Document:

amend1credit-securityagree.htm

    Exhibit
10.2

    

     

    AMENDMENT NO. 1
TO

    CREDIT AGREEMENT AND
SECURITY AGREEMENT

    

     

    THIS AMENDMENT NO. 1 TO CREDIT
AGREEMENT AND SECURITY AGREEMENT (this “Amendment”) is entered into as of
March 17, 2008 by and among FURNITURE BRANDS INTERNATIONAL,
INC., a Delaware corporation (“Furniture Brands”), BROYHILL FURNITURE INDUSTRIES,
INC., a North Carolina corporation (“Broyhill”), HDM FURNITURE INDUSTRIES,
INC., a Delaware corporation (“HDM”), LANE FURNITURE INDUSTRIES,
INC., a Mississippi corporation (“Lane”), THOMASVILLE FURNITURE INDUSTRIES,
INC., a Delaware corporation (“Thomasville”, and, together with Furniture
Brands, HDM, Broyhill and Lane, each a “Borrower,” and, collectively, the
“Borrowers”), the other Loan Parties and the financial institutions signatory
hereto, and JPMORGAN CHASE
BANK, N.A., as Administrative Agent (the “Administrative
Agent”).

     

     

    RECITALS

     

    A.           The
Borrowers, the other Loan Parties, the Lenders and the Administrative Agent are
party to that certain Credit Agreement dated as of August 9, 2007 (the “Credit
Agreement”).  Unless otherwise specified herein, capitalized terms
used in this Amendment shall have the meanings ascribed to them by the Credit
Agreement.

     

    B.           The
Borrowers, the other Loan Parties and the Administrative Agent are party to that
certain Security Agreement dated as of August 9, 2007 (the “Security
Agreement”).

     

    C.           The
Borrowers, the other Loan Parties, the Lenders, and the Administrative Agent
wish to amend the Credit Agreement and the Security Agreement on the terms and
conditions set forth below.

     

    Now, therefore, in
consideration of the mutual execution hereof and other good and valuable
consideration, the parties hereto agree as follows:

     

    1.           Amendment to Credit
Agreement.  The Credit Agreement is hereby  amended
as follows:

     

    (a)           Section
3.15 of the Credit Agreement is hereby amended by inserting the phrase “As of
the Effective Date,” at the beginning of the first sentence
thereof.

     

    (b)           Section
9.01(a)(ii) of the Credit Agreement hereby deleted and replaced with the
following:

    
      	
               

            	
              (ii)

            	
              if to the
      Administrative Agent, the Issuing Bank, the Swingline Lender, or to Chase
      at:

            

    

    

    JPMorgan Chase
Bank, N.A.

    c/o Chase Business
Credit

    10 S. Dearborn,
Floor 22

    Chicago, IL
60603

    Attention: Lynne M.
Ciaccia

    Facsimile No: (312)
732-7593

     

    (c)             
Section 10.03 of the Credit Agreement is hereby amended by adding a new
subsection 10.03(d) as follows:

    (d)  In
connection with any asset sale, transfer or other disposition permitted by this
Agreement that results in the sale, transfer or other disposition of all of the
Equity Interests issued by any Loan Guarantor, the Administrative Agent is
authorized to release such Loan Guarantor from its obligations under the Loan
Guaranty and the other Loan Documents upon consummation of such sale or
disposition if the Company certifies to the Administrative Agent that the
applicable sale or disposition is made in compliance with the terms of this
Agreement (and the Administrative Agent may rely conclusively on any such
certificate, without further inquiry).

    2.           Amendment to Security
Agreement.  Section 4.10(e) of the Security Agreement is hereby
amended by inserting the parenthetical “(or such lesser time as the
Administrative Agent shall otherwise agree)” between the words “days” and
“prior” in the first sentence thereof.

     

    3.           Representations and
Warranties of the Loan Parties.  Each of the Loan Parties
represents and warrants that:

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    (a)           The
execution, delivery and performance by the Loan Parties of this Amendment have
been duly authorized by all necessary corporate action and that this Amendment
is a legal, valid and binding obligation of the Loan Parties enforceable against
the Loan Parties in accordance with its terms, except as the enforcement thereof
may be subject to the effect of any applicable bankruptcy, insolvency,
reorganization, moratorium or similar law affecting creditors’ rights
generally;

     

    (b)           Each
of the representations and warranties contained in the Credit Agreement
(treating this Amendment and the Credit Agreement as amended hereby as “Loan
Documents” for purposes thereof) is true and correct in all material respects on
and as of the date hereof as if made on the date hereof (except that any
representation or warranty that relates to a specific date shall be true and
correct in all material respects as of such date); and

     

    (c)           After
giving effect to this Amendment, no Default or Event of Default has occurred and
is continuing.

     

    4.           Effective
Date.  This Amendment shall become effective as of the date
first set forth above upon the execution and delivery hereof by the Loan
Parties, the Required Lenders, and the Administrative Agent (without respect to
whether it has been executed and delivered by all the Lenders).

     

    5.           Reaffirmation. Each
of the undersigned Loan Guarantors hereby unconditionally consents to the terms
of this Amendment and fully ratifies and affirms its respective obligations
under Article X of the Credit Agreement, taking into account this
Amendment.

     

    6.           Reference to and Effect Upon
the Credit Agreement and the Security Agreement

     

    (a)           Except
as specifically amended above, the Credit Agreement, the Security Agreement and
the other Loan Documents shall remain in full force and effect and are hereby
ratified and confirmed.

     

    (b)           The
execution, delivery and effectiveness of this Amendment shall not operate as a
waiver of any right, power or remedy of the Administrative Agent or any Lender
under the Credit Agreement, the Security Agreement or any other Loan Document,
nor constitute a waiver of any provision of the Credit Agreement, the Security
Agreement or any other Loan Document, except as specifically set forth
herein.  Upon the effectiveness of this Amendment, each reference in
the Credit Agreement or the Security Agreement to “this Agreement”, “hereunder”,
“hereof”, “herein” or words of similar import shall mean and be a reference to
the Credit Agreement or the Security Agreement, as applicable, as amended
hereby.

     

    7.           Costs and
Expenses.  The Borrowers hereby affirm their obligations under
Section 9.03 of the Credit Agreement to reimburse the Administrative Agent for
all reasonable out-of-pocket costs and expenses incurred by the Administrative
Agent in connection with the preparation, execution and delivery of this
Amendment, including but not limited to the reasonable fees, charges and
disbursements of attorneys for the Administrative Agent with respect
thereto.

     

    8.           Governing
Law.  This Amendment shall be construed in accordance with and
governed by the law of the State of Illinois.

     

    9.           Headings.  Section
headings in this Amendment are included herein for convenience of reference only
and shall not constitute a part of this Amendment for any other
purposes.

     

    10.           Counterparts.  This
Amendment may be executed in any number of counterparts, each of which when so
executed shall be deemed an original but all such counterparts shall constitute
one and the same instrument.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    IN
WITNESS WHEREOF, the parties have executed this Amendment as of the date and
year first above written.

     

    LOAN
PARTIES:

    

    
      	
               

            	
              FURNITURE
      BRANDS INTERNATIONAL, INC.

            

    

    
      

    

    
      	 	
              BROYHILL
      FURNITURE INDUSTRIES, INC.

            

    

    
      	
               

            	
              LANE
      FURNITURE INDUSTRIES, INC.

            

    

    
      	
               

            	
              THOMASVILLE
      FURNITURE INDUSTRIES, INC.

            

    

    
      	
               

            	
              ACTION
      TRANSPORT, INC.

            

    

    
      	
               

            	
              BROYHILL
      TRANSPORT, INC.

            

    

    
      	
               

            	
              BROYHILL
      RETAIL, INC.

            

    

    
      	
               

            	
              BROYHILL HOME
      FURNISHINGS, INC.

            

    

    
      	
               

            	
              THOMASVILLE
      RETAIL, INC.

            

    

    
      	
               

            	
              HDM RETAIL,
      INC.

            

    

    
      	
               

            	
              FAYETTE
      ENTERPRISES, INC.

            

    

    
      	
               

            	
              HDM FURNITURE
      INDUSTRIES, INC.

            

    

    
      	
               

            	
              HDM
      TRANSPORT, INC.

            

    

    
      	
               

            	
              LANEVENTURE,
      INC.

            

    

    
      	
               

            	
              MAITLAND-SMITH
      FURNITURE INDUSTRIES, INC.

            

    

    
      	
               

            	
              MAITLAND-SMITH
      HOME FURNISHINGS, INC.

            

    

    
      	
               

            	
              THE LANE
      COMPANY, INCORPORATED

            

    

    
      	
               

            	
              LANE HOME
      FURNISHINGS RETAIL, INC.

            

    

    
      	
               

            	
              HICKORY
      BUSINESS FURNITURE, INC.

            

    

    
      	
               

            	
              THOMASVILLE
      HOME FURNISHINGS, INC.

            

      	 	FURNITURE
      BRANDS RETAIL OPERATIONS, INC.

    

     

    
      	
            	
               

            	
              By /s/ Jon
      Botsford

            

    

    
      	
               

            	
              Name: Jon
      Botsford

            

    

    
      	
               

            	
              Title: Senior
      Vice President of Furniture Brands and Vice President of each other Loan
      Party on behalf of each of the above Loan
  Parties

            

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    

    

    JPMORGAN CHASE
BANK, N.A., individually and as Administrative Agent

     

    By  /s/ Lynne
Ciaccia

    Name:  Lynne
Ciaccia

    Title: 
VP

     

    

     

    BANK OF AMERICA,
N.A.

     

    By  /s/ Brian
Conole

    Name:  Brian
Conole

    Title:  Senior
Vice President

    

    

    

    NATIONAL CITY
BUSINESS CREDIT, INC.

     

    By  /s/ Michael P.
Gotia

    Name:  Michael
P. Gotia

    Title:  Vice
President

    

    

    WACHOVIA CAPITAL
FINANCE CORPORATION (CENTRAL)

     

    By  /s/ Daniel
Caven

    Name:  Daniel
Caven

    Title: 
VP

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    

    WELLS FARGO
FOOTHILL, LLC

     

    By  /s/ Jennifer
Fong

    Name: 
Jennifer Fong

    Title: 
AVP

    

    

    GENERAL ELECTRIC
CAPITAL CORPORATION

     

    By  /s/ Robert M.
Reeg

    Name:  Robert
M. Reeg

    Title:  Duly
Authorized Signatory

    

    

    RBS BUSINESS
CAPITAL, A DIVISION OF RBS ASSET FINANCE, INC.

     

    By  /s/ Donald B.
Lewis

    Name:  Donald
B. Lewis

    Title:  Senior
Vice President

    

    

    THE CIT GROUP/
COMMERCIAL SERVICES, INC.

     

    By  /s/ Dan
Upchurch

    Name:  Dan
Upchurch

    Title: 
V.P.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    

    PNC BANK, NATIONAL
ASSOCIATION

     

    By  _____________________________

    Name: 

    Title: 

    

    

    CAPITAL ONE
LEVERAGE FINANCE CORP.  f/k/a

    NORTH FORK BUSINESS
CAPITAL CORPORATION

     

    
      By  /s/ Michael S.
Burns

      Name: 
Michael S. Burns

      Title:  Vice
President

    

    

    

    FIFTH THIRD BANK, A
MICHIGAN BANKING CORPORATION

     

    
      By  /s/ Robert M.
Sander

      Name:  Robert
M. Sander

      Title:  Vice
President

    

    

    

    UPS CAPITAL
CORPORATION

     

    By  /s/ John P.
Holloway

    Name:  John P.
Holloway

    Title: 
Director of Portfolio Managementexhibit10-1saleagreement.htm

    
      
        

        

      

       

       

      Exhibit
10.1

      
        	 
      
	 
      
	
                 

                 

                SALE
      AND PURCHASE AGREEMENT

              
	
                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                REGARDING
      THE SALE AND PURCHASE OF PARTNERSHIP INTERESTS IN SAUERESSIG GMBH + CO.
      KG

                 

                 

                 

              
	
                 

                25
      FEBRUARY 2008

              

      

       

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      CONTENTS

       

      Clause                                                                                        Page

       

      

          

        	
                1.

              	
                CORPORATE
      OWNERSHIP / STRUCTURE OF THE ACQUISITION

              	
                9

              
	
                    1.1

              	
                Particulars
      of the Company

              	
                9

              
	
                    1.2

              	
                Partnership
      Capital of the Company

              	
                9

              
	
                    1.3

              	
                Subsidiaries
      of the Company; Companies’ Shares

              	
                9

              
	
                    1.4

              	
                Minority
      Participations

              	
                10

              
	
                    1.5

              	
                Sellers’
      Capital and Reserve Accounts

              	
                10

              
	
                    1.6

              	
                Sellers'
      Loans and Private Accounts

              	
                10

              
	
                    1.7

              	
                Signing
      Date; Effective Date

              	
                10

              
	
                    1.8

              	
                Other
      Definitions

              	
                10

              
	
                2.

              	
                SALE
      AND PURCHASE OF THE PARTNERSHIP INTERESTS; SALE AND PURCHASE OF THE
      SELLERS' LOANS AND PRIVATE ACCOUNTS

              	
                
                  10

                

              
	
                    2.1

              	
                Sale
      and Purchase of the Partnership Interests; Rights to
    Profits

              	
                10

              
	
                    2.2

              	
                Sale
      and Purchase of the Sellers' Loans and Private Accounts

              	
                11

              
	
                    2.3

              	
                Separate
      Transfer Agreements

              	
                11

              
	
                    2.4

              	
                Approval
      of Shareholders

              	
                11

              
	
                3.

              	
                PURCHASE
      PRICE; SELLERS' LOANS AND PRIVATE ACCOUNTS PURCHASE PRICE; PRELIMINARY
      PURCHASE PRICE; PRELIMINARY SELLERS' LOANS AND PRIVATE ACCOUNTS PURCHASE
      PRICE; CONDITIONS OF PAYMENT

              	
                11

              
	
                    3.1

              	
                Purchase
      Price; Sellers' Loans and Private Accounts Purchase Price

              	
                11

              
	
                    3.2

              	
                Calculation
      of Purchase Price

              	
                12

              
	
                    3.3

              	
                Preliminary
      Purchase Price; Preliminary Sellers' Loans and Private Accounts Purchase
      Price; Due Date

              	
                12

              
	
                    3.4

              	
                Purchase
      Price Adjustment; Sellers' Loans and Private Accounts Purchase Price
      Adjustment; Due Date

              	
                13

              
	
                    3.5

              	
                Allocation
      of Purchase Price, of any Purchase Price Adjustment, of Sellers' Loans and
      Private Accounts Purchase Price and of any Sellers' Loans and Private
      Accounts Purchase Price Adjustment

              	
                14

              
	
                    3.6

              	
                Sellers'
      Accounts; Purchaser's Account

              	
                14

              
	
                    3.7

              	
                Interest

              	
                15

              
	
                    3.8

              	
                No
      Right to Set-Off

              	
                15

              
	
                    3.9

              	
                Bank
      Guaranty

              	
                16

              
	
                    3.10

              	
                Example
      Calculation

              	
                16

              
	
                4.

              	
                CONSOLIDATED
      FINANCIAL STATEMENTS 2007

              	
                16

              
	
                    4.1

              	
                Preparation
      and Audit of the Consolidated Financial Statements 2007

              	
                16

              
	
                    4.2

              	
                Review
      and Delivery of the Consolidated Financial Statements 2007 to the
      Purchaser

              	
                16

              
	
                    4.3

              	
                Objections
      of the Purchaser; Arbitration Proceedings

              	
                17

              
	
                    4.4

              	
                Costs
      of Auditing

              	
                17

              
	
                5.

              	
                CLOSING;
      CLOSING CONDITIONS

              	
                17

              
	
                    5.1

              	
                Closing
      Conditions; Closing Date

              	
                17

              
	
                    5.2

              	
                Closing
      Conditions

              	
                17

              
	
                    5.3

              	
                Obligations
      with Respect to the Closing Conditions

              	
                18

              
	
                    5.4

              	
                Consequences
      of Non-Satisfaction of the Closing Conditions; Right to Waive Closing
      Conditions

              	
                18

              
	
                    5.5

              	
                Actions
      on the Closing Date

              	
                19

              
	
                6.

              	
                SELLERS’
      GUARANTEES

              	
                20

              
	
                    6.1

              	
                Form
      and Scope of Sellers’ Guarantees

              	
                20

              
	
                    6.2

              	
                Sellers’
      Guarantees

              	
                20

              
	
                    6.3

              	
                No
      other Sellers’ Guarantees

              	
                26

              
	
                    6.4

              	
                Sellers’
      Knowledge

              	
                27

              
	
                7.

              	
                REMEDIES
      FOR BREACH OF SELLERS' GUARANTEES

              	
                27

              
	
                    7.1

              	
                General/Recoverable
      Damages

              	
                27

              
	
                    7.2

              	
                Overall
      Scope of Sellers’ Liability pursuant to this Agreement

              	
                27

              
	
                    7.3

              	
                Threshold

              	
                28

              
	
                    7.4

              	
                Exclusion
      of Claims due to Purchaser’s Knowledge

              	
                28

              
	
                    7.5

              	
                Notification
      of Sellers; Procedure in Case of Third Party Claims

              	
                28

              
	
                    7.6

              	
                Mitigation

              	
                29

              
	
                    7.7

              	
                Limitation
      Periods

              	
                29

              
	
                    7.8

              	
                Exclusion
      of Further Remedies

              	
                29

              
	
                8.

              	
                TAXES

              	
                30

              
	
                    8.1

              	
                Definition
      of Tax

              	
                30

              
	
                    8.2

              	
                Tax
      Filings and Tax Payments until the Closing Date

              	
                30

              
	
                    8.3

              	
                Tax
      Indemnification

              	
                30

              
	
                    8.4

              	
                Tax
      Filings after the Closing Date

              	
                31

              
	
                    8.5

              	
                Tax
      Covenants

              	
                31

              
	
                    8.6

              	
                Indemnification
      Procedures

              	
                31

              
	
                    8.7

              	
                Tax
      Refunds

              	
                32

              
	
                    8.8

              	
                Limitation

              	
                32

              
	
                9.

              	
                PURCHASER’S
      GUARANTEES

              	
                33

              
	
                    9.1

              	
                Guarantees

              	
                33

              
	
                    9.2

              	
                Indemnification

              	
                33

              
	
                10.

              	
                COVENANTS

              	
                33

              
	
                    10.1

              	
                Merger
      Control Proceedings; Other Regulatory Requirements

              	
                33

              
	
                    10.2

              	
                Pre-Closing
      Covenants of the Sellers

              	
                34

              
	
                    10.3

              	
                Exoneration
      (Entlastung) of
      Seller 1 as Managing Director

              	
                34

              
	
                    10.4

              	
                Access
      to Financial Information

              	
                34

              
	
                    10.5

              	
                Insurance
      Coverage

              	
                35

              
	
                    10.6

              	
                Indemnification
      of the Sellers

              	
                35

              
	
                    10.7

              	
                Covenant
      not to Compete

              	
                35

              
	
                    10.8

              	
                Indemnification
      of the Company and/or the Purchaser

              	
                35

              
	
                11.

              	
                CONFIDENTIALITY
      / PRESS RELEASES

              	
                36

              
	
                    11.1

              	
                Confidentiality;
      Press Releases; Public Disclosure

              	
                36

              
	
                    11.2

              	
                Purchaser’s
      Confidentiality; Return of Documents

              	
                36

              
	
                12.

              	
                ASSIGNMENT
      OF RIGHTS AND UNDERTAKINGS

              	
                36

              
	
                13.

              	
                SELLERS'
      LIABILITY

              	
                37

              
	
                14.

              	
                ASSIGNEE
      AFFILIATE'S GUARANTOR

              	
                37

              
	
                    14.1

              	
                Guarantee

              	
                37

              
	
                    14.2

              	
                Indemnification

              	
                37

              
	
                15.

              	
                COSTS
      AND TAXES

              	
                37

              
	
                    15.1

              	
                Taxes

              	
                37

              
	
                    15.2

              	
                Costs

              	
                38

              
	
                16.

              	
                NOTICES

              	
                38

              
	
                    16.1

              	
                Form
      of Notice

              	
                38

              
	
                    16.2

              	
                Notices
      to Sellers; Notices of the Sellers

              	
                38

              
	
                    16.3

              	
                Notices
      to Purchaser

              	
                38

              
	
                    16.4

              	
                Notices
      to Assignee Affiliate's Guarantor

              	
                39

              
	
                    16.5

              	
                Change
      of Address

              	
                39

              
	
                    16.6

              	
                Copies
      to Advisors

              	
                39

              
	
                17.

              	
                MISCELLANEOUS

              	
                39

              
	
                    17.1

              	
                Governing
      Law

              	
                39

              
	
                    17.2

              	
                Arbitration

              	
                40

              
	
                    17.3

              	
                Business
      Day

              	
                40

              
	
                    17.4

              	
                Amendments,
      Supplementations

              	
                40

              
	
                    17.5

              	
                Language

              	
                40

              
	
                    17.6

              	
                Headings

              	
                40

              
	
                    17.7

              	
                Annexes

              	
                40

              
	
                    17.8

              	
                Definitions

              	
                40

              
	
                    17.9

              	
                Entire
      Agreement

              	
                41

              
	
                    17.10

              	
                Severability

              	
                41

              

      

      

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

       

      SALE
AND PURCHASE AGREEMENT

       

       by and
among

       

       Mr.
Jörg Christian Saueressig,

       

      Bockhorn
28, 48683 Ahaus, Germany,

                                                                        (hereinafter
referred to as the "Seller
1"),

       

       Mr.
Karl Wilhelm Saueressig,

       

      Am Bülten
1, 48691 Vreden, Germany,

                                                                         (hereinafter referred
to as the "Seller
2"),

       

       Mr.
Jakob Heinrich Saueressig,

       

      Barler
Straße 27-29, 48683 Ahaus, Germany,

                                                                         (hereinafter referred
to as the "Seller
3"),

       

       Mr. Reinhart Zech von
Hymmen,

       

      Gerresheimer
Landstraße 63, 40699 Erkrath, Germany,

                                                                         (hereinafter
referred to as the "Seller
4")

       

       

       

       and

       

       Matthews
International Corporation,

       

      2 North
Shore Center, Pittsburgh, USA,

                                                                         (hereinafter referred to as
the "Purchaser
"),

       

       

       

       Seller 1,
Seller 2, Seller 3 and Seller 4 hereinafter collectively referred to as the
"Sellers" or each as a
"Seller"; the Sellers
and the Purchaser hereinafter collectively referred to as the "Parties" and each of them as a
"Party".

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      INDEX
OF ANNEXES

       

      

        
          	
                   

                   Annex
      1

                	
                   

                   Index
      of Definitions

                
	
                   

                   Annex
      1.3

                	
                   

                   Subsidiaries
      of the Company

                
	
                   

                   Annex
      1.4

                	
                   

                   Minority
      Participations of the Company

                
	
                   

                   Annex
      1.5

                	
                   

                   Sellers’
      Capital and Reserve Accounts

                
	
                   

                   Annex
      2.3 (a)

                	
                   

                   Transfer
      Agreement Partnership Interests

                
	
                   

                   Annex
      2.3 (b)

                	
                   

                   Transfer
      Agreement Sellers' Loans and Private Accounts

                
	
                   

                   Annex
      2.4

                	
                   

                   Shareholders’
      approval resolution

                
	
                   

                   Annex
      3.2 (b)

                	
                   

                   Financial
      Debt

                
	
                   

                   Annex
      3.2 (c)

                	
                   

                   Cash

                
	
                   

                   Annex
      3.2 (d)

                	
                   

                   Working
      Capital

                
	
                   

                   Annex
      3.3 (a)

                	
                   

                   Preliminary
      Effective Date Accounts

                
	
                   

                   Annex
      3.3 (a) (ii)

                	
                   

                   Draft
      Escrow Agreement

                
	
                   

                   Annex
      3.3 (b)

                	
                   

                   Preliminary
      Sellers' Loans and Private Accounts

                
	
                   

                   Annex
      3.5 (a)

                	
                   

                   Allocation
      of Purchase Price

                
	
                   

                   Annex
      3.10

                	
                   

                   Example
      Calculation Purchase Price

                
	
                   

                   Annex
      5.5 (g)

                	
                   

                   Sale
      and Purchase Agreement Devine GmbH + Co. KG

                
	
                   

                   Annex
      6.2 (a) (1a)

                	
                   

                   Copy
      of Company's partnership agreement

                
	
                   

                   Annex
      6.2 (a) (1b)

                	
                   

                   List
      of articles of association (or equivalent documents)

                
	
                   

                   Annex
      6.2 (a) (2)

                	
                   

                   Certain
      corporate documents

                
	
                   

                   Annex
      6.2 (a) (4)

                	
                   

                   Companies
      in liquidation or already liquidated

                
	
                   

                   Annex
      6.2 (b)

                	
                   

                   Consolidation
      Effects 2006 of Saueressig Jordan Co. Ltd.

                
	
                   

                   Annex
      6.2 (c) (1)

                	
                   

                   Real
      Property owned by the Companies

                
	
                   

                   Annex
      6.2 (c) (2)

                	
                   

                   Real
      Property leased or rented by the Companies

                
	
                   

                   Annex
      6.2 (d)

                	
                   

                   Transfers
      by way of security and retention of title arrangements

                
	
                   

                   Annex
      6.2 (e) (1)

                	
                   

                   Intellectual
      Property Rights

                
	
                   

                   Annex
      6.2 (f)

                	
                   

                   Compliance
      with Laws and Permits

                
	
                   

                   Annex
      6.2 (g)

                	
                   

                   Environmental
      Report of Dr. Kerth + Lampe

                
	
                   

                   Annex
      6.2 (h)

                	
                   

                   Material
      Agreements

                
	
                   

                   Annex
      6.2 (i)

                	
                   

                   Largest
      Customers and Largest Suppliers

                
	
                   

                   Annex
      6.2 (j) (1)

                	
                   

                   Collective
      bargaining agreements and other material agreements

                
	
                   

                   Annex
      6.2 (j) (2)

                	
                   

                   Key
      Employees

                
	
                   

                   Annex
      6.2 (j) (5)

                	
                   

                   Proceedings
      between employees of the Companies and the Companies

                
	
                   

                   Annex
      6.2 (j) (6)

                	
                   

                   Agreements
      relating to partial retirements of employees of the
    Companies

                
	
                   

                   Annex
      6.2 (k)

                	
                   

                   Insurance
      Policies

                
	
                   

                   Annex
      6.2 (l)

                	
                   

                   Public
      Grants

                
	
                   

                   Annex
      6.2 (m) (1)

                	
                   

                   Litigation

                
	
                   

                   Annex
      6.2 (m) (2)

                	
                   

                   US
      law suit

                
	
                   

                   Annex
      6.2 (n)

                	
                   

                   Product
      Liability

                
	
                   

                   Annex
      6.2 (o)

                	
                   

                   Ordinary
      Course of Business

                
	
                   

                   Annex
      6.4

                	
                   

                   List
      of Individuals relevant for Sellers' Knowledge

                
	
                   

                   Annex
      7.4

                	
                   

                   Disclosed
      Documents

                
	
                   

                   Annex
      10.8

                	
                   

                   Business
      of Polywest Kunststofftechnik Saueressig & Partner GmbH & Co.
      KG

                
	
                   

                   Annex
      11.1

                	
                   

                   Press
      Release

                
	
                   

                   Annex
      13 (a)

                	
                   

                   Sellers’
      Liability

                

        
 

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      PREAMBLE

       

       WHEREAS,
the Sellers are limited partners (Kommanditisten) of Saueressig
GmbH + Co. KG (hereinafter referred to as the "Company"), holding altogether
78 per cent of the fixed partnership interests (Kommanditanteile) in the
registered partnership capital of the Company, and the Company is the sole
shareholder of its sole general partner (Komplementär) Saueressig
Geschäftsführungsgesellschaft mbH (hereinafter referred to as the "General Partner") which has
no fixed interest in the registered partnership capital of the
Company;

       

       WHEREAS,
the Company, including its Subsidiaries (as defined in Clause 1.3), is primarily engaged in the manufacturing of
various kinds of printing forms and embossing rollers, in the designing and
building of special purpose machines and the offering of design and reproduction
services (such business hereinafter also referred to as the "Business");

       

       WHEREAS,
the Purchaser is a company duly organized under the laws of
Pennsylvania;

       

       WHEREAS,
the Sellers have determined to sell all of their fixed partnership interests in
the Company and all of their Sellers' Loans and Private Accounts (as defined in
Clause 1.6), and the Purchaser wishes to acquire
these fixed partnership interests and these Sellers' Loans and Private
Accounts;

       

       

       

       NOW,
THEREFORE, the Parties hereto agree as follows:

       

      

      
        
          
          

        

        
           

          
            

          

        

        
          
          

        

      

       

       

      
        	
                1.  

              	
                CORPORATE
      OWNERSHIP / STRUCTURE OF THE
ACQUISITION

              

      

       

      
        	
                1.1  

              	
                Particulars
      of the Company

              

      

       

       Saueressig
GmbH + Co. KG (hereinafter referred to as the "Company") is a limited
partnership (Kommanditgesellschaft) duly
organized under the laws of Germany with registered offices at Vreden and
registered with the Commercial Register of the Lower Court (Amtsgericht) at Coesfeld
under HRA 2299. The sole general partner (Komplementär) of the Company
is Saueressig Geschäftsführungsgesellschaft mbH (hereinafter referred to as the
"General Partner"), a
limited liability company (Gesellschaft mit beschränkter
Haftung) with registered offices at Vreden and registered with the
Commercial Register of the Lower Court at Coesfeld under HRB 3919. The Company
is the sole shareholder of the General Partner.

       

      
        	
                1.2  

              	
                Partnership
      Capital of the Company

              

      

       

       The
registered partnership capital (Kommanditkapital) of the
Company amounts to EUR 3,000,000.00 (in words: three million Euros) (hereinafter
referred to as the "Partnership
Capital"). The Partnership Capital is divided into the following fixed
partnership interests (Kommanditanteile), held by
the Sellers and Mr. Hans Kilian Saueressig as limited partners (Kommanditisten) of the
Company as follows:

       

      
        	
                (a)  

              	
                one
      fixed partnership interest in the amount of EUR 700,000.00 (in words:
      seven hundred thousand Euros) held by Seller
1,

              

      

       

      
        	
                (b)  

              	
                one
      fixed partnership interest in the amount of EUR 340,000.00 (in words:
      three hundred forty thousand Euros) held by Seller
  2,

              

      

       

      
        	
                (c)  

              	
                one
      fixed partnership interest in the amount of EUR 300,000.00 (in words:
      three hundred thousand Euros) held by Seller
3,

              

      

       

      
        	
                (d)  

              	
                one
      fixed partnership interest in the amount of EUR 1,000,000.00 (in words:
      one million Euros) held by Seller 4,
and

              

      

       

      
        	
                (e)  

              	
                one
      fixed partnership interest in the amount of EUR 660,000.00 (in words: six
      hundred sixty thousand Euros) held by Mr. Hans Kilian
      Saueressig.

              

      

       

       The fixed
partnership interests held by the Sellers listed in Clause 1.2(a) through (d) above,
altogether corresponding to 78 per cent of the fixed partnership interests in
the Partnership Capital, (hereinafter collectively referred to as the "Partnership Interests" or each as a "Partnership Interest") shall
be sold and purchased as set forth in Clause 2.1.
Each of the amounts of the Partnership Interests is registered in the Commercial
Register as the amount of the respective Seller’s personal liability (Hafteinlage). The General
Partner has no fixed interest in the Partnership Capital.

       

      
        	
                1.3  

              	
                Subsidiaries
      of the Company; Companies’ Shares

              

      

       

       The
Company holds shares or interests, directly or indirectly, in the wholly-owned
or majority-owned subsidiaries listed in Annex 1.3 (herein
collectively referred to as the "Subsidiaries", and each of
them as a "Subsidiary").
The Company and its Subsidiaries are hereinafter collectively referred to as the
"Companies". The shares
and interests in the Company and its Subsidiaries are hereinafter also referred
to as the "Companies’
Shares".

       

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      
        	
                1.4  

              	
                Minority
      Participations

              

      

       

       The
Company holds, directly or indirectly, the minority participations in such
entities as set forth in Annex 1.4. Such
participations are hereinafter collectively referred to as the "Minority Participations" and
each of them as a "Minority
Participation". For the avoidance of doubt, Minority Participations
include also participations of exactly 50 per cent of the shares or interests in
the respective entities. The participation in the shares or interests in
Saueressig Jordan Co. Ltd. shall for the purpose of this Agreement also be
deemed a Minority Participation. The respective entities in which the Minority
Participations exist are hereinafter collectively referred to as the "Minority Entities", and each of them as a "Minority Entity".

       

      
        	
                1.5  

              	
                Sellers’
      Capital and Reserve Accounts

              

      

       

       The fixed
capital accounts (Festkapitalkonten) and the
reserve accounts (Rücklagenkonten) of the
Sellers are listed in Annex 1.5, which
shows at least the respective accounts balances as of the Effective Date (as
defined in Clause 1.7), (hereinafter collectively
referred to as the "Sellers'
Capital and Reserve Accounts"). The Sellers' Capital and Reserve Accounts
shall be sold and purchased together with the Partnership Interests as set forth
in Clause 2.1.

       

      
        	
                1.6  

              	
                Sellers'
      Loans and Private Accounts

              

      

       

       The loan
accounts (Darlehenskonten) of the
Sellers for loans granted by the Sellers to the Company (Gesellschafterdarlehen) and
the private accounts (Privatkonten) of the Sellers
are hereinafter collectively referred to as the "Sellers' Loans and Private
Accounts". The Sellers' Loans and Private Accounts as of the Effective
Date (as defined in Clause 1.7) shall be sold and purchased in accordance with
Clause 2.2.

       

      
        	
                1.7  

              	
                Signing
      Date; Effective Date

              

      

       

       For the
purposes of this agreement (hereinafter referred to as the "Agreement") the "Signing Date"
shall mean the date this Agreement is signed (hereinafter referred to as the
"Signing Date"), and the
"Effective Date" shall mean 1 January 2008, 00:00 hours (German time) (herein
referred to as the "Effective
Date").

       

      
        	
                1.8  

              	
                Other
      Definitions

              

      

       

       Capitalised
Terms used but not defined in the subsequent Clauses shall have the meaning
attributed to them in
Annex 1.

       

       

       

      
        	
                2.  

              	
                SALE
      AND PURCHASE OF THE PARTNERSHIP INTERESTS; SALE AND PURCHASE OF THE
      SELLERS' LOANS AND PRIVATE ACCOUNTS

              

      

       

      
        	
                2.1  

              	
                Sale
      and Purchase of the Partnership Interests; Rights to
    Profits

              

      

       

       Each
Seller hereby sells, and the Purchaser hereby purchases from each Seller, upon
the terms and conditions of this Agreement, the respective Partnership Interest
in the Company as set forth in Clause 1.2 with
commercial effect (mit
wirtschaftlicher Wirkung) as of the Effective Date. The sale and purchase
of the Partnership Interests hereunder shall include any and all rights
pertaining to the Partnership Interests, including, without limitation, the
rights to receive profits for the current fiscal year 2008, and the accounts
balances in the Sellers’ Capital and Reserve Accounts, including any and all
rights in the relation of the Company and the Sellers reflected in and
pertaining to the Sellers’ Capital and Reserve Accounts.

       

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      
        	
                2.2  

              	
                Sale
      and Purchase of the Sellers' Loans and Private
  Accounts

              

      

       

       Each
Seller hereby sells, and the Purchaser hereby purchases from each Seller, upon
the terms and conditions of this Agreement, any and all rights in the relation
of the Company and the Sellers reflected in and pertaining to the Sellers' Loans
and Private Accounts as of the Effective Date with commercial effect (mit wirtschaftlicher Wirkung)
as of the Effective Date.

       

      
        	
                2.3  

              	
                Separate
      Transfer Agreements

              

      

       

       The
Sellers and the Purchaser agree that the Partnership Interests sold and
purchased in accordance with Clause 2.1 are not
transferred by virtue of this Agreement but will be transferred with effect
"in rem" (mit dinglicher Wirkung/tatsächlicher
Besitzübergang) at the Closing (as defined in Clause 5.1) by means of a separate transfer agreement
substantially in the form attached hereto as Annex 2.3 (a). The
Sellers and the Purchaser agree that the Sellers' Loans and Private Accounts
sold and purchased in accordance with Clause 2.2
are not transferred by virtue of this Agreement but will be transferred with
effect "in rem" (mit dinglicher Wirkung/tatsächlicher
Besitzübergang) at the Closing by means of a separate transfer agreement
substantially in the form attached hereto as Annex 2.3
(b).

       

      
        	
                2.4  

              	
                Approval
      of Shareholders

              

      

       

       The
Sellers and Mr. Hans Kilian Saueressig have approved the sale and purchase of
the Partnership Interests and of the Sellers' Loans and Private Accounts to the
Purchaser and the transfer of the Partnership Interests and of the Sellers'
Loans and Private Accounts to the Purchaser or an Affiliate of the Purchaser
according to Clause 12 para.2 and Clause 10 para.3 second sentence of the
Company's partnership agreement. A copy of the resolution is attached to this
Agreement as Annex
2.4.

       

       

       

      
        	
                3.  

              	
                PURCHASE
      PRICE; SELLERS' LOANS AND PRIVATE ACCOUNTS PURCHASE PRICE; PRELIMINARY
      PURCHASE PRICE; PRELIMINARY SELLERS' LOANS AND PRIVATE ACCOUNTS PURCHASE
      PRICE; CONDITIONS OF PAYMENT

              

      

       

      
        	
                3.1  

              	
                Purchase
      Price; Sellers' Loans and Private Accounts Purchase
  Price

              

      

       

      
        	
                (a)  

              	
                The
      purchase price to be paid by the Purchaser for the Partnership Interests
      as sold and purchased in accordance with Clause 2.1 shall be 78 per cent of the aggregate amount
      equal to

              

      

       

      
        	
                (1)  

              	
                the
      Gross Enterprise Value (as defined in Clause 3.2(a)),

              

      

       

      
        	
                (2)  

              	
                less
      the Financial Debt as of the Effective Date (as defined in Clause 3.2(b)),

              

      

       

      
        	
                (3)  

              	
                plus
      the Cash as of the Effective Date (as defined in Clause 3.2(c)),

              

      

       

      
        	
                (4)  

              	
                less
      the amount of any Working Capital Shortfall or, as the case may be, plus
      the amount of any Working Capital Surplus, in each case as of the
      Effective Date (in each case as defined in Clause 3.2(d)),

              

      

       

      
        	
                (5)  

              	
                less
      the amount of any EBITDA Shortfall or, as the case may be, plus the amount
      of any EBITDA Surplus, in each case as of the Effective Date (in each case
      as defined in Clause 3.2(e)),

              

      

       

               (hereinafter
referred to as the "Purchase
Price").

       

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      
        	
                (b)  

              	
                The
      purchase price to be paid by the Purchaser for the Sellers' Loans and
      Private Accounts as sold and purchased in accordance with Clause 2.2 shall be an amount equal to the aggregate of
      the accounts balances of the Sellers' Loans and Private Accounts, in each
      case as of the Effective Date, plus accrued interest thereon for the
      period from and including the Effective Date up to and including the
      Closing Date. This amount is hereinafter referred to as the "Sellers' Loans and Private
      Accounts Purchase Price" and shall not be
      part of the Purchase Price pursuant to Clause 3.1(a).

              

      

       

      
        	
                3.2  

              	
                Calculation
      of Purchase Price

              

      

       

      
        	
                (a)  

              	
                The
      Gross Enterprise Value amounts to EUR 97,000,000.00 (in words: ninety
      seven million Euros) (hereinafter referred to as the "Gross Enterprise
      Value").

              

      

       

      
        	
                (b)  

              	
                "Financial
      Debt" shall mean the items listed in Annex 3.2(b)
      (hereinafter referred to as the "Financial
      Debt").

              

      

       

      
        	
                (c)  

              	
                "Cash"
      shall mean the items listed in Annex 3.2(c)
      (hereinafter referred to as the "Cash").

              

      

       

      
        	
                (d)  

              	
                "Working
      Capital Shortfall" to be deducted pursuant to Clause 3.1(4) shall mean the amount by which the
      Working Capital falls short of EUR 10,500,000.00 (in words: ten million
      five hundred thousand Euros) (herein referred to as the "Working Capital
      Shortfall"). "Working Capital Surplus" to be added pursuant to
      Clause 3.1(4) shall mean the amount by which
      the Working Capital exceeds the amount of EUR 11,500,000.00 (in words:
      eleven million five hundred thousand Euros) (herein referred to as the
      "Working Capital
      Surplus"). "Working Capital" shall mean the items listed in Annex 3.2(d)
      (hereinafter referred to as the "Working
      Capital").

              

      

       

      
        	
                (e)  

              	
                "EBITDA
      Shortfall" to be deducted pursuant to Clause 3.1(5) shall mean 3.5 times
      the amount by which the EBITDA falls short of EUR 11,700,000.00 (in words:
      eleven million seven hundred thousand Euros) (herein referred to as the
      "EBITDA
      Shortfall"). "EBITDA Surplus" to be added pursuant to Clause 3.1(5)
      shall mean 3.5 times the amount by which the EBITDA exceeds the amount of
      EUR 14,200,000.00 (in words: fourteen million two hundred thousand Euros)
      (herein referred to as the "EBITDA
      Surplus").

              

      

       

      
        	
                (f)  

              	
                The
      items referred to in this Clause 3.2(b)
      through 3.2(e) in conjunction with the Annexes 3.2 are to be assessed
      (anzusetzen) with
      the amounts shown in the Consolidated Financial Statements 2007 (as
      defined in Clause 4.1), provided, however,
      that all of these items relating to the Subsidiaries which are not,
      directly or indirectly, wholly-owned by the Company and which have been
      fully consolidated, shall be assessed only on a pro-rata basis
      corresponding to the participation held by the Company in such
      Subsidiaries.

              

      

       

      
        	
                (g)  

              	
                If
      and to the extent the Purchaser is entitled to any claims under Clauses 6 through 8 and 10 of this Agreement, the underlying facts or
      circumstances to which the respective claim relates shall not reduce the
      Purchase Price under this Clause 3.2.

              

      

       

      
        	
                3.3  

              	
                Preliminary
      Purchase Price; Preliminary Sellers' Loans and Private Accounts Purchase
      Price; Due Date

              

      

       

      
        	
                (a)  

              	
                As
      of the date of this Agreement and based on the financial information
      provided by the Sellers to the Purchaser, the Parties have estimated and
      agreed the Financial Debt, Cash and any Working Capital Shortfall or
      Working Capital Surplus, in each case as of the Effective Date, as shown
      in each case in the preliminary effective date accounts attached hereto as
      Annex 3.3 (a)
      (hereinafter referred to as the "Preliminary Effective Date
      Accounts"). Based thereon, the Sellers and the Purchaser have
      agreed on a preliminary purchase price of EUR 55,450,200.00 (in words:
      fifty five million four hundred and fifty thousand two hundred Euros)
      (hereinafter referred to as the "Preliminary Purchase
      Price"). On the Closing Date, the Preliminary Purchase Price shall
      become due and payable and the Purchaser shall pay the Preliminary
      Purchase Price as follows:

              

      

       

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      
        	
                (i)  

              	
                EUR
      54,700,200.00 (in words: fifty four million seven hundred thousand and two
      hundred Euros), together with interest thereon as set forth in Clause 3.7(a), to the Sellers’ Accounts (as set forth
      in Clauses 3.5(a) and 3.6(a) through
(d));

              

      

       

      
        	
                (ii)  

              	
                EUR
      750,000.00 (in words: seven hundred and fifty thousand Euros) (hereinafter
      referred to as the "Escrow Amount") to the
      Escrow Account named in the Escrow Agreement (hereinafter referred to as
      the "Escrow
      Account"). The Parties will agree upon the particulars about the
      Escrow Account and the release of the Escrow Amount by means of an escrow
      agreement with a bank substantially in the form attached hereto as Annex 3.3(a)
      (ii) (herein referred to as the "Escrow Agreement") and
      which will be executed on the Closing Date, at the
  latest.

              

      

       

      
        	
                (b)  

              	
                As
      of the date of this Agreement and based on the financial information
      provided by the Sellers to the Purchaser, the Sellers and the Purchaser
      have estimated and agreed the aggregate of the accounts balances of the
      Sellers' Loans and Private Accounts, in each case as of the Effective
      Date, as shown in each case in the preliminary Sellers' Loans and Private
      Accounts attached hereto as Annex 3.3(b)
      ("Preliminary Sellers'
      Loans and Private Accounts"). Based thereon, the Sellers and the
      Purchaser have agreed on a preliminary Sellers' Loans and Private Accounts
      purchase price of EUR 11,389,699.00 (in words: eleven million three
      hundred eighty nine thousand six hundred ninety nine Euros) (hereinafter
      referred to as the "Preliminary Sellers' Loans and
      Private Accounts Purchase Price"). On the Closing Date, the
      Preliminary Sellers' Loans and Private Accounts Purchase Price shall
      become due and payable and the Purchaser shall pay the Preliminary
      Sellers' Loans and Private Accounts Purchase Price, together with accrued
      interest thereon for the period from and including the Effective Date up
      to and including the Closing Date, to the Sellers' Accounts (as set forth
      in Clauses 3.5(b) and 3.6(a) through
(d)).

              

      

       

      
        	
                3.4  

              	
                Purchase
      Price Adjustment; Sellers' Loans and Private Accounts Purchase Price
      Adjustment; Due Date

              

      

       

      
        	
                (a)  

              	
                If
      on the basis of the Consolidated Financial Statements 2007 (as defined in
      Clause 4.1) the Purchase Price is higher than
      the Preliminary Purchase Price, the Purchaser shall pay to the Sellers an
      amount equal to the amount by which the Purchase Price exceeds the
      Preliminary Purchase Price. If on the basis of the Consolidated Financial
      Statements 2007 (as defined in Clause 4.1)
      the Preliminary Purchase Price is higher than the Purchase Price, the
      Sellers shall pay to the Purchaser an amount equal to the amount by which
      the Preliminary Purchase Price exceeds the Purchase Price. Any such amount
      to be paid by either the Purchaser or the Sellers (hereinafter referred to
      as the "Purchase Price
      Adjustment") shall be paid, together with interest thereon for the
      period from and including the Effective Date up to and including the date
      payment is due at the rate set forth in Clause 3.7(a), as set forth in Clause3.4(c)
below.

              

      

       

      
        	
                (b)  

              	
                If
      on the basis of the Consolidated Financial Statements 2007 (as defined in
      Clause 4.1) the Sellers' Loans and Private
      Accounts Purchase Price is higher than the Preliminary Sellers' Loans and
      Private Accounts Purchase Price, the Purchaser shall pay to the Sellers an
      amount equal to the amount by which the Sellers' Loans and Private
      Accounts Purchase Price exceeds the Preliminary Sellers' Loans and Private
      Accounts Purchase Price. If on the basis of the Consolidated Financial
      Statements 2007 (as defined in Clause 4.1)
      the Preliminary Sellers' Loans and Private Accounts Purchase Price is
      higher than the Sellers' Loans and Private Accounts Purchase Price, the
      Sellers shall pay to the Purchaser an amount equal to the amount by which
      the Preliminary Sellers' Loans and Private Accounts Purchase Price exceeds
      the Sellers' Loans and Private Accounts Purchase Price. Any such amount to
      be paid by either the Purchaser or the Sellers (hereinafter referred to as
      the "Sellers' Loans and
      Private Accounts Purchase Price Adjustment") shall be paid,
      together with accrued interest thereon for the period from and including
      the Effective Date up to and including the date payment is due, as set
      forth in Clause 3.4(d)
  below.

              

      

       

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      
        	
                (c)  

              	
                (i)
      Any Purchase Price Adjustment owed by the Purchaser shall be paid by the
      Purchaser ten Business Days after the Purchase Price Adjustment has become
      final and binding upon the Parties in accordance with Clause 4.3, however, at the earliest on the Closing
      Date, to the Sellers' Accounts (as set forth in Clauses 3.5(a) and 3.6(a)
      through (d)).

              

      

       

      (ii) Any
Purchase Price Adjustment owed by the Sellers shall be paid by the Sellers ten
Business Days after the Purchase Price Adjustment has become final and binding
upon the Parties in accordance with Clause 4.3,
however, at the earliest on the Closing Date, to the Purchaser's Account (as set
forth in Clause 3.6(e)).

       

      
        	
                (d)  

              	
                (i)
      Any Sellers' Loans and Private Accounts Purchase Price Adjustment owed by
      the Purchaser shall be paid by the Purchaser ten Business Days after the
      Sellers' Loans and Private Accounts Purchase Price Adjustment has become
      final and binding upon the Parties in accordance with Clause 4.3, however, at the earliest on the Closing
      Date, to the Sellers' Accounts (as set forth in Clauses 3.5(b) and 3.6(a)
      through (d)).

              

      

       

      (ii) Any
Sellers' Loans and Private Accounts Purchase Price Adjustment owed by the
Sellers shall be paid by the Sellers ten Business Days after the Sellers' Loans
and Private Accounts Purchase Price Adjustment has become final and binding upon
the Parties in accordance with Clause 4.3, however,
at the earliest on the Closing Date, to the Purchaser's Account (as set forth in
Clause 3.6(e)).

       

      
        	
                3.5  

              	
                Allocation
      of Purchase Price, of any Purchase Price Adjustment, of Sellers' Loans and
      Private Accounts Purchase Price and of any Sellers' Loans and Private
      Accounts Purchase Price Adjustment

              

      

       

      
        	
                (a)  

              	
                The
      Purchase Price and any Purchase Price Adjustment, together with interest
      thereon at the rate and the period set forth in Clause 3.7(a), shall be allocated between the Sellers
      in accordance with their respective holding in the aggregate amount of all
      Partnership Interests as set forth in Annex 3.5
      (a).

              

      

       

      
        	
                (b)  

              	
                The
      Sellers' Loans and Private Accounts Purchase Price, together with the
      respective accrued interest thereon for the period as set forth in Clause
      3.3(b), shall be allocated between the
      Sellers in proportion to the respective aggregate accounts balances of
      their Sellers' Loans and Private Accounts as of the Effective Date. Any
      Sellers' Loans and Private Accounts Purchase Price Adjustment, together
      with the respective accrued interest thereon for the period as set forth
      in Clause 3.3(b), shall be paid by the
      respective Seller whose respective aggregate accounts balances of the
      Sellers' Loans and Private Accounts as of the Effective Date result in a
      Sellers' Loans and Private Accounts Purchase Price
    Adjustment.

              

      

       

      
        	
                3.6  

              	
                Sellers'
      Accounts; Purchaser's Account

              

      

       

      
        	
                (a)  

              	
                All
      payments owed by the Purchaser to the Seller 1 under this Agreement shall
      be paid by the Purchaser by way of irrevocable wire transfer – to be
      credited on the same day – free of any costs and fees to the bank account
      of the Seller 1 kept with Muensterlaendische Bank
      Thie & Co., Muenster, Germany, sort code (Bankleitzahl) 400 300
      00, account number 349 258 83 00 (hereinafter referred to as the "Seller 1's Account") or
      any other account to be nominated by the Seller 1 to the Purchaser in
      writing at least five Business Days prior to the Closing
    Date.

              

      

       

       

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      
        	
                (b)  

              	
                All
      payments owed by the Purchaser to the Seller 2 under this Agreement shall
      be paid by the Purchaser by way of irrevocable wire transfer – to be
      credited on the same day – free of any costs and fees to the bank account
      of the Seller 2 kept with Sparkasse Westmuensterland, Germany, sort code
      (Bankleitzahl)
      40154530, account number 69047 (hereinafter referred to as the "Seller 2's Account") or
      any other account to be nominated by the Seller 2 to the Purchaser in
      writing at least five Business Days prior to the Closing
    Date.

              

      

       

      
        	
                (c)  

              	
                All
      payments owed by the Purchaser to the Seller 3 under this Agreement shall
      be paid by the Purchaser by way of irrevocable wire transfer – to be
      credited on the same day – free of any costs and fees to the bank account
      of the Seller 3 kept with Bankhaus Lampe KG, Muenster, Germany, sort code
      (Bankleitzahl)
      48020151, account number 363855 (hereinafter referred to as the "Seller 3's Account") or
      any other account to be nominated by the Seller 3 to the Purchaser in
      writing at least five Business Days prior to the Closing
    Date.

              

      

       

      
        	
                (d)  

              	
                All
      payments owed by the Purchaser to the Seller 4 under this Agreement shall
      be paid by the Purchaser by way of irrevocable wire transfer – to be
      credited on the same day – free of any costs and fees to the bank account
      of the Seller 4 kept with Koelner Bank eG, Germany, sort code (Bankleitzahl) 37160087,
      account number 940252008 (hereinafter referred to as the "Seller 4's Account") or
      any other account to be nominated by the Seller 4 to the Purchaser in
      writing at least five Business Days prior to the Closing Date. Seller 1's
      Account, Seller 2's Account, Seller 3's Account and Seller 4's Account are
      herein collectively referred to as the "Sellers'
      Accounts".

              

      

       

      
        	
                (e)  

              	
                All
      payments owed by the Sellers to the Purchaser under this Agreement shall
      be paid by the Sellers by way of irrevocable wire transfer – to be
      credited on the same day – free of any costs and fees to the Purchaser's
      bank account to be specifically identified by the Purchaser to the Sellers
      in writing at least five Business Days prior to the Closing Date (herein
      referred to as the "Purchaser's
      Account").

              

      

       

      
        	
                3.7  

              	
                Interest

              

      

       

      
        	
                (a)  

              	
                The
      Purchase Price shall bear interest at the rate of six (6) per cent,
      commencing as of the Effective Date through the Closing Date. Interest
      shall be calculated on the basis of actual days elapsed and a calendar
      year with 360 days.

              

      

       

      
        	
                (b)  

              	
                If
      the Purchaser is in default (Verzug) of payment of
      the Purchase Price or the Sellers' Loans and Private Accounts Purchase
      Price or if the Sellers are in default of payment of any Purchase Price
      Adjustment and/or Sellers' Loans and Private Accounts Purchase Price
      Adjustment, the Purchase Price, the Sellers' Loans and Private Accounts
      Purchase Price or any Purchase Price Adjustment and/or Sellers' Loans and
      Private Accounts Purchase Price Adjustment shall bear interest at the rate
      of 600 basis points over the one month rate Euribor p.a. as of the next
      Business Day after the respective Party is in default of payment for the
      time the respective Party is in
default.

              

      

       

      
        	
                3.8  

              	
                No
      Right to Set-Off

              

      

       

       Any right
of the Purchaser to set-off and/or to withhold any payments due under this
Agreement is hereby expressly waived and excluded except for claims which are
undisputed or res
iudicatae.

       

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      
        	
                3.9  

              	
                Bank
      Guaranty

              

      

       

       Until the
Closing Date (as defined in Clause 5.1) the Sellers
shall deliver to the Purchaser a bank guaranty in the amount of EUR
10,000,000.00 (in words: ten million Euros) covering any and all claims, except
for claims pursuant to Clause 10.8(a), of the
Purchaser against the Sellers under this Agreement which (i) have been
identified by the Purchaser and communicated to the Sellers within eighteen
months after the Closing Date, and (ii) are either undisputed or have become
legally binding in accordance with Clause 17.2
(hereinafter collectively referred to as the "Guaranty Claims" and each of
them as a "Guaranty
Claim"). If, for whatever reason, a Guaranty Claim has been identified
and timely communicated by the Purchaser to the Sellers but has prior to the
expiration of the bank guaranty not yet been resolved, either amicably by the
Parties or through arbitration pursuant to Clause 17.2, then the bank guaranty shall remain effective,
but reduced to the amount sufficient to cover such outstanding Guaranty
Claim.

       

      
        	
                3.10  

              	
                Example
      Calculation

              

      

       

       For the
sake of clarity and by way of example only, Annex 3.10 contains a
calculation of the Purchase Price and related items which is partly based on
hypothetical figures and, therefore, not binding and does not create a prejudice
for the Parties.

       

       

       

      
        	
                4.  

              	
                CONSOLIDATED
      FINANCIAL STATEMENTS 2007

              

      

       

      
        	
                4.1  

              	
                Preparation
      and Audit of the Consolidated Financial Statements
  2007

              

      

       

      Any
Purchase Price Adjustment and any Sellers' Loans and Private Accounts Purchase
Price Adjustment shall be determined on the basis of the consolidated financial
statements of the Company for the year ended 31 December 2007 (hereinafter
referred to as the "Consolidated Financial Statements
2007"). The Consolidated Financial Statements 2007 shall be prepared by
the Company in accordance with the applicable statutory accounting provisions of
Clauses 290 et seqq. of the German Commercial Code (HGB), taking into account the
generally accepted accounting principles (Grundsätze ordnungsmäßiger
Buchführung), and shall be audited with the intention of an unqualified
opinion by HLB, Dr. Schumacher & Partner GmbH,
Wirtschaftsprüfungsgesellschaft, Steuerberatungsgesellschaft, Muenster,
Duesseldorf (hereinafter referred to as the "Company’s Auditor"). The
Consolidated Financial Statements 2007 shall be prepared according to the
accounting and valuation principles used for the preparation of the Consolidated
Financial Statements 2006 (as defined in Clause 6.2(b)) and applied for previous fiscal years, in
particular under identical utilization of any election rights and continuation
of the valuation and consolidation principles and methods used for the
preparation of the Consolidated Financial Statements 2006 (as defined in Clause
6.2(b)).

       

      
        	
                4.2  

              	
                Review
      and Delivery of the Consolidated Financial Statements 2007 to the
      Purchaser

              

      

       

       The
Consolidated Financial Statements 2007 prepared by the Company and audited by
the Company’s Auditor shall be delivered by the Sellers to the Purchaser without
delay. The Sellers shall use their best efforts, to the extent permissible under
applicable law, that the Purchaser receives access by the management of each of
the Companies to all relevant documentation necessary for reviewing a possible
Purchase Price Adjustment and/or Sellers' Loans and Private Accounts Purchase
Price Adjustment resulting out of the Consolidated Financial Statements 2007,
however, excluding the working papers of the Company’s Auditor.

       

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      
        	
                4.3  

              	
                Objections
      of the Purchaser; Arbitration
Proceedings

              

      

       

       Any
Purchase Price Adjustment and any Sellers' Loans and Private Accounts Purchase
Price Adjustment shall be carried out bindingly on the basis of the Consolidated
Financial Statements 2007 to the extent that the Purchaser does not within sixty
days after the receipt of the Consolidated Financial Statements 2007 raise any
written objections vis-à-vis the Sellers (hereinafter referred to as the "Objections"). If, after the
Purchaser having raised in time and due form its Objections, the Sellers and the
Purchaser cannot agree on any Purchase Price Adjustment and/or any Sellers'
Loans and Private Accounts Purchase Price Adjustment, within thirty days
following the delivery of the Objections, each of the Sellers and the Purchaser
shall be entitled to request the "Institut der Wirtschaftsprüfer in
Deutschland e.V.", Duesseldorf, to appoint an auditor or an audit firm to
act as an arbitrator (Schiedsgutachter)
(hereinafter referred to as the "Arbitrator") to determine the
Purchase Price Adjustment and/or the Sellers' Loans and Private Accounts
Purchase Price Adjustment, to the extent permissible under applicable law,
within the positions in dispute between the Sellers and the Purchaser. The
Arbitrator shall aim to decide on the Purchase Price Adjustment and/or the
Sellers' Loans and Private Accounts Purchase Price Adjustment within thirty
Business Days after being appointed. The Arbitrator shall give the Sellers and
the Purchaser adequate opportunity to present their views in writing and at a
hearing or hearings to be held in the presence of the Sellers and the Purchaser
and their advisors. The Arbitrator shall give reasons for his decision and on
all issues which are in dispute between the Sellers and the Purchaser. The
Purchase Price Adjustment and/or the Sellers' Loans and Private Accounts
Purchase Price Adjustment as determined by the Arbitrator shall be final and
binding on the Parties subject to Clause 319 of the German Civil Code (BGB).

       

      
        	
                4.4  

              	
                Costs
      of Auditing

              

      

       

       All costs
arising out of or in connection with the audits by the Company’s Auditor shall
be borne by the Company. All costs arising out of or in connection with the
audit by the Purchaser shall be borne by the Purchaser alone. In case of
arbitration proceedings referred to in Clause 4.3,
the Arbitrator may decide in its equitable discretion upon the allocation of his
costs and expenses, taking into account, however, the degree of success and
defeat of each Party. Each Party shall bear its own costs and the costs of its
advisors and counsel.

       

       

       

      
        	
                5.  

              	
                CLOSING;
      CLOSING CONDITIONS

              

      

       

      
        	
                5.1  

              	
                Closing
      Conditions; Closing Date

              

      

       

       The
consummation of the transactions contemplated by this Agreement (hereinafter
referred to as "Closing") shall take place at
the offices of Allen & Overy LLP in 40213 Duesseldorf, Breite
Strasse 27, five Business Days after the date on which the last of the
Closing Conditions set forth in Clause 5.2 has been
fulfilled or waived, or at any other time or place which the Sellers and the
Purchaser will mutually agree upon (hereinafter referred to as "Closing Date").

       

      
        	
                5.2  

              	
                Closing
      Conditions

              

      

       

       The
obligations of the Sellers and the Purchaser to carry out the Closing shall be
subject to the satisfaction of each of the following conditions to Closing
(collectively referred to herein as the "Closing Conditions", and each
of them as a "Closing
Condition"):

       

      
        	
                (a)  

              	
                The
      German Federal Cartel Office (Bundeskartellamt)
      ("FCO") shall have
      cleared the proposed concentration. This condition shall be deemed
      satisfied if

              

      

       

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

       

      
        	
                (1)  

              	
                the
      FCO has cleared the proposed concentration in accordance with Clause
      40 para. 2 sentence 1 of the Law against Restraints of
      Competition (GWB);
  or

              

      

       

      
        	
                (2)  

              	
                the
      parties involved (Zusammenschlussbeteiligte)
      have received a written notice from the FCO that the facts of the case do
      not allow a prohibition of the proposed concentration under Clause 36 GWB;
      or

              

      

       

      
        	
                (3)  

              	
                the
      FCO fails to notify the Parties in accordance with Clause 40 para. 1
      sentence 1 GWB within one (1) month after receipt of the pre-merger
      notification that it has commenced a formal investigation of the proposed
      concentration; or

              

      

       

      
        	
                (4)  

              	
                the
      FCO (i) fails to prohibit the proposed concentration in accordance with
      Clause 40 para. 2 sentence 1 GWB within four (4) months after receipt
      of the pre-merger notification and (ii) fails to come to an agreement with
      the parties involved (Zusammenschlussbeteiligte)
      on the extension of such four-month waiting period in accordance with
      Clause 40 para. 2 sentence 3 no. 1 GWB;
or

              

      

       

      
        	
                (5)  

              	
                the
      FCO fails to (i) prohibit the proposed concentration in accordance with
      Clause 40 para. 2 sentence 1 GWB within the agreed extension and (ii)
      fails to come to an agreement with the parties involved (Zusammenschlussbeteiligte)
      on a further extension of the (extended) waiting period mentioned in (4)
      of this Clause 5.2(a) in accordance with Clause 40 para. 2 sentence 3 no.
      1 GWB.

              

      

       

       Neither
the Purchaser nor any of the Sellers shall grant its consent and approval to any
extension of the waiting period without the prior written consent of the
respective other Parties involved.

       

      
        	
                (b)  

              	
                The
      Consolidated Financial Statements 2007 shall have been adopted (festgestellt).

              

      

       

      
        	
                5.3  

              	
                Obligations
      with Respect to the Closing
Conditions

              

      

       

       The
Sellers and the Purchaser undertake to use their best efforts to cause each of
the Closing Conditions to be satisfied as soon as possible. With regard to the
merger control clearance, the obligations of the Sellers and the Purchaser are
more specifically set out in Clause 11.1 below. The
Sellers and the Purchaser shall inform each other in writing without undue delay
(unverzüglich) as soon
as the Closing Conditions have been satisfied or waived.

       

      
        	
                5.4  

              	
                Consequences
      of Non-Satisfaction of the Closing Conditions; Right to Waive Closing
      Conditions

              

      

       

      
        	
                (a)  

              	
                If
      the FCO has not cleared the proposed concentration within thirty six days
      after receipt of the pre-merger notification, the Sellers may rescind this
      Agreement (Rücktritt vom
      Vertrag) by written notice to the other Parties. If the Closing has
      not occurred, at the latest, 5 months after the Signing Date, the Sellers
      and/or the Purchaser may rescind this Agreement (Rücktritt vom Vertrag)
      by written notice to the other Parties. Any rescission under this Clause
      5.4 shall be valid only if the recipient
      Party has received such written notice of rescission prior to the date on
      which the last Closing Condition has been satisfied or waived. If this
      Agreement is rescinded in accordance with this Clause, this Agreement
      shall cease to have force and effect and shall not create any binding
      obligation between the Parties, except that this Clause 5.4 and Clauses 11
      (Confidentiality), 14 (Assignee Affiliate's
      Guarantor), 15 (Costs and Taxes), 16 (Notices) and 17
      (Miscellaneous) shall remain in force and effect. If the Closing Condition
      set out in Clause 5.2(a) has not been
      satisfied and the Sellers and/or the Purchaser have rescinded the
      Agreement in accordance with this Clause, the Purchaser shall reimburse to
      the Sellers all costs and expenses incurred in connection with the limited
      auction selling process of the Company up to an amount of EUR 300,000.00
      (in words: three hundred thousand
Euros).

              

      

       

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      
        	
                (b)  

              	
                If
      the Consolidated Financial Statements 2007 have not been adopted (festgestellt) as set
      forth in Clause 5.2(b) by 15 May 2008, at the
      latest, such Closing Condition shall cease to have force and
      effect.

              

      

       

      
        	
                (c)  

              	
                The
      Sellers shall have the right to waive in writing the Closing Condition set
      forth in Clause 5.2(b).

              

      

       

      
        	
                5.5  

              	
                Actions
      on the Closing Date

              

      

       

       At the
Closing, the Parties shall simultaneously execute and deliver the following
documents and take the following actions:

       

      
        	
                (a)  

              	
                The
      Parties shall execute the Escrow Agreement (as defined in Clause 3.3(a)(ii)), unless such agreement has already
      been executed prior to the Closing
Date.

              

      

       

      
        	
                (b)  

              	
                The
      Purchaser shall pay the Preliminary Purchase Price in accordance with
      Clause 3.3(a) and, as the case may be, the
      Purchase Price Adjustment in accordance with Clause 3.4(c)(i), to the extent the Purchase Price
      Adjustment has become final and binding upon the Parties in accordance
      with Clause 4.3 on the Closing Date and the
      Purchaser is therefore obliged to a corresponding
  payment.

              

      

       

      
        	
                (c)  

              	
                The
      Purchaser shall pay the Preliminary Sellers' Loans and Private Accounts
      Purchase Price in accordance with Clause 3.3(b) and, as the case may be, the Sellers'
      Loans and Private Accounts Purchase Price Adjustment in accordance with
      Clause 3.4(d)(i), to the extent the Sellers'
      Loans and Private Accounts Purchase Price Adjustment has become final and
      binding upon the Parties in accordance with Clause 4.3 on the Closing Date and the Purchaser is
      therefore obliged to a corresponding
payment.

              

      

       

      
        	
                (d)  

              	
                The
      Sellers shall pay, as the case may be, the Purchase Price Adjustment in
      accordance with Clause 3.4(c)(ii), to the
      extent the Purchase Price Adjustment has become final and binding upon the
      Parties in accordance with Clause 4.3 on the
      Closing Date and the Sellers are therefore obliged to a corresponding
      payment.

              

      

       

      
        	
                (e)  

              	
                The
      Sellers shall pay, as the case may be, the Sellers' Loans and Private
      Accounts Purchase Price Adjustment in accordance with Clause 3.4(d)(ii), to the extent the Sellers' Loans and
      Private Accounts Purchase Price Adjustment has become final and binding
      upon the Parties in accordance with Clause 4.3 on the Closing Date and the Sellers are
      therefore obliged to a corresponding
payment.

              

      

       

      
        	
                (f)  

              	
                The
      Sellers shall transfer the Partnership Interests and any and all rights
      reflected in and pertaining to the Sellers' Loans and Private Accounts to
      the Purchaser or an Affiliate of the Purchaser as provided in Clause 2.3.

              

      

       

      
        	
                (g)  

              	
                Seller
      1, Seller 4 and Mr. Hans Kilian Saueressig shall transfer their fixed
      partnership interests in Devine GmbH + Co. KG to the Company by means of
      the transfer agreement substantially in the form attached to the
      respective sale and purchase agreement which is attached hereto as Annex 5.5
      (g).

              

      

       

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

      
        	
                6.  

              	
                SELLERS’
      GUARANTEES

              

      

       

      
        	
                6.1  

              	
                Form
      and Scope of Sellers’ Guarantees

              

      

       

       The
Sellers hereby guarantee to the Purchaser by way of an independent promise of
guarantee pursuant to Clause 311 para. 1 BGB (selbständiges Garantieversprechen im
Sinne des § 311 Abs. 1 BGB) within the scope and subject to the
requirements and limitations provided in Clause 6 hereof or otherwise in this
Agreement that the statements set forth in Clause 6.2 below are complete and correct as of the Signing
Date and, unless explicitly provided otherwise in this Clause 6, on the Closing Date. The Sellers and the Purchaser
agree and explicitly confirm that the guarantees in this Clause 6 are not granted, and shall not be qualified and
construed as, quality guarantees concerning the object of the purchase (Garantien für die Beschaffenheit der
Sache) within the meaning of Clauses 443, 444 BGB, respectively, that
Clause 444 BGB shall not and does not apply to the guarantees contained in this
Clause 6.

       

      
        	
                6.2  

              	
                Sellers’
      Guarantees

              

      

       

      
        	
                (a)  

              	
                Corporate
      Issues and Authority of the Sellers

              

      

       

      
        	
                (1)  

              	
                The
      statements in Clause 1 hereof regarding the
      Companies, the Minority Entities, the Sellers’ Capital and Reserve
      Accounts are complete and correct. The Companies and the Minority Entities
      have been duly established and are validly existing under the laws of
      their respective jurisdiction. The copy attached hereto as Annex
      6.2(a)(1a) completely and correctly reflects the Company's
      partnership agreement (except for amendments reflected in the recordings
      in the commercial register since 28 September 2004 until the Closing
      Date), which is in full force and effect and which the Sellers will not
      amend until the Closing Date, except for the deletion of Clause 12 para. 4
      of the Company's partnership agreement. Annex 6.2
      (a)(1b) contains a true and correct list of the articles of
      association (or equivalent documents) (i) of such Subsidiaries which are
      not, directly or indirectly, wholly-owned by the Company and (ii) of the
      Minority Entities.

              

      

       

      
        	
                (2)  

              	
                The
      Companies’ Shares and the Minority Participations have been validly
      issued, are fully paid in, either in cash or in kind, have not been repaid
      and are free from any encumbrances or other rights of Third Parties, and
      there are no pre-emptive rights, options, voting arrangements or other
      rights of Third Parties to acquire any of the Companies’ Shares or the
      Minority Participations, in each case except under statutory law, under
      the articles of association (or equivalent documents) listed in Annex
      6.2(a)(1b) or as disclosed in Annex 6.2(a)
      (2).

              

      

       

      
        	
                (3)  

              	
                Except
      as disclosed in Annex
      6.2(a)(4), as of the Signing Date, no bankruptcy, insolvency or
      judicial composition proceedings concerning any of the Companies have been
      applied for. No circumstances exist which would require an application for
      any bankruptcy, insolvency or judicial composition proceedings nor do any
      circumstances exist according to any applicable bankruptcy or insolvency
      laws which would justify the avoidance of this
  Agreement.

              

      

       

      
        	
                (4)  

              	
                The
      companies listed in Annex 6.2(a)(4)
      are in liquidation or already liquidated. No outstanding liabilities exist
      insofar which would give rise to any obligation of the
      Company.

              

      

       

      
        	
                (5)  

              	
                The
      Sellers are entitled to freely dispose of the Partnership Interests
      without such a disposal infringing any rights of a Third
      Party.

              

      

       

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

       

      
        	
                (6)  

              	
                The
      statements in Clause 1 hereof regarding the Sellers' Loans and Private
      Accounts are complete and correct. The Sellers' Loans and Private Accounts
      are validly existing and they are free from any encumbrances or other
      rights of Third Parties.

              

      

       

      
        	
                (b)  

              	
                Financial
      Statements 2006; Consolidated Financial Statements 2006; Consolidated
      Financial Statements 2007

              

      

       

      
        	
                (1)  

              	
                The
      Sellers have delivered to the Purchaser the audited financial statements
      of the Company as of 31 December 2006 (the "Financial Statements
      2006") as well as the audited consolidated financial statements of
      the Company as of 31 December 2006 (the "Consolidated Financial
      Statements 2006"). The Financial Statements 2006 have been prepared
      in accordance with the applicable statutory accounting provisions of
      Clauses 264 et seqq. HGB and present, taking into account the generally
      accepted accounting principles (Grundsätze ordnungsmäßiger Buchführung)
      and the principles of formal and material balance sheet continuity
      (formelle und materielle Bilanzkontinuität), a true and fair view, within
      the meaning of Clause 264 para. 2 HGB, of the assets and liabilities,
      financial condition and results of operation (Vermögens-, Finanz- und
      Ertragslage) of the Company for the period referenced therein. Except for
      effects resulting from the consolidation of Saueressig Jordan Co. Ltd. in
      the fiscal year 2006 as described in Annex 6.2(b), the Consolidated
      Financial Statements 2006 have been prepared in accordance with the
      applicable statutory accounting provisions of Clauses 290 et seqq. HGB and
      present, taking into account the generally accepted accounting principles
      (Grundsätze ordnungsmäßiger Buchführung) and the principles of formal and
      material balance sheet continuity (formelle und materielle
      Bilanzkontinuität), a true and fair view, within the meaning of Clause 297
      para. 2 HGB, of the assets and liabilities, financial condition and
      results of operation (Vermögens-, Finanz- und Ertragslage) of the
      Companies for the period referenced
therein.

              

      

       

      
        	
                (2)  

              	
                All
      receivables shown in the Consolidated Financial Statements 2007 are fully
      recoverable (voll
      einbringlich), net off value adjustments (Wertberichtigungen) or
      write-offs (Abschreibungen) shown
      in the Consolidated Financial Statements
2007.

              

      

       

       Unless
otherwise provided for in this Agreement, the Sellers shall indemnify and hold
harmless the Companies and the Purchaser from and against all claims the factual
or legal basis of which has been realized in the fiscal years prior to the
fiscal year 2008 and which no liability or provision is shown for in the
Consolidated Financial Statements 2007 or in financial statements.

       

      
        	
                (c)  

              	
                Real
      Property

              

      

       

      
        	
                (1)  

              	
                Annex 6.2(c)(1)
      contains a complete and correct list of real property owned by the
      Companies.

              

      

       

      
        	
                (2)  

              	
                Annex 6.2(c)(2)
      contains a complete and correct list of real property leased or rented by
      the Companies as of the Signing Date, whether as lessee or as lessor,
      where the respective lessee’s payment obligations under the lease
      agreements exceeds a value of EUR 50,000.00 p.a.. The lessee’s payment
      obligations from all other lease agreements relating to real estate are
      not higher than EUR 100,000.00 a
year.

              

      

       

      
        	
                (d)  

              	
                Other
      Assets

              

      

       

       To the
Sellers’ Knowledge, the assets owned or lawfully used by the Companies as of the
Signing Date are sufficient to, and in a reasonably usable condition (gebrauchsfähiger Zustand) in
order to, continue the Business substantially in the same manner as conducted at
the Signing Date. Subject to any transfers by way of security (Sicherungsübereignung) or
retention of title arrangements (Eigentumsvorbehalte) which
are disclosed in Annex
6.2(d) and subject to any statutory liens which all have arisen in the
ordinary course of business of the Companies, the aforementioned assets are free
from any encumbrances.

       

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

      
        	
                (e)  

              	
                Intellectual
      Property Rights; Information
Technology

              

      

       

      
        	
                (1)  

              	
                Annex 6.2(e)
      (1) contains a complete and correct list of patents, trademarks and
      other registered intellectual property rights owned (berechtigte
      Inhaberschaft) or used by the Companies as of the Signing Date
      (hereinafter referred to as the "Intellectual Property
      Rights").

              

      

       

      
        	
                (2)  

              	
                To
      the Sellers’ Knowledge, the Intellectual Property Rights are, as of the
      Signing Date, not subject to any pending proceedings for opposition,
      cancellation, revocation or rectification which may negatively affect the
      operation of the Business nor are they being materially in-fringed by
      Third Parties. All fees necessary to maintain the Intellectual Property
      Rights have been paid, all necessary renewal applications have been filed
      and all other material steps necessary for their maintenance have been
      taken. To the Sellers’ Knowledge, the Companies do not infringe any
      intellectual property rights of Third
Parties.

              

      

       

      
        	
                (3)  

              	
                All
      computer hardware, software, communication systems, networks and other
      information technology owned or lawfully used by the Companies as of the
      Signing Date (hereinafter referred to as the "Information Technology")
      are sufficient to continue the Business substantially in the same manner
      as conducted at the Signing Date.

              

      

       

      
        	
                (f)  

              	
                Compliance
      with Laws and Permits

              

      

       

       As of the
Signing Date, the Companies hold all material permits which are required, if
any, under applicable public laws (öffentliches Recht) for the
operation of the Business as presently conducted. Except as disclosed in Annex 6.2(f), there
are, as of the Signing Date, no indications or threats of any revocation or
restriction or subsequent orders (nachträgliche Anordnungen)
relating to any such permits after the Effective Date which would materially
affect the Business. The Companies conduct their respective business in
compliance with all material provisions of such permits, the non-compliance with
which would have a material adverse effect with respect to the
Business.

       

      
        	
                (g)  

              	
                Compliance
      with Environmental Laws

              

      

       

      
        	
                (1)  

              	
                The
      following terms used in this Agreement shall have the following
      meaning:

              

      

       

      
        	
                (i)  

              	
                "Environment" means all
      or any of the following media, namely air (including the air within
      buildings or other natural or man-made structures above or below ground),
      water (including surface or ground water) or
  land;

              

      

       

      
        	
                (ii)  

              	
                "Environmental Matters"
      means all matters relating to the protection of the
      Environment;

              

      

       

      
        	
                (iii)  

              	
                "Environmental Laws"
      means all laws, ordinances, executable administrative decisions,
      public-law agreements, legally binding judgements or judgments declared as
      immediately enforceable, which are effective and enforceable at the
      Signing Date relating to Environmental
Matters.

              

      

       

      
        	
                (2)  

              	
                Except
      as disclosed in Annex 6.2(g),
      to the Sellers’ Knowledge, as of the Signing Date, the Companies conduct
      their respective business in compliance with all Environmental Laws and
      there are no circumstances which give rise to any obligation under
      Environmental Laws.

              

      

       

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

      
        	
                (3)  

              	
                Except
      as disclosed in Annex 6.2(f),
      as of the Signing Date, there are no claims, proceedings, actions or
      investigations pending against the Companies with respect to
      non-compliance with or obligation under material Environmental Laws nor
      have any such claims, proceedings, actions or investigations been
      threatened in writing.

              

      

       

      
        	
                (4)  

              	
                If
      a claim is asserted against either the Companies or the Purchaser under
      Environmental Laws, at any time, due to occurrences before the Effective
      Date (hereinafter referred to as "Environmental Claims"),
      the Sellers are obliged to indemnify the Purchaser of all costs,
      liabilities, penalties and/or expenses incurred by the Companies or the
      Purchaser as a result of the Environmental Claims, including, but not
      limited to, reasonable indemnification of any and all reasonable legal
      fees incurred in addressing and/or defending the Environmental
      Claims.

              

      

       

      
        	
                (5)  

              	
                Except
      as disclosed in Annex 6.2(g),
      to the Sellers' Knowledge, there are no occurrences between the Effective
      Date and the Signing Date which could give rise to any Environmental
      Claim.

              

      

       

      
        	
                (h)  

              	
                Material
      Agreements

              

      

       

       Annex 6.2 (h)
contains a complete and correct list of material
agreements as described below to which any of the Companies, as of the Signing
Date, is a party and of which the main obligations have not yet been completely
fulfilled (hereinafter referred to as the "Material
Agreements"):

       

      
        	
                (1)  

              	
                agreements
      relating to the acquisition or sale of interests in other companies or
      businesses;

              

      

       

      
        	
                (2)  

              	
                agreements
      relating to the acquisition, disposal or encumbrance of real property, in
      each case, for a consideration/an amount of EUR 50,000.00 or more; the
      obligations from all other agreements in this regard are not higher than
      EUR 50,000.00 a year;

              

      

       

      
        	
                (3)  

              	
                rental
      and lease agreements relating to real estate which, individually, provide
      for annual payments of EUR 50,000.00 or more and which cannot be
      terminated by the respective Companies on twelve months or less notice
      without penalty; the lessee’s payment obligations from all other lease
      agreements relating to real estate are not higher than EUR 100,000.00 a
      year;

              

      

       

      
        	
                (4)  

              	
                license
      agreements which, individually, provide for annual payments of EUR
      50,000.00 or more and which cannot be terminated by the respective
      Companies on twelve months or less notice without penalty; the obligations
      from all other license agreements are not higher than EUR 100,000.00 a
      year;

              

      

       

      
        	
                (5)  

              	
                loan
      agreements, bonds, notes or any other instruments of debt involving any
      Third Party outside the Companies and, individually, an amount of EUR
      100,000.00 or more; the obligations from all other agreements in this
      regard are not higher than EUR 100,000.00 a
  year;

              

      

       

      
        	
                (6)  

              	
                guarantees,
      indemnities, and suretyships issued for any debt of any Third Party other
      than the Companies for an amount of EUR 100,000.00 or more; the
      obligations from all other agreements in this regard are not higher than
      EUR 100,000.00 a year;

              

      

       

      
        	
                (7)  

              	
                agreements
      with customers and suppliers which, individually, provide for annual
      payments of more than EUR
250,000.00;

              

      

       

      
        	
                (8)  

              	
                joint
      venture- and cooperation agreements with Third
  Parties;

              

      

       

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

       

       

      
        	
                (9)  

              	
                agreements
      prohibiting or limiting the ability of any of the respective Companies to
      engage in any business activity or to compete with any market participant
      (including any exclusive purchasing or sales
  agreements);

              

      

       

      
        	
                (10)  

              	
                any
      continuing obligations (Dauerschuldverhältnisse)
      other than described in Clauses 6.2 (h) (1)
      through (9) which cannot be
      terminated with effect as of or prior to 31 October 2009 and which provide
      for annual obligations of the Company or the Subsidiaries in excess of EUR
      150,000.00. The obligations from all other agreements in this regard are
      not higher than EUR 500,000.00 a
year.

              

      

       

       Each of
the Material Agreements is, as of the Signing Date, in full force and effect,
and the Company or the respective Subsidiary have received no notice of
termination as of the Signing Date and neither the Company nor any Subsidiary is
in any material breach of any of the Material Agreements. The dealings between
the Companies and the customers taken as a whole are carried out at arm’s length
terms.

       

      
        	
                (i)  

              	
                Largest
      Customers and Largest Suppliers

              

      

       

       Annex 6.2(i) contains
a complete and correct list of the five (5) largest customers and the five (5)
largest suppliers of the Companies, in each case measured on the basis of (and
the list in each case specifying) the business volume for the fiscal year ended
on 31 December 2007.

       

      
        	
                (j)  

              	
                Employees

              

      

       

      
        	
                (1)  

              	
                Annex 6.2(j)
      (1) contains, as of the Signing Date, a complete and correct list
      of collective bargaining agreements and agreements with unions, workers’
      councils and similar organizations by which any of the Companies, as of
      the Signing Date, are bound. There are no legally binding unilateral
      declarations of intention by any of the Companies in favour of the
      employees of the Companies.

              

      

       

      
        	
                (2)  

              	
                Annex 6.2(j)
      (2) contains, as of the Signing Date, a complete and correct list
      of employees of the Companies who are entitled, as of the Signing Date, to
      receive in the calendar year 2008 a gross annual base salary
      (excluding fringe benefits, such as incentives, stock options or
      appreciation rights, company car and other benefits) in excess of EUR
      100,000.00 (such employees collectively hereinafter referred to as the
      "Key Employees"
      and each of them as a "Key Employee"). Except
      as set forth in Annex 6.2(j)
      (2), as of the Signing Date, none of the Key Employees has given
      notice of termination of his or her
employment.

              

      

       

      
        	
                (3)  

              	
                The
      total number of employees of German Companies does not exceed the number
      of 753 employees as of the Signing Date. The total number of employees of
      the foreign Companies and foreign Minority Entities does not exceed the
      number of 232 employees as of the Signing
Date.

              

      

       

      
        	
                (4)  

              	
                The
      Companies have made provisions for pensions of their employees in
      accordance with German generally accepted accounting
      principles.

              

      

       

      
        	
                (5)  

              	
                Except
      as disclosed in Annex 6.2(j)
      (5), as of the Signing Date, there are no lawsuits, court actions
      or similar proceedings between employees of the Companies and the
      Companies involving an amount in dispute (Streitwert) exceeding
      EUR 25,000.00 in each individual
case.

              

      

       

      
        	
                (6)  

              	
                Annex 6.2(j)
      (6) contains, as of the Signing Date, a complete and correct list
      of agreements relating to partial retirements (Altersteilzeit) of
      employees of the Companies who were  entitled to receive a gross
      annual base salary (excluding fringe benefits, such as incentives, stock
      options or appreciation rights, company car and other benefits) before
      entering into the respective partial retirement in excess of EUR
      35,000.00.

              

      

       

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

       

      
        	
                (7)  

              	
                There
      are no agreements between the Companies and their employees which provide
      for change of control or compensation provisions in relation to the
      execution of this Agreement.

              

      

       

      
        	
                (k)  

              	
                Insurance

              

      

       

       Annex 6.2(k)
contains, as of the Signing Date, a complete and correct list of insurance
policies taken out by, or for the benefit of, any of the Companies with regard
to their assets, business operations, board members or employees (hereinafter
referred to as "Insurance
Policies" or each as "Insurance Policy"). To the
Sellers’ Knowledge, the Insurance Policies are valid and in full force. All
premiums due on the Insurance Policies have been duly paid up to the Signing
Date and, to the Sellers’ Knowledge, there are no circumstances due to which any
such Insurance Policy might be voidable.

       

      
        	
                (l)  

              	
                Public
      Grants

              

      

       

       Annex 6.2(l)
contains, as of the Signing Date, a complete and correct list of public grants
(öffentliche
Förderungen) granted to any of the Companies within the past three years
prior to the Signing Date which, individually, provide for annual payments of
EUR 50,000.00 or more (hereinafter collectively referred to as the "Public Grants"). The Companies
have no indications that those Public Grants will be revoked because of the fact
that the Companies do not use, have not used and have not applied for, the
Public Grants in accordance with applicable law.

       

      
        	
                (m)  

              	
                Litigation

              

      

       

       None of
the Companies is involved in any law suits, court actions or similar proceedings
before a court of justice, arbitration panel or an administrative authority
involving an amount in dispute (Streitwert) exceeding EUR
50,000.00 in each individual case on the Signing Date pending (rechtshängig) or, to the
Sellers’ Knowledge, threatened in writing to be filed against any of the
Companies, except those disclosed in Annex 6.2(m) (1).
Annex 6.2(m)
(2) contains a note concerning the US law suit against Airlaid Alliance
Geschäftsführungs Sp z.o.o., a Minority Participation of the Company, and
McAirlaids Vliesstoffe GmbH & Co. KG, the indirect majority shareholder of
that Minority Participation. The liability risk for the Company resulting out of
that US law suit is not higher than its holding in the share capital of Airlaid
Alliance Geschäftsführungs Sp z.o.o. which amounts to PLN 24,500.00 (EUR
6,819.00). The amount in dispute for all other litigations is not exceeding EUR
100,000.00.

       

      
        	
                (n)  

              	
                Product
      Liability

              

      

       

       Except as
set forth in Annex
6.2(n), to the Sellers’ Knowledge, as of the Signing Date, none of the
Companies has manufactured, sold or otherwise placed into circulation (in Verkehr gebracht) any
product or provided any service in a manner due to which any individual
liability under product liability (aus Produkthaftung) exists in
excess of EUR 50,000.00. The obligations from all other individual liabilities
under product liability are not higher than EUR 100,000.00.

       

      
        	
                (o)  

              	
                Ordinary
      Course of Business

              

      

       

       Except as
set forth in Annex
6.2(o), from 1 January 2007 until the Signing Date, the business
operations of the Companies have been conducted in the ordinary course of
business and substantially in the same manner as before, and there has been no
material adverse change with respect to the Business taken as a whole. In
particular, the Companies, from 1 January 2007 until the Signing Date, have
not:

       

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

       

       

      
        	
                (1)  

              	
                distribute
      any profits, declared any dividend or made any other distribution to a
      person or an entity other than the
Companies;

              

      

       

      
        	
                (2)  

              	
                issued
      any share capital or similar interest to an entity which is not part of
      the Companies;

              

      

       

      
        	
                (3)  

              	
                undertaken
      to make any capital expenditure or entered into any contract or commitment
      outside the ordinary course of
business;

              

      

       

      
        	
                (4)  

              	
                acquired
      or disposed of or pledged or otherwise encumbered any fixed assets
      relating to its business outside the ordinary course of
      business;

              

      

       

      
        	
                (5)  

              	
                incurred
      any indebtedness vis-à-vis Third Parties other than in the ordinary course
      of business;

              

      

       

      
        	
                (6)  

              	
                made
      any advance or extended any loan to any Third Party outside the ordinary
      course of business;

              

      

       

      
        	
                (7)  

              	
                waived
      or settled any claims or other rights with an aggregate value of more than
      EUR 50,000.00;

              

      

       

      
        	
                (8)  

              	
                made
      any material change in the terms of employment (including changes to
      compensations) of any Key Employees other than in the ordinary course of
      business.

              

      

       

      
        	
                (p)  

              	
                Services-
      and Consultancy Contracts with
Sellers

              

      

       

       Except
for the managing director employment contract (Geschäftsführeranstellungsvertrag)
between the General Partner and Seller 1 and except for Seller 1's salary claims
in this regard, there are neither services- or consultancy contracts between the
Companies and the Sellers nor any outstanding payment claims of the Sellers
against the Companies in this regard.

       

       

       

      
        	
                6.3  

              	
                No
      other Sellers’ Guarantees

              

      

       

      
        	
                (a)  

              	
                The
      Purchaser explicitly acknowledges that it is purchasing and acquiring the
      Partnership Interests and the Business in the condition they are in on the
      Closing Date based upon its own inspection, examination and determination
      with respect thereto, and that it is undertaking the acquisition based
      upon its own inspection, examination and determination without reliance
      upon any expressed or implied representations, warranties or guarantees of
      any nature made by the Sellers except for the guarantees explicitly given
      by the Sellers under this
Agreement.

              

      

       

      
        	
                (b)  

              	
                Without
      limiting the generality of the foregoing, the Purchaser acknowledges that
      the Sellers give no representation, warranty or guarantee with respect
      to

              

      

       

      
        	
                (1)  

              	
                any
      projections, estimates or budgets delivered or made available to the
      Purchaser of future revenues, future results of operations (or any
      component thereof), future cash flows or future financial condition (or
      any component thereof) or the future business operations of the Companies
      or the Business;

              

      

       

      
        	
                (2)  

              	
                any
      other information or documents made available to the Purchaser or its
      counsel, accountants or advisors with respect to the Companies or the
      Business, including without limitation the Information Memorandum and the
      information provided during the Management Presentation delivered on 15
      January 2008, except as expressly set forth in this
    Agreement;

              

      

       

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

       

       

      
        	
                (3)  

              	
                any
      Tax matter except as explicitly otherwise provided for in Clause 8; or

              

      

       

      
        	
                (4)  

              	
                any
      matter for which an indemnification has been given by the
      Sellers.

              

      

       

      
        	
                6.4  

              	
                Sellers’
      Knowledge

              

      

       

       In this
Agreement, the knowledge of the Sellers (herein referred to as the "Sellers’ Knowledge") shall
solely encompass the actual knowledge and the grossly negligent lack of
knowledge (grob fahrlässige
Unkenntnis), including, for the avoidance of doubt, the actual knowledge
and the grossly negligent lack of knowledge of the Disclosed Documents (as
defined in Clause 7.4), as of the Signing Date of
the individuals listed in Annex
6.4.

       

      

       

      
        	
                7.  

              	
                REMEDIES
      FOR BREACH OF SELLERS' GUARANTEES

              

      

       

      
        	
                7.1  

              	
                General/Recoverable
      Damages

              

      

       

      
        	
                (a)  

              	
                In
      the event of any breach or non-fulfilment by the Sellers of any of the
      guarantees or obligations pursuant to Clauses 6.2 and 8, the
      Sellers are obliged to pay monetary damages (Schadenersatz in Geld)
      to the Purchaser provided, however, that such damages shall only cover
      actual damages incurred by the Purchaser, including, for the avoidance of
      doubt, foreseeable consequential damages (Folgeschäden), but
      excluding, for the avoidance of doubt, any damages based on the argument
      that the Companies cannot pursue any business expansion plans or business
      opportunities that the Companies have not successfully pursued prior to
      the Closing Date. The damage compensation under this Agreement shall in
      particular not cover internal administration or overhead costs of the
      Purchaser, loss of profits (entgangener Gewinn) or
      any arguments that the Purchase Price was calculated upon incorrect
      assumptions. The Purchaser is excluded with any arguments that the damage
      amounts shall be calculated by reference to the fact that the Purchase
      Price was calculated taking into account a certain earnings multiple
      ("Euro for Euro principle").

              

      

       

      
        	
                (b)  

              	
                The
      Sellers shall not be liable for, and the Purchaser shall not be entitled
      to claim for, any damages of the Purchaser under or in connection with
      this Agreement if

              

      

       

      
        	
                (1)  

              	
                the
      matter to which the claim relates is provided for in the financial
      statements of the Company for the year ended 31 December 2007 (hereinafter
      referred to as the "Financial Statements
      2007") or the Consolidated Financial Statements
    2007;

              

      

       

      
        	
                (2)  

              	
                any
      damages of the Purchaser are covered and recoverable by claims against
      Third Parties, including, but not limited to, through existing insurance
      policies; or

              

      

       

      
        	
                (3)  

              	
                provisions
      contained in the Financial Statements 2007 or Consolidated Financial
      Statements 2007 may be dissolved, the value of assets which had been
      depreciated may be reinstated (Wertaufholung), or
      accounts receivable which had already been written off in whole or in part
      are fulfilled by the respective debtors after the Effective
      Date.

              

      

       

      
        	
                7.2  

              	
                Overall
      Scope of Sellers’ Liability pursuant to this
  Agreement

              

      

       

      
        	
                (a)  

              	
                For
      any and all claims of the Purchaser against the Sellers pursuant to
      Clauses 6 and 8
      referring to any of the Companies in which the Sellers hold (directly or
      indirectly) as of Closing less than 100 per cent, the Sellers’ liability
      shall further be limited pro rata to the Sellers’ equity shareholding in
      such member of the Companies.

              

      

       

       

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

       

       

      
        	
                (b)  

              	
                The
      Sellers’ aggregate liability under this Agreement including, but not
      limited to, any and all claims for breach of any of the guarantees or
      obligations pursuant to Clauses 6 and 8, shall be limited to 30 per cent of the
      Purchase Price (hereinafter referred to as the "Sellers’ Liability
      Cap"), provided that any claims of the Purchaser for breach of any
      of the guarantees pursuant to Clauses 6.2(a)(1), 6.2(a)(2) and 6.2(a)(5) shall be limited to the
      Purchase Price (hereinafter referred to as the "Extended Sellers’ Liability
      Cap").

              

      

       

      
        	
                7.3  

              	
                Threshold

              

      

       

       The
Purchaser shall only be entitled to any claims against the Sellers under Clauses
6 through 8 to the
extent the aggregate amount of all individual claims as limited pursuant to
Clauses 7.2(a), including, for the avoidance of
doubt, a series of damages resulting from identical or similar causes (Serienschäden), exceeds EUR
600,000.00 (in words: six hundred thousand Euros) (hereinafter referred to as
the "Threshold"). In
case the Threshold is exceeded, the Purchaser can claim the whole
amount.

       

      
        	
                7.4  

              	
                Exclusion
      of Claims due to Purchaser’s
Knowledge

              

      

       

       The
Purchaser shall not be entitled to bring any claim against the Sellers under
Clauses 6 through 8 if
the underlying facts or circumstances to which the claim relates were known, or
could have been known (grossly negligent lack of knowledge; grobfahrlässige Unkenntnis),
by the Purchaser, taking into account that the Purchaser, prior to entering into
this Agreement, has been given the opportunity to review the status of the
Companies, the Minority Entities and the Business on the basis of the documents
disclosed in the electronic data room until 12 February 2008, which are attached
hereto in form of a CD-Rom in Annex 7.4
(hereinafter referred to as the "Disclosed Documents"), from a
commercial, technical, financial and legal perspective. Facts and circumstances
that could reasonably be concluded from the Disclosed Documents or are disclosed
in this Agreement or its Annexes are deemed to be known by the Purchaser. For
the avoidance of doubt, the foregoing sentence, however, (i) does not exclude
the Purchaser to bring a claim against the Sellers with respect to the
information disclosed in Annex 6.2(m) (2) to
the extent the liability risk for the Company realizes in excess of PLN
24,500.00 (EUR 6,819.00) and (ii) does not limit or otherwise affect the
Sellers' indemnification obligations pursuant to Clause 10.8. The knowledge of
the Purchaser’s managing directors, advisors and those of its employees who were
engaged in carrying out the due diligence examination undertaken with regard to
entering into this Agreement shall be imputed to the Purchaser.

       

      
        	
                7.5  

              	
                Notification
      of Sellers; Procedure in Case of Third Party
  Claims

              

      

       

      
        	
                (a)  

              	
                In
      the event of an actual or potential breach of guarantee pursuant to Clause
      6 above, the Purchaser shall without undue
      delay after becoming aware of the matter notify the Sellers of such
      alleged breach in writing, describing the potential claim in detail and,
      to the extent practical, state the estimated amount of such claim and give
      the Sellers the opportunity to remedy the breach within sixty days after
      having been notified by the Purchaser of the
  breach.

              

      

       

      
        	
                (b)  

              	
                Furthermore,
      in the event that in connection with a breach of a guarantee under Clause
      6 any claim or demand of a Third Party is
      asserted against the Purchaser or any of the Companies or the Minority
      Entities (for the purposes of this Clause each a "Relevant Company"), the
      Purchaser shall (i) make available to the Sellers a copy of the Third
      Party claim or demand and of all time-sensitive documents and (ii) give
      the Sellers the opportunity to defend the Purchaser or the Relevant
      Company against such claim. The Sellers shall have the right to defend the
      claim by all appropriate proceedings and shall have the sole power to
      direct and control such defence. In particular, without limitation, the
      Sellers may (i) participate in and direct all negotiations and
      correspondence with the Third Party, (ii) appoint and instruct counsel
      acting, if necessary, in the name of the Purchaser or any of the Relevant
      Company, and (iii) require that the claim be litigated or settled in
      accordance with the Sellers’ instructions. The Sellers shall conduct such
      proceedings in good faith with due regard to the concerns of the Purchaser
      at their expense, except for expenses incurred by Purchaser’s advisors
      which shall be borne by the
Purchaser.

              

      

       

       

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

       

       

      
        	
                (c)  

              	
                In
      no event shall the Purchaser or the Relevant Company be entitled to
      acknowledge or settle a claim or permit any such acknowledgement or
      settlement without the Sellers’ prior written consent to the extent that
      such claims may result in a liability of the Sellers under this Agreement.
      The Purchaser or the Relevant Company shall, at its expense, fully
      cooperate with the Sellers in the defence of any Third Party claim,
      provide the Sellers and their representatives (including, for the
      avoidance of doubt, its advisors) access to all relevant business records
      and documents and permit the Sellers and its representatives to consult
      with the directors, employees and representatives of the Purchaser or the
      Relevant Company. To the extent that the Sellers are in breach of a
      guarantee provided for under Clause 6 above,
      all costs and expenses incurred by the Sellers in defending such claim
      shall be borne by the Sellers. If it turns out that the Sellers were not
      in breach, any costs and expenses reasonably incurred by the Sellers in
      connection with the defence (including advisors’ fees) shall be borne by
      the Purchaser or the Relevant
Company.

              

      

       

      
        	
                (d)  

              	
                The
      failure of the Purchaser to fully comply with its obligations under this
      Clause 7.5 shall release the Sellers from
      their respective obligations under Clauses 6
      and 7.

              

      

       

      
        	
                7.6  

              	
                Mitigation

              

      

       

       Clause
254 BGB shall remain unaffected, i.e. the Purchaser is in particular obliged to
prevent the occurrence of any damages and to limit the scope of any damages
incurred.

       

      
        	
                7.7  

              	
                Limitation
      Periods

              

      

       

       All
claims for any breach of guarantees of the Sellers pursuant to Clauses 6.2 above shall become time-barred (verjähren) eighteen months
after the Closing Date, except for claims based on a breach of the guarantees
given by the Sellers under Clauses 6.2(a)(1),
6.2(a)(2) and 6.2(a)(5) shall become time-barred five years after the Closing
Date. Claims with respect to Taxes (Clause 8) shall
become time-barred in accordance with Clause 8.8.

       

      
        	
                7.8  

              	
                Exclusion
      of Further Remedies

              

      

       

      
        	
                (a)  

              	
                To
      the extent permitted by law, any further claims and remedies other than
      explicitly provided for under Clauses 6
      through 8 hereof, irrespective of their
      nature, amount or legal basis, are hereby expressly waived and excluded,
      in particular, without limitation, claims under pre-contractual fault
      (Clause 311 para. 2 and 3 BGB, breach of contract (Pflichtverletzung aus dem
      Schuldverhältnis) and/or the right to reduce the Purchase Price
      (Minderung) or to
      rescind this Agreement (Rücktritt), and any
      liability in tort (Deliktshaftung).

              

      

       

      
        	
                (b)  

              	
                Further
      to the statements made in Clause 6.1, the
      Sellers and the Purchaser agree that the provisions contained in Clauses
      6 through 8 of
      this Agreement are not quality guarantees concerning the object of the
      purchase (Garantien für
      die Beschaffenheit der Sache) within the meaning of Clauses 443,
      444 BGB. In the unlikely event that the provisions of Clauses 6 through 8 setting
      out the scope and limitations of the Sellers’ liability are, contrary to
      the intention and explicit understanding of the Parties, regarded and
      construed as quality guarantees concerning the object of the purchase, and
      the limitations of the Sellers’ liability contained herein are found
      wholly or partially invalid therefore, the Purchaser hereby waives the
      right to assert claims going beyond the limits of limitations provided for
      herein. The Sellers accept such
waiver.

              

      

       

       

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

       

      
        	
                8.  

              	
                TAXES

              

      

       

      
        	
                8.1  

              	
                Definition
      of Tax

              

      

       

       For the
purpose of this Agreement "Tax" shall mean any taxes
within the meaning of Clause 3 para. 1 through 3 of the German Tax Code (AO) or any corresponding
provisions under foreign laws, plus any tax fringe benefits (steuerliche Nebenleistungen),
e.g. interest, costs, surtaxes, within the meaning of Clause 3 para. 4 AO or any
corresponding provisions under foreign laws, plus social security contributions
and fees required by law as well as liabilities from any of the aforementioned
taxes, all imposed by any governmental authority responsible for the imposition
of such tax (hereinafter referred to as a "Taxing
Authority")

       

      
        	
                8.2  

              	
                Tax
      Filings and Tax Payments until the Closing
Date

              

      

       

       The
Sellers hereby guarantee to the Purchaser by way of an independent promise of
guarantee pursuant to Clause 311 para. 1 BGB (selbständiges Garantieversprechen im
Sinne des § 311 Abs. 1 BGB), within the scope of and subject to the
requirements and limitations contained in this Clause 8, that the Companies (i) have duly and timely made,
and will duly and timely (taking into consideration extensions of time allowed
by the competent Taxing Authorities) make until the Closing Date, all Tax
filings due, and (ii) have paid, and will pay until the Closing Date, all Taxes
when due and payable. Clause 7.8(b) shall apply
mutatis
mutandis.

       

      
        	
                8.3  

              	
                Tax
      Indemnification

              

      

       

      
        	
                (a)  

              	
                Subject
      to full compliance with the provisions set forth under Clause 8.6 below, the Sellers agree to indemnify the
      Purchaser from and against all Taxes due and payable by the Companies and
      assessed for periods ending on or before 31 December 2007, unless, and
      except to the extent, that such Tax
liabilities

              

      

       

      
        	
                (1)  

              	
                are
      shown or provided for in the Financial Statements 2007 or Consolidated
      Financial Statements 2007; or

              

      

       

      
        	
                (2)  

              	
                are
      subject of a valid and enforceable claim for repayment or indemnification
      against a Third Party; or

              

      

       

      
        	
                (3)  

              	
                are
      the result of a reorganization or other measures initiated by Purchaser;
      or

              

      

       

      
        	
                (4)  

              	
                relate
      to income or gains that can be offset against Tax loss carry backs or loss
      carry forwards as shown in the Consolidated Financial Statements 2007 that
      are or were available (including as a result of subsequent tax audits) in
      the period to which such taxes are allocable, whereby any use or reduction
      caused directly or indirectly by the Purchaser of such Tax loss carry back
      or loss carry forward shall be disregarded;
or

              

      

       

      
        	
                (5)  

              	
                can
      be offset against future Tax reductions (Steuerminderungen)
      arising during the next five years after the Effective Date out of the
      circumstance triggering the Tax indemnification claim, e.g. resulting from
      the lengthening of depreciation periods or higher depreciation allowances
      (Phasenverschiebung);
      or

              

      

       

      
        	
                (6)  

              	
                correspond
      to Tax advantages of any of the Companies, the Purchaser or any Affiliate
      of the Purchaser arising during the next five years after the Effective
      Date.

              

      

       

       

      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

       

      
        	
                (b)  

              	
                Subject
      to the second sentence of this Clause, the Sellers will not indemnify the
      Purchaser for any Tax liability of the Companies for tax years ending
      after the Effective Date. The Sellers shall indemnify the Company from and
      against all trade income tax (Gewerbesteuer) due and
      payable by the Company resulting from the sale of the Partnership
      Interests to the Purchaser, provided, however, that the Sellers are not
      obliged to indemnify the Company from such trade income tax which results
      out of a reorganization or other measures initiated by the Purchaser, in
      particular, without limitation, an assignment and transfer of this
      Agreement and of any rights and obligations hereunder, in whole or in
      part, by the Purchaser to one of its Affiliates as set forth in Clause
      12.

              

      

       

      
        	
                (c)  

              	
                Indemnification
      payments due by the Sellers under this Clause 8 shall be made within 20 Business Days
      following written notice by the Purchaser, provided that the payment of
      such amounts to the Taxing Authority is due and that the Sellers shall not
      be required to make any payment earlier than two Business Days before such
      Taxes are due to the Taxing Authority. In case of any Tax being contested
      in accordance with Clause 8.6(b), payment of
      such Tax to the Taxing Authority will be considered due no earlier than on
      the date a final (bestandskräftig)
      determination to such effect is made by either the Taxing Authority or a
      court of proper jurisdiction, provided that the Taxing Authority has
      granted relief from paying the assessed Tax until such Tax becomes final
      and binding. If the Taxing Authority only grants that relief from paying
      the assessed Tax against a security, the Sellers have to grant such
      security. If the Taxing Authority has not granted that relief from paying
      the assessed Tax, the Purchaser shall have the opportunity to make a
      respective payment provided that the Sellers provide a guarantee by a
      reputable bank as security for any reimbursement claims of the Purchaser
      against the Sellers in this
respect.

              

      

       

      
        	
                8.4  

              	
                Tax
      Filings after the Closing Date

              

      

       

       After the
Closing Date, the Purchaser shall prepare and make, or cause the Companies to
prepare and make, all Tax filings required to be filed by or on behalf of the
Companies, in the case of any Tax filings for periods ending on, prior to or
including the Closing Date, subject to the review and approval of the Sellers
(which may not unreasonably be withheld). Tax filings for periods including the
period ending on 31 December 2007 shall be prepared on a basis consistent with
those prepared for prior Tax assessment periods. The Purchaser shall ensure that
any Tax filing to be reviewed and approved by the Sellers will be furnished to
the Sellers no later than 30 days prior to the due date of such Tax
filing.

       

      
        	
                8.5  

              	
                Tax
      Covenants

              

      

       

       The
Purchaser covenants to the Sellers that except as legally required by any Taxing
Authority or otherwise compelled by mandatory law and after having given the
Sellers the opportunity to intervene, the Purchaser will not cause or permit any
of the Companies

       

      
        	
                (1)  

              	
                to
      take or omit to take any action on or after the Closing Date that could
      give rise to any Tax liability of the Sellers or reduce any of their Tax
      assets;

              

      

       

      
        	
                (2)  

              	
                to
      make or change any Tax election, amend any Tax return or take any Tax
      position on any Tax return, take any action, omit to take any action or
      enter into any transaction, merger or restructuring that results in any
      increased Tax liability (including a Tax indemnification liability) of the
      Sellers or reduction of any of their Tax
assets.

              

      

       

      
        	
                8.6  

              	
                Indemnification
      Procedures

              

      

       

      
        	
                (a)  

              	
                Following
      the Closing Date, the Purchaser shall promptly notify the Sellers of any
      Tax audit or administrative or judicial proceeding that is announced or
      commenced and that might constitute a basis for indemnification by the
      Sellers pursuant to this Clause 8. Such
      notice shall be given by the Purchaser within two weeks time after the
      authorities have issued the respective administrative act in writing and
      by registered mail and shall contain sufficient factual information
      describing the object of the Tax audit or the asserted Tax liability in
      reasonable detail and shall include copies of any notice or other document
      received from any Taxing Authority in respect of any such Tax audit or
      asserted Tax liability. The Purchaser shall further procure that the
      Companies allow the Sellers to fully participate in such Tax audit. If the
      Sellers are not given prompt notice as required by this Clause 8.6(a), then the
      Sellers shall not have any obligation to indemnify the Purchaser for any
      damages arising out of such asserted Tax liability, unless the Purchaser
      has appealed against the notice of assessment within the statutory period
      and such assessment has thereby not become binding and the Purchaser has
      immediately after filing of the appeal notified the Sellers as required by
      this Clause 8.6(a).

              

      

       

       

      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

       

      
        	
                (b)  

              	
                The
      Sellers may elect to direct on their own or through counsel of their
      choice and at their expense, any audit, claim for refund and
      administrative or judicial proceeding involving any asserted Tax liability
      with respect to which indemnity may be sought under this Clause 8 (any such audit, claim for refund or
      proceeding relating to an asserted Tax liability is hereinafter referred
      to as a "Tax
      Contest"). If the Sellers elect to direct a Tax Contest, then the
      Sellers shall within 25 Business Days of receipt of the Purchaser’s
      written notice pursuant to Clause 8.6(a)
      above, notify the Purchaser of their intent to do so, and the Purchaser
      shall cooperate and cause the Companies or the respective successors to
      cooperate and follow the Sellers’ directions, at the Sellers’ expense in
      each phase of such Tax Contest. If the Sellers do not elect to direct such
      Tax Contest or fail to notify the Purchaser of their election as herein
      provided, the Purchaser or the Companies may pay, compromise or contest
      such asserted Tax liability, provided that neither the Purchaser nor any
      of the Companies may settle or compromise any asserted Tax liability
      without the Sellers’ consent. In any event, the Sellers may participate,
      at their own expense, in any Tax Contest and may, at their own discretion,
      take any action they deem appropriate to further or settle the case. If
      the Sellers choose to direct the Tax Contest, the Purchaser shall promptly
      authorize, and shall cause the respective Companies to authorize, (by
      power-of-attorney and such other documentation as may be necessary and
      appropriate) the designated representative of the Sellers to represent the
      Purchaser and/or the Companies or their successors in the Tax Contest
      insofar as the Tax Contest involves an asserted Tax liability for which
      the Sellers would be liable under this Clause 8.

              

      

       

      
        	
                8.7  

              	
                Tax
      Refunds

              

      

       

      
        	
                (a)  

              	
                If
      any of the Companies receives a Tax refund relating to any period ending
      on or before 31 December 2007 (to the extent not reflected in the
      Financial Statements 2007 or Consolidated Financial Statements 2007), the
      amount of the Tax refund shall be paid by the Purchaser to the Sellers.
      The Purchaser shall duly notify the Sellers of any Tax refund relating to
      any period ending on or before 31 December 2007.Clauses 8.3(4) and 8.3(5) shall apply
      accordingly.

              

      

       

      
        	
                (b)  

              	
                If
      the Company receives a Tax refund relating to any trade income tax (Gewerbesteuer) paid by
      the Company due to the sale of the Partnership Interests to the Purchaser
      and relating to any period ending on or before 31 December 2008, the
      amount of such tax refund shall be paid by the Purchaser to the Sellers.
      The Purchaser shall duly notify the Sellers of any such Tax refund
      relating to any period ending on or before 31 December
    2008.

              

      

       

      
        	
                8.8  

              	
                Limitation

              

      

       

       Claims of
the Purchaser under this Clause 8 shall be
time-barred three months after the final and binding assessment of the relevant
Taxes.

       

       

      
        
          
          

        

        
          32

          
            

          

        

        
          
          

        

      

       

      
        	
                9.  

              	
                PURCHASER’S
      GUARANTEES

              

      

       

      
        	
                9.1  

              	
                Guarantees

              

      

       

       Purchaser
hereby guarantees by way of an independent promise of guarantee pursuant to
Clause 311 para. 1 BGB (selbständiges Garantieversprechen im
Sinne des § 311 Abs. 1 BGB):

       

      
        	
                (a)  

              	
                The
      Purchaser is duly incorporated and validly existing under the laws of
      Pennsylvania and has all requisite corporate power and authority to own
      its assets and to carry out its
business.

              

      

       

      
        	
                (b)  

              	
                The
      execution and performance by the Purchaser of this Agreement and the
      consummation of the transaction contemplated hereby are within the
      corporate powers of the Purchaser and have been duly authorized by all
      necessary corporate action on part of the
  Purchaser.

              

      

       

      
        	
                (c)  

              	
                The
      execution and performance by the Purchaser of this Agreement and the
      consummation of the transaction contemplated herein do not (i) violate the
      articles of association or by-laws of the Purchaser or (ii) violate any
      applicable law, regulation, judgment, injunction or order binding on the
      Purchaser, and (iii) there is no action, law suit, investigation or
      proceeding pending against, or to the knowledge of the Purchaser
      threatened against, the Purchaser before any court, arbitration panel or
      governmental authority which in any manner challenges or seeks to prevent,
      alter or delay the transaction contemplated
  herein.

              

      

       

      
        	
                (d)  

              	
                Based
      on its due diligence, the Purchaser is not aware of any facts or
      circumstances that could give rise to claims against the Sellers pursuant
      to Clauses 6 through 8 of this
Agreement.

              

      

       

      
        	
                (e)  

              	
                The
      Purchaser has sufficient immediately available funds or binding financing
      commitments to pay the Purchase Price as well as the Sellers' Loans and
      Private Accounts Purchase Price and to make all other payments required to
      be made under or in connection with this
  Agreement.

              

      

       

      
        	
                9.2  

              	
                Indemnification

              

      

       

       In the
event that the Purchaser is in breach of any guarantee pursuant to Clause 9.1, the Purchaser shall indemnify and hold harmless
the Sellers from any damages incurred by the Sellers. All claims of the Sellers
arising under this Clause 9 shall be time-barred
eighteen months after the Closing Date.

       

       

       

      
        	
                10.  

              	
                COVENANTS

              

      

       

      
        	
                10.1  

              	
                Merger
      Control Proceedings; Other Regulatory
  Requirements

              

      

       

      
        	
                (a)  

              	
                The
      Purchaser shall ensure that any filings to be made with the competent
      merger control authorities or other governmental authorities, to the
      extent they have not already been made prior to the Signing Date, will be
      made within ten Business Days after the Signing Date. Such filings shall
      be made by the Purchaser on behalf of all Parties, provided, however, that
      the contents of such filings shall require prior written approval of the
      Sellers, which shall not unreasonably be withheld. The Sellers and the
      Purchaser shall closely cooperate in the preparation of such filings. The
      Sellers shall without undue delay provide the Purchaser with the data and
      information required for the preparation of the filings. Each Party shall
      without undue delay provide all other Parties with copies of any
      correspondence with the merger control or other governmental authorities
      and with copies of any written statement, order or decision of such
      authorities. The Parties shall closely cooperate in any discussions and
      negotiations with the competent authorities with the objective of
      obtaining clearance for the transaction contemplated by this Agreement in
      the shortest time period possible. The Purchaser may waive (zurücknehmen) filings
      with the competent authorities or agree with such authorities on the
      extension of any examination period only with the express prior written
      consent of the Sellers.

              

      

       

       

       

      
        
          
          

        

        
          33

          
            

          

        

        
          
          

        

      

       

      
        	
                (b)  

              	
                If
      on the Closing Date any merger control approval or any other governmental
      consent, approval or waiver required under applicable law in any
      jurisdiction (other than Germany) in order to effect the Closing has not
      been obtained, the Sellers and the Purchaser shall consummate the Closing,
      provided, however, that the Sellers and the Purchaser shall not be under
      an obligation to, directly or indirectly, transfer or acquire shares or
      interests in respect of which the consummation of the Closing would
      violate any applicable law or decision. The Sellers and the Purchaser
      shall in such case agree on all appropriate measures, including "hold
      separate" arrangements, regarding the shares or interests affected, in
      order that the relevant jurisdiction can be exempted from the consummation
      of the transaction until the required consents and approvals have been
      obtained.

              

      

       

      
        	
                10.2  

              	
                Pre-Closing
      Covenants of the Sellers

              

      

       

      
        	
                (a)  

              	
                Between
      the Signing Date and the Closing Date, the Sellers shall procure, to the
      extent permissible under applicable law, that the Companies shall conduct
      their business operations in the ordinary course of business and
      substantially in the same manner as before. Clause 6.2(o)(1) through (8) shall apply mutatis
      mutandis.

              

      

       

      
        	
                (b)  

              	
                Between
      the Effective Date and the Closing Date, the Sellers shall ensure that no
      alteration to nor disposal of the Sellers’ Capital and Reserve Accounts
      will be made during that time, that the amounts of the Sellers' Loans and
      Private Accounts will only be increased by accrued interest and profit
      shares pertaining to the fiscal year 2007 which will be booked at the
      adoption (Feststellung) of the
      Financial Statements 2007 and that no other alteration to nor disposal of
      the Sellers' Loans and Private Accounts will be made during that
      time.

              

      

       

      
        	
                (c)  

              	
                Between
      the Signing Date and the Closing Date, Seller 1 shall resign as managing
      director (Geschäftsführer) of the
      General Partner with effect as of the Closing Date. The Sellers shall
      ensure that the managing director employment contract (Geschäftsführeranstellungsvertrag)
      between the General Partner and Seller 1 will be terminated with effect as
      of the Closing Date and that all salary claims of Seller 1 in this regard
      will be settled by the Closing Date, except for Seller 1's entitlement for
      salary for the month in which the Closing takes
  place.

              

      

       

      
        	
                10.3  

              	
                Exoneration
      (Entlastung) of
      Seller 1 as Managing Director

              

      

       

       The
Purchaser undertakes to vote at the shareholders' general meeting (Gesellschafterversammlung) of
the Company, which shall resolve upon the Exoneration (Entlastung) of the managing
directors of the General Partner, for a shareholders' resolution granting
exoneration to Seller 1 as managing director of the General Partner for the time
period from 1 January 2008 through the date his resignation becomes
effective.

       

      
        	
                10.4  

              	
                Access
      to Financial Information

              

      

       

       The
Purchaser shall procure that after the Closing Date the Sellers and their
representatives are given unlimited access to, and are allowed to make copies
of, (i) the annual books of accounts for the fiscal year that ended on 31
December 2007 and (ii) any information the Sellers require to prepare the Tax
filings as mentioned in Clause 8.4 of this
Agreement.

       

       

      
        
          
          

        

        
          34

          
            

          

        

        
          
          

        

      

       

      
        	
                10.5  

              	
                Insurance
      Coverage

              

      

       

       The
Sellers shall procure, to the extent permissible under applicable law, that the
Companies and the Business remain insured until the Closing Date in
substantially the same way as they are on the Signing Date and that all premiums
due for such insurances are duly and timely paid.

       

      
        	
                10.6  

              	
                Indemnification
      of the Sellers

              

      

       

       To the
extent that after the Effective Date a Third Party raises a claim against the
Sellers which is due to a legal relationship between such Third Party and any of
the Companies, the Purchaser shall hold harmless and indemnify the Sellers from
any such claim as well as any costs and expenses incurred in connection
therewith, unless the Sellers are liable in accordance with this
Agreement.

       

      
        	
                10.7  

              	
                Covenant
      not to Compete

              

      

       

      
        	
                (a)  

              	
                For
      a period of two years after the Closing Date, the Sellers shall
      not

              

      

       

      
        	
                (1)  

              	
                work
      for a Competitor (as defined in this Clause under (b)), in particular
      enter into an employment, consulting, independent contractor or advisory
      agreement with a Competitor; or

              

      

       

      
        	
                (2)  

              	
                establish
      or acquire a Competitive Business (as defined in this Clause under (b)) or
      become involved, either directly or indirectly, in the establishment or
      operation of a Competitive Business or have a direct or indirect interest
      in such Competitive Business.

              

      

       

       The
acquisition and ownership of stock which is traded on a stock exchange shall be
exempted from the covenant not to compete.

       

      
        	
                (b)  

              	
                The
      terms "Competitor"
      and "Competitive
      Business" shall mean any business which manufactures, renders,
      markets or sells products or services, which are competitive with any of
      the products or services manufactured, rendered or sold by the Companies
      within the Business as presently conducted by the
    Companies.

              

      

       

      
        	
                (c)  

              	
                For
      the avoidance of doubt, the engagement of Seller 1 and Seller 2 in the
      business of Polywest Kunststofftechnik Saueressig & Partner GmbH &
      Co. KG, Germany, Ahaus, as presently conducted, which business is
      described in Annex 10.8,
      shall not be deemed a Competitive
Business.

              

      

       

      
        	
                (d)  

              	
                For
      a period of two years after the Closing Date, the Sellers shall not,
      directly or indirectly, solicit the business of, or do business with any
      customer of the Purchaser with whom the Sellers had direct or indirect
      contact or about whom the Sellers acquired knowledge while employed by the
      Company, in competition with the
Purchaser.

              

      

       

      
        	
                (e)  

              	
                For
      a period of two years after the Closing Date, the Sellers shall not,
      directly or indirectly, solicit or induce or attempt to solicit or induce,
      any employee of the Company and/or the Purchaser to leave the Company
      and/or the Purchaser for any
reason.

              

      

       

      
        	
                10.8  

              	
                Indemnification
      of the Company and/or the Purchaser

              

      

       

      
        	
                (a)  

              	
                Between
      the Signing Date and the Closing Date, the Sellers shall procure that the
      Company shall cleanup the Company's site in Vreden from contamination due
      to the occurrence described in Annex 6.2(g).
      The Sellers shall hold harmless and indemnify the Company from any and all
      proved costs and proved expenses incurred in connection with the cleanup
      of the Company's site in Vreden from contamination due to such occurrence
      described in Annex 6.2(g),
      provided, however, that the Escrow Amount (as defined in Clause 3.3(a)(ii)) shall be used up first before
      further payments may be requested.

              

      

       

       

      
        
          
          

        

        
          35

          
            

          

        

        
          
          

        

      

       

      
        	
                (b)  

              	
                The
      Sellers are obliged to indemnify the Company of all reasonable costs,
      liabilities, penalties and/or reasonable expenses incurred by the Company
      as a result of the complaint regarding alleged noise and odour emissions
      (Lärm- und
      Geruchsemissionen), which is described in Annex
      6.2(f).

              

      

       

      

       

      
        	
                11.  

              	
                CONFIDENTIALITY
      / PRESS RELEASES

              

      

       

      
        	
                11.1  

              	
                Confidentiality;
      Press Releases; Public Disclosure

              

      

       

       The
Parties mutually undertake to keep the contents of this Agreement secret and
confidential vis-à-vis any Third Party, except to the extent that the relevant
facts are publicly known or disclosure is required by law or by any applicable
stock exchange listing regulation. In such case, the Parties shall, however,
inform each other prior to such disclosure and shall limit any disclosure to the
minimum required by statute or the authorities. No press releases or other
public announcement concerning the transactions contemplated by this Agreement
shall be made by either Party unless the form and text of such announcement
shall first have been approved by the other Parties, except that - if the other
Party is required by law or by applicable stock exchange regulations to make an
announcement - it may do so after first consulting with the other Parties. The
Parties have agreed on the wording of a press release announcing the signing of
this Agreement a draft of which is attached hereto as Annex 11.1 and they
hereby expressly approve the wording of such press release.

       

      
        	
                11.2  

              	
                Purchaser’s
      Confidentiality; Return of
Documents

              

      

       

       In the
unlikely event that this Agreement is terminated without the Closing having been
consummated, the Purchaser undertakes to keep confidential all information
received from the Sellers in connection with the transactions contemplated by
this Agreement and to return all documents and information embodied otherwise
which the Purchaser received from the Sellers, together with any copies thereof
and to destroy all documents and information embodied otherwise it produced
based on information received from the Sellers, unless such information is in
the public domain without breach of a confidentiality obligation towards the
Sellers. The Purchaser shall not be entitled to any retention right with respect
to such documents or information.

       

       

       

      
        	
                12.  

              	
                ASSIGNMENT
      OF RIGHTS AND UNDERTAKINGS

              

      

       

       In
principle, this Agreement and any rights and obligations hereunder may not be
assigned and transferred, in whole or in part, without the prior written consent
of the other Parties hereto. As an exception, the Purchaser shall be entitled to
assign and transfer this Agreement and any rights and obligations hereunder, in
whole or in part, to one of its Affiliates (hereinafter referred to as the
"Assignee Affiliate"),
provided, however, that (i) the Purchaser always remains as Assignee Affiliate's
Guarantor to this Agreement (as set forth in Clause 14 below), (ii) the
Purchaser informs the Sellers in writing before such assignment and (iii) the
Sellers' rights to set-off and/or to withhold any payments vis-à-vis the
Purchaser and due under this Agreement shall in no event be affected thereby;
Clause 406 BGB shall insofar not apply. Additionally, the Purchaser shall be
entitled to assign certain rights under Clauses 6
through 8 of this Agreement for purposes of
security to the bank(s) acting as financier(s) of the Purchaser’s obligations
under this Agreement provided that (i) the right to collect any claims against
the Sellers (Einziehungsberechtigung)
remains solely with the Purchaser, (ii) the Purchaser informs the Sellers in
writing before such assignment of claims and (iii) the Sellers' rights to
set-off and/or to withhold any payments vis-à-vis the Purchaser and due under
this Agreement shall in no event be affected thereby; Clause 406 BGB shall
insofar not apply. For the purpose of clarification, the Purchaser’s obligations
under this Agreement, in particular the obligation to pay the Purchase Price and
the Sellers' Loans and Private Accounts Purchase Price shall not be affected by
such assignment.

       

       

      
        
          
          

        

        
          36

          
            

          

        

        
          
          

        

      

       

      
        	
                13.  

              	
                SELLERS'
      LIABILITY

              

      

       

      Subject
to the second sentence, in case of a liability of the Sellers to the Purchaser
under Clauses 6 through 8 of this Agreement, each Seller shall be liable
individually (einzelschuldnerische Haftung)
in accordance with his respective holding in the aggregate amount of all
Partnership Interests as set forth in Annex 13(a). In case
of a liability of the Sellers to the Purchaser with respect to their Sellers'
Loans and Private Accounts, each Seller shall be liable individually (einzelschuldnerische
Haftung) in proportion to the respective aggregate accounts balances of
their Sellers' Loans and Private Accounts as of the Effective Date.

       

      

       

      
        	
                14.  

              	
                ASSIGNEE
      AFFILIATE'S GUARANTOR

              

      

       

      
        	
                14.1  

              	
                Guarantee

              

      

       

       In case
the Purchaser assigns and transfers this Agreement and any rights and
obligations hereunder, in whole or in part, to the Assignee Affiliate, the
Purchaser shall always remain as Assignee Affiliate's Guarantor to this
Agreement (herein referred to as the "Assignee Affiliate's
Guarantor"). The Assignee Affiliate's Guarantor hereby guarantees by way
of an independent promise of guarantee pursuant to Clause 311 para. 1 BGB the
proper fulfilment of all of the obligations of the Assignee Affiliate pursuant
to this Agreement, in particular, but not limited to, the payment of the
Purchase Price and the Sellers' Loans and Private Accounts Purchase
Price.

       

      
        	
                14.2  

              	
                Indemnification

              

      

       

       The
Assignee Affiliate's Guarantor shall indemnify and hold harmless on first demand
the Sellers from any rights and claims brought by the Assignee Affiliate against
the Sellers in excess of the limitations of the Sellers’ liability set out in
Clauses 6 through 8
above; the Assignee Affiliate's Guarantor hereby expressly waives by way of a
contract for the benefit of the Company (Vertrag zugunsten Dritter)
any recourse against the Company.

       

       

       

      
        	
                15.  

              	
                COSTS
      AND TAXES

              

      

       

      
        	
                15.1  

              	
                Taxes

              

      

       

       All
transfer taxes (including real estate transfer taxes), stamp duties and any
other charges and costs which result from this Agreement and the Closing of the
transaction considered hereby shall be borne by the Purchaser. All charges,
costs and fees which result from the filings under the merger control laws and
in compliance with other regulatory requirements, including, but not limited to,
the charges, costs and fees of the competent merger control authorities, shall
be borne by the Purchaser.

       

       

      
        
          
          

        

        
          37

          
            

          

        

        
          
          

        

      

       

      
        	
                15.2  

              	
                Costs

              

      

       

       Each
Party shall bear the costs and fees of their own advisors.

       

       

       

      
        	
                16.  

              	
                NOTICES

              

      

       

      
        	
                16.1  

              	
                Form
      of Notice

              

      

       

       All
declarations, notices or other communications hereunder (hereinafter referred to
as the "Notices") shall
be done in writing - as far as no notarization or other specific form is
required under statutory law - in the English or German language and delivered
by hand or by courier or by facsimile to the person at the addresses set forth
below, or such other addresses as may be designated by the respective Party to
the other Parties in the same manner:

       

      
        	
                16.2  

              	
                Notices
      to Sellers; Notices of the Sellers 

              

      

       

       Any
Notice to be given to the Sellers hereunder shall be addressed as
follows:

       

       Attn.:
Mr. Nikolaus Zech

       

      c/o:
Reichmuth & Co Corporate Finance GmbH

       

      Rheinisches
Palais

       

      Breite
Strasse 27

       

      40213
Duesseldorf

       

      Germany

       

      Fax: +49
211 82 85 39 15

       

       with a
copy
to:                                

       

       Allen
& Overy LLP

       

      Attn.:
Thomas Austmann

       

      Rheinisches
Palais

       

      Breite
Strasse 27

       

      40213
Duesseldorf

       

      Germany

       

      Fax: +49
211 28 06 7601.

       

       All
Notices of the Sellers hereunder shall be given bindingly for each of the
Sellers by Mr. Nikolaus Zech until revocation of the respective power of
attorney which, however, is only effective if another authorized agent is
appointed by the Sellers at the same time.

       

      
        	
                16.3  

              	
                Notices
      to Purchaser

              

      

       

       Any
Notice to be given to the Purchaser hereunder shall be addressed as
follows:

       

       Matthews
International Corporation

       

      Attn.:
Brain D. Walters, Esq. (Legal Counsel)

       

      Two
NorthShore Center

       

      Pittsburgh

       

      Pennsylvania
15222 (USA)

       

      Fax: 001
412 -442-8290

       

       with a
copy to:

       

       

      
        
          
          

        

        
          38

          
            

          

        

        
          
          

        

      

       

      Streck Mack Schwedhelm

       

      Attn.: Dr. Heinz-Willi
Kamps

       

      Wilhelm-Schlombs-Allee
7-11

       

      50858 Köln (Junkersdorf)

       

      Germany

       

      Fax: +49 0221 49 29 299

       

      
        	
                16.4  

              	
                Notices
      to Assignee Affiliate's Guarantor

              

      

       

       Any
Notice to be given to the Assignee Affiliate's Guarantor hereunder shall be
addressed as follows:

       

       Matthews
International Corporation

       

      Attn.:
Brain D. Walters, Esq. (Legal Counsel)

       

      Two
NorthShore Center

       

      Pittsburgh

       

      Pennsylvania
15222 (USA)

       

      Fax: 001
412 -442-8290

       

       with a
copy to:

       

       Streck
Mack Schwedhelm

       

      Attn.:
Dr. Heinz-Willi Kamps

       

      Wilhelm-Schlombs-Allee
7-11

       

      50858
Köln (Junkersdorf)

       

      Germany

       

      Fax: +49
0221 49 29 299

       

      
        	
                16.5  

              	
                Change
      of Address

              

      

       

       The
Parties are to, without being legally obliged to, communicate any change of
their respective addresses set forth in Clauses 17.2 through 17.4 as soon
as possible in writing to the respective other Parties. Until such
communication, the address as hitherto shall be relevant.

       

      
        	
                16.6  

              	
                Copies
      to Advisors

              

      

       

      
        	
                (a)  

              	
                The
      receipt of copies of Notices by the Parties’ advisors shall not constitute
      or substitute the receipt of such Notices by the Parties
      themselves.

              

      

       

      
        	
                (b)  

              	
                Any
      Notice shall be deemed received by a Party regardless of whether any copy
      of such Notice has been sent to or received by an advisor of such Party,
      irrespective of whether the delivery of such copy was mandated by this
      Agreement.

              

      

       

      
        	
                17.  

              	
                MISCELLANEOUS

              

      

       

      
        	
                17.1  

              	
                Governing
      Law

              

      

       

       This
Agreement shall be governed by, and construed in accordance with, the laws of
Germany, excluding the German conflicts of laws rules and further excluding the
United Nations Convention on Contracts for the International Sale of Goods
(CISG).

       

       

      
        
          
          

        

        
          39

          
            

          

        

        
          
          

        

      

       

      
        	
                17.2  

              	
                Arbitration

              

      

       

      
        	
                (a)  

              	
                Any
      dispute, disagreement, controversy or claim arising out of or in
      connection with this Agreement or its Annexes or the transactions
      contemplated hereby or thereby shall be finally and exclusively settled in
      accordance with the Rules of Arbitration of the German Institution of
      Arbitration e.V. (Deutsche Institution für
      Schiedsgerichtswesen , DIS) without recourse to the ordinary courts
      of law. The arbitral tribunal shall consist of three (3) arbitrators. The
      arbitration shall take place in Duesseldorf. The arbitration shall be
      conducted in English or German and written evidence (Beweismittel) may be
      submitted in English or German.

              

      

       

      
        	
                (b)  

              	
                In
      the event that applicable mandatory law requires any matter arising out of
      or in connection with this Agreement and its implementation to be decided
      by an ordinary court of law, the competent courts in Duesseldorf shall
      have the exclusive jurisdiction.

              

      

       

      
        	
                17.3  

              	
                Business
      Day

              

      

       

       In this
Agreement, "Business
Day" means a day (other than a Saturday or Sunday) on which banks are
open for business in Frankfurt am Main.

       

      
        	
                17.4  

              	
                Amendments,
      Supplementations

              

      

       

       Any
amendment or supplementation of this Agreement, including of this provision,
shall be valid only if made in writing, except where a stricter form (e.g.
notarization) is required under applicable law. Clause 17.1 shall apply mutatis
mutandis.

       

      
        	
                17.5  

              	
                Language

              

      

       

      
        	
                (a)  

              	
                This
      Agreement is written in the English language (except that Annexes may be
      partly in the German language). Terms to which a German translation has
      been added shall be interpreted throughout this Agreement in the meaning
      assigned to them by the German
translation.

              

      

       

      
        	
                (b)  

              	
                Any
      reference made in this Agreement to any types of companies or
      participations, proceedings, authorities or other bodies, rights,
      institutions, regulations or legal relationships (hereinafter collectively
      referred to as the "Legal
      Terms") under German law shall extend to any corresponding or
      identical Legal Terms under foreign law to the extent that relevant facts
      and circumstances must be assessed under such foreign law. Where no
      corresponding or identical Legal Terms under foreign law exist, such Legal
      Terms shall be introduced as - functionally - come closest to the Legal
      Terms under German law.

              

      

       

      
        	
                17.6  

              	
                Headings

              

      

       

       The
headings and sub-headings of the Clauses contained herein are for convenience
and reference purposes only and shall not affect the meaning or construction of
any of the provisions hereof.

       

      
        	
                17.7  

              	
                Annexes

              

      

       

       All
Annexes attached hereto form an integral part of this Agreement.

       

      
        	
                17.8  

              	
                Definitions

              

      

       

       In this
Agreement defined terms shall have the meaning as so defined throughout the
entire Agreement.

       

       

      
        
          
          

        

        
          40

          
            

          

        

        
          
          

        

      

       

      
        	
                17.9  

              	
                Entire
      Agreement

              

      

       

       This
Agreement constitutes the full understanding of the Parties and the complete and
exclusive statements of the terms and conditions of the Parties’ agreements
relating to the subject matter hereof and supersedes any and all prior
agreements and understandings, whether written or oral, that may exist between
the Parties with respect to the subject matter of this Agreement or parts
thereof. Side agreements to this Agreement do not exist.

       

      
        	
                17.10  

              	
                Severability

              

      

       

       Should
any provision of this Agreement be or become invalid, ineffective or
unenforceable as a whole or in part, the validity, effectiveness and
enforceability of the remaining provisions shall not be affected thereby. Any
such invalid, ineffective or unenforceable provision shall be deemed replaced by
such valid, effective and enforceable provision as comes closest to the economic
intent and the purpose of such invalid, ineffective or unenforceable provision
as regards subject-matter, amount, time, place and extent. The aforesaid shall
apply mutatis mutandis
to any gap in this Agreement.

       

       

      
        
          
          

        

        
          41

          
            

          

        

        
          
          

        

      

       

       Duesseldorf,
Germany, 25 February 2008

       

      

       

      Seller
1                                                                                                         Purchaser

       

      

       

      

       

      ____________________________                                                                                                ___________________________________

       

      Jörg
Christian
Saueressig                                                                                             Matthews
International Corporation

       

                              Name:

       

                              Function:

       

      

       

      Seller
2

      

       

      

       

      ____________________________

       

      Karl
Wilhelm Saueressig

       

      

       

      Seller
3

      

       

      

       

      ____________________________

       

      Jakob
Heinrich Saueressig

       

      

       

      Seller
4

       

       

       

      ____________________________

       

      Reinhart
Zech von Hymmen

                                                    42

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