the Assets and the Assumed Liabilities in accordance with applicable Legal Requirements; 

  

	 	(b)	the Purchaser shall pay to the Seller by irrevocable wire transfer the Provisional Purchase Price set forth in Article 3.3; 

  

	 	(c)	the Seller shall have caused the members of the management boards of ABEX Rail S.A. (“conseil d’administration”) and of Rütgers Rail GmbH
(“Geschäftsführung”) as nominated by Purchaser five Business Days before Closing to resign and Seller shall cause the minority shareholders of Abex Rail S.A. to transfer the shares held by them to the persons notified by
Purchaser in writing five Business Days prior to Closing to Seller; 

  

	 	(d)	the Seller shall hold on Purchaser’s timely request a shareholders’ meeting at ABEX Rail S.A. in order to change the company name. 

  

	 	(e)	the Seller shall hold a shareholders’ meeting at Rütgers Rail GmbH in order to change the company name in such a way that it shall no longer contain the word
“Rütgers”. 

  

	 	(f)	the Seller shall deliver a certificate that (i) Seller’s representations and warranties in this Agreement shall have been accurate in all material respects as of the time of
the Closing as if then made, (ii) the covenants and obligations that the Seller is required to perform or to comply with pursuant to this Agreement at or prior to the Closing, shall have been duly performed and complied with in all material
respects, and (iii) each consent required under Section 5.5 remained in effect and has not been withdrawn or otherwise terminated since date of the Pre-Closing. 

  

 - 21 - 

	7.3	Additional Information and Documents. Seller and Purchaser shall, on request, on and after the Closing, cooperate with one another by providing any additional
information, executing and delivering any additional documents and/or instruments and doing any and all such other things as may be necessary for the Parties or their counsels to consummate or otherwise implement the transactions contemplated by
this Agreement. 

  

	7.4	Timing and Effectiveness. All of the actions, executions, productions, remittances and deliveries under the above Articles 7.1, 7.2 and 7.3 provided to be taken and
made at Closing, shall take place simultaneously, meaning that no action, execution, production, remittance and delivery shall be effective unless all other actions, executions, productions, remittances and deliveries shall be fully and regularly
performed. 

  
 ARTICLE 8 
  
 Representations and Warranties 
  

	8.1	Representations and Warranties by Purchaser. Purchaser hereby represents and warrants to Seller as follows, in each case as of the date of this Agreement and as of
Closing: 

  

	 	8.1.1	Organization, Qualification and Corporate Power. Purchaser is a corporation duly organized, validly existing and in good standing under the laws of its jurisdiction of
incorporation, with corporate powers and authority to own properties and to conduct its business as currently conducted. 

  

	 	8.1.2	Power and Authority of Purchaser. Purchaser has taken all required corporate action to enter into this Agreement and to consummate the transactions contemplated herein.

  

	 	8.1.3	Binding Effect. This Agreement has been duly executed by Purchaser and constitutes the legal, valid and binding obligation of Purchaser, enforceable in accordance with its
terms. Purchaser is not required to give any notice to, make any filing with, or obtain any authorization, consent or approval of any government or governmental agency in order to consummate the transactions contemplated by this Agreement, except as
contemplated by this Agreement.  

  

	 	8.1.4	Financial capability. Purchaser hereby represents and warrants to have adequate and sufficient financial capability to carry out the transaction contemplated herein.

  

 - 22 - 

	8.2	Representations and Warranties by Seller. Seller hereby represents and warrants to Purchaser as follows, in each case as of the date of this Agreement and as of
Closing, provided, however, that representations and warranties which are made as of one of those dates only, or as of a different specific date, shall be true and correct only as of such date: 

  

	 	8.2.1	Organization, Qualification and Corporate Power. Each of Seller and the Subsidiaries is a corporation duly organized, validly existing and in good standing under the laws of
its jurisdiction of incorporation. Each of Seller and the Subsidiaries is duly authorized to conduct business and is in good standing under the laws of each jurisdiction in which the nature of its business or the ownership or leasing of its
properties requires such qualification. 

  

	 	8.2.2	Power and Authority of Seller. Seller has full power and authority to enter into this Agreement and to consummate the transactions contemplated herein.

  

	 	8.2.3	Binding Effect; No Conflict. This Agreement has been duly executed by Seller and constitutes the legal, valid and binding obligation of Seller, enforceable in accordance with
its terms. The execution, delivery and performance of this Agreement will not (with notice or lapse of time or both) violate, conflict with or result in a breach of (a) Seller’s or the Subsidiary’s organizational documents, (b) any
Contract or (c) any Legal Requirement applicable to the Business. Except as set forth in Schedule 8.2.3 none of Seller nor any Affiliate or any of the Subsidiaries is required to give any notice to, make any filing with, or obtain any authorization,
consent or approval of any government or governmental agency in order to consummate the transactions contemplated by this Agreement. 

  

	 	8.2.4	Assets and Operation of Business. 

  

	 	(a)	Except as set forth in Schedule 8.2.4 (a), the Assets constitute all of the assets, tangible and intangible, of any nature whatsoever, necessary to operate the Business in the
manner presently operated by Seller and include all operating assets of the Business. There are no assets or properties used in the operation of the Business and owned by any person or entity (including any Affiliate) other than Seller that will not
be transferred, conveyed, leased or licensed to Purchaser at Closing, except for the leased or licensed assets specifically listed on Schedule 8.2.4(b) and those which may be subject to customary title retention agreements listed or arrangements
described on Schedule 8.2.4(b), and except for the case of molds owned by customers. The Assets 

  

 - 23 - 

 are adequate for the purposes for which such assets are currently used or are held for use, and are in
reasonably good repair and operating condition (subject to normal wear and tear and subject to the practice of Seller to not constantly keep in working order machines and molds which are, for a certain period of time, not used) and, to Seller’s
Knowledge, there are no facts or conditions affecting the Assets which could, individually or in the aggregate, interfere in any material respect with the use, occupancy or operation of the Assets as currently used, occupied or operated, or their
adequacy for such use. 
  

	 	(b)	Except for leased or licensed Assets listed on Schedule 8.2.4(b), Seller owns good and transferable title to all of the Assets free and clear of any charge, claim, community or
other marital property interest, condition, equitable interest, lien, option, pledge, security interest, mortgage, right of way, easement, encroachment, servitude, right of first option, right of first refusal or similar restriction, including any
restriction on use (other than those arising under administrative and general real estate law), transfer, receipt of income or exercise of any other attribute of ownership (“Encumbrances”), and at the Closing will transfer all of
the Assets to the Purchaser free and clear of any Encumbrances. 

  

	 	(c)	All accounts receivable of the Business are listed on Schedule 3.1 (g) as of 30th June 2004 and shall be updated as of the Effective Date, which such Schedule shall include the name of owing party, the amount due, and the date the amount was billed. All accounts receivable of the
Business represent or will represent valid obligations arising from sales actually made or services actually performed by Seller or the Subsidiaries in the ordinary course of business. Except as set forth on Schedule 8.2.4(c), there is no contest,
claim, defense or right of setoff, other than returns in the ordinary course of business, under any contract with any account debtor of an account receivable relating to the amount or validity of such account receivable. Seller has no Knowledge of
any fact or circumstance which would result in the incollectability of any note or account receivable. 

  

	 	(d)	All Inventories of the Business are listed on Schedule 3.1(b) as of the date of 30th June 2004 and shall be updated as of the Effective Date. All Inventories consist of a quality and quantity usable and, with respect to finished goods, saleable, in the ordinary course of business of
the 

  

 - 24 - 

 Business, and do not include obsolete or discontinued items. For purposes of the foregoing
“obsolete” items shall mean any items that have not moved within the past two years and which are not required to be held under any Contract or Subsidiary Contract. Except for the cases of customary title retention agreements and
arrangements listed or described on Schedule 8.2.4(b), neither Seller nor any of the Subsidiary is in possession of any inventory not owned by Seller or such Subsidiary, including goods already sold. The accruals on the Financial Statements and on
the Effective Date Balance Sheet relating to any write-down of Inventory was made in accordance with the Accounting Principles, consistent with past practice. 
  

	 	(e)	The Seller and the Subsidiaries have conducted the Business only through the Seller and the Subsidiaries or their Affiliates and no part of the Business has been operated by any
entity other than Seller and the Subsidiaries or their Affiliates. 

  

	 	(f)	Schedule 8.2.4(f) sets forth, for each Subsidiary, the number of authorized shares of each class of its capital stock, the number of issued and outstanding shares of each class of
capital stock, and its officers, directors or other managers (the “Subsidiary Equity Interests”). Seller owns, and as of Closing shall own all of the issued and outstanding Subsidiary Equity Interests and shall have, good and valid
title to the Subsidiary Equity Interests free and clear of any claim, right, encumbrance, pledges, charges, security interests, pre-emptive rights, call rights, other third party rights, assessment or other adverse interest of any kind and nature
whatsoever. Neither Subsidiary owns, directly or indirectly, any equity or other ownership interest in any other person or entity, and neither Subsidiary is subject to any obligation or requirement to provide funds to or make any investment in, any
other person or entity. 

  

	 	8.2.5	Financial Statements. 

  

	 	(a)	The pro-forma consolidated Financial Statements have been prepared in accordance with Italian Accounting Principles, applied on a basis consistent with the accounting principles
used in the preparation of the relevant financial statements for the preceding financial year (unless otherwise disclosed in the notes to such financial statements). The other Financial Statements have been prepared in accordance with applicable
national 

  

 - 25 - 

 Accounting Principles, applied on a basis consistent with the accounting principles used in the
preparation of the relevant financial statements for the preceding financial year (unless otherwise disclosed in the notes to such financial statements). The pro forma consolidated Financial Statements are true and correct in all material respects,
and fairly present the consolidated financial condition and results of operations of the Business as of, and with respect to, the financial year ending on, December 31, 2003. The other Financial Statements are true and correct in all material
respects, and fairly present the financial condition and results of operations of the respective companies as of, and with respect to, the financial year ending on, December 31, 2003. 
  

	 	(b)	Neither Seller nor the Subsidiaries have any Liabilities arising out of or related to the Business: except as set forth (A) in Schedule 8.2.5 (b), (B) in the Financial Statements,
or (C) which have been incurred in the ordinary course of business since the Reference Date. Except for the Liabilities listed in the foregoing sentence neither Seller nor the Subsidiaries have any Liabilities which will result in a Material Adverse
Change. 

  

	 	8.2.6	Product Liability. Except as disclosed under Schedule 8.2.6 hereto, as of the date hereof, 

  

	 	(a)	no product liability claims relating to any products of the Business exceeding Euro 50,000 in the aggregate are pending, or to the Seller’s Knowledge, threatened, against the
Seller or its Affiliates and, to Seller’s Knowledge, there is no basis for the same;  

  

	 	(b)	the Business has not received any order from any governmental authority to recall any of the products manufactured and delivered by the Business, and there is no pending or to
Seller’s Knowledge, threatened, investigation by any governmental authority relating to any of the products manufactured by the Business; and 

  

	 	(c)	the products manufactured and delivered by the Business during the thirty-six (36) months prior to the date hereof do not have any design or serial defects which may reasonably be
expected to result in any claim or order as set forth in paragraphs (a) and (b) above. 

  

 - 26 - 

	 	8.2.7	Subsequent Events. 

  

	 	(a)	Except as disclosed under Schedule 8.2.7 (a) hereto, since June 30, 2004 until the Effective Date, the Business has been conducted only in the ordinary course of business consistent
with past practices. 

  

	 	(b)	Since June 30, 2004 until the Closing, no Material Adverse Change has occurred and no event has occurred or circumstance exists that may result in a Material Adverse Change.

  

	 	8.2.8	Taxes.  

  

	 	(a)	All Tax Returns required to be filed with any Tax Authority with respect to any Tax Period Before Effective Date by or on behalf of the Business and each Subsidiary were filed when
due; 

  

	 	(b)	Neither Seller nor any Subsidiary is involved in any Tax audit or investigation relating to any Tax Period Before Effective Date. 

  

	 	(c)	Seller and each Subsidiary has timely paid all Taxes shown as payable by it on any valid and enforceable Tax assessment notice issued by any Tax Authority or on an Tax Return filed
by it with any Tax Authority. 

  

	 	8.2.9	Real Property. 

  

	 	(a)	Seller owns the real property indicated in Schedule 3.1(m) hereto (hereinafter referred to as the “Owned Real Property”). 

  

	 	(b)	There is no real property leased by Seller and Subsidiaries other than in Aachen, Barcelona, Essen, Vierzon and Senlis (the last leased until 30th September 2004) (the “Leased Real Property”), as listed on Schedule 8.2.9(b). The Seller and the Subsidiaries use no other real
property in connection with the operation of the Business other than the Owned Real Property and the Leased Real Property. 

  

	 	(c)	Title: 

  
 The Owned Real Property is fully owned by RÜTGERS Rail SpA and duly identified at the appropriate Land Registries (“Conservatoria dei Registri Immobiliari”) according to the laws and regulations
in force. Except as disclosed under Schedule 3.1(m) hereto, the Owned Real Property is free and clear of any mortgage, pledge, lien, encumbrances, 
  

 - 27 - 

 
privileges, prejudicial registrations, third parties’ rights, pending claims and liabilities in general, manifest and non-apparent easements,
obligations and/or burdens also connected to town-planning and/or building plans, or other security interest. Except as disclosed under Schedule 3.1(m) hereto, there are no outstanding options or rights of first refusal to purchase the Owned Real
Property or any interest therein. 
  

	 	(d)	Building Permits and Zoning Procedure: 

  
 Seller has applied for and validly obtained any and all material building permits for the existing buildings; to the Seller’s Knowledge, the Real
Property has been built, in all respects, in compliance with any such building permits and, as of the date hereof, no such building permits have been challenged and/or no procedure shall have been commenced with the purpose to repeal any building
permit. 
  

	 	(e)	Town-planning burdens: 

  
 RÜTGERS Rail SpA, has paid and borne any primary or secondary town-planning burdens (“oneri di urbanizzazione primaria e
secondaria”), assessed by and, due to the local Municipality and/or other public authorities and/or to the authorities involved in the issuance of the building permits. All said town-planning works affecting Seller have been realized in all
material respects, in compliance with all due provisions in force and the building permits concerning such works. 
  

	 	(f)	Certificates: 

  
 Except as disclosed under Schedule 8.2.9 (f) hereto, Seller has obtained any and all certificates required by applicable law provisions, as well as any
material certificate, approval, consent, license, authorization or permit required by law to opening and running in the Real Property its respective business activities 
  

	 	8.2.10	Litigation 

  

	 	(a)	Except as disclosed under Schedule 8.2.10 (a) hereto, as of the date hereof, none of the Business, the Assets nor the Subsidiaries is subject to any outstanding injunction,
judgment, order, decree or ruling issued by any court, arbitrators or other governmental authority (“Order”). Except as set forth in Schedule 8.2.10(a), Seller and each Subsidiary is in compliance with all of the terms and
requirements of each Order and no event has occurred or 

  

 - 28 - 

 circumstance exists that is reasonably likely to constitute or result in (with or without notice or
lapse of time) a violation of or failure to comply with any term or requirement of any Order. Neither the Seller nor any Subsidiary has received any notice regarding any violation of, or failure to comply with, any Order. 
  

	 	(b)	Except as disclosed under Schedule 8.2.10 (b) hereto, as of the date hereof, there is no pending or, to Seller’s Knowledge, threatened Proceeding by or against the Seller or
any Subsidiary, that otherwise relates to or may affect the Business or any of the Assets or the Subsidiaries; or that challenges, or that may have the effect of preventing, delaying, making illegal or otherwise interfering with, any of the
transactions contemplated under this Agreement. To Seller’s Knowledge and except as set forth on Schedule 8.2.10(b), no event has occurred or circumstance exists that is reasonably likely to give rise to or serve as a basis for the commencement
of any such Proceeding. 

  

	 	(c)	Except as set forth in Schedule 8.2.10(c), the Business is being conducted, and the Subsidiaries are, in full compliance with each Legal Requirement that is applicable to the
conduct or operation of the Business, the ownership or use of the Assets or the Subsidiaries. Neither Seller nor any Subsidiary has received any notice from any governmental authority or any other person or entity regarding (A) any violation of, or
failure to comply with, any Legal Requirement or (B) any Liability on the part of the Business or the Subsidiaries to undertake, or to bear all or any portion of the cost of, any remedial action of any nature. 

  

	 	8.2.11	Insurance. Schedule 8.2.11 hereto lists all insurance policies to which Seller or any Subsidiary is a party or which relate to the Business or the Assets. Such policies are
in full force and effect in accordance with their respective terms and will remain in full force and effect until Closing. The Seller and the Subsidiaries have not examined which policies end as a consequence of Closing, and are not liable for the
termination of any policy which expires, by its terms, on the consummation of the transactions under this Agreement. Neither the Seller nor the Subsidiaries have done or omitted to do any action which might render such policies or any of them void
or voidable. The maximum provided for in each policy covers the entire value of the insured assets and is adequate to the insured risks and liabilities. No claim under any policy of insurance taken out in connection with the Business, or the Assets
is outstanding and there are no circumstances likely to give rise to such a claim. 

  

 - 29 - 

	 	8.2.12	Licenses and Permits. Except as disclosed under Schedule 8.2.12 hereto, each Seller and Subsidiary has 

  

	 	(a)	all licenses, permits, registrations or other governmental authorizations which are required or necessary to the conduct of the Business or the Assets or otherwise applicable to the
Subsidiaries; 

  

	 	(b)	all of such licenses, permits, registrations and other governmental authorizations are in full force and effect and shall remain in full force and effect; and

  

	 	(c)	no violation exists in respect of any such licenses, permits, registrations and other governmental authorizations, and no Proceeding is pending or, to the Seller’s Knowledge,
threatened against Seller or any Subsidiary to revoke or limit any such license, permit, registration or other governmental authorization. 

  

	 	8.2.13	Environmental Matters. Except as disclosed under Schedule 8.2.13 hereto, and with respect to the Business or the Assets (or prior conduct of the Business by any Seller Party
(for purposes of this Section, the term “Seller Party” includes the Seller, each Subsidiary and any person or entity that was, in whole or in part, a predecessor to the Seller or the Subsidiaries: 

  

	 	(a)	No Seller Party has received notice of actual or threatened Liability under any Environmental Law from any governmental authority or any other person or entity and there are no
facts or circumstances that could form the basis for the assertion of any claim against any Seller Party under any applicable Environmental Law. 

  

	 	(b)	No Seller Party has entered into or agreed to enter into, and no Seller Party intends to enter into, any consent decree or Order, and no Seller Party is subject to any Order
relating to compliance with, or the cleanup of Hazardous Materials under, any applicable Environmental Law. 

  

	 	(c)	No notice, notification, demand, request for information, citation, summons or order for an administrative or judicial proceeding has been received by any Seller Party; and no
complaint has been filed, no penalty has been assessed and no Proceeding is pending against or, to the Seller’s Knowledge of the Seller Parties, threatened by any governmental authority or other person or entity against any Seller Party arising
out of any Environmental Law. 

  

 - 30 - 

	 	(d)	No Seller Party is subject to any Liability, incurred or imposed or based upon any provision of any applicable Environmental Law or arising out of any act or omission of any Seller
Party, or their employees, agents or representatives or arising out of the ownership, use, control or operation by any Seller Party of any plant, facility, site, area or property (including without limitation, any plant, facility, site, area or
property currently or previously owned or leased by any Seller Party or any waste disposal site not owned, leased or operated by a Seller Party) from which Hazardous Materials were Released into the Environment, and there are no facts, events,
conditions, situations or set of circumstances that could reasonably be expected to result in or be the basis for any such Liability. 

  

	 	(e)	No polychlorinated biphenyls, radioactive material, lead, asbestos-containing material, incinerator, sump, surface impoundment, lagoon, landfill, septic, wastewater treatment or
other disposal system or underground storage tank (active or inactive) is or has been present at, on or under any Owned or Leased Real Property or in any Asset or any property now or previously owned, leased or operated by a Seller Party other than
in compliance with applicable Legal Requirements. 

  

	 	(f)	No Seller Party has imported, manufactured, stored, used, operated, transported, treated or disposed of any Hazardous Materials, other than in compliance with all applicable
Environmental Law. 

  

	 	(g)	There has been no environmental investigation, study, audit, test, review or other analysis conducted, of which any Seller Party has Knowledge, in relation to any Asset or other
property or facility now or previously leased by any Seller Party has not been made available to Purchaser. 

  
 The following terms shall have the following meanings for purposes of this paragraph: 
  

	 	(i)	“Environment” means any surface or ground water, drinking water supply, soil, surface or subsurface strata or medium, and the ambient air. 

 

	 	(ii)	“Environmental Law” means any and all Legal Requirements concerning environmental, health or safety matters (including, but not limited to, the clean-up standards
and practices for Hazardous Materials) relating to buildings, equipment, or the Environment. 

  

 - 31 - 

	 	(iii)	Hazardous Materials” mean any waste, pollutant, contaminant, hazardous substance, toxic, ignitable, reactive or corrosive substance, hazardous waste, special waste,
industrial substance, by-product, process intermediate product or waste, petroleum or petroleum-derived substance or waste, chemical liquids or solids, liquid or gaseous products, or any constituent of any such substance. 

 

	 	(iv)	“Release” or “Released” means to spill, leak, pump, pour, emit, empty, discharge, inject, escape, leach, dump or dispose into the Environment.

  

	 	8.2.14	Employees and Self-Employed Persons. Schedule 8.2.14 hereto contains (a) a list of each employee of the Business and each Subsidiary, (b) each employment and other
contractual arrangements in place with each employee or consultant of the Business going beyond the employment letter and (c) any contract or agreement relating to the Business with unions, workers councils and other employee representatives
(hereinafter referred to as the “Collective Agreements”). 

  

	 	(a)	Each employee of the Business and each Subsidiary has been and is currently managed in full compliance with all applicable Legal Requirements and all Collective Agreements, and to
this regard no Proceedings are pending, or to Seller’s Knowledge, threatened, against Seller or any Subsidiary before any court, arbitrator or public authority as of the date hereof. 

  

	 	(b)	All social security, taxes and other compulsory contributions required to be paid by Sellers, any of its Affiliates or the Subsidiaries with respect to the employees and
self-employed persons of the Business have been regularly paid in full by Seller or its Affiliates or the Subsidiaries and any severance indemnity and other indemnities due to the employees of the business by Seller, its Affiliates, or the
Subsidiaries in accordance with all applicable Legal Requirements or national applicable Accounting Principles have been set aside in reserve accounts and are properly recorded on the Financial Statements in accordance with national applicable
Accounting Principles. 

  

	 	(c)	 The value of the aggregate accrued vacation time and pay and accrued bonus pay of the employees of the Seller and 

  

 - 32 - 

 
the Subsidiaries does not exceed the amounts accrued in the financial statements of the Sellers and the Subsidiaries as of June 30, 2004 and on the Effective
Date Balance Sheet. There are no more than 11 employees of the Seller and the Subsidiaries who have been granted individually negotiated bonus schemes as described in the Schedule 8.2.14(c). 
  

	 	(d)	Except as disclosed under Schedule 8.2.14 (d) hereto, no bonus or severance shall become due and payable by the Seller or any Subsidiary to any of their employees and self-employed
persons under any Legal Requirement or any agreement listed on Schedule 8.2.14 as a result of this Agreement or the consummation of the transaction contemplated herein or otherwise. 

  

	 	(e)	Except as disclosed under Schedule 8.2.14 (e) hereto or required under applicable Legal Requirements, none of the Seller, the Subsidiaries or its Affiliates has made any pension
commitment to any of the current or former employees of the Business or the Subsidiaries. 

  

	 	(f)	Seller and its Subsidiaries (and each of Seller’s Affiliates and predecessors) have made any and all contributions required to be made by them to any applicable workers
compensation or other funds, including without limitation, the Italian National Institute for Insurance Against Incidents on Work. 

  

	 	(g)	To Seller’s Knowledge, none of the employees of the Business or the Subsidiaries has declared his or her intention to terminate employment with the Business in connection with
the consummation of the transactions contemplated under this Agreement. 

  

	 	(h)	Neither Seller nor the Subsidiaries have engaged any consultants or other individuals to provide services to the Business who should have been classified or treated as an employee
in any way under any applicable Legal Requirement. 

  

	 	(i)	No person can claim that he or she is an employee of Seller or the Subsidiaries, except for those employees listed on Schedule 8.2.14. 

  

	 	8.2.15	Labor Relations. Except as set forth in Schedule 8.2.15 hereto, as of the date hereof no allegation, charge or complaint of age, disability, sex or race discrimination or
similar charge has been made or threatened in writing against the Seller or any Subsidiary. 

  

 - 33 - 

 Upon execution of this Agreement, the Seller and the Subsidiaries, notified each labor union required to
be notified under any applicable Legal Requirement and shall meet with such labor unions as required under applicable Legal Requirements. As of the Closing Date, the Seller shall have fully complied with the procedure provided under Section 47 of
Law 428/1990. 
  

	 	8.2.16	Intellectual Property Rights, Software. The Seller and each Subsidiary owns or are licensed to use all patents, patent applications, trademarks, trademark applications,
tradenames, tradename applications, know-how, trade secrets, technologies, and other intellectual property or proprietary rights and all computer software (including data bases and related documentation) (hereinafter collectively referred to as the
“IP Rights”) which are listed in Schedule 8.2.16 hereto. The IP Rights listed on Schedule 8.2.16 are owned or licensed by Seller and the Subsidiaries are in full force and effect and constitute all of the IP Rights necessary to
conduct the Business as it is currently being conducted. To Seller’s Knowledge no entity is interfering with or infringing, and no entity has misappropriated any IP Rights owned by Seller or the Subsidiaries. None of the IP Rights owned by
Seller or the Subsidiaries infringes upon, is in misappropriation of or otherwise conflicts with any patent, patent application, trademark, trademark application, copyright, trade secret or other intellectual property right of any third party, and,
to Seller’s Knowledge, none of the IP Rights licensed by Seller or the Subsidiaries infringes upon, is in misappropriation of or otherwise conflicts with any patent, patent application, trademark, trademark application, copyright, trade secret
or other intellectual property right of any third party. Except as set forth in Schedule 8.2.16, no consent or approval of any third party is required in connection of the transfer of the IP Rights to Purchaser hereunder. 

 

	 	8.2.17	Contract; No Defaults. Schedule 3.1 lists each Contract to which the Seller is a party and which relates to the Business. Each Contract listed in Schedule 3.1(e) is in full
force and effect and is valid and enforceable in accordance with its terms. Except for the Contracts listed on Schedules 3.1(e) there are no other agreements, contracts, commitments or other instruments which are material to the Business or the
Subsidiaries. Except as set forth on Schedule 8.2.17, Seller and each Subsidiary has at all times been in compliance with all applicable terms and requirements of each Contract. No event has occurred or circumstance exists that (with or without
notice or lapse of time) may contravene, conflict with or result in a breach of, or give the Seller or any Subsidiary or other person or entity the right to declare a default or exercise any remedy under, or to accelerate the maturity or performance
of, or payment under, or to cancel, 

  

 - 34 - 

 terminate or modify, any Contract. No event has occurred or circumstance exists under any Contract that
(with or without notice or lapse of time) would cause the creation of any Encumbrance, on the Assets. 
  
 8.2.18 
  

	 	(a)	Except for the performance bonds listed in Schedule 6.6 and except for the indebtedness of Seller to Deutsche Bank (which is not being assumed by Purchaser) which is guaranteed by
RÜTGERS AG, none of the obligations or liabilities of the Business or of Seller or the Subsidiaries incurred in connection with the operation of the Business is guaranteed by or subject to a similar contingent obligation of any other entity
(including any Affiliate), and there are no outstanding letters of credit, surety bonds or similar instruments of Seller, or any of Seller’s Affiliates in connection with the Business or the Assets. The Subsidiaries do not have any indebtedness
(except as set forth on Schedule 6.6) have not agreed to guarantee any obligation of other person (including any Affiliates of Seller). 

  

	 	(b)	Schedule 8.2.18(b) sets forth the names of the material customers each of Seller’s (and the Subsidiaries’) friction and interior business during the six month period ended
30th June 2004 and the twelve-month period ended 31st December 2003. The amount for which each such customer was invoiced during such period shall be provided in accordance with Section 6.2. Neither Seller nor
any of the Subsidiaries has received any notice or has any reason to believe that any significant customer of the Business has any intention to no longer be a customer of the Seller or its Subsidiaries taking into account the specific
characteristics of the railway business, including for the reason in each case after the consummation of the transactions contemplated hereby. To the Seller’s Knowledge, no customer of the Business has otherwise threatened to take any action
described in the preceding sentence as a result of the consummation of the transactions contemplated this Agreement. 

  

	 	8.2.19	[INTENTIONALLY DELETED.] 

  

	 	8.2.20	Neither Seller nor any Subsidiary has any knowledge of any fact that has specific application to the Business (other than general economic or industry conditions) and that may
result in a Material Adverse Change that has not been set forth in this Agreement. 

  

	 	8.2.21	The Subsidiaries have not produced, distributed or sold any asbestos containing materials nor have they assumed, voluntarily or otherwise, any Liability for asbestos containing
materials from any predecessor company or other third party. 

  

 - 35 - 

 ARTICLE 9 
  
 Damages for the Breach of Seller’s Representations & Warranties, 
 and certain other Obligations of the Seller 
  

	9.1	Seller shall indemnify and hold harmless Purchaser against and from any and all costs, losses, damage, Liabilities and expenses including reasonable professional fees and
out-of-pocket costs of investigation, litigation, settlement, judgement and interests (hereinafter collectively referred to as the “Losses”) incurred or suffered by Purchaser arising from or by reason of (i) any breach of any
representation or warranty of Seller contained in this Agreement, (ii) any breach of any covenant of Seller contained in this Agreement, (iii) any Excluded Liability, and (iv) from or by reason of any use, on or prior to the Effective Date, of
asbestos by the Business, Seller or the Subsidiaries or their respective Affiliates or predecessors (including without limitation, products liability claims and premises liability claims made by any persons). 

  

	9.2	The Extent and Limits of Seller’s Liability. 

  

	 	9.2.1	General Principles on the Extent and Limits. 

  

	 	(a)	No Losses shall give rise to any Liability of Seller if the Purchaser has not given the Seller first the opportunity to remedy the breach within a reasonable period of time (which
shall be, in any event, no more than 20 Business Days) after such breach was notified to Seller by Purchaser as set forth by this Agreement. 

  

	 	(b)	The Sellers shall not be liable for lost profits incurred by the Purchaser. 

  

	 	(c)	The Sellers’ liability will be subject to the limitations under Section 1227 of the Italian Civil Code. 

  

	 	(d)	The Purchaser’s right to indemnity shall in no way be limited by (i) any inspection, survey, audit and access to books and records of the Business which the Purchaser may
directly or through its consultants have conducted through Closing; or (ii) the knowledge that the Purchaser may have as of Closing of the existence of facts, events, omission or documents which may be in breach of the Seller’s representations
and warranties or in any event give rise to the Seller’s indemnification commitment. 

  

 - 36 - 

	 	9.2.2	Extent and Limits of the Amount of Seller’s Liability. 

  

	 	(a)	Seller shall only be liable to Purchaser for any Losses if the aggregate amount of the Losses exceeds the sum of Euro Two Hundred Fifty Thousand (250,000 Euro). In the event that
the aggregate Losses equal or exceed such amount, then Purchaser shall be entitled to recover the full amount of such Losses, including the first 250,000 Euro. Any single Loss or series of related Losses which do not exceed the amount of Euro 15,000
(Fifteen thousand Euro) shall be disregarded for the calculation of the aggregate amount of Euro 250,000 basket. The foregoing limitations shall not apply to (a) any Losses under Art. 9.1(iv), and no Losses under Art. 9.1 (iv) shall be included in
the calculation of the Euro 250,000 basket and (b) any Losses arising out of or related to any Retained Liabilities. 

  

	 	(b)	The maximum amount of Seller’s aggregate liability for Losses is limited to (i) a cap of EURO fifteen million (€ 15,000,000) for any Losses within the meaning of Section
9.1 (iv) and Art. 8.2.21 and (ii) an independent cap of EURO six million (€ 6,000,000) for any other Losses under Article 9.1. The foregoing limitations shall not apply to any Losses arising out of or relating to Retained Liabilities.

  

	 	(c)	Any amount(s) due by Seller pursuant to the preceding provisions shall be reduced by any payment actually received by Purchaser from a third party, including any insurance company
under any applicable insurance policies, in relation to the subject matter of the relevant claim. 

  

	 	9.2.3	Extent and Limits of the Seller’s Liability in Time. Seller’s representations and warranties under this Agreement (other than representations and warranties set
forth in Section 8.2.6 (relating to Product Liability), Section 8.2.8 (relating to Tax matters), Section 8.2.13 (relating to Environmental matters), Section 8.2.14 (Employees and Self-Employed Persons) and Section 8.2.15 (Labor Relations), shall
survive for a period of twenty-four (24) months after Closing. The representations and warranties made by Seller in Sections 8.2.6, 8.2.8, 8.2.13, 8.2.14 and 8.2.15 shall survive for a period of five years after Closing. The representations,
warranties and covenants relating to asbestos shall survive for 15 years after Closing. Purchaser shall be deemed to have complied with the respective limitation period, if a written notice according to Art. 9.3 (a) has been served within such term.

  

 - 37 - 

	9.3	Handling of Third Party Claims. If any event occurs which might give rise to Seller’s liability under paragraph 9.1 or under any other provision of this
Agreement, the following provisions shall apply: 

  

	 	(a)	Within thirty (30) days from the date on which Purchaser has actual knowledge of a claim for which indemnification may be sought, or, in case of any claim, action, suit or
proceeding asserted or initiated against Purchaser by a third party (hereinafter referred to as a “Third Party Claim”), within any shorter term required to enable Seller to participate in the relevant defense within the applicable
period available for an appeal or other legal remedy, Purchaser shall give written notice to Seller of such claims providing all reasonable information and documentation relating thereto and shall specify all amounts the payment of which is
requested by Purchaser in connection therewith. 

  

	 	(b)	Seller shall have the right to participate in the defense against Third Party Claims at its own costs. Purchaser undertakes to keep Seller fully and timely informed of all aspects
of the proceedings regarding the Third Party Claims, and to timely inform Seller of and let Seller participate in all hearings that may be held in such proceedings and in all meetings that may be held with the third party or their advisers.

  

	 	(c)	As an alternative to a mere participation in the defense according to Article 9.3 (b), Seller has the right to decide to control the defense of any Third Party Claim, designating
one or more attorney(s) of its choice, in which case the Purchaser undertakes to grant such attorney(s) necessary powers; provided, however, that (i) the Seller’s attorney(s) shall be reasonably satisfactory to Purchaser and the (ii) the
Purchaser shall have the right to participate in such defense at its own cost and expense. 

  

	 	(d)	If the Seller decides to control the defense of a Third Party Claim pursuant to Article 9.3 (c), (i) such decision will conclusively establish for purposes of this Agreement that
the claims made in that Third Party Claim are within the scope of and subject to indemnification unless (A) there is no finding or admission of any violation of Legal Requirement or any violation of the rights of any person or entity, or (B) the
sole relief provided is monetary damages that are paid in full by the Seller; and (C) the Purchaser shall have no liability with respect to any compromise or settlement of such Third-Party Claims. No compromise or settlement of such Third Party
Claims may be effected by the Sellers without the Purchaser’s prior written consent, if such compromise or settlement could adversely affect the ongoing operations of the Business. 

  

	 	(e)	If notice is given to the Seller of the assertion of any Third-Party Claim and the Seller does not, within thirty (30) days after the Purchaser’s notice is given, give notice
to the Purchaser of its 

  

 - 38 - 

 decision (if any) to control the defense of such Third-Party Claim according to Article 9.3 (c), the
Seller keep its right to participate in the defense according to Article 9.3 (b) but will be bound by any determination made in such Third-Party Claim or any compromise or settlement effected by the Purchaser. 
  

	 	(f)	If Seller decides to control the defence, Purchaser shall grant Seller and its representatives access to all relevant books and records and the premises and employees of the
Purchaser, to the extent reasonably deemed necessary or appropriate by Seller in connection with the defense and upon reasonable notice to the Purchaser. In the case of any Third Party Claims relating to any environmental matters, this shall include
Seller’s right to investigate the premises (including the taking of soil samples or other similar samples). Irrespective of whether Seller has decided to control the defence according to Article 9.3 (c) or merely participate in the defense
according to Article 9.3 (b) or has made no such decision yet, Purchaser shall regularly inform Seller about the status of the matter and promptly notify Seller of all material correspondence or other actions or developments in connection with the
Third Party Claim. 

  

	 	(g)	All costs and expenses incurred by Seller in defending the Third Party Claim shall be borne by Seller. 

  

	 	(h)	With respect to Taxes, the following shall apply: if, after Closing, any Tax Authority informs Purchaser of a proposed audit, assessment, dispute or other circumstance relating to
any Tax with respect to which Seller may incur any liability under this Agreement, Purchaser shall notify in writing Seller of such matter. Purchaser’s notice shall be given within ten (10) days after Purchaser has received the relevant
information from the Tax Authority, or at any earlier date if required to enable Seller to participate in any Tax audit or to review the relevant Tax assessment within the applicable period available for an appeal or other legal remedy. If Purchaser
has reason to believe that a payment is to be made by Seller pursuant to any provision hereof, such notice shall state the amount of any Tax that has to be paid by Purchaser and must be accompanied by evidence reasonably necessary to determine the
fact, amount and payment by Purchaser of such Tax. Purchaser agrees (i) to give Seller the opportunity to participate in any audits, disputes, administrative, judicial or other proceedings related to any Tax for any Tax period prior to the Effective
Date, (ii) to comply with any instructions given by Seller in relation to the conducting of such proceedings, and (iii) to challenge and litigate any Tax assessment or other decision of any Tax Authority related to such Tax. In all other respects,
the preceding paragraphs of this Article 9.3 shall apply to the defence against any Tax assessment or Tax related proceedings. 

  

 - 39 - 

	 	(i)	The failure by Purchaser to comply with any of the obligations under this Article 9.3 shall release Seller from its indemnification obligation hereunder, unless such failure by
Purchaser did not have any impact on the Losses claimed by Purchaser. 

  

	9.4	No Other Remedies. 

  
 The rights and remedies set forth in this Article 9 and those that may be set forth elsewhere in this Agreement shall be in lieu of any other right or
remedy, including termination of this Agreement, to the benefit of Purchaser arising under any applicable law in connection with this Agreement or as a result of (i) any breach of the representations and warranties, (ii) any breach of a covenant or
other obligation of Seller contained in this Agreement or (iii) for any other reason. 
  
 ARTICLE 10 
  
 Covenants by Seller and Purchaser 
  

	10.1	Non-Competition. For a period of five (5) years from Closing, Seller will not, and Seller will cause its Affiliates not to, anywhere in Europe (including the United
Kingdom) or the United States: 

  

	 	10.1.1	participate, acquire, establish, incorporate or in any way own interests in excess of 5% of any privately held entity or 10 % for any publicly listed company (either in the position
of entrepreneur, shareholder, quotaholder, associated, investor, partner and or other similar position) in any entity or activity or business, whether industrial or commercial, which is or may be in competition with the Business;

  

	 	10.1.2	solicit the employment or services of individuals who have been managers, employees of the Business before Closing with the exception of Dr. Bertrand Falque and with the exception
of managers and employees who have received notice of, or have been offered by the Purchaser, termination of their employment or who have applied for employment on their own initiative (without any involvement by Seller) or in response to a general
advertisement; or 

  

	 	10.1.3	solicit the business of any person or entity that is a customer of the Business (if such solicitation is in competition with the Business) or cause any customer or supplier of the
Business to cease doing business with the Business. 

  

 - 40 - 

	 	10.1.4	Seller agrees that in the event that Seller or any of its Affiliates breaches any provision under Section 10.1, Purchaser shall be entitled to liquidated damages of Euro 1 million
to compensate Purchaser for such harm (unless Seller can show that the actual harm is lower than EURO 1 million), together with additional monetary damages and any other remedy available under any applicable Legal Requirement. Purchaser agrees that
it shall not be entitled to such liquidated damages until such time that Purchaser has notified Seller in writing of any violation of Section 10.1 and Seller fails to cure such violation within 30 days after the date of such notice.

  

	10.2	Taxes. 

  

	 	10.2.1	Responsibility for Taxes. The Parties understand and agree that the Seller shall be liable for all Taxes arising out of the ownership and operation of the Assets prior to the
Closing. The Parties further understand and agree that the Purchaser shall be liable for all Taxes arising out of the ownership and operation of the Assets after the Closing. The indemnification obligation of Seller with respect to the Subsidiaries
as set forth in this Section 10.2.1 shall be reduced by any amount accrued with respect to the Subsidiaries in the Effective Date Balance Sheet. This does not apply to each other Party’s corporate income taxes and VAT. 

 

	 	10.2.2	Tax Clearance. Seller undertakes to request a certificate from the competent tax authority on pending tax proceedings and unpaid tax debts (if any) relating to the Business
in accordance with art. 14 of Law Decree n° 472/1997. Seller undertakes to immediately provide Purchaser with a copy of its request and of any answers it will receive from the tax authority. 

  

	 	10.2.3	Tax refunds. With regard to the taxes split according to Section 10.2.1 Purchaser shall pay to Seller the amount of any Tax refund relating to any Tax Period Before Effective
Date (except to the extent such refund claim is shown as an asset in the Effective Date Balance Sheet), and Seller shall pay to Purchaser the amount of any Tax refund relating to the Tax period after the Effective Date. Each Party shall notify the
other in writing of the receipt of any Tax refund. Any amount payable pursuant to this paragraph shall be due and payable within five (5) Business Days after the Tax refund has been received by the relevant Party. If any Party fails to comply with
such obligations, interest at a rate of 6% per annum shall become due and payable on the relevant amounts, without prejudice to any other claims of Seller arising from such breach. 

  

 - 41 - 

	10.3	Use of the Name and Trademark “RÜTGERS”. Purchaser shall have the right to use to for a period of six (6) months after the Effective Date the trademark
“RÜTGERS” in connection with the ongoing operation of the Business. As of the day six month after the Effective Date, Purchaser shall be obliged to refrain from using the trademark “RÜTGERS” within the Business, except
for the use of the trademark “RÜTGERS” on technical drawings which have been prepared for specific projects, in which case such use of the trademark “RÜTGERS” may be continued until the end of the project. Purchaser
hereby undertakes to hold Seller harmless and indemnified against any liability arising from Purchaser’s misuse, abuse or unlawful use of the name “RÜTGERS” and of the trademark “RÜTGERS” and/or any other violation
of this Article 10.3. 

  

	10.4	After the Closing Date, Purchaser will afford to Seller and RÜTGERS AG and their representatives reasonable access at normal business hours, upon reasonable advance notice, to
accounting, financial and other records (and allow them to make copies thereof at their cost), as well as to other information, management, employees and auditors of the Business or the Subsidiaries to the extent necessary for the RÜTGERS Group
(or the group of any direct or indirect shareholder of RÜTGERS AG) in connection with the Effective Date Consolidated Balance Sheet or any audit, investigation, dispute or litigation or any other reasonable business purpose. Unless otherwise
instructed by Seller, Purchaser shall keep for no extra consideration, and procure that the Subsidiaries will keep for no extra consideration, all books and records relating to any period prior to the Closing Date in accordance with and during the
periods required under applicable Legal Requirements. Purchaser shall give Seller reasonable notice prior to transferring, discarding or destroying any books or records of the Sold Business or the Subsidiaries and, if Seller so requests, deliver at
Seller’s cost such books or records to Seller. Seller shall afford Purchaser and its representatives reasonable access at normal business hours, upon reasonable advance notice, any records retained by Seller or its Affiliates relating to the
Business or the Subsidiaries. Unless otherwise instructed by Purchaser, Seller shall keep for no extra consideration, all books and records relating to the Business and the Subsidiaries in accordance with and during any period required under
applicable Legal Requirements. Seller shall give Purchaser reasonable notice prior to transferring, discarding or destroying any books or records of the Business or the Subsidiaries retained by Seller and if Purchaser so requests, delivery at
Purchaser’s cost, such books and records. 

  

 - 42 - 

 ARTICLE 11 
  
 Miscellaneous 
  

	11.1	Entire Agreement. This Agreement, the Schedules and enclosures annexed hereto, and the documents executed and delivered pursuant hereto, constitute the entire
agreement between the Parties with respect to the subject matter hereof and supersede all other prior agreements and understandings, both written and oral, between the Parties with respect to the subject matter hereof. 

  

	11.2	Severability. Should any provision, or provisions, of this Agreement for any reason be, or become, invalid or not capable of performance, in whole or in part,
then the validity of the remaining provisions of this Agreement shall not be affected thereby. The same applies if this Agreement should fail to provide for any relevant matter. In lieu of the invalid or inoperable provision, or in order to provide
for an omitted provision, this Agreement shall be applied in a reasonable manner, which, so far as legally permissible, comes as close as possible to the application of what the Parties intended or would have intended, according to the spirit and
purpose of this Agreement, had they considered the matter. 

  

	11.3	Assignment. This Agreement may not be assigned by operation of law or otherwise, except for the right of the Seller to assign this Agreement to RÜTGERS AG or any
Affiliate or controlling companies. 

  

	11.4	Amendments. No amendments to this Agreement shall be valid and binding unless agreed in writing by the Parties or approved in writing by the Party against which such
amendment should be enforced. 

  

	11.5	Notices and Other Communications. All notifications, notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing.
All notices, demands and requests shall be deemed to have been properly served if given by personal delivery, or if transmitted by facsimile, or if delivered to Federal Express or other reputable overnight carrier for next business day delivery,
charges billed to or prepaid by shipper, or if sent by air mail, proper postage prepaid, addressed as follows: 

  
 If to Seller: 
  
 RÜTGERS AG 
 Rellinghauser Strasse 3

 D - 45128 Essen 
 Germany

 Attention of: Management Board 
 Facsimile No.: 0049 (201) 177-2103 
  

 - 43 - 

 If to Purchaser: 
  
 Westinghouse Air Brake Technologies Corporation 
 1001 Air Brake Avenue 
 Wilmerding, PA 15148

 Attention of: Alvaro Garcia-Tunon/Legal Department 
 Facsimile No.:001 (412) 825-1333 
  
 with a copy to: 
  
 Reed Smith LLP 
 435 6th Avenue

 Pittsburgh, PA 15219 
 Attn: David L. DeNinno 
 Facsimile No.: 001 (412) 288-3063 
  
 Each notice, demand or request shall be effective upon personal delivery, or upon confirmation of receipt of the applicable
facsimile or 1 (one) business day after delivery to a reputable overnight carrier in accordance with the foregoing, or upon arrival at the recipient’s address if sent by air mail in accordance with the foregoing. Rejection or other refusal to
accept or the inability to deliver because of changed address of which no notice was given shall not adversely impact the effectiveness of any such notice, demand or request. Service by personal delivery upon Purchaser shall be valid only if
delivered personally to an officer of Purchaser. 
  
 Any
addressee may change its address for notices hereunder by giving written notice in accordance with this Article. 
  

	11.6	Counterparts. This Agreement may be executed in any number of counterparts, and each counterpart shall constitute an original instrument, but all such separate
counterparts shall constitute one and the same agreement. 

  

	11.7	Schedules and Enclosures. The schedules and enclosures referred to herein, and attached to this Agreement, are incorporated herein by such reference as if fully set
forth in the text hereof. 

  

	11.8	Interpretation. The masculine, feminine or neuter pronouns used herein shall be interpreted without regard to gender, and the use of the singular or plural shall be
deemed to include the other whenever the context so 

  

 - 44 - 

 requires. The headings in this Agreement are inserted for convenience of reference only and shall not be
a part of or control or affect the meaning of this Agreement. Unless otherwise expressly stated herein, all references herein to articles and paragraphs are to articles and paragraphs in this Agreement and all references herein to Schedules and
Exhibits are to Schedules and Exhibits to this Agreement. Where, in this Agreement, a Party “shall cause” some other person or entity to give or do something, or to refrain from doing something, such Party shall be deemed to have made a
promise within the meaning of Article 1381 of the Italian Civil Code. 
  

	11.9	Costs. Unless otherwise provided in this Agreement, each party hereof shall bear the costs and expenses of its own legal counsel, advisors and consultants retained in
connection with the negotiations of this Agreement and the consummation of the transactions contemplated hereby. Stamp duty, registration, transfer, sales, use, cadastral and mortgage tax, or other taxes applicable to, imposed upon or arising as a
result of the purchase and sale of the Business pursuant to this Agreement, as well as any notary fees, shall be borne by Purchaser. 

  

	11.10	Governing Law; Consent to Jurisdiction and Arbitration.  

  

	 	(a)	This Agreement shall be governed and controlled by the laws of Italy, including, for the avoidance of doubt, Art. 1229 of the Italian Civil Code. 

  

	 	(b)	Except for disputes arising under Section 3.4 relating to accounting matters, all disputes arising under, relating to, or in connection with this Agreement shall be finally settled
under the Rules of the International Chamber of Commerce by three arbitrators appointed in accordance with said Rules, who shall be knowledgeable in Italian Law. The proceedings shall be held in the English language. The seat of the arbitration
shall be London, United Kingdom. The arbitrators shall decide the amount of the prevailing party’s attorney’s fees and disbursements, and such costs of the prevailing party shall be borne by the defeated party in proportion to the
allocation of the final award by the arbitrators. 

  
 (SIGNATURES ON THE FOLLOWING PAGE) 
  

 - 45 - 

			
	SELLER:
	
	RÜTGERS RAIL S.p.A.
		
	By:	 	 /s/ Dr. Thomas Altenbach

	 	 	 Dr. Thomas Altenbach
 Member of the
Board

		
	By:	 	 /s/ Dr. Bertrand Falque

	 	 	 Dr. Bertrand Falque
 President of the
Board

	
	PURCHASER:
	
	 WESTINGHOUSE AIR BRAKE
 TECHNOLOGIES CORPORATION

		
	By:	 	 /s/ Anthony J. Carpani

	 	 	Anthony J. Carpani
	 	 	 Vice President, Group Executive,
 Friction

  

 - 46 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00080-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00080-of-00352.parquet"}]]