Document:

EXHIBIT 10.2

 

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

 

Transfer
Agreement for the Shares in Artois Plasturgie

resulting in the Take-Over of the Hénin-Beaumont Site

 

 

DATED 29 July 2005

 

 

BETWEEN

 

 

Samsonite
SAS

 

Samsonite Europe NV

 

Artois Plasturgie SAS

 

and

 

HB
Group SA

 

 

LEXENS

128,
Boulevard Haussmann

75008
Paris

 

 

This transfer agreement for the Shares in Artois Plasturgie resulting in
the take-over of the Hénin-Beaumont (62) site (the “Agreement”)
is dated 28 July 2005,

 

BETWEEN :

 

1.                  SAMSONITE SAS, a company with limited liability (société par actions simplifiée), with a share capital of EUR
720,000, having its registered office at 27, rue de la Rochefoucauld, 75009
Paris, registered with the commercial register of Paris under number
652 024 159 RCS Paris, duly represented by Mr Marc Matton, in the
capacity of chairman (hereinafter referred to as the “Vendor”),

 

2.                  SAMSONITE EUROPE NV, a Belgian company, with a share
capital of EUR 3,665,105.76, having its registered office at Westerring 17,
9700 Oudenaarde (Belgium), registered with the commercial register of
Oudenaarde under number 16.079, represented by Mr Marc Matton, duly authorised
by a meeting of the board of directors dated 18 July 2005 (hereinafter
referred to as the “Transferor”),

 

3.                  ARTOIS PLASTURGIE SAS, a company with limited liability,
with a share capital of EUR 37,000, having its registered office at 128,
Boulevard Haussmann, 75008 Paris, registered with the commercial register of
Paris under number 483 173 308 RCS Paris, duly represented by Mr Marc Matton,
in the capacity of chairman (hereinafter referred to as the “Company”),

 

AND

 

4.                  Mr Jean-Jacques AUREL, in name and for the benefit of a
company named “HB Group”, a limited liability
Luxembourg company, incorporated on 28 July 2005 between Mr Aurel and Mr
Egon Schrick, with a share capital of EUR 31,000, having its registered office
at rue de l’industrie, L-3895 FOETZ, Luxembourg (hereinafter referred to as the
« Purchaser» or the « Transferee»).

 

The Vendor, the Transferor, the Company and the Purchaser are
hereinafter collectively referred to as the “Parties”.

 

 

WHEREAS :

 

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

 

2.                                      As a result of economic difficulties
in the fabrication and manufacture of the luggage industry, and so as to avoid
a hold of the Activities and the closure of the Site, the Vendor has expressed
its intention to sell and has had various discussions with potential purchasers
to take over the Site. In this respect, the Vendor and the Transferor have
examined various take-over schemes.

 

3.                                      The
Purchaser made its first take-over offer to the Vendor on 24 January 2005
which was not accepted.

 

4.                                      On the
basis of new discussions, the Purchaser made a new take-over offer on 31 May 2005,
for the business as
described above, all moveable tangible assets attached to the business and the
Activities, the real property on which the business is operated, as well as the
rights that can lead to the ownership of the afore-mentioned assets, and more
generally all assets and rights attached to the Activities with the exception
of the intellectual and industrial property rights and goods incorporating such
rights, such as the trademarks, patents, designs and models, as well as the
moulds used by or the property of the Vendor, the Transferor, the companies or
entities of the Affiliated Companies or third parties.   The Vendor accepted the offer on 1 June 2005.

 

5.                                       The offer
set out the terms and conditions as well as the structure of the take-over,
including:

 

•                  the
contribution to the Company of the business and the assets mentioned in
paragraph 4 above,

•                  the
execution of the Related Agreements in respect of the fabrication as
subcontractor of luggage under the trademarks of the Affiliated Companies, the
disposition of moulds in order to realise such fabrication and the fabrication
of the products « No Name », the granting of Financial Aid in accordance
with a non-refundable grant and the issuance of a subordinated shareholders’
loan in order to develop and restructure the Activities on the Site, the
transfer of inventory and the constitution of Security Interests and Guarantees
in favour of the Vendor and the Transferor.

•                  the
transfer of the Shares of the Company for the benefit of the Purchaser on the
Effective Date.

 

2

 

7.                                      The labour unions of the Vendor (Comité Central d’Entreprise et Comité d’Établissement du Site),
who were advised of the envisaged Take-Over by the Purchaser, have rendered
their advice on the envisaged Take-Over on 10 June 2005 and 4 July 2005,
respectively.

 

8.                                      Consequently, the Parties have
decided to execute this Agreement and the Related Agreements in order to effect
the Take-Over of the Site and set out the terms and conditions of their
respective obligations and agreements below.

 

Article 1 :                DEFINITIONS AND
INTERPRETATION

 

1.1                      Definitions

 

Capitalised terms shall have the
same meaning as defined in this Agreement (as defined below):

 

3

 

	
  Net Asset Value
  of the Company

  	
   

  	
  The net asset
  value of the Company on the Effective Date as mentioned on line DL of the
  printout n° 2051 (2005, in thousands) in the tax documentation.

  
	
   

  	
   

  	
   

  
	
  Shares

  	
   

  	
  100% of the
  shares and voting rights constituting the share capital of the Company on the
  Effective Date.

  
	
   

  	
   

  	
   

  
	
  Activities

  	
   

  	
  The activities
  of fabrication and manufacture of luggage and the SIC Activities.

  
	
   

  	
   

  	
   

  
	
  SIC Activities 

  	
   

  	
  The activities of fabrication of
  plastic products, mainly to serve the automobile and motorcycle industry, and
  the related know-how of Samsonite available on the Site before the Effective
  Date based on its know-how in relation to the luggage industry. 

  
	
   

  	
   

  	
   

  
	
  Financial Aid

  	
   

  	
  The financial aid due under the
  Financial Aid Agreement, a draft copy of which is attached as Annex
  5.2(a)(iv) to the Agreement.

  
	
   

  	
   

  	
   

  
	
  Advance

  	
   

  	
  The advance due under the
  Financial Aid Agreement, a draft copy of which is attached as Annex
  5.2(a)(iv) to the Agreement.

  
	
   

  	
   

  	
   

  
	
  Bank Account of
  the Purchaser

  	
   

  	
  The bank
  account n° 00592001107 held by the Purchaser with the bank named CCF HSBC.

  
	
   

  	
   

  	
   

  
	
  Bank Account of
  the Company

  	
   

  	
  The bank
  account n° 00592001096 held by the Company with the bank named CCF HSBC.

  
	
   

  	
   

  	
   

  
	
  Bank Account of
  the Transferor

  	
   

  	
  The bank
  account n° 00592001083 held by the Transferor with the bank named CCF HSBC.

  
	
   

  	
   

  	
   

  
	
  Bank Account of
  the Vendor

  	
   

  	
  The bank
  account n° 00592001068 held by the Vendor with the bank named CCF HSBC.

  
	
   

  	
   

  	
   

  
	
  Escrow Account

  	
   

  	
  The escrow
  account held by the Company with the bank named CCF HSBC as counter-guarantee
  for the issuance by CCF HSBC of the Bank Guarantee for the benefit of the
  Vendor and the Transferor.

  
	
   

  	
   

  	
   

  
	
  Paid Holiday

  	
   

  	
  The indemnities
  relating to the paid holidays entitlements due to the Transferred Employees
  acquired as at the Effective Date.

  
	
   

  	
   

  	
   

  
	
  Support
  Contracts

  	
   

  	
  The service and
  assistance agreements entered into between the Parties, a draft copy of which is attached

  

 

4

 

	
   

  	
   

  	
  hereto as Annex 5.2(a)(iii).

  
	
   

  	
   

  	
   

  
	
  Financial Aid
  Agreement

  	
   

  	
  The agreement
  in which the Financial Aid is granted to the benefit of the Company, a draft copy of which is attached hereto as Annex 5.2(a)(iv).

  
	
   

  	
   

  	
   

  
	
  Indemnity Agreement

  	
   

  	
  The agreement
  under which the Company undertakes to indemnify all breaches (loss of
  exploitation, loss of profit, damage to name or reputation, etc.) of
  representations, undertakings and obligations under this Agreement and the
  Related Agreements, a draft copy of which is attached
  hereto as Annex 5.2(b)(i).

  
	
   

  	
   

  	
   

  
	
  No Name Products Manufacturing
  Agreement

  	
   

  	
  The agreement
  for the manufacturing of No Name Products entered into between the
  Transferor, the Vendor, the Company and the Purchaser, a draft copy of which
  is attached hereto as Annex 5.2(a)(ii).

  
	
   

  	
   

  	
   

  
	
  Products Manufacturing Agreement

  	
   

  	
  The agreement
  relating to the manufacturing of Products, the lease of moulds and the
  concession of industrial rights entered into between the Transferor, the
  Vendor and the Company, a draft copy of which is attached hereto as Annex
  5.2(a)(i).

  
	
   

  	
   

  	
   

  
	
  Related Agreements

  	
   

  	
  The Contribution Deed, the Stock
  Pledge Agreement, the Escrow Account, the Indemnity Agreement, the Support
  Agreement, the Products Manufacturing Agreement, the No Name Products
  Manufacturing Agreement, the Financial Aid Agreement.

  

  This Agreement and the Related
  Agreements form one arrangement of inter-dependent agreements under which the
  Parties intend to put in place one global and sole economic operation. The
  arrangements and agreements entered into between the Parties are closely
  related and inter-dependent. The payments and the flow of funds, debts,
  obligations resulting out of this Agreement and the Related Agreements may be
  paid by means of set-off.

  
	
   

  	
   

  	
   

  
	
  Transferred Debt

  	
   

  	
  The debt resulting out of the
  Participative Loan and the Advance granted by the Vendor and the Transferor
  to the Company in accordance with the Financial Aid Agreement, and
  transferred by the Vendor to the Transferee in accordance with
  article 2.2 hereof.

  
	
   

  	
   

  	
   

  
	
  Effective Date

  	
   

  	
  1 September 2005, 00.00 am,
  after realisation of the partial contribution mentioned under
  article 5.1 hereof and the related issue of new shares as compensation
  for this contribution.

  

 

5

 

	
  Bank Guarantee

  	
   

  	
  The bank
  guarantee on first demand issued by CCF HSBC to the benefit of the Transferor
  and the Vendor on the Effective Date, a draft copy of which is attached
  hereto as Annex 5.2(b)(ii).

  
	
   

  	
   

  	
   

  
	
  13th Month Payment

  	
   

  	
  The indemnities
  due to the Transferred Employees under their right of 13th month
  payment, acquired as at the Effective Date.

  
	
   

  	
   

  	
   

  
	
  Business Day

  	
   

  	
  Any day of the
  week other than a Saturday, Sunday or a public holiday in France.

  
	
   

  	
   

  	
   

  
	
  Paying Agent

  	
   

  	
  Samsonite
  Europe NV

  
	
   

  	
   

  	
   

  
	
  Affiliated Companies

  	
   

  	
  The companies
  or entities controlled by Samsonite Corp. Control has the meaning as
  described under article L 233.3 of the French Commercial Code.

  
	
   

  	
   

  	
   

  
	
  Stock Pledge Agreement

  	
   

  	
  The pledge
  agreement over the raw material stock issued by the Company as security for
  the obligations of the Transferor and the Vendor, a draft copy of which is
  attached hereto as Annex 5.2(b)(ii).

  
	
   

  	
   

  	
   

  
	
  Guarantee Period

  	
   

  	
  24
  months commencing on the Effective Date

  
	
   

  	
   

  	
   

  
	
  Participative Loan

  	
   

  	
  The participative
  loan granted by the Vendor and the Transferor to the Company under the
  Financial Aid Agreement, a draft copy of which is attached hereto as Annex
  5.2(a)(iv).

  
	
   

  	
   

  	
   

  
	
  Take-Over of
  the Site

  	
   

  	
  The take-over
  of the business and the Activities in view of the realisation of the
  industrial project.

  
	
   

  	
   

  	
   

  
	
  Transferred Employees

  	
   

  	
  The employees
  employed on the Site on the Effective Date, the labour contracts for whom
  have been fully transferred to the Company by application of
  article L.122-12, part 2 of the French Labour Code under the
  Contribution Deed, a list of which is attached hereto as annex 5.1(a) to
  the Agreement, it being understood that the employees that have requested
  termination of their labour contracts, or have been notified of such termination,
  or have left the company before the Effective Date, are not included in the
  transaction of the Take-Over of the Site.

  
	
   

  	
   

  	
   

  
	
  Site

  	
   

  	
  The site of exploitation located
  at Hénin Beaumont, 504/520 boulevard Fernand Darchicourt, 62110 Hénin
  Beaumont.

  

 

6

 

	
  Subsidy

  	
   

  	
  The non
  refundable subsidy due under the Financial Aid Agreement, a draft copy of
  which is attached hereto as Annex 5.2(a)(iv).

  
	
   

  	
   

  	
   

  
	
  Security Interests and Guarantees

  	
   

  	
  The Stock
  Pledge Agreement, the Escrow Account and the Bank Guarantee.

  
	
   

  	
   

  	
   

  
	
  Third Party

  	
   

  	
  Any person, whether a legal
  entity or a physical person, that is not a party to this Agreement and the
  Related Agreements.

  
	
   

  	
   

  	
   

  
	
  Contribution Deed

  	
   

  	
  The partial
  contribution of assets deed in accordance with the rules relating
  to the splitting of companies as mentioned under articles L 236-16 to L
  236-21 under the French Commercial Code, a draft copy of which is attached hereto as Annex 5.1.

  

 

1.2                      Interpretation

 

In this Agreement, unless otherwise provided for:

 

(i)                                     references
to an article are references to an article of this Agreement;

 

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

 

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

 

(iv)                              references
to a person include a reference to its successors, assignees and transferees;

 

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

 

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

 

Article 2
:                Transfer and Acquisition of the Shares and the
Transferred Debt

 

2.1                     Transfer of the
Shares

 

In accordance with the terms and conditions of this Agreement and
provided that the conditions mentioned in article 5 are complied with or
waived and that the documents mentioned in article 6 of this Agreement
have been delivered, the Vendor undertakes to sell to 

 

7

 

the Purchaser, and the Purchaser undertakes to purchase from the Vendor,
the Shares, on the Effective Date.

 

The transfer of the ownership
of the Shares and of all rights and obligations attached thereto shall occur
simultaneously with the payment of the purchase price for the Shares. As of
such transfer, the Purchaser shall carry all risks, direct or indirect,
relevant to the ownership of the Shares.

 

2.2                     Transfer of the Transferred Debt

 

In accordance with the terms and conditions of this Agreement and
provided that the conditions mentioned in article 5 have been complied
with or waived and that the documents mentioned in article 6 of this
Agreement have been delivered, the Transferor and the Vendor undertake to sell
to the Transferee, and the Transferee undertakes to purchase from the
Transferor and the Vendor, the Transferred Debt, on the Effective Date.

 

The transfer of the ownership
of the Transferred Debt and of all rights and obligations attached thereto
shall occur simultaneously with the payment of the purchase price of the
Transferred Debt. As of such transfer, the Transferee shall carry all risks,
direct or indirect, attached to the ownership of this Transferred Debt, such as
all damages, loss and insolvency risk of the Company.

 

The Transferor and the Vendor
shall deliver to the Transferee on the date of the transfer of the ownership of
the Transferred Debt, all documents evidencing the Transferred Debt.

 

The enforceability of the transfer shall be
realised by means of a notification of this Agreement or a restatement act of
the transfer of obligations, in accordance with article 1690 of the French
Civil Code.

 

Article 3
:                Purchase price of the Shares and the Transferred
Debt

 

3.1                     Purchase price
of the Shares

 

The purchase price for the Shares is equal to the Net Asset Value (not
including the Financial Aid) of the Company. The purchase price shall be paid
from the Bank Account of the Purchaser into the Bank Account of the Vendor on
the Effective Date.

 

3.2                     Purchase price of the Transferred
Debt

 

The purchase price for the Transferred Debt is equal to EUR one (1). The
purchase price shall be paid from the Bank Account of the Purchaser into the
Bank Account of the Transferor, or by means of a bank cheque, on the Effective
Date.

 

The Vendor and the Transferor shall arrange amongst themselves the
discussion of the purchase price of the Transferred Debt.

 

ARTICLE 4 :                       Transfer
of the Shares and the Transferred Debt

 

In accordance with the terms and conditions of this Agreement and
provided that the conditions mentioned in article 5 have been complied
with and that the documents mentioned 

 

8

 

in article 6 of this Agreement have been delivered, the transfer of
the Shares and the Transferred Debt shall occur on the date on which the
conditions precedent relating to the partial contribution of assets mentioned
in article 5.1 of this Agreement have been met, or on the Effective Date
at the latest.

 

Article 5 :                Conditions relating to the
realisation of the transfers

 

The realisation of transfer of the Shares and the Transferred Debt is
conditional upon (i) the realisation of the partial contribution as
mentioned in article 5.1 hereof, and (ii) the realisation of the
conditions precedent mentioned in article 5.2 hereof, and (iii) the
execution by all Parties concerned of the agreements listed in article 5.2.

 

5.1 Completion of the partial contribution of the assets of
the Vendor to the Company.

 

(a)               The Vendor shall contribute in the share
capital of the Company, within the framework of a partial contribution governed
by the rules relating to the splitting of companies in accordance with
articles L 236-16 to L 236-21 of the French Commercial Code and the
Contribution Deed and its annexes signed at the date of this Agreement, a draft
copy of which is attached hereto as Annex 5.1, and the Vendor shall deposit a copy of such deed with the
Commercial Court of Paris and have the deed published in a legal journal:

 

(i) a business of manufacturing of luggage and
plastic products valued on 31 August 2005 at EUR 1 (one);

 

(ii) all buildings and grounds, including the
immovable financial lease agreements, as valued on 31 August 2005,  valued at EUR 1,732,001;

 

(iii) the materials and equipment relating to the
exploitation of the Activities, as valued at EUR 527,693;

 

(iv) desk materials, moveable assets, vehicles and
IT products relating to the exploitation of the Activities, valued on 31 August 2005
at EUR 59,436.

 

(v) the liabilities on the Effective Date for an
amount of EUR 1,370,285, as listed hereafter:

 

(a)               EUR 590,137 being the provision for the
pensions or pre-pensions that the Vendor has in its books for all the
Transferred Employees of the Company, with the exception of the liabilities
relating to pension or pre-pension payments of such Transferred Employees which
have requested such pension or pre-pension before the Effective Date, the
latter payments having been agreed to be borne by the Vendor;

 

(b)         EUR 365,030 being the paid holiday entitlements
acquired as at the Effective Date;

 

9

 

(c)          EUR 330,139 being the overtime and the 13th
month payments acquired as at the Effective Date.

 

(d)         EUR 84,979 being the labour medals granted by
application of the collective labour agreement.

 

All employment contracts
relating to the Activities of which a list and the main features figure in Annex 5.1. shall (after the voluntary departures of
employees) be fully legally transferred to the Company by application of article L.122-12
of the French Labour Code, it being understood that the liabilities consisting of salaries and
accessories to salaries due to employees that have requested termination of
their labour contracts, or have been notified of such termination, or have left
the company before the Effective Date, are not included in the transfer to the
Company and remain the liability of the Vendor.

 

(b)                             The following items are excluded from the
partial contribution:

 

(i)                                     The intellectual and industrial property
rights, more specifically the trademarks, the patents, the designs and models,
as well as the moulds used on the Site or owned by the Vendor, the Transferor,
any Affiliated Company or any Third Party, it being understood that certain
licences to use certain of the afore-mentioned rights are granted under the No
Name Products Manufacturing Agreement and the Products Manufacturing Agreement;

 

(ii)                                  The IT contracts and licenses (other than
relating to office computerization provided that such contracts or licences are
not annually payable and are transferable) and the software relating to
accounting, invoicing, orders, electronic payment system, Gestion de
la Production Assistée par Ordinateur (« GPAO ») and Lotus
Notes ;

 

(iii)                               The contracts entered into between the Vendor
and its clients relating to the Activities as well as the receivables of the
Vendor from its clients, other than contracts relating to SIC Activities;

 

(iv)                              The debt of the Vendor vis-à-vis its suppliers;

 

(v)                                 The inventory of packed finished products, held
on Site, on the Effective Date.

 

(vi)                              The inventory relating to the Activities are
subject to a transfer between the Company and the Vendor in accordance with the
terms and conditions of article 7 of this Agreement;

 

10

 

Consequently :

 

•                                          the Company:

 

•                  with respect to the contracts that have not
been transferred, shall use its best efforts to effect and negotiate with all
clients, service providers and suppliers, in relation to the Activities, that
they execute new contracts with the Company after the Effective Date;

 

•                  undertakes to reimburse to the Vendor without
any delay all monies which any debtor of the Site pays to the Company after the
Effective Date, in relation to services rendered or products delivered before
or after the date of the partial contribution mentioned in Article 5.1,
where such sale of services or products is completed prior to the date of the
partial contribution mentioned in Article 5.1.

 

•                                          the Vendor:

 

•                  shall be the sole party responsible for the
monies relating to the Activities due to its suppliers, where the relationship
the Vendor has with the supplier relates to a period before the date of the
partial contribution mentioned in Article 5.1.;

 

•                  undertakes to reimburse to the Company without
any delay all monies which a debtor of the Site pays to the Vendor after the
Effective Date, in relation to services rendered or products delivered after
the date of the partial contribution mentioned in Article 5.1,
where those have been completed after the date of the partial contribution
mentioned in Article 5.1.

 

•                  shall have the sole right to receive payment of
monies due by its clients and, more generally, by debtors of the Site before
the partial contribution mentioned in Article 5.1.

 

(c)               Due to the valuation of the assets mentioned in
Annex 5.1 hereto, the partial
contribution within the Company of the assets mentioned in Annex 5.1
hereto shall result in a capital increase of the Company to an amount of EUR
948,846 by issue of of 948,846 new shares in the Company, the latter shares
being allocated to the Vendor as remuneration for its contribution in kind.

 

11

 

It
will be necessary to make adjustments to reflect the real value of the
contributed liabilities. The adjustments shall be effected by means of the
decisions of the competent corporate body of the Company and by the Vendor, by
means of an adjustment of the Participative Loan.

 

It
is made clear that the realisation of the contribution shall not result in any
other adjustments than those mentioned herein.

 

The details on the liabilities
and the adjustments thereto shall be communicated by the Vendor or the
Transferor to the Company and the Purchaser on the Effective Date at the
latest.

 

5.2 Conditions precedent

 

(a)          conditions stipulated
in favour of the Company and the Transferee that the Vendor and the Transferor,
each for its own account, undertake to realize:

 

(i) Execution of the
Products Manufacturing Agreement, attached hereto as Annex 5.2(a)(i);

 

(ii) Execution of the
No Name Products Manufacturing Agreement, attached hereto as Annex 5.2(a)(ii);

 

(iii) Execution of the
Support Agreement, attached hereto as Annex 5.2(a)(iii);

 

(iv) Execution of the
Financial Aid Agreement and issue of the Financial Aid in accordance with the
terms and conditions of that agreement, attached hereto as Annex 5.2(a)(iv);

 

In
order to ensure the continued existence of the Site, and taking into account
the envisaged re-launching measures of development and restructuring, the
Purchaser has made its industrial project of the Take-Over of the Site subject
to the condition that the Vendor and the Transferor, without being involved in
any way in the management, assist in the reactivation and restructuring of the
Activities by granting an exceptional advance (hereinafter the “ Financial
Aid”) to the Company and only to he Company of an aggregate amount of EUR
7,500,000 to be increased by an amount corresponding to:

 

(i)             the Net Asset Value of the Company on the
Effective Date;  and

 

(ii)          the liabilities related to the Paid Holiday
entitlements (after adjustments), the overtime and the 13th Month
Payments and work medals.

 

The
Financial Aid shall be made available to the Company in accordance with the
terms and conditions of the Financial Aid Agreement. The Company undertakes to
use the Financial Aid in accordance with the terms and conditions of this
Agreement and the Financial Aid Agreement.

 

12

 

The Purchaser and the Company
cannot request any financial participation or indemnification from the Vendor,
the Transferor or any other Affiliated Company, other than what is foreseen in article 5.2(a)(iv) of
this Agreement relating to the Financial Aid.

 

(b)         conditions stipulated in favour of the Vendor
and the Transferor that the Company and the Transferee, each for its own
account, undertake to realize

 

(i) Execution of the
Indemnity Agreement, attached hereto as Annex 5.2(b)(i);

 

(ii) Execution and
perfection of the Security Interests and Guarantees granted by the Company to
the Vendor and the Transferor, attached hereto as Annex 5.2(b)(ii);

 

(iii) Subscription by the Purchaser to insurance
policies in the name of and to the benefit of the Company as of the Effective
Date.

 

The Company, under supervision
of the Vendor, shall procure the entry into an insurance risk cover
corresponding to the specifics of the Site and the Activities as of the
Effective Date, and under the condition precedent of the occurrence of such an
Effective Date, issued by the insurance broker VERLINGUE, 13, rue Auber, 75009
PARIS, in accordance with the terms and conditions in force on such date.

 

Article 6 :                Exchange
of documents between the Parties on the Effective Date

 

6.1. Delivery of documents by the Vendor and/or the
Transferor to the Purchaser

 

Subject
to compliance with the conditions mentioned under Article 5
hereof, and simultaneously to the delivery of documents by the
Purchaser to the Vendor as mentioned under Article 6.2 hereof,
the Vendor shall deliver to the Purchaser the following documents:

 

•                  On the Effective Date
at the latest:

 

(i)                                    A certified conformed copy of the resolutions
of the meeting of the sole shareholder of the Vendor authorising the transfer
of the Shares and approving the partial contribution;

 

(ii)                                A certified conformed copy of the resolutions
of the meeting of the sole shareholder of the Company authorising the execution
of this Agreement and approving the partial contribution;

 

(iii)                            A certificate of the Vendor indicating, as the
case may be, all opposition to the partial contribution mentioned under Article 5.1 hereof and its undertaking to obtain
release of any such opposition;

 

(iv)                               A copy of the auditor’s report in relation to
the partial contribution.

 

(v)                                   A dismissal letter addressed to the chairman of
the Company indicating that the Company has not awarded any monies to him for
whatever reason, the dismissal taking effect as of the Effective Date.

 

13

 

(vi)                               A copy of the resolutions of the meeting of the
sole shareholder of the Company:

 

•                                          Approving the contribution after adjustment of
the amounts determined in accordance with Article 5.1
hereof,

 

•                                          Noting the dismissal of Mr Marc Matton in his
capacity as chairman of the Company as of the moment in time when the general
shareholders’ meeting approves the partial contribution mentioned in Article 5.1 hereof and appointing as new chairman Mr
Jean-Jacques AUREL, born on 12 June 1945 at Paris (14th),
France, French nationality, domiciled at 88 rue Michel Ange, 75016 Paris (14th)
, France, subject to the completion of the transfer of the Shares;

 

•                                          Approving the transfer of the registered
address of the Company and modifying the first financial year end to 31 December 2006;

 

•                                          Deciding to modify the company name of the
Company which shall become “HB Industrial”.

 

(vii)                           The register of resolutions of the shareholders’
meetings of the Company as updated up to the Effective Date;

 

(viii)                       The shareholders’ register of the Company as
updated up to the Effective Date;

 

(ix)                              A transfer certificate executed by the Vendor
to the benefit of the Purchaser relating to 100% of the Shares of the Company
on the Effective Date;

 

(x)                                  A letter from the Company executed by its
former and new chairman addressed to the bank that holds the Company’s accounts
(i) instructing the bank to end all existing powers of the chairman in
relation to the accounts, and (ii) designating Mr Jean-Jacques Aurel, in
his capacity as new chairman of the Company as having the power to operate the
accounts;

 

(xi)                              A receipt subject to collection dated and
signed by the Vendor and the Transferor drafted in accordance with the template
in Annex 6.1 hereto, as a result of which the Vendor and the Transferor
confirm having received the purchase price of the Shares and the Transferred
Debt;

 

(xii)                          An original copy of the inventory of the Stock
as drafted and established together by all Parties, at the latest by the
Effective Date, in accordance with Article 7 and Annex 7.3(i) of this Agreement,
duly signed by the Vendor;

 

(xiii)                      An original copy of the agreement relating to
the opening of the Bank Account of the Company, duly signed by Mr Marc Matton,
in his capacity as former president of the Company;

 

(xiv)                         An original copy of the declaration of
registration of the transfer of the Shares, duly signed by the Vendor ;

 

(xv)                             an original copy of the transfer agreement
relating to the Transferred Debt.

 

14

 

•                  On 19 August 2005 at the latest:

 

(xvi)                         a detailed list of the Costs of Sales, as
defined in the Products Manufacturing Agreement;

 

(xvii)                      the planning of confirmed and pending orders,
mentioned in article 4.1 of the Products Manufacturing Agreement.

 

6.2. Delivery of documents by the Purchaser and the
Company to the Vendor

 

Subject
to compliance with the conditions mentioned under Articles 5 of
this Agreement, and simultaneously with the delivery by the Vendor to the
Purchaser of the documents mentioned under Article 6.1 hereof,
the Purchaser shall deliver to the Vendor and/or the Transferor the following
documents:

 

(i)                                    An original copy of the inventory of the Stock
as drafted and established together by all Parties, at the latest by the
Effective Date, in accordance with Article 7.3 of
this Agreement, duly signed by the Purchaser;

 

(ii)                                An original copy of the Security Interests and
Guarantees and the documents proving their constitution;

 

(iii)                            An original copy of the declaration of
registration of the transfer of the Shares, duly signed by the Purchaser;

 

(iv)                               All documents evidencing that the Company has
all insurance policies required to cover the Site and the Activities as of the
Effective Date, as described in article Article 5.2(b)(ii) of
this Agreement;

 

(v)                                   A non insolvency certificate or its equivalent
under Luxembourg law.

 

Simultaneouslywith
the delivery of the documents mentioned under Article 6.1
of this Agreement, the Purchaser shall instruct the bank to wire the
purchase price of the Shares and the Transferred Debt, according to Article 3 of this Agreement.

 

ARTICLE 7 :                       Transfer of Stock

 

The
Parties agree that the stock related to the Activities is shall be transferred
by the Vendor to the Company on the Effective Date, in accordance with the
following terms and conditions:

 

7.1.
Definition of inventory purchased by the Company on the Effective Date

 

The Company shall purchase
from the Vendor and the Vendor undertakes to transfer to the Company on the
Effective Date, the inventory of raw materials, finished products, work in
progress not packed (hereinafter referred to as the « Stock »).
Pre-packed finished products are explicitly excluded from the Stock ; they
remain the property of the Vendor.

 

15

 

The Vendor shall procure and
commits that, on the Effective Date, the Stock has a minimum value of EUR
1,200,000 and is composed of at least the equivalent of:

•                  3 weeks of production stock as regards Raw
Materials as defined in the Products Manufacturing Agreement, and

•                  6 weeks of production stock as regards the
Components as defined in the Products Manufacturing Agreement.

 

7.2.Valuation
of Inventory:

 

The Parties agree that the Inventory reflected in the
accounting for more than 6 months prior to the Effective Date shall amount to
EUR 1, except for the plastic raw materials and the packing which shall be
valued and transferred at the net accounting value.

 

The Inventory reflected in the accounting for less
than 6 months prior to the Effective Date, shall be valued and transferred at
the net accounting value.

 

7.3. Price and inventory

 

(i)                                    The Inventory which is to be transferred from
the Vendor to the Company is subject to an inventory drafted and established
together by all Parties, at the latest on the Effective Date in accordance with
the procedure described under Annex 7.3 (i)

 

(ii)                                The price for the Inventory mentioned in the
physical inventory established between the Parties at the latest on the
Effective Date, shall be determined by the Vendor by application of the clauses
mentioned in Annex 7.1 of this Agreement.  The corresponding invoice shall be delivered
by the Vendor to the Company on the Effective Date at the latest. The Purchaser
undertakes to provide its comments on the volumes and pricings at the latest on
the Effective Date.

 

The
Company undertakes to settle any undisputed part of the invoice, which the Purchaser
guarantees during a maximum period of 24 months from the Effective Date. Any
breach by the Company of an obligation under this Agreement or any Related
Agreement shall result in the loss of the abovementioned term, up to the amount
of the damage suffered by the Joint Creditors (as defined in article 2 of
the Indemnity Agreement).

 

The settlement of the invoice may be set-off against
any outstanding amounts due under Tranche B of the Subsidy, except if as a
result of the non-execution of its obligations under the Agreement or any
Related Agreement the outstanding amount under Tranche B is not due or
enforceable.

 

Article 8 :                Representations and
warranties

 

Taking
into account that the Purchaser :

 

(i)                                    confirms that it has had access to all
information in order to determine the exact situation of the Site, the
Activities, the Transferred Employees (more specifically the wages, the
seniority, advantages) and the production methods 

 

16

 

(transferred from the Vendor to the Company as a
result of the partial contribution as mentioned under Article 5.1
of this Agreement),

 

(ii)                                confirms having received copies of the Related
Agreements and the Bank Guarantee entered into between the Vendor or the
Transferor and the Company (having given its consent),

 

(iii)                            has a very good knowledge, together with its
team, of the sector of activities of the Company and the Site,

 

(iv)                               has had long conversations with the directors
of the Site, more specifically Mr Christian Guittard, director of the Site, and
Mr Jacques Rousselle, HR Director, who will both continue to practice as
directors of the Site after the Take-Over and whose expertise will be
appreciated and counted on,

 

(v)                                   confirms having received a copy of the memorandum
of the expert company AECD,

 

the
Shares and the Transferred Debt are transferred without any guarantee other
than as expressly stipulated in this Agreement.

 

The
Purchaser confirms that the financial efforts of the Vendor and the Transferor
are sufficient to ensure the viability of the Site on a middle- long term
basis, in particular by means of the grant of the Financial Aid, and
consequently confirms that the Vendor and the Transferor have no responsibility
towards the Purchaser, the Company or any other group company of the group of
the Purchaser, based on whatever warranty of assets and liabilities, and under
no circumstances, linked to the Agreement or the Related Agreements, and more
generally, at the date of the Take-Over of the Site, before or after, on the
Effective Date, the responsibility of the Vendor shall always be strictly
limited to the amounts due under the Financial Aid pursuant to the terms and
conditions of this Agreement and the Financial Aid Agreement, increased, as the
case may be,  by the amount as stipulated
under article 7.2 of the Products Manufacturing Agreement.

 

8.1 Representations and warranties of the Vendor and/or the Transferor

 

The Vendor declares that:

 

a.               the Company is a company limited by shares duly
incorporated and existing in accordance with the legal statutes and French
rules;

 

b.              the share capital of the Company, fully paid
up, is divided into 37,000 shares, issued in accordance with the legal statutes
and French rules;

 

c.               the Company is not involved in any collective
settlement proceedings or amicable arrangements, and has not ceased making any
payments;

 

d.              as of its registration, the Company has not
exercised any activities. The only engagements or obligations existing on the
date of the Agreement and on the Effective Date are limited to the deed of
incorporation of the Company, the 

 

17

 

execution of the Agreement and
of the Related Agreements, the partial contribution mentioned in Article 5.1
and the obligations resulting there from;

 

e.               the entering into the Agreement and the Related
Agreements, as well as the realization of the Take-Over of the Site do not
violate any provision of the Company’s articles of association or any agreement
to which the Company is a party as of the date of this Agreement;

 

f.                 the Company validly owns the assets that are
the subject of the partial contribution mentioned in Article 5.1
of this Agreement;

 

g.              the list of Transferred Employees mentioned in Annex 5.1.2 reflects the complete and full
list of the employees that are being transferred under the partial contribution
mentioned in Article 5.1 of this
Agreement;

 

The
Vendor confirms that it has full capacity and power to enter into this
Agreement and the Related Agreements and that it is not involved in any
collective settlement proceedings or any amicable arrangement, and has not
ceased making any payments as of the date of this Agreement.

 

The
Transferor confirms that it has full capacity and power to enter into this
Agreement and the Related Agreements and that it is not involved in any
collective settlement proceedings or any amicable arrangement, and has not
ceased making any payments as of the Effective Date.

 

8.2 Representations and warranties of the
Purchaser and the Company

 

The Company declares that:

 

(a)          it has full power and capacity to
enter into this Agreement and the Related Agreements;

 

(b)         the signing of, entry into and
execution of the Agreement and the Related Agreements do not violate any
agreement or arrangement to which the Company or its shareholders are directly
or indirectly party, or do not violate any legal or regulatory statute
applicable to it;

 

(c)          it is not involved and is not threatened to be
involved in any collective settlement proceedings, insolvency proceedings or
any amicable arrangement, and has not ceased making any payments as of the date
of this Agreement.

 

The
Purchaser declares that:

 

(a)          it has full power and capacity to
enter into this Agreement and the Related Agreements.

 

(b)         the signing of, entry into and
execution of the Agreement and the Related Agreements do not violate any
agreement or arrangement to which the Purchaser or its shareholders are
directly or indirectly party, or do not violate any legal or regulatory statute
applicable to it.

 

18

 

(c)          it is not involved and is not threatened to be
involved in any collective settlement proceedings, insolvency proceedings or
any amicable arrangement, and has not ceased making any payments as of the date
of this Agreement.

 

(d)         it has all technical, industrial,
financial and human means necessary to manage the Take-Over of the Site and
conduct its Industrial Project.

 

8.3 Repetition of representations and warranties

 

The Parties shall repeat the representations and warranties made on the
date of this Agreement on the Effective Date, in such way that the
representations and warranties are deemed to be correct on the Effective Date.

 

Article 9
:                Undertakings of the Company and the Purchaser

 

The Company undertakes the following covenants to the benefit of the
Vendor and the Transferor and repeats the undertakings mentioned in the
Agreement and the Related Agreements and the Purchaser ensures compliance of
all undertakings of the Company.

 

The Company undertakes that:

 

(i)                                     the Financial Aid shall be used for
the purposes of the Site and its restructuring and to maintain the employment
of the Transferred Employees on the Site.

 

(ii)                                  it shall not agree to any dismissal
for economic reasons, social plan or employment restructuring plan which may
affect the Transferred Employees during a minimum period equal to the Guarantee
Period.

 

(iii)                               within 90 days as of the Effective
Date at the latest, it shall enter into a bank guarantee issued to the benefit
of the lessees under the financial lease agreements, which are a part of the
partial contribution described under article 5.1 of the Agreement, in
order to effect the release and discharge of the Vendor or the Transferor of
its obligations vis-à-vis such lessees.   If the Company fails to comply with this
undertaking, and without prejudice to the Security Interests and Guarantees
which have been granted to the benefit of the Vendor or the Transferor, the
Transferor may set-off these amounts vis-à-vis amounts due under the Products
Manufacturing Agreement, up to an amount of EUR 100,000 per month and not
exceeding 2/3 of the amount of the guarantee or the liabilities which can
result out of its obligations vis-à-vis the lessees.

 

Article 10 :         Miscellaneous

 

10.1 Good
faith

 

Each Party undertakes to irrevocably negotiate in good faith any
specification or modification to the contents of the Agreement and the Related
Agreements necessary for the good termination of the operations envisaged.

 

19

 

Each Party shall develop and sign all necessary documents, shall realise
any operation described above or resulting from it, shall carry out any
engagement, decision or measure, shall obtain and vote on any decision of any
corporate body, necessary in this regard, in accordance with the calendar
contained in Annex 10.1.

 

10.2 Reciprocal Information

 

Each Party shall communicate to the other information which the latter
might need for the purposes of carrying out its obligations in the execution of
the Agreement.

 

10.3 Notices

 

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

 

For the Vendor:

 

SAMSONITE FRANCE SAS: Mr Marc Matton

27, rue de la Rochefoucauld

75009 Paris

 

With a copy to:

Mr Frédéric Boucly

Lexens

128, Boulevard Haussmann

75008 Paris

 

For the Transferor

 

SAMSONITE EUROPE NV

Mr Marc Matton

Westerring 17

9700 Oudenaarde

Belgique

 

With a copy to:

Mr Frédéric Boucly

Lexens

128, Boulevard Haussmann

75008 Paris

 

20

 

For the Purchaser:

 

Mr Jean-Jacques AUREL

HB Group

Rue de l’industrie

L-3895 Foetz

 

With a copy to:

Fauvet La Giraudière & Associés

Avocat à la Cour

92 avenue d’Iéna

75008 Paris

 

For the Company ;

 

Mr Jean-Jacques AUREL

At the registered seat of the Company

 

With a copy to :

 

Fauvet La Giraudière & Associés

Avocat à la Cour

92 avenue d’Iéna

75008 Paris

 

10.4 Preamble and Annexes

 

The preamble and the annexes of the Agreement are part of the entire
Agreement and oblige the Parties in the same way as the stated obligations.

 

10.5 Entirety of the Agreement

 

The Agreement and the Related Agreements constitute the entire agreement
between the Vendor, Transferor, Purchaser and the Company with regard to the
object of the Agreement and replaces, cancels and prevails over any prior
agreement or document which the Vendor, Transferor and Purchaser would have
concluded or exchanged with an identical or similar object to the object of the
Agreement.

 

10.6 Confidentiality - Announcements

 

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

 

However, the afore-mentioned obligations have no effect if a request for
information is sent to one of the Parties or an Affiliated Company by an
administrative, judicial, legal, regulatory, financial or stock market
authority (in particular NSEC or NASD).

 

The Parties may also provide information in relation to the Agreement
and the Related Agreements to their usual bankers, counsels, accountants,
auditors, it being understood that they are bound by their respective
confidentiality obligation vis-à-vis their clients.

 

21

 

10.7 Invalidity

 

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

 

10.8 Endorsement and renunciation

 

No modification to the Agreement or to any document concluded in
accordance with the Agreement, can be validly made, unless such modification is
done in writing and signed by all Parties. 
The Parties reserve the right to exercise at all times any right or to
carry out any action to better protect their interest, and any delay by any
Party in the exercise, or lack of exercise, of such rights, cannot be
interpreted as an abandonment or renunciation of such rights or actions.

 

10.9 Expenses, disbursements and
taxes

 

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

 

The Purchaser will bear all costs and taxes related to the acquisition
of the Shares and of the Transferred Debt.

 

10.10 Transfer

 

The Agreement will bind all of the Parties, their heirs, successors and
assigns. However, no right, interest, asset or obligation whatsoever can form
part of a transfer or can be transferred directly or indirectly, without the
express approval of the Vendor or Transferor.

 

The Purchaser shall not proceed to the transfer of the Shares and of the
business as long as the Purchaser or the Company are debtor of any obligation
in accordance with the Agreement or with any Related Agreement until the
Company and the Purchaser have fulfilled their rights in accordance with the
Agreement and the Related Agreements.

 

10.11 Applicable law and choice of forum

 

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

 

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

 

22

 

Executed in
Paris, on 29 July 2005

in 4 original
copies

 

 

	
    s/s Marc Matton

  	
   

  	
    s/s Marc Matton

  	
   

  
	
  The
  Vendor

  	
  The
  Transferor

  
	
   

  	
   

  
	
   

  	
   

  
	
    s/s Marc Matton

  	
   

  	
    s/s Jean Jacques Aurel

  	
   

  
	
  The
  Company

  	
  The
  Purchaser

  
					

 

23EXHIBIT 10.2.1

 

***Informal translation – for information purposes only***

 

PARTIAL
ASSET CONTRIBUTION AGREEMENT

 

The present document is hereinafter referred to
as the “Agreement”.

 

BETWEEN:

 

1.                                     SAMSONITE, a
company with limited liability (société par actions
simplifiées), with a share capital of 720,000 EUR,  with its registered office at 27, rue de la
Rochefoucauld, 75009 Paris and registered with the commercial register of Paris
under number 652 024 159 RCS Paris, represented by Mr Marc Matton, in the capacity
of chairman, duly authorised,

 

(hereinafter referred to as “SAMSONITE”)

 

2.                                     ARTOIS
PLASTURGIE, a company with limited liability (société par actions simplifiées), with a share capital of
37,000 EUR,  with its registered office
at 128, boulevard Haussmann, 75008 Paris and registered with the commercial
register under number 483 173 308 RCS Paris, represented by Mr Marc Matton, in
the capacity of chairman, duly authorised,

 

(hereinafter referred to as “ARTOIS PLASTURGIE”)

 

The undersigned 1 and 2 are hereinafter
collectively referred to as the “Parties”.

 

WHEREAS:

 

1.              AIMS
AND MOTIVATION

 

(a)                                                        SAMSONITE
is a French company of which the corporate purpose is defined as follows in article 3
of its articles of association:

 

“The Company has as its
purpose, directly or indirectly, in France as well as abroad:

 

•                                          the
agency, the representation, the manufacturing, the purchase, the wholesale and
retail of consumer goods.

 

And in general:

 

•                                          all
commercial, industrial, civil, immovable, movable, financial and other
transactions of whatsoever nature which might, directly or indirectly, be
related to or useful to this purpose or which might facilitate its realisation.

 

The company can participate
in and be interested in any companies and undertakings of which the activity
might facilitate the realisation of its corporate purpose.

 

It may act directly or
indirectly, both solely and in association, participation, grouping or company
with any persons or companies and realise under whatsoever form the
transactions within its purpose.”

 

The duration of
SAMSONITE was prolonged by decision of the Extraordinary General Assembly of 9 August 2004
for a duration of 25 years, being effective as of 1 February 2025, i.e.
until 1 February 2050.

 

1

 

Its share capital
amounts to 720,000 EUR, divided into 45,000 shares each with a nominal value of
16 EUR.

 

SAMSONITE is
administered by a Chairman, Mr Marc Matton.

 

(b)                                                        ARTOIS
PLASTURGIE is a French company which was only recently registered and of which
the corporate purpose is defined as follows in article 3 of its articles
of association:

 

“The Company has as its
purpose in all countries:

 

•                                          The
conception, production, manufacturing and the merchandising under whatsoever
form of any materials and products, in particular the manufacturing of luggage,
plastic moulding objects and of any products, services, counselling and
assistance in these fields.

 

•                                          The
constitution, acquisition and exploitation of any establishments relating to
its corporate purpose,

 

•                                          All
of this directly or indirectly, on its own account or on the account of third
parties,  both solely and with third
parties, by way of constitution of new companies, contribution, limited
partnership, underwriting, purchase of titles or corporate rights, merger,
alliance, silent partnership or the hiring, renting or administering of any
goods or rights or otherwise,

 

•                                          and
more generally, all commercial, financial, industrial, movable and immovable
transactions of whatsoever nature, relating directly or indirectly to the
corporate purpose or to any similar, connected or complementary purposes, which
might facilitate its realisation or extension.”

 

The
duration of ARTOIS PLASTURGIE was fixed at 99 years starting from the date of
its registration with the commercial register, being 11 July 2005.

 

Its
share capital amounts to 37,000 EUR, divided into 37,000 shares held 100% by
SAMSONITE.

 

ARTOIS
PLASTURGIE is administered by a Chairman, Mr Marc Matton.

 

(c)                                                        Due to
difficulties experienced, SAMSONITE decided to assign the manufacturing
activities for luggage and plastic products carried out at its Hénin Beaumont
site under the name SIC.

 

 With this goal, and rather than proceeding
with the closing of this site, SAMSONITE has tried to find a transferee for
this site.

 

In order to
facilitate the take-over process of the site, SAMSONITE decided to constitute a
new company in the person of ARTOIS PLASTURGIE, to which the production means
related to the manufacturing activities of luggage and plastic products,  formerly carried out by SAMSONITE at the
Hénin-Beaumont site under the name SIC, will be transferred.

 

2.              SUBMISSION
TO THE REGIME OF DEMERGERS

 

By explicit agreement
between the Parties, and pursuant to article L. 236-22 of the Commercial
Code, the Parties agree that the partial contribution transaction as defined by
the Agreement will be subject to the provisions of articles L. 236-16 up to L.
236-21 of the Commercial Code.

 

2

 

3.              ENDING
OF THE ACCOUNTS

 

The financial year of
each of the Parties ends:

 

(i)                                    for
SAMSONITE, on 31 December, the annual accounts of the financial year ending on
31 December 2004 being approved by the sole shareholder on 30 May 2005;

 

(ii)                                  for ARTOIS
PLASTURGIE, on 31 December, the first financial year will end on 31 December 2006
and the annual accounts of this first financial year will need to be approved
by the sole shareholder or by the shareholders before 30 June 2007;

 

The inventories and
balance sheets have served for determining on the one hand the assets and the
liabilities which will be transferred to ARTOIS PLASTURGIE or which will be
taken over by the latter, and, on the other hand, the remuneration for the
partial net asset contribution agreed by SAMSONITE, the transferring company.

 

ARTOIS PLASTURGIE,
registered since 11 July 2005,   has
established an intermediate financial report on 11 July 2005 and has not
had any activity. Therefore the net financial situation of ARTOIS PLASTURGIE on
the date of the Agreement will be used. As to the determination of the exchange
ratio, the loss determined in this situation corresponding to the costs of the
constitution of the company ARTOIS PLASTURGIE and which have no impact on the
economic value of the latter, evaluated at 37,000 EUR, will not be taken into
account.

 

IT
HAS BEEN AGREED AS FOLLOWS:

 

ARTICLE 1.                           PARTIAL
ASSET CONTRIBUTION

 

SAMSONITE transfers to ARTOIS PLASTURGIE, under
the ordinary conditions, the conditions by operation of law and the conditions
stipulated in the Agreement, the movable and immovable means of production
designated and evaluated hereinafter, related to the manufacturing activities
for the luggage on the one hand and for the plastic products under the name SIC
on the other hand,  including specific
production capacity adapted to the manufacturing of the mentioned products, the
activities in question (hereinafter “the Activities”) being carried out at the
site located at 504/520 boulevard Fernand Darchicourt, 62110 HÉNIN-BEAUMONT.

 

“Plastic products under the name SIC” means:
manufacturing activities of plastic products principally for the automobile and
motorcycle industry sectors and the associated know-how, developed by SAMSONITE
at the Hénin-Beaumont site before the effective date of the present
contribution on the basis of the know-how acquired in the luggage industry.

 

ARTICLE 2.                           TRANSFERRED
ASSETS

 

The present partial asset contribution being a
transaction of transfer to a subsidiary followed by a transfer of titles to a
company under distinct control, the immovable assets are valued at their real
value and will be retained at their real value in the books of the beneficiary
company of the contribution.

 

The net assets transferred by SAMSONITE to
ARTOIS PLASTURGIE include the following goods and assets:

 

(a)          the
business of manufacturing of luggage and plastic products under the name SIC
valued on 31 August 2005 at 1 EUR,

 

3

 

(b)         land and
premises including the leasing contracts, the totality of these elements being
valued at 31 August 2005 of which a descriptive list is attached in Annex 2a to the Agreement, certified by SAMSONITE, the
totality of these elements being valued at:

 

fully owned property:
1,732,000 EUR,

 

leases: 1 euro, it
must be noted that the amount of the payments still due under the leasing
contracts was deducted from the value of the fully owned premises,

 

(c)          the
materials and tools used in the carrying out of the transferred activity,
described and valued element by element on 31 August 2005 of which a list
is attached in Annex 2b to the Agreement,
certified by SAMSONITE, the totality of these elements being valued at 527,693
euros,

 

(d)         the
office, movable property, vehicles and IT material,  used in the carrying out of the transferred
activity, described and estimated element by element on 31 August 2005 in
a list attached in Annex 2c to the
Agreement, certified by SAMSONITE, the totality of these elements being valued
at 59,436 euros,

 

making a total value
of the transferred goods of two million three hundred and nineteen thousand one
hundred and thirty-one euros (2,319,131 EUR).

 

ARTICLE 3.                           EXCLUDED
ASSETS AND LIABILITIES

 

None of the following assets and/or liabilities
fall under the scope of the Agreement and are consequently not transferred to
ARTOIS PLASTURGIE:

 

(i)                                    The
intellectual and industrial property rights namely the trademarks, patents,
designs and models together with the mouldings used at the site or property of
SAMSONITE, of a company of the SAMSONITE group or of third parties;

 

(ii)                                The IT
contracts and licenses and the software for the accountancy, invoicing,
ordering, the management of the salaries, the Management of the Production
Assisted by the Computer (“GPAO”) and Lotus Notes;

 

(iii)                            The
contracts between SAMSONITE and its customers related to the Activities, the
receivables held by SAMSONITE against its customers, except for the contracts
linked to the SIC activities;

 

(iv)                               The debts
of SAMSONITE with its suppliers;

 

(v)                                   The stocks
of conditioned final goods situated at the site on the effective date of the
contribution;

 

(vi)                               The stocks
linked to the Activities situated at the site on the effective date of the
contribution and which will be subject to an assignment by separate deed.

 

Accordingly, ARTOIS PLASTURGIE will have no
obligation or right of any nature whatsoever with respect to the abovementioned
contracts, receivables and/or debts.

 

4

 

ARTICLE 4.                           LIABILITIES
TAKEN OVER

 

As a compensation for the present
contributions, ARTOIS PLASTURGIE commits itself to take over and pay instead of
SAMSONITE, a part of the social liabilities of the latter, as estimated on 31 August 2005,
the part in question of the liabilities detailed below:

 

(i)                                     five
hundred and ninety thousand one hundred and thirty-seven euros (590,137 EUR)
corresponding to the part of the provision for pensions which SAMSONITE keeps
in its books for all the employees transferred to ARTOIS PLASTURGIE;

 

(ii)                                  three
hundred and sixty-five thousand and thirty euros (365,030 EUR) corresponding to
the paid holidays and the credit of hours acquired at this date by each
employee transferred to ARTOIS PLASTURGIE pursuant to article L122-12 of
the Employment Code and increased by the related social and fiscal charges (Annex 4 gives details of this liability per employee);

 

(iii)                               three
hundred and thirty thousand one hundred and thirty-nine euros (330,139 EUR)
corresponding to the credit of hours and the end of year payments (13th
month) acquired at this date by each employee transferred to ARTOIS PLASTURGIE
(Annex 4 gives a detail of this
liability per employee);

 

(iv)                              eighty-four
thousand nine hundred and seventy-nine euros (84,979 EUR) corresponding to the
employment medals                      pursuant to the
collective employment agreement and corresponding to the provision which
SAMSONITE keeps in its books for all the employees transferred to ARTOIS
PLASTURGIE;

 

it being specified that the transferred
liabilities will be supported by ARTOIS PLASTURGIE solely, without assistance
from SAMSONITE.

 

No other liability will be taken over by ARTOIS
PLASTURGIE from SAMSONITE. Consequently, SAMSONITE stays the sole debtor of all
liabilities related to the manufacturing activity of the luggage (including the
plastic moulding) and the plastic products under the name SIC
existing at the date of the contribution, as well as of all liabilities that
might arise from the contracts signed by SAMSONITE with its clients or
suppliers prior to the date of the Agreement, except for the social liabilities
as described above.

 

ARTOIS PLASTURGIE remains solely liable for all
liabilities generated by it with respect to the manufacturing activity of
luggage (including plastic moulding) and the industrial subcontracting under
the name SIC after the effective date of the
contributions.

 

ARTICLE 5.                           NET
CONTRIBUTION. REMUNERATION

 

5.1.                                        The assets
transferred are valued at two million three hundred and nineteen thousand one
hundred and thirty-one euros (2,319,131 EUR).

 

5.2.                                        The
liabilities are estimated at one million three hundred and seventy thousand two
hundred and eighty-five euros (1,370,285 EUR).

 

 On this basis the net contribution transferred
by SAMSONITE amounts to nine hundred and forty-eight thousand eight hundred and
forty-six euros (948,846 EUR).

 

5.3.                                        As
remuneration for this contribution, SAMSONITE will receive nine hundred
and forty-eight thousand eight hundred and forty-six (948,846)
shares of one euro (1 EUR) each, which must be totally paid-up, issued at the
increase by ARTOIS PLASTURGIE of its share capital.

 

5

 

ARTICLE 6.                           CHARGES
AND CONDITIONS

 

The contributions are conferred under the
general and legal conditions, and in particular under the following conditions:

 

•                  ARTOIS
PLASTURGIE will take over the transferred tangible goods in their state on the
date of the entry into possession, without the power to exercise any right or
recourse against SAMSONITE, for any reason whatsoever, such as the bad state of
the materials, errors in designation or consistency, etc.;

 

•                  With
respect to the immovable goods and rights transferred to ARTOIS PLASTURGIE, the
latter will take over the concerned goods and rights in their state at the time
of the taking into possession without the power to exercise any right or
recourse against SAMSONITE, namely with respect to the state of the immovable
goods related to the transferred goods and any defects of whatsoever nature,
apparent or hidden, or with respect to the designation or the indicated
capacities, any error in the designation and any difference in capacity (in
surplus or in minus), if any, being the loss or profit of ARTOIS PLASTURGIE;

 

•                  ARTOIS
PLASTURGIE will tolerate the passive easements encumbering – or which might
encumber - the transferred immovable goods, except for defending itself and
taking profit from the active easements, if any, at its own risk, without any
right against SAMSONITE and without the present stipulations conferring more
rights than as provided by law or by ordinary non-prescribed titles on anyone;

 

•                  A copy of
the immovable goods cards relating to the immovable assets figures in Annex 6
A;

 

•                  From the
date of the entry in possession, ARTOIS PLASTURGIE will pay all taxes
(including the property tax pro rata temporis for the year 2005), contributions
and fees due – or which may be due – in respect of the transferred goods, as
well as all ordinary or extraordinary duties and any other charges of
whatsoever nature, which are – or will be – inherent in the use of the
transferred goods;

 

•                  ARTOIS
PLASTURGIE will continue the employment contracts of the employees working on
the Hénin-Beaumont site pursuant to article L122-12 of the Employment
Code; Annex 6 B provides a list;

 

•                  ARTOIS
PLASTURGIE will execute all contracts, understandings and agreements with any
third parties with respect to the use of the transferred goods;

 

•                  It will
conform to the laws, decrees, regulations and practices relating to the use in
the same way of the transferred goods and it will personally be responsible for
the permits that might be necessary, at is own risk. In particular, it will
underwrite all necessary insurance and other policies against any risks of
whatsoever nature in order to cover the operation of the transferred production
means, and more generally, of the manufacturing activities of the luggage
(including the plastic moulding) and of the industrial subcontracting known
under the name SIC which it will develop on the
basis of these production means;

 

•                  It will
comply with all legal formalities and publication formalities relating to the
contributions within the legal terms and will personally be responsible for the
necessary declarations and formalities with any administrations, in order to
make the transferred goods its property. It will fulfil, if necessary, all
formalities in order to make the transfer of the goods enforceable against
third parties.

 

6

 

ARTICLE 7.                           PROPERTY
– POSSESSION

 

ARTOIS PLASTURGIE will be the owner of and take
possession of the transferred assets, under title of partial asset
contribution, starting from 1 September 2005 at 0 am. The contribution
will not have any retrospective effect.

 

Until the mentioned day, SAMSONITE will
continue administering all transferred goods under the same principles,
regulations and conditions as in the past. However, it will not take any
important decision which might affect these assets without the prior consent of
ARTOIS PLASTURGIE.

 

ARTICLE 8.                           DECLARATION

 

SAMSONITE declares:

 

•                      that it
owns the activities it pursues on the Hénin-Beaumont-site, using means of
production, which are the object of the Agreement, because it has created
these;

 

•                      that the
transferred assets are not encumbered with any charge or security, of any
nature whatsoever ;

 

•                      to renounce
fully, any privilege or action for annulment which it may have with respect to
the transferred assets as a guarantee for the obligations and conditions
imposed on ARTOIS PLASTURGIE. Therefore it expressly renounces to any
registrations to its benefit have been made in this respect and grants full
discharge in this respect to whom it may concern ;

 

•                      to provide
ARTOIS PLASTURGIE with all necessary assistance to ensure the effective
transfer of the transferred assets.

 

ARTICLE 9.                           TAX-RELATED
DECLARATIONS

 

9.1.                           The
Parties declare:

 

•                      that the
current partial asset contribution is subject to the common law regime with
respect to corporate tax;

 

•                      that they
are subject to the tax regime for stock companies;

 

•                      that
ARTOIS PLASTURGIE, the beneficiary company, for the fixed assets contained in
the contribution and in conformity with the administrative doctrine set out in
the instructions of 18 February 1981 and 22 February 1990, in
application of article 210 III of Annexe II of the General Tax Code,
undertakes to ensure the regularisation of the deductions provided for in
articles 207 bis, 210, 214, 215, 221 and 225
of the Annexe II of the same Code, under the same conditions than SAMSONITE,
the contributing company, would have been submitted to in the absence of the
contribution. ARTOIS PLASTURGIE will inform the tax authorities with respect to
this undertaking;

 

•                      that, with
regard to the application of article 235 bis of
the General Tax Code and 163 of Annexe II of the same Code, ARTOIS PLASTURGIE
undertakes to assume SAMSONITE’s investment obligation, on the basis of the
wages it paid in the course of 8 months during the year preceding the
contribution and the amounts with regard to education and professional
training.

 

•                      that, with
regard to registration duties, the current contribution will be registered at
the 230 euro fixed rate as the conditions for the application of the fixed rate
are fulfilled.

 

7

 

9.2.                           Under
penalty of the application of article 1837 of the General Tax Code, the
Parties confirm that the Agreement sets out the entire remuneration for the
contribution and for the assumed liabilities.

 

ARTICLE 10.                    MISCELLANEOUS

 

10.1.                    Handing
over of titles

 

If the contributions
are effected, the property titles, archives and all documents with respect to
the transferred assets will be handed over to ARTOIS PLASTURGIE.

 

10.2.                    Costs

 

The costs, duties and
fees in relation to and resulting from the Agreement will be entirely borne by
SAMSONITE, except for the registration rights in relation to the Agreement,
which will be entirely borne by ARTOIS PLASTURGIE.

 

10.3.                    Election
of domicile

 

For the execution of
the Agreement, the Parties have elected domicile at their respective registered
office.

 

ARTICLE 11.                    CONDITION
PRECEDENT

 

The current contributions are agreed under the
condition precedent that they are approved by the extra-ordinary general
meeting of shareholders of SAMSONITE and ARTOIS PLASTURGIE and the issuance of
the shares in remuneration for the contributions by ARTOIS PLASTURGIE.

 

If the condition precedent is not fulfilled
before 1 September 2005, the Agreement shall be considered void, without
damages being due by either Party.

 

The extra-ordinary general meetings of
shareholders of ARTOIS PLASTURGIE and SAMSONITE will have to proceed to
adjustments in order to take into account the valuation of the contributed
liabilities. The amount of the capital increase, provided for in Article 5.2
of the Agreement will not be modified.

 

The adjustments will be made as follows:

 

•                      in the
event that the liabilities exceed 1,370,285 euro, ARTOIS PLASTURGIE will
determine a receivable on SAMSONITE.

 

•                      in the
event that the liabilities do not exceed 1,370,285 euro, the remaining amount
will be contributed as a contribution premium.

 

ARTICLE 12.                    LAND
PUBLICITY - NOTARY PUBLIC

 

For the purposes of the land publicity, the
Parties require Mr. Stéphane Cezevic to draft a deed of deposit in
original with certification of handwriting and signatures.

 

Furthermore, the parties grant Mr. Stéphane
Cezevic every authority to draft all required additional deeds or deeds
rectifying either mistakes or omissions with regard to the designation of the
contributed immovable goods and rights.

 

8

 

Made in Paris on 28 July 2005,

 

 

In six original copies

 

	
    /s/ Marc
  Matton

  	
   

  	
      /s/
  Marc Matton

  
	
    SAMSONITE

  	
    ARTOIS
  PLASTURGIE

  
	
    Marc
  Matton

  	
    Marc Matton

  

 

9

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