Document:

Stock Plan (non-emp directors)

Exh 10.2

 

INVESTORS FINANCIAL SERVICES CORP.

 

1995 NON-EMPLOYEE DIRECTOR STOCK

OPTION PLAN

 

AMENDED AND RESTATED AS OF FEBRUARY

12, 2002

 

 

 

           1.          Purpose.  This Non-Qualified Stock Option Plan, to be

known as the 1995 Non-Employee Director Stock Option Plan (hereinafter, this

“Plan”) is intended to promote the interests of Investors Financial Services

Corp. (hereinafter, the “Company”) by providing an inducement to obtain and

retain the services of qualified persons who are not employees or officers of

the Company to serve as members of its Board of Directors (the “Board”).

 

           2.          Available

Shares.  The total number of shares

of Common Stock, par value $.01 per share, of the Company (the “Common Stock”)

for which options may be granted under this Plan shall not exceed 400,000

shares, subject to adjustment in accordance with paragraph 12 of this

Plan.  Shares subject to this Plan are

authorized but unissued shares or shares that were once issued and subsequently

reacquired by the Company.  If any

options granted under this Plan are surrendered before exercise or lapse

without exercise, in whole or in part, the shares reserved therefor shall

continue to be available under this Plan. If, in accordance with the Plan, an

optionee uses shares of common stock of the Company to pay the exercise price

of an Option, only the number of shares issued net of shares tendered in

payment of such exercise price shall be deemed to be issued for purposes of

determining the maximum number of shares available under the Plan.

 

           3.          Administration.  This Plan shall be administered by the Board

or by a committee appointed by the Board (the “Committee”).  In the event the Board fails to appoint or

refrains from appointing a Committee, the Board shall have all power and

authority to administer this Plan.  In

such event, the word “Committee” wherever used herein shall be deemed to mean

the Board.  The Committee shall, subject

to the provisions of the Plan, have the power to construe this Plan, to

determine all questions hereunder, and to adopt and amend such rules and

regulations for the administration of this Plan as it may deem desirable.  No member of the Board or the Committee

shall be liable for any action or determination made in good faith with respect

to this Plan or any option granted under it.

 

           4.          Automatic

Grant of Options. Subject to the availability of shares under this

Plan,  each person who is a member of

the Board immediately after the Annual Meeting of Stockholders of the Company

(the “Annual Meeting”) and who is not an employee or officer of the Company (a

“Non-Employee Director”) shall be automatically  granted, on the date of such Annual Meeting, without further

action by the Board, an option to purchase 2,500 shares of the Common Stock.  The grant shall be automatic and nondiscretionary.

 

           5.          Election

to Receive Stock Options.  In

addition to the automatic grant of options under Section 4, subject to the

availability of shares under this Plan, each Non-Employee Director may make an

election (the “Election”) to receive, in lieu of his or her cash retainer,

options to acquire shares of Common Stock. 

The Election must be in writing and must be delivered to the Secretary

of the Company at least six months prior to the scheduled payment date of the

cash retainer which it is intended to replace.

 

           (a)         Any

Election shall be irrevocable for six months and may only be revoked after such

six-month period by a written revocation which shall take effect six months

after receipt of such revocation by the Company.

 

           (b)        Each

Non-Employee Director who elects to receive options in lieu of his or her cash

retainer shall be granted an option to purchase shares on the first day of each

calendar quarter provided that at least six months has lapsed since the

Election.  The total number of shares of

stock to be covered by the option 

 

1

 

shall be equal to

the quotient obtained by dividing the cash retainer by the value of an option

on the date of grant as determined using the Black-Scholes model.

 

           6.          Reload

Options.  If an optionee makes

payment for the exercise of an option granted hereunder through the delivery to

the Company of shares of the Company’s Common Stock pursuant to paragraph 11(b)

of this Plan, such optionee shall be granted automatically a new “reload” stock

option.  Such new “reload” stock option

shall (i) be an option to purchase the number of shares provided as

consideration for the exercise price in connection with the exercise of the

original stock option, (ii) have a per share exercise price equal to the fair

market value of such shares as of the date of exercise of the original stock

option, (iii) be immediately exercisable and have a term of ten years from the

date of the original stock option, and (iv) otherwise have the same terms and

conditions as the original stock option, except that it will not provide for

the automatic grant of additional reload stock options upon its exercise.

 

           7.          Option

Price.  The purchase price of the

stock covered by an option granted pursuant to this Plan shall be 100% of the

fair market value of such shares on the day the option is granted.  The option price will be subject to

adjustment in accordance with the provisions of paragraph 12 of this Plan.  For purposes of this Plan, if, at the time

an option is granted under the Plan, the Company’s Common Stock is publicly

traded, “fair market value” shall be determined as of the date of grant or, if

prices or quotes are unavailable for such date, the last business day for which

such prices or quotes are available prior to the date of grant and shall mean

(i) the average (on that date) of the high and low prices of the Common

Stock on the principal national securities exchange on which the Common Stock

is traded, if the Common Stock is then traded on a national securities

exchange; or (ii) the last reported sale price (on that date) of the

Common Stock on the Nasdaq National Market, if the Common Stock is not then

traded on a national securities exchange; or (iii) the closing bid price

(or average of bid prices) last quoted (on that date) by an established

quotation service for over-the-counter securities, if the Common Stock is not

reported on the Nasdaq National Market List. 

Notwithstanding, the purchase price of the stock underlying the options

granted upon the pricing of the Company’s initial public offering pursuant to

Section 4(a)(ii) above shall be the initial public offering price of the

Company’s Common Stock.  However, if the

Common Stock is not publicly traded at the time an option is granted under the

Plan, “fair market value” shall be deemed to be the fair value of the Common

Stock as determined by the Committee after taking into consideration all

factors which it deems appropriate, including, without limitation, recent sale

and offer prices of the Common Stock in private transactions negotiated at

arm’s length.

 

           8.          Period

of Option.  Unless sooner terminated

in accordance with the provisions of paragraph 10 of this Plan, an option

granted hereunder shall expire on the date which is ten (10) years after the

date of grant of the option. 

Notwithstanding, options granted prior to January 12, 1999 shall expire

on the date which is five (5) years after the date of grant.

 

           9.          (a)         Vesting of Shares and

Non-Transferability of Options. 

Options granted under this Plan shall not be exercisable until they

become vested.  Options granted under

Section 4 of this Plan shall vest in the optionee and thus become exercisable

in 36 equal monthly installments beginning on the date of grant, provided that

the optionee has continuously served as a member of the Board through such

vesting date.  Options granted under

Section 5 of this Plan shall vest in the optionee and thus become exercisable

on the date of grant.

 

           The number of shares as to which

options may be exercised shall be cumulative, so that once the option shall

become exercisable as to any shares it shall continue to be exercisable as to

said shares, until expiration or termination of the option as provided in this

Plan.

 

                        (b)        Non-transferability.  Except as set forth below, (i) no option

granted pursuant to this Plan shall be transferable by any grantee other than

by will or by the laws of descent and distribution and (ii) options granted

pursuant to this Plan may be exercised during the grantee's lifetime only by

the grantee (or, if the grantee is disabled and so long as the option remains

exercisable, by the grantee's duly appointed guardian or other legal

representative).  However, a grantee may

transfer an option granted pursuant to this Plan pursuant to a valid domestic

relations order or to, or for the benefit of, family members or to other

persons for estate planning purposes. 

Following any such transfer, any such option shall continue to be

subject to the same terms and conditions as were applicable immediately prior

to transfer, and references to a grantee, to the extent relevant in the

context, shall include references to authorized transferees.  The events and consequences of the grantee

ceasing to be a member of the Board set forth in a grantee's agreement pursuant

to which such option is granted shall continue to be applied and triggered with

reference to the original grantee, following which the option shall be

exercisable by the transferee only to the extent and for the periods specified

in such agreement.

 

2

 

           10.        Termination

of Option Rights.

 

                        (a)         In the event an optionee ceases to be a

member of the Board for any reason other than retirement, death or permanent

disability, any then unexercised portion of options granted to such optionee

shall, to the extent not then vested, immediately terminate and become void;

and any portion of an option which is then vested but has not been exercised at

the time the optionee so ceases to be a member of the Board shall remain

exercisable until the scheduled expiration date of the option.

 

                        (b)        In the event an optionee ceases to be a

member of the Board by reason of his or her retirement, the Board may, but

shall not be obligated to, accelerate and fully vest all unvested options held

by the retiring optionee.  If the Board

determines to accelerate the retiring optionee’s unvested options, all

unexercised options shall be exercisable by the optionee until the scheduled

expiration date of the option.

 

                        (c)         In the event that an optionee ceases to

be a member of the Board by reason of his or her death or permanent disability,

any option granted to such optionee shall be immediately and automatically

accelerated and become fully vested and all unexercised options shall be

exercisable by the optionee (or by the optionee’s personal representative, heir

or legatee, in the event of death) until the scheduled expiration date of the

option.

 

           11.        Exercise

of Option.  Subject to the terms and

conditions of this Plan and the option agreements, an option granted hereunder

shall, to the extent then exercisable, be exercisable in whole or in part by

giving written notice to the Company by mail or in person addressed to the

Company, at its principal executive offices, stating the number of shares with

respect to which the option is being exercised, accompanied by payment in full

for such shares.  Payment may be

(a) in United States dollars in cash or by check, (b)  through

delivery of shares of Common Stock having a fair market value equal as of the

date of the exercise to the cash exercise price of the Option,

(c) consistent with applicable law, through the delivery of an assignment

to the Company of a sufficient amount of the proceeds from the sale of the

Common Stock acquired upon exercise of the option and an authorization to the

broker or selling agent to pay that amount to the Company, which sale shall be

at the participant’s direction at the time of exercise, or (d) at the

discretion of the Committee, by any combination of (a), (b) and (c) above.  There shall be no such exercise at any one

time as to fewer than one hundred (100) shares or all of the remaining

shares then purchasable by the person or persons exercising the option, if

fewer than one hundred (100) shares. 

The Company’s transfer agent shall, on behalf of the Company, prepare a

certificate or certificates representing such shares acquired pursuant to

exercise of the option, shall register the optionee as the owner of such shares

on the books of the Company and shall cause the fully executed certificate(s)

representing such shares to be delivered to the optionee as soon as practicable

after payment of the option price in full. 

The holder of an option shall not have any rights of a stockholder with

respect to the shares covered by the option, except to the extent that one or

more certificates for such shares shall be delivered to him or her upon the due

exercise of the option.

 

           12.        Adjustments

Upon Changes in Capitalization and Other Events.  Upon the occurrence of any of the following events, an optionee’s

rights with respect to options granted to him or her hereunder shall be

adjusted as hereinafter provided:

 

                                             (a)         Stock Dividends and Stock Splits.  If the shares of Common Stock shall be

subdivided or combined into a greater or smaller number of shares or if the

Company shall issue any shares of Common Stock as a stock dividend on its

outstanding Common Stock, the number of shares of Common Stock set forth in

Section 4 hereof and the number of shares of Common Stock deliverable upon the

exercise of outstanding options shall be appropriately increased or decreased

proportionately, and appropriate adjustments shall be made in the purchase

price per share to reflect such subdivision, combination or stock dividend.

 

                                             (b)        Recapitalization Adjustments.  If the Company is to be consolidated with or

acquired by another entity in a merger, sale of all or substantially all of the

Company’s assets or otherwise, each option granted under this Plan which is

outstanding but unvested as of the effective date of such event shall become

exercisable in full 15 days prior to the effective date of such event.  In the event of a reorganization,

recapitalization, merger, consolidation, or any other change in the corporate

structure 

 

3

 

                                or shares of the Company, to the extent

permitted by Rule 16b-3 under the Securities Exchange Act of 1934,

adjustments in the number and kind of shares authorized by this Plan and in the

number and kind of shares covered by, and in the option price of outstanding

options under this Plan necessary to maintain the proportionate interest of the

optionee and preserve, without exceeding, the value of such option, shall be

made.  Notwithstanding the foregoing, no

such adjustment shall be made which would, within the meaning of any applicable

provisions of the Internal Revenue Code of 1986, as amended, constitute a

modification, extension or renewal of any Option or a grant of additional

benefits to the holder of an Option.

 

                                             (c)         Issuances of Securities.  Except as expressly provided herein, no

issuance by the Company of shares of stock of any class, or securities

convertible into shares of stock of any class, shall affect, and no adjustment

by reason thereof shall be made with respect to, the number or price of shares

subject to options.  No adjustments

shall be made for dividends paid in cash or in property other than securities

of the Company.

 

                                             (d)        Adjustments.  Upon the happening of any of the foregoing

events, the class and aggregate number of shares set forth in

paragraphs 2, 4, 5 and 6 of this Plan that are subject to options which

previously have been or subsequently may be granted under this Plan shall also

be appropriately adjusted to reflect such events.  The Board shall determine the specific adjustments to be made

under this paragraph 12 and its determination shall be conclusive.

 

           13.        Restrictions

on Issuance of Shares. 

Notwithstanding the provisions of paragraphs 4, 5, 6 and 12 of this

Plan, the Company shall have no obligation to deliver any certificate or

certificates upon exercise of an option until one of the following conditions

shall be satisfied:

 

                                            (i)           The issuance of shares with respect

to which the option has been exercised is at the time of the issue of such

shares effectively registered under applicable Federal and state securities

laws as now in force or hereafter amended; or

 

                                           (ii)           Counsel for the Company shall have

given an opinion that the issuance of such shares is exempt from registration

under Federal and state securities laws as now in force or hereafter amended;

and the Company has complied with all applicable laws and regulations with

respect thereto, including without limitation all regulations required by any

stock exchange upon which the Company’s outstanding Common Stock is then

listed.

 

           14.        Legend

on Certificates.  The certificates

representing shares issued pursuant to the exercise of an option granted

hereunder shall carry such appropriate legend, and such written instructions shall

be given to the Company’s transfer agent, as may be deemed necessary or

advisable by counsel to the Company in order to comply with the requirements of

the Securities Act of 1933 or any state securities laws.

 

           15.        Representation

of Optionee.  If requested by the

Company, the optionee shall deliver to the Company written representations and

warranties upon exercise of the option that are necessary to show compliance

with Federal and state securities laws, including representations and

warranties to the effect that a purchase of shares under the option is made for

investment and not with a view to their distribution (as that term is used in

the Securities Act of 1933).

 

           16.        Option

Agreement.  Each option granted

under the provisions of this Plan shall be evidenced by an option agreement,

which agreement shall be duly executed and delivered on behalf of the Company

and by the optionee to whom such option is granted.  The option agreement shall contain such terms, provisions and

conditions not inconsistent with this Plan as may be determined by the officer

executing it.

 

           17.        Termination

and Amendment of Plan.  Options may

no longer be granted under this Plan after October 1, 2005, and this Plan shall

terminate when all options granted or to be granted hereunder are no longer

outstanding.  The Board may at any time

terminate this Plan or make such modification or amendment thereof as it deems

advisable; provided, however, that the Board may not, without

approval by 

 

4

 

the affirmative

vote of the holders of a majority of the shares of Common Stock present in

person or by proxy and voting on such matter at a meeting, (a) increase

the maximum number of shares for which options may be granted under this Plan

(except by adjustment pursuant to Section 12), (b) materially modify

the requirements as to eligibility to participate in this Plan,

(c) materially increase benefits accruing to option holders under this

Plan or (d) amend this Plan in any manner which would cause

Rule 16b-3 under the Securities Exchange Act (or any successor or amended

provision thereof) to become inapplicable to this Plan; and provided  further

that the provisions of this Plan specified in Rule 16b-3(c)(2)(ii)(A) (or

any successor or amended provision thereof) under the Securities Exchange Act

of 1934 (including without limitation, provisions as to eligibility, amount,

price and timing of awards) may not be amended more than once every six months,

other than to comport with changes in the Internal Revenue Code, the Employee

Retirement Income Security Act, or the rules thereunder.  Termination or any modification or amendment

of this Plan shall not, without consent of a participant, affect his or her

rights under an option previously granted to him or her.

 

           18.        Withholding

of Income Taxes.  Upon the exercise

of an option, the Company, in accordance with Section 3402(a) of the Internal

Revenue Code, may require the optionee to pay withholding taxes in respect of

amounts considered to be compensation includible in the optionee’s gross

income.

 

           19.        Compliance

with Regulations.  It is the

Company’s intent that the Plan comply in all respects with Rule 16b-3

under the Securities Exchange Act of 1934 (or any successor or amended

provision thereof) and any applicable Securities and Exchange Commission

interpretations thereof.  If any

provision of this Plan is deemed not to be in compliance with Rule 16b-3,

the provision shall be null and void.

 

           20.        Governing

Law.  The validity and construction

of this Plan and the instruments evidencing options shall be governed by the

laws of the Commonwealth of Massachusetts, without giving effect to the

principles of conflicts of law thereof.

 

5Exhibit 10

 

Exhibit 10.101

 

EXECUTION

COPY

 

 

 

 

SHARE PURCHASE AGREEMENT

 

 

dated

as of

 

 

May

2, 2001

 

 

between

 

ALLIANCE CAPITAL MANAGEMENT CORPORATION OF DELAWARE

 

 

and

 

 

EFM HOLDINGS GMBH

 

 

relating

to the purchase and sale

 

 

of

 

51% of the outstanding share capital

 

 

of

 

 

EAST FUND MANAGEMENTBERATUNG GMBH

 

 

Table

of Contents

 

	

  ARTICLE

  1

  DEFINITIONS

  
	

   

  
	

  Section 1.01.  Definitions

  
	

   

  
	

  ARTICLE

  2

  PURCHASE AND SALE

  
	

   

  
	

  Section 2.01.  Purchase and Sale

  
	

  Section 2.02.  Closing

  
	

   

  
	

  ARTICLE

  3

  REPRESENTATIONS AND WARRANTIES OF SELLER

  
	

   

  
	

  Section 3.01.  Corporate Existence and Power

  
	

  Section 3.02.  Corporate Authorization

  
	

  Section 3.03.  Governmental Authorization

  
	

  Section 3.04.  Non-contravention

  
	

  Section 3.05.  Ownership of Shares

  
	

  Section 3.06.  Litigation

  
	

  Section 3.07.  Finders’ Fees

  
	

  Section 3.08.  Inspections; No Other Representations

  
	

   

  
	

  ARTICLE

  4

  REPRESENTATIONS AND WARRANTIES OF BUYER

  
	

   

  
	

  Section 4.01.  Corporate Existence and Power

  
	

  Section 4.02.  Corporate Authorization

  
	

  Section 4.03.  Governmental Authorization

  
	

  Section 4.04.  Non-contravention

  
	

  Section 4.05.  Litigation

  
	

  Section 4.06.  Finders’ Fees

  
	

  Section 4.07.  Purchase for Investment

  
	

  Section 4.08.  Inspections; No Other Representations

  
	

   

  
	

  ARTICLE

  5

  COVENANTS OF SELLER

  
	

   

  
	

  Section 5.01.  Confidentiality

  
	

  Section 5.02.  Contribution of Loans

  
	

  Section 5.03.  Use of Alliance Information

  

 

 

	

  Section 5.04.  Maintenance Of Insurance

  
	

  Section 5.05.  Non-solicitation

  
	

   

  
	

  ARTICLE

  6

  COVENANTS OF BUYER

  
	

   

  
	

  Section 6.01.  Access

  
	

  Section 6.02.  Trademarks; Tradenames

  
	

  Section 6.03.  Payment Of Fees

  
	

  Section 6.04.  Release From Partnership Agreement

  
	

   

  
	

  ARTICLE

  7

  COVENANTS OF THE PARTIES

  
	

   

  
	

  Section 7.01.  Reasonable Best Efforts; Further

  Assurances

  
	

  Section 7.02.  Public Announcements

  
	

  Section 7.03.  Release

  
	

  Section 7.04.  Termination of Agreements and Arrangements

  
	

  Section 7.05.  Cooperation on Tax Matters

  
	

   

  
	

  ARTICLE

  8

  SURVIVAL; INDEMNIFICATION

  
	

   

  
	

  Section 8.01.  Survival

  
	

  Section 8.02.  Indemnification

  
	

  Section 8.03.  Procedures

  
	

  Section 8.04.  Calculation of Damages

  
	

  Section 8.05.  Assignment of Claims

  
	

  Section 8.06.  Exclusivity

  
	

   

  
	

  ARTICLE

  9

  MISCELLANEOUS

  
	

   

  
	

  Section 9.01.  Notices

  
	

  Section 9.02.  Amendments and Waivers

  
	

  Section 9.03.  Expenses

  
	

  Section 9.04.  Successors and Assigns

  
	

  Section 9.05.  Governing Law

  
	

  Section 9.06.  Arbitration

  
	

  Section 9.07.  Counterparts; Third Party Beneficiaries

  
	

  Section 9.08.  Entire Agreement

  
	

  Section 9.09.  Severability

  
	

  Section 9.10.  Captions

  

 

ii

 

SHARE PURCHASE AGREEMENT

THIS AGREEMENT dated as of

May 2, 2001 is by and between EFM Holdings GmbH, an Austrian Gesellschaft mit

beschrankter Haftung (“Buyer”) and Alliance Capital Management

Corporation of Delaware, a Delaware corporation (“Seller”).

W  I  T  N 

E  S  S  E  T  H

:

WHEREAS, Buyer is a new entity formed by certain

former executives of Seller or its Affiliates (as defined herein) for the

purpose of effecting the transactions contemplated hereby;

WHEREAS, Seller owns 51% of the issued and

outstanding share capital  of East Fund

Managementberatung GmbH (the “Joint Venture”);

WHEREAS, Seller desires to sell the Share (as

defined herein) to Buyer, and Buyer desires to purchase the Share from Seller,

upon the terms and subject to the conditions hereinafter set forth;

WHEREAS, simultaneous with the consummation of the

transactions contemplated by this Agreement, Buyer intends to purchase the

remaining 49% outstanding interest in the Joint Venture from Capital Invest (as

defined herein)  (the “Concurrent

Purchase”);

NOW, THEREFORE, for good and valuable consideration,

the receipt and sufficiency of which are hereby acknowledged, the parties

hereto agree as follows:

ARTICLE

1

DEFINITIONS

Section 1.01.  Definitions.  (a) The following terms, as used herein, have the following

meanings:

“Affiliate”

means, with respect to any Person, any other Person directly or indirectly

controlling, controlled by, or under common control with such Person; provided

that neither the Joint Venture nor any of its Subsidiaries shall be considered

an Affiliate of either Seller or, prior to the Closing Date, Buyer.  For purposes hereof, the term “control”

(including the correlative terms “controlling,” “controlled by” and “under common

control with”) means the possession of the direct or indirect power

to direct or cause the direction of the 

 

 

management and policies of a

Person, whether through the ownership of voting securities, by contract, or

otherwise.

“Alliance Capital” means Alliance Capital

Management L.P.

 “Alliance

Research” means all research reports, market research, “sell side”

research, and other investment related research information (including the

related analysis, statistical and economic data) generated by Alliance Capital

or any of its wholly-owned Subsidiaries, (i) including, without limitation,

those generated by economists and analysts employed by Alliance Capital or any

of its wholly-owned Subsidiaries and those made available to Alliance Capital’s

largest clients through a service generally referred to as “Alliance Capital

Express Research” and (ii) excluding any of the foregoing used or to be used by

Alliance Capital or any of its Subsidiaries to evaluate investments to be made

solely for its own account and not otherwise made available to clients of

Alliance Capital or its Subsidiaries.

“ATS” means Austrian Schillings.

“Business Day” means any day other than a

day on which banks are authorized or required to be closed in New York, New

York or Vienna, Austria.

“CAIB” means CA IB Investmentbank

Aktiengesellschaft.

“Capital Invest” means CAPITAL INVEST die

Kapitalanlagegesellschaft der Bank Austria/Creditanstalt Gruppe GmbH.

A “Change of Control” shall be deemed to

occur at any time that (i) the Williams Group ceases to beneficially own

(within the meaning of Rule 13d-3 promulgated under the Securities Act of 1934,

as amended) at least 51% of the direct or indirect voting power of the Joint

Venture or (ii) the Joint Venture sells, leases or otherwise transfers,

directly or indirectly, all or substantially all of its assets to any Person

(other than to an Affiliate thereof, at least 51% of which is beneficially

owned by the Williams Group).

“Closing Date” means the date of this

Agreement.

“Competing

Business” means any investment management business other than the

business of managing, promoting, forming, advising, financing or marketing

investment funds and portfolios in the private equity market.  For the avoidance of doubt, neither the

Joint Venture or any of its Affiliates shall be deemed to be engaged in a

“Competing Business” by virtue of any interest it or any of its directors,

officers or stockholders have in any business conducted by Alliance Capital or

any of its Subsidiaries or by virtue of its winding down all of the retail

funds currently managed by the Joint Venture.

 

2

 

“Joint Venture Documents” means any

contract, agreement or other arrangement relating to the organization,

management, affairs or business of the Joint Venture.

“knowledge of Seller” means matters actually

known to the Chief Executive Officer, the Chief Financial Officer or the

General Counsel of Alliance Capital.

“Lien” means with respect to any property or

asset, any mortgage, lien, pledge, charge, security interest or encumbrance in

respect of such property or asset.

“Notarial Deed and Assignment Agreement”

means the Notarial Deed and Assignment Agreement to be filed in Austria to

effect the purchase and sale of the Share as set forth in this Agreement under

Austrian law.

“Person” means an individual, corporation,

partnership, limited liability company, association, trust or other entity or

organization, including a government or political subdivision or an agency or

instrumentality thereof.

“Powers of Attorney” shall mean the powers of

attorney executed by each of Buyer and Seller sufficient to give each of their

respective agents in Austria the requisite authority to execute and file the

Notarial Deed and Assignment Agreement in Austria on their behalf.

“Subsidiary” means, with respect to any

Person, any entity of which securities or other ownership interests having

ordinary voting power to elect a majority of the board of directors or other

persons performing similar functions are at the time directly or indirectly

owned by such Person.

“Third Party

Research” means all research reports, market research, “sell side”

research, and other investment related research information (including the

related analyses, statistical and economic data) generated by third parties or

entities in which Alliance owns an equity interest (including, but not limited

to, Alliance Capital’s non-wholly owned Subsidiaries and any entity structured

as a joint venture or partnership in which Alliance Capital has an equity

interest) for the benefit or use of Alliance Capital or any of its

Subsidiaries, but excluding any of the foregoing used by Alliance Capital or

any of its Subsidiaries to evaluate investments to be made solely for its own

account and not otherwise made available to clients of Alliance Capital or its

Subsidiaries.

 

3

 

“Williams Group” means,

collectively, Dave H. Williams, Reba W. Williams, their lawful heirs and/or

trust(s) established primarily for the benefit of Mr. and/or Mrs. Williams

and/or members of their family.

(b)   Each of the following terms is defined in the

Section set forth opposite such term:

 

	

  Term

  	

   

  	

  Section

  	

   

  
	

  Alliance Information

  	

   

  	

  5.03

  	

   

  
	

  Arbitration Notice

  	

   

  	

  9.06

  	

   

  
	

  ATS

  	

   

  	

  Recitals

  	

   

  
	

  BankAustria

  	

   

  	

  2.02

  	

   

  
	

  Claim

  	

   

  	

  8.03

  	

   

  
	

  Closing

  	

   

  	

  2.02

  	

   

  
	

  Concurrent Purchase

  	

   

  	

  Recitals

  	

   

  
	

  Damages

  	

   

  	

  8.02

  	

   

  
	

  Indemnified Party

  	

   

  	

  8.03

  	

   

  
	

  Indemnifying Party

  	

   

  	

  8.03

  	

   

  
	

  Joint Venture

  	

   

  	

  Recitals

  	

   

  
	

  Non-Compete

  	

   

  	

  2.02

  	

   

  
	

  Partnership Agreement

  	

   

  	

  6.04

  	

   

  
	

  Potential Contributor

  	

   

  	

  8.05

  	

   

  
	

  Purchase Price

  	

   

  	

  2.01

  	

   

  
	

  Releasing Party

  	

   

  	

  5.02

  	

   

  
	

  Rules

  	

   

  	

  9.06

  	

   

  
	

  Share

  	

   

  	

  2.01

  	

   

  
	

  Third Party Claim

  	

   

  	

  8.03

  	

   

  
	

  Transfer Taxes

  	

   

  	

  2.02

  	

   

  

ARTICLE

2

PURCHASE AND SALE

Section

2.01.  Purchase and Sale.  Upon the terms and subject to the conditions

of this Agreement, Seller agrees to sell to Buyer, and Buyer agrees to purchase

from Seller, Seller’s entire participation (Geschäftsanteil) in the share capital of

the Joint Venture, corresponding to a share (Stammeinlage) of nominal

value ATS 2,040,000 (the “Share”). 

The purchase price for the Share (the “Purchase Price”) is

$2,500,000 (two million and five hundred thousand United States dollars) in

cash.  The Purchase Price shall be paid

as provided in Section 2.02.

 

4

 

Section 2.02.  Closing.  (a) The

closing (the “Closing”) of the purchase and sale of the Share hereunder

shall take place at the offices of Davis Polk & Wardwell, 450 Lexington

Avenue, New York, New York, or such other place as Buyer and Seller may agree,

simultaneously with the execution and delivery of this Agreement.

(b)   At the Closing:

(i)    Buyer shall cause to be

delivered to Seller the Purchase Price in immediately available funds by wire

transfer to an account of Seller with a bank previously designated by Seller;

(ii)   The Notarial Deed and

Assignment Agreement shall be executed and filed in Austria by the agents

designated by each of Buyer and Seller pursuant to the Powers of Attorney;

(iii)  Buyer shall deliver to

Seller a certificate or certificates (A) signed by the Joint Venture, CA IB (or

its successor) and BankAustria Aktiengesellschaft (“BankAustria”) acknowledging

that Seller’s obligations under Article 10 (Non-Competition/Exclusivity

Covenant) of the Stock Purchase Agreement dated as of March 3, 1998 among the

Joint Venture, CA, IB, Bank Austria and Seller (the “Non-Compete”) are no longer

in effect, (B) signed by Capital Invest acknowledging that its right of first

refusal under Section 11 of the articles of association of the Joint Venture is

no longer in effect and (C) signed by CAIB acknowledging that its right to

purchase 1% of the Share pursuant to a Stockholder Option Agreement dated

August 26, 1998 between Seller and CAIB is no longer in effect;

(iv)  Seller shall deliver to

Buyer a certificate signed by Seller (A) acknowledging that the obligations of

CA IB, Bank Austria and the Joint Venture under the Non-Compete are no longer

in effect and (B) acknowledging that its right of first refusal under Section

11 of the articles of association of the Joint Venture is no longer in effect;

and

(v)   Seller will deliver to Buyer

the resignation and general release in favor of the Joint Venture (in form and

substance satisfactory to Buyer) of each of Robert Joseph and Norman Bergel,

effective as of the Closing, from their position with the Joint Venture; provided

that any such release shall specifically exclude any present or future claim

Mr. Joseph or Mr. Bergel (as applicable) may have against the Joint Venture for

indemnification related to third party claims arising out or related to his

service as a director or representative of the Joint Venture.

 

5

 

(c)   All transfer, documentary, sales, use, stamp,

registration, value added and other such taxes and fees (including any

penalties and interest) incurred in connection with transactions contemplated

by this Agreement (including any real property transfer tax and any similar

tax) (“Transfer

Taxes”) and any expenses in connection with the filing of necessary

tax returns and other documentation with respect to such taxes shall be borne

equally by Buyer and Seller.  Seller and

Buyer shall cooperate in the filing of all necessary tax returns and other

documentation with respect to all such taxes and fees.

ARTICLE

3

REPRESENTATIONS AND WARRANTIES OF SELLER

Seller represents and warrants to Buyer as of the

date hereof that:

Section 3.01.  Corporate Existence and Power.  Seller is a corporation duly incorporated, validly existing and

in good standing under the laws of the State of Delaware and has all requisite

powers and all material governmental licenses, authorizations, permits,

consents and approvals required to carry on its business as now conducted.

Section 3.02.  Corporate Authorization. 

The execution, delivery and performance by Seller of this Agreement and

the Notarial Deed and Assignment Agreement and the consummation by Seller of

the transactions contemplated hereby and thereby are within the corporate

powers of Seller and have been duly authorized by all necessary corporate

action on the part of Seller.  This

Agreement constitutes and, when executed and delivered in accordance with its

terms, the Notarial Deed and Assignment Agreement will constitute, a valid and

binding agreement of Seller, enforceable in accordance with its terms.

Section 3.03.  Governmental Authorization. 

The execution, delivery and performance by Seller of this Agreement and

the Notarial Deed and Assignment Agreement and the consummation by Seller of

the transactions contemplated hereby and thereby, require no material action by

or in respect of, or material filing with, any governmental body, agency or

official.

Section

3.04.  Non-contravention. The

execution, delivery and performance by Seller of this Agreement and the

Notarial Deed and Assignment Agreement and the consummation of the transactions

contemplated hereby and thereby do not and will not (i) violate the constituent

documents of Seller, (ii) violate any law, rule, regulation, judgment,

injunction, order or decree applicable to Seller, (iii) require any consent or

other action by any Person under, constitute a default under, or give rise to

any right of termination, cancellation or acceleration of any right or

obligation of Seller or to a loss of any benefit to which Seller is entitled

under any provision of any agreement or other instrument 

 

6

 

binding upon Seller or (iv) result in the

creation or imposition of any material Lien on any asset of Seller.

 

Section 3.05.  Ownership of Shares. 

Seller is the record and beneficial owner of the Share, which, to the

knowledge of Seller, constitutes 51% of the entire authorized and outstanding

share capital of the Joint Venture, free and clear of any Lien, and will

transfer and deliver to Buyer at the Closing valid title to the Share, free and

clear of any Lien.  Seller has not sold,

assigned or transferred any portion of the Share, nor is there any outstanding

subscriptions, options, warrants, calls, puts, contracts, demands, commitments,

rights of first refusal or other arrangements or agreements with respect to the

Share.

Section 3.06.  Litigation. There is no action, suit, investigation or

proceeding pending against, or to the knowledge of Seller threatened against or

affecting, Seller or any of its officers or directors before any court or

arbitrator or any governmental body, agency or official which in any manner

challenges or seeks to prevent, enjoin, alter or materially delay the

transactions contemplated by this Agreement or the Notarial Deed and Assignment

Agreement.

Section 3.07.  Finders’ Fees.  There

is no investment banker, broker, finder or other intermediary which has been

retained by or is authorized to act on behalf of Seller that might be entitled

to any fee or commission from Buyer or the Joint Venture in connection with the

transactions contemplated by this Agreement or the Notarial Deed and Assignment

Agreement.

Section 3.08. 

Inspections; No Other Representations. 

Except expressly as set forth in this Agreement, Seller has not relied

on any representations or warranties of Buyer to make its decision with respect

to the execution, delivery and performance of this Agreement and the Notarial

Deed and Assignment Agreement.

ARTICLE

4

REPRESENTATIONS AND WARRANTIES OF BUYER

Buyer represents and warrants to Seller as of the

date that:

Section 4.01.  Corporate Existence and Power.  Buyer is a Gesellschaft mit beschrankter Haftung duly

incorporated, validly existing and in good standing under the laws of Austria

and has all requisite powers and all material governmental licenses,

authorizations, permits, consents and approvals required to carry on its

business as now conducted.

Section

4.02.  Corporate Authorization.  The execution, delivery and performance by

Buyer of this Agreement and the Notarial Deed and Assignment 

 

7

 

Agreement

and the consummation by Buyer of the transactions contemplated hereby and

thereby are within the corporate powers of Buyer and have been duly authorized

by all necessary corporate action on the part of Buyer.  This Agreement constitutes and, when

executed and delivered in accordance with its terms, the Notarial Deed and

Assignment Agreement will constitute, a valid and binding agreement of Buyer,

enforceable in accordance with its terms.

Section 4.03.  Governmental Authorization.  The execution, delivery and performance by

Buyer of this Agreement and the Notarial Deed and Assignment Agreement and the

consummation by Buyer of the transactions contemplated hereby and thereby

require no material action by or in respect of, or material filing with, any

governmental body, agency or official.

Section 4.04.  Non-contravention. 

The execution, delivery and performance by Buyer of this Agreement and

the Notarial Deed and Assignment Agreement and the consummation of the

transactions contemplated hereby and thereby do not and will not (i) violate

the certificate of incorporation or bylaws of Buyer, (ii) violate any

applicable law, rule, regulation, judgment, injunction, order or decree,

(iii)  require any consent or other

action by any Person under, constitute a default under, or give rise to any

right of termination, cancellation or acceleration of any right or obligation

of Buyer or to a loss of any benefit to which Buyer is entitled under any

provision of any agreement or other instrument binding upon Buyer or (iv)

result in the creation or imposition of any material Lien on any asset of

Buyer.

Section 4.05.  Litigation.  There is

no action, suit, investigation or proceeding pending against, or to the

knowledge of Buyer threatened against or affecting, Buyer or any of its

officers or directors before any court or arbitrator or any governmental body,

agency or official which in any manner challenges or seeks to prevent, enjoin,

alter or materially delay the transactions contemplated by this Agreement or

the Notarial Deed and Assignment Agreement.

Section 4.06.  Finders’ Fees.  There

is no investment banker, broker, finder or other intermediary which has been

retained by or is authorized to act on behalf of Buyer that might be entitled

to any fee or commission from Seller or any of its Affiliates in connection

with the transactions contemplated by this Agreement or the Notarial Deed and

Assignment Agreement.

Section

4.07.  Purchase for Investment.

Buyer is purchasing the Share for investment for its own account and not with a

view to, or for sale in connection with, any distribution thereof.  Buyer (either alone or together with its

advisors) has sufficient knowledge and experience in financial and business

matters so as to be capable of evaluating the merits and risks of its

investment in the Share and is capable of bearing the economic risks of such

investment. To the extent necessary 

 

8

 

or

appropriate, Buyer has engaged expert advisors, experienced in the evaluation

and purchase of companies such as the Joint Venture as contemplated hereunder.

Section 4.08.  Inspections; No Other Representations.  (a) Certain of the directors and

shareholders, direct or indirect, of Buyer have been, and were, immediately

prior to the date hereof, employed by Seller and its Affiliates and have been

actively involved in the management of the Joint Venture.  Accordingly, Buyer (i) is familiar with the

Joint Venture and its business, (ii) has at all times had complete and open

access to the key employees, documents and facilities of the Joint Venture and

(iii) has conducted such investigation as it has deemed necessary to enable it

to make an informed decision with respect to the execution, delivery and

performance of this Agreement and the Notarial Deed and Assignment Agreement.

(b)   Buyer agrees to accept the Share and the

Joint Venture in the condition they are in on the Closing Date based upon its

own inspection, examination and determination with respect thereto as to all

matters, and without reliance upon any express or implied representations or

warranties of any nature made by or on behalf of or imputed to Seller, except

as expressly set forth in this Agreement or the Notarial Deed and Assignment

Agreement.  Without limiting the

generality of the foregoing, Buyer acknowledges that Seller makes no

representation or warranty with respect to (i) any projections, estimates or

budgets delivered to or made available to Buyer, its shareholders, directors or

officers of future revenues, future results of operations (or any component

thereof), future cash flows or future financial condition (or any component

thereof) of the Joint Venture or the future business and operations of the

Joint Venture or (ii) any other information or documents made available to

Buyer or its counsel, accountants or advisors with respect to the Joint Venture

or its business or operations, except, in each case, as expressly set forth in

this Agreement or the Notarial Deed and Assignment Agreement.

ARTICLE

5

COVENANTS OF SELLER

Seller agrees that:

Section

5.01.  Confidentiality.  Seller and its Subsidiaries will hold, and

will use their best efforts to cause their respective officers, directors,

employees, accountants, counsel, consultants, advisors, agents and Affiliates

to hold, in confidence, unless compelled to disclose by judicial or

administrative process or by other requirements of law, all confidential

documents and information concerning the Joint Venture and Buyer furnished or

otherwise made available to Seller or its Subsidiaries on or prior to the

Closing Date, except to the extent such information can be shown to have been

(i) in the public domain through no fault 

 

9

 

of

Seller or its Subsidiaries or Affiliates (other than Affiliates of Seller that

are, after the date hereof, also Affiliates of the Joint Venture) or (ii)

lawfully acquired by Seller after the Closing Date from sources other than

Buyer or the Joint Venture; provided that Seller may disclose such

information to its officers, directors, employees, accountants, counsel,

consultants, advisors, agents and Affiliates in connection with any matter

relating to this Agreement or the Notarial Deed and Assignment Agreement so

long as such Persons are informed by Seller of the confidential nature of such

information and are directed by Seller to treat such information

confidentially.  Seller shall be

responsible for any failure to treat such information confidentially by such

Persons.  The obligation of Seller and

its Subsidiaries to hold any such information in confidence shall be satisfied

if they exercise the same care with respect to such information as they would

take to preserve the confidentiality of their own similar information.

Section 5.02.  Contribution of Loans. 

Effective as of the Closing Date and in partial consideration of the

Joint Venture’s agreement to comply with the provisions of this Agreement

applicable to it, Seller for itself and on behalf of all of its Subsidiaries

(each, a “Releasing

Party”) hereby releases the Joint Venture from any and all

indebtedness, liabilities and obligations with respect to the Joint Venture in

respect of all funds that have been previously loaned and/or advanced to the

Joint Venture by any of the Releasing Parties, such amounts to be treated by

all parties as having been contributed to the capital of the Joint Venture by

the Releasing Parties.  As of the date

hereof, such outstanding balance is the equivalent in Austrian Schillings of

$210,000 (two hundred and ten thousand United States dollars).  Seller agrees that the Joint Venture shall

be entitled to the benefits of the provisions of this Section 5.02 with the

right to enforce the terms hereof.

Section

5.03.  Use of Alliance Information.  (a) For the period beginning on the Closing

Date and ending on the earliest to occur of (i) the fifth anniversary thereof,

(ii) the date on which a Change of Control shall have occurred and (iii) the

date on which the Joint Venture or any of its Affiliates engages (whether

directly or indirectly, as a principal or for its own account or solely or

jointly with others, or as a stockholder in any corporation or joint stock

association (other than where the Joint Venture or any of its Affiliates

beneficially owns, as a passive investor, less than 5% of the equity or voting

interest in such corporation or joint stock association)) in a Competing

Business, Seller agrees, subject to the provisions of clause (b) below, to (A)

provide the Joint Venture and its Affiliates with full access to the Alliance

Research and to the Third Party Research and (B) provide the employees of the

Joint Venture and its Affiliates reasonable access, from time to time by way of

telephone conversations, to analysts of Alliance Capital; provided that in the case of

clause (B) above, any such access shall not unreasonably interfere with the

performance by any such analysts’ of the tasks, duties and responsibilities

assigned to them by Alliance Capital and its Affiliates.  

 

10

 

The

Joint Venture and its Affiliates shall have the right to use the information

provided to it by Alliance Capital pursuant to this Section 5.03 (the “Alliance

Information”) internally and in making any investment decisions,

provided that such use complies with (i) all regulatory and legal requirements

applicable to the Joint Venture and (ii) all contractual and licensing restrictions

applicable to the use of the Third Party Research.

(b)   The Alliance Research shall be made available

to the Joint Venture and its Affiliates on, and in accordance with, the most

favorable terms offered by Alliance Capital to any of its clients.  The Third Party Research shall be made

available to the Joint Venture and its Affiliates in accordance with the legal

and contractual provisions applicable to such Third Party Research.  The foregoing notwithstanding, Seller shall

have no obligation to provide the Joint Venture or any of its Affiliates access

to any Third Party Research if the granting of such access would, in the

reasonable judgment of Seller, (i) violate any legal or contractual obligation

of Seller or its Affiliates to any third party or (ii) require Seller or any of

its Affiliates to pay additional or incremental fees or other amounts to any

third party in connection with the use, dissemination or licensing of such

Third Party Research; provided that, in the case of clause (i)

above, Seller agrees to use commercially reasonable efforts to obtain the

consent of the relevant third party for the dissemination of such Third Party

Research to the Joint Venture and its Affiliates and, in the case of clause

(ii) above, if Buyer or the Joint Venture is notified in advance of the amount

of any such incremental fees or other amounts and agrees to pay such amount,

Seller shall provide the Joint Venture with access to the relevant Third Party

Research.  Any amounts which Buyer or

the Joint Venture agrees to pay pursuant to this Section 5.03(b), shall be

payable within 30 Business Days after demand for payment by Alliance Capital.

(c)   Nothing contained in this Section 5.03 shall

be construed or interpreted as creating an obligation on Alliance Capital to

create or procure any Alliance Research, Third Party Research or other

information for the benefit of the Joint Venture or any of its Affiliates, nor

shall Buyer, the Joint Venture or any of its Affiliates have any right to

direct the creation, or determine the substance or frequency, of any Alliance

Information.  As of any date, Seller’s

obligations under this Section 5.03 shall be satisfied if it provides the Joint

Venture and its Affiliates access to all of the Alliance Information that

exists as of such date in accordance with the terms and conditions of this

Section 5.03.

(d)   Buyer

understands that the Alliance Information is intended solely for the internal

use and benefit of the Joint Venture and its Affiliates and may not be

disseminated, sold or otherwise provided to any third parties by the Joint

Venture or any of its Affiliates.  Buyer

acknowledges that Seller makes no representation or warranty with respect to

the Alliance Information and any use of or reliance upon such Alliance

Information by Buyer, the Joint Venture or any of its Affiliates shall be at

their own risk.  Without limiting the

generality the 

 

11

 

foregoing, Buyer hereby

waives, and shall cause the Joint Venture and its Affiliates to waive, any and

all actions or claims that it may have against Alliance Capital or its

Affiliates relating to or arising out of the Alliance Information, or the use

thereof by Buyer, the Joint Venture or its Affiliates, including any claim or

action based upon any alleged negligence, gross negligence or strict liability

of Alliance Capital or any of its Affiliates.

(e)   Buyer will hold, will cause its Affiliates to

hold and will use their best efforts to cause their respective officers,

directors, employees, accountants, counsel, consultants, advisors and agents to

hold, in confidence, unless compelled to disclose by judicial or administrative

process or by other requirements of law, the Alliance Information made

available to the Joint Venture and its Affiliates by Seller pursuant to this

Section 5.03, except to the extent that such information can be shown to have

been (i) previously known on a nonconfidential basis by Buyer or any of its

Affiliates, (ii) in the public domain through no fault of Buyer or (iii) later

lawfully acquired by Buyer or any of its Affiliates from sources other than

Alliance Capital or its Subsidiaries; provided that Buyer may disclose such

information to its officers, directors, employees, accountants, counsel,

consultants, advisors and agents for use as contemplated by this Section 5.03,

so long as such Persons are informed by Buyer of the confidential nature of

such information and are directed by Buyer to treat such information

confidentially.  Buyer shall be

responsible for any failure to treat such information confidentially by such

Persons.  The obligation of Buyer to

hold, and to cause its Affiliates to hold, any such information in confidence

shall be satisfied if they exercise the same care with respect to such

information as they would take to preserve the confidentiality of their own

similar information.

Section 5.04. 

Maintenance Of Insurance.  Seller agrees,

for the period beginning on the Closing Date and ending on the earliest to

occur of (i) six months thereafter, (ii) the date on which a Change of Control

shall have occurred and (iii) the date on which the Joint Venture notifies

Seller that such coverage is no longer required, to maintain for the benefit of

the Joint Venture, errors and omissions insurance covering the periods ending

on or prior to the Closing Date on terms with respect to coverage and amount no

less favorable than those of such policy in effect immediately prior to the

date hereof.  The allocable cost of such

insurance coverage shall be borne by the Joint Venture.

Section

5.05.  Non-solicitation.  For one year after the Closing Date, Seller agrees,

and agrees to cause each of its Subsidiaries, not to solicit for employment or

as a consultant or hire or retain as a consultant any employee  (other than through public advertisement) of

Buyer or the Joint Venture or any of their respective Affiliates or in any way

induce any such employee into terminating his or her employment, except (i)

with the prior written consent of Buyer or the Joint Venture, respectively or

(ii) for employees that have been terminated by Buyer or the Joint Venture,

respectively.

 

12

 

ARTICLE

6

COVENANTS OF BUYER

Buyer agrees that:

Section 6.01.  Access.  Buyer will

cause the Joint Venture and its Subsidiaries, on and after the Closing Date, to

(a) afford promptly to Seller and its agents reasonable access upon prior

written notice and during normal business hours to their books of account,

financial, tax and other records, employees and auditors (and furnish financial

and other data) to the extent reasonably necessary to permit Seller to respond

to, defend, or determine the facts surrounding any claim, action, proceeding,

investigation or tax matter directed at or brought against Seller by any third

party or taxing authority relating to the activities or business of the Joint

Venture and its Subsidiaries as conducted prior to the Closing Date; provided

that any such access by Seller shall not unreasonably interfere with the

conduct of the business of the Joint Venture or its Subsidiaries and (b)

instruct the employees of the Joint Venture and its Subsidiaries to cooperate

with the reasonable requests of Seller, its employees and its independent

accountants in connection with the foregoing. 

Seller shall treat all information provided to it pursuant to this

Section 6.01 as strictly confidential and shall comply with the terms of

Section 5.01 with respect to such information.

Section 6.02.  Trademarks; Tradenames. 

(a) Except as set forth in Section 6.02(b), after the Closing, Buyer

shall not, and shall not permit the Joint Venture (or any of its Affiliates)

to, use any trademarks or tradenames owned or used by Seller on the date hereof

(or any derivations thereof), including without limitation, the name “Alliance

Capital”.

(b)   For

the period beginning on the Closing Date and ending on the earliest to occur of

(i) the fifth anniversary thereof, (ii) the date on which a Change of Control

shall have occurred and (iii) the date on which the Joint Venture or any of its

Affiliates engages (whether directly or indirectly, as a principal or for its

own account or solely or jointly with others, or as a stockholder in any

corporation or joint stock association (other than where the Joint Venture or

any of its Affiliates beneficially owns, as a passive investor, less than 5% of

the equity or voting interest in such corporation or joint stock association))

in a Competing Business, the Joint Venture and its Affiliates shall have the

right to state in its marketing materials, advertisement or other materials

provided or distributed to clients, potential clients, portfolio companies or

potential portfolio companies of the Joint Venture or its Affiliates that it is

“a research associate of Alliance Capital” or a “research affiliate of Alliance

Capital” and shall have the right to include in any such materials a

description of Alliance Capital; provided, that Alliance Capital has

previously reviewed and approved of such description of Alliance Capital and

the use thereof, which approval shall not be unreasonably withheld; and provided

further

that if such description is delivered by the Joint 

 

13

 

Venture to the attention of

each of the General Counsel and the Chief Executive Officer of Alliance Capital

and neither such individuals respond to the Joint Venture within 10 days after

receipt, the consent of Alliance Capital shall be deemed to have been received

for the purposes of this Section 6.02(b). 

For the avoidance of doubt, it shall not be unreasonable for Alliance

Capital to withhold its approval if in its reasonable judgment any such

statements, or the use thereof in any materials, would adversely affect any

relationship that Alliance Capital or its Subsidiaries has with a third party

or would otherwise have an adverse effect on the business or affairs of

Alliance Capital or its Subsidiaries.

(c)   The foregoing notwithstanding, (i) neither

the Joint Venture nor any of its Affiliates may publicly display or use the name

“Alliance Capital” (or any derivation thereof) in Germany or in Austria and

(ii) it shall be the sole responsibility of the Joint Venture and its

Affiliates to ensure that the use by any of them of the name “Alliance Capital”

as contemplated by Section 6.02(b) strictly complies, and is in accordance,

with all applicable regulatory and legal requirements (including requirements

under all applicable unfair competition laws) relating to (A) the Joint Venture

or the applicable Affiliate and (B) Alliance Capital or its Subsidiaries.  No consent granted by Alliance Capital for

the use of the name “Alliance Capital” shall in any way relieve the Joint

Venture or its Affiliates of their obligations under this Section 6.02(c); provided that,

the foregoing notwithstanding, (x) the Joint Venture and its Affiliates shall

not be deemed to have violated the provisions of Section 6.02(c)(i) above

solely because they state that they are “a research associate of Alliance

Capital” or a “research affiliate of Alliance Capital” on any of their business

cards or letterhead or in any private meetings that they may have with

institutional investors and (y) the Joint Venture and its Affiliates shall be

deemed to be in compliance with the provisions of Section 6.02(c)(ii)(B) above

if, in any circumstance and in any jurisdiction, it uses and displays the name

“Alliance Capital” strictly in accordance with the provisions of Section

6.02(b) and in a manner that is substantially similar to the manner in which

Alliance Capital or its Subsidiaries use the name “Alliance Capital” in such

circumstance and in such jurisdiction.

Section

6.03.  Payment Of Fees.  As consideration to Seller for affording the Joint

Venture and its Affiliates access to the Alliance Information pursuant to

Section 5.03, and for granting the Joint Venture and its Affiliates certain

rights of association with Alliance Capital pursuant to Section 6.02(b), the

Joint Venture hereby agrees to pay, and Buyer agrees to cause the Joint Venture

to pay, to Seller a fee in an amount equal to (A) 51% of the portion of (i) the

net cash proceeds received by the Joint Venture and its Subsidiaries as a

“carry interest” fee under its Investment Management Agreement dated May 9,

1997 with the Romanian Investment Fund Limited in respect of such fund’s

investment in Titan Mar minus (ii) any portion of such fee that is

payable to the employees of the Joint Venture and its Subsidiaries pursuant to

the agreements that exist on the date hereof and, 

 

14

 

in

the aggregate, does not exceed 50% of the total “carry” interest received by

the Joint Venture less (B) any and all value added, withholding and similar

taxes that would be imposed on the Joint Venture as a result of a payment to

Seller pursuant to this Section 6.03. 

Such payment shall be made to Seller in cash within thirty days of the

earlier to occur of (x) the date on which the amount of such “carry interest”

fee has been finally determined by the Joint Venture and (y) the date on which

any portion of such “carry interest” fee (or any estimate thereof) has been

paid to any employee of the Joint Venture or its Subsidiaries.

Section 6.04. 

Release From Partnership Agreement. 

The Joint Venture and Seller each agree to cooperate with one another

and to use its commercially reasonable efforts (but without any payment of

money) to (i) effect the transfer of 

Albion Alliance LLC’s interest in Albion Alliance EFM Limited to the

Joint Venture and (ii) procure from the required parties to the Amended and

Restated Agreement of Limited Partnership of the Czech Direct Equity Fund I

L.P. dated January 16, 1998 (the “Partnership Agreement”) an unconditional

release of Seller from its obligations under Section 5.11 (Exclusivity) of the

Partnership Agreement, in each case, as promptly as possible after the Closing

Date.

ARTICLE

7

COVENANTS OF THE PARTIES

Each party hereto agrees that:

Section 7.01.  Reasonable Best Efforts; Further Assurances.  (a) Subject to the terms and conditions of

this Agreement and the Notarial Deed and Assignment Agreement, each party will

use its reasonable best efforts to take, or cause to be taken, all actions and

to do, or cause to be done, all things necessary, proper or desirable under

applicable laws and regulations to consummate the transactions contemplated

hereby and thereby.

(b)   The parties agree after the Closing to use

reasonable commercial efforts to execute and deliver, or to cause to be

executed and deliver such other documents, certificates, agreements and other

writings and to take such other actions as may be necessary or desirable in

order to consummate or implement expeditiously the transactions contemplated by

this Agreement.

Section

7.02.  Public Announcements.  Except as may be required by applicable law

or any listing agreement with any national securities exchange, neither of the

parties to this Agreement shall issue any press release or make any other

public statement, in each case relating to, connected with or arising out of

the consummation of the transactions contemplated by this Agreement or the

Notarial Deed and Assignment Agreement 

or the terms of such transactions 

 

15

 

without

obtaining the prior written approval of the other party, and the parties shall

cooperate as to the timing and contents of any such release or statement.

Section 7.03.  Release.  Effective

as of the Closing Date and in consideration for the mutual agreements contained

herein, the Joint Venture, on the one hand, and Seller, on the other hand,

hereby waive, release and discharge each other from any and all liabilities and

obligations (of any kind or nature whatsoever (including without limitation, in

respect of rights of contribution or indemnification), in each case whether

absolute or contingent, liquidated or unliquidated, and whether arising under

the Joint Venture Documents or any other agreement or otherwise at law or

equity) arising from or in connection with or related to the business or

affairs of the Joint Venture and its Subsidiaries.  Effective as of the Closing Date, neither Seller nor any of its

Affiliates shall have any right, title or interest in or to the Joint Venture

or any of its Subsidiaries or any of the capital, profits, assets, business or

operations of the Joint Venture or any of its Subsidiaries or any right under

the Joint Venture Documents and the terms of the Joint Venture Documents or any

other agreement shall be modified accordingly. 

The foregoing notwithstanding, the provisions of this Section 7.03 shall

not release any party from its respective obligations under this Agreement.

Section 7.04.  Termination of Agreements and Arrangements.  In partial consideration of the provisions

set forth in Section 5.02 and except as set forth in Section 5.04, effective as

of the Closing Date, (a) all agreements and arrangements between the Seller and

the Joint Venture shall be terminated without further action by either party

and thereafter neither party thereto shall have any further rights or

obligations thereunder and (b) coverage of the Joint Venture and its

Subsidiaries under all insurance policies of Seller or its Affiliates shall

cease.

Section

7.05.  Cooperation on Tax Matters.   (a) 

Seller and Buyer shall cooperate fully, as and to the extent reasonably

requested by the other party, in connection with the preparation and filing of

any return for income or other taxes of or in connection with the Joint Venture

or the transactions contemplated hereby and any audit, litigation or other

proceeding with respect to such taxes. 

Such cooperation shall include the retention and (upon the other party’s

request) the provision of records and information which are reasonably relevant

to any such audit, litigation or other proceeding and making employees

available on a mutually convenient basis to provide additional information and

explanation of any material provided hereunder.  The Seller and Buyer agree (i) to retain all books and records

with respect to tax matters pertinent to the Joint Venture relating to any

taxable period ending before the Closing Date and the taxable period during

which the Closing Date falls for a period of three years after the Closing Date

and (ii) to give the other party reasonable written notice prior to

transferring, destroying or discarding any such books and records and, if the

other 

 

16

 

party

so requests, the Seller or Buyer, as the case may be, shall allow the other

party to take possession of such books and records at the other party’s

expense.

(b)           Seller

and Buyer further agree, upon request (and at the requesting party’s expense),

to use all reasonable efforts to obtain any certificate or other document from

any governmental authority or other Person as may be necessary to mitigate,

reduce or eliminate any taxes that could be imposed (including but not limited

to with respect to the transactions contemplated hereby).

ARTICLE

8

SURVIVAL; INDEMNIFICATION

Section 8.01.  Survival.  The

representations and warranties of the parties hereto contained in this

Agreement shall survive the Closing until the first anniversary of the Closing

Date; provided

that the representations and warranties contained in Section 3.02, 3.05, 3.07,

3.08, 4.02, 4.06, 4.07 and 4.08 shall survive indefinitely.  The covenants and agreements contained in

this Agreement shall survive in accordance with their terms (or if no survival

period is specified, until the end of the applicable statute of limitations

(after giving effect to any waiver, mitigation or extension thereof)).  Notwithstanding the preceding sentences of

this Section 8.01, any covenant, agreement, representation or warranty in

respect of which indemnity may be sought under this Agreement shall survive the

time at which it would otherwise terminate pursuant to the preceding sentences,

if notice of the inaccuracy or breach thereof giving rise to such right of

indemnity shall specify with reasonable detail such inaccuracy or breach and

shall have been given to the party against whom such indemnity may be sought

prior to such time.

Section 8.02.  Indemnification.  (a)

Seller hereby indemnifies Buyer and its Affiliates against and agrees to hold

it harmless from any and all damage, loss, liability and expense (including,

without limitation, reasonable expenses of investigation and reasonable

attorneys’ fees and expenses in connection with any action, suit or proceeding

(whether between the parties to this agreement or involving a third party)) (“Damages”)

incurred or suffered by Buyer or its Affiliates arising out of any (i) misrepresentation

or breach of any warranty or (ii)  any

breach of  any covenant or agreement, in

each case, made or to be performed by Seller pursuant to this Agreement regardless

of whether such Damages arise as a result of the negligence, gross negligence,

strict liability or any other liability under any theory of law or equity of

Buyer or its Affiliates; provided that Seller’s maximum liability

relating to the matters specified in clause (i) above shall not exceed the

aggregate amount of the Purchase Price.

(b)   Each

of Buyer and, following the Closing, the Joint Venture and its Subsidiaries (on

a joint and several basis with Buyer) (collectively, the “Buyer Parties”) hereby

indemnifies Seller and its Affiliates against and agrees to hold 

 

17

 

each of them harmless from

any and all Damages incurred or suffered by Seller or any of its Affiliates

arising out of (i) (A) any misrepresentation or breach of any warranty or (B)

any breach of any covenant or agreement, in each case, made or to be performed

by Buyer pursuant to this Agreement and (ii) any claim, suit, proceeding,

investigation or other action by a third party and directed at or against

Seller or any of its Affiliates to the extent relating to or arising out of (A)

the use by Buyer, the Joint Venture or any of its Subsidiaries of any of the

Alliance Information or (B) the use by Buyer, the Joint Venture or any of its

Subsidiaries of the name “Alliance Capital” (or any derivation thereof), in

each case regardless of whether such Damages arise as a result of the

negligence, gross negligence, strict liability or any other liability under any

theory of law or equity of Seller or any of its Affiliates; provided

however, that the Buyer Parties’ maximum aggregate liability

relating to the matters specified in clause (i)(A) above shall not exceed the

aggregate amount of the Purchase Price.

Section 8.03.  Procedures.  (a) The

party seeking indemnification under Section 8.02 (the “Indemnified Party”) agrees to

give prompt notice to the party against whom indemnification is sought (the “Indemnifying

Party”) (i) of the assertion of any claim, or the commencement of

any suit, action or proceeding (each, a “Claim”) in respect of which indemnification

may be sought under such Section or (ii) if the Indemnified Party becomes aware

of any fact, condition or event which is likely to give rise to Damages for

which indemnification may be sought under such Section, and in each case will

provide the Indemnifying Party such information with respect thereto that the

Indemnifying Party may reasonably request. The failure to so notify the

Indemnifying Party shall not relieve the Indemnifying Party of its obligations

hereunder, except to the extent such failure shall have adversely affected the

Indemnifying Party.

(b)   The

Indemnifying Party shall have the right, through counsel of its own choosing

and at its own expense, to reasonably and prudently direct the defense or

settlement of any Claim asserted by any third party (a “Third Party Claim”), other

than any Third Party Claim in which (i) the remedy sought (or likely to be

provided) is equitable relief or other non-monetary damages or (ii) there is a

significant risk that the Indemnifying Party will be unable to satisfy in full

the judgment amount sought (or likely to be provided) or the proposed

settlement amount.  The foregoing

notwithstanding, in any Third Party Claim in which the name “Alliance Capital”

(or any derivation thereof), or the use of such name, is at issue (w) Seller shall

have the right, through counsel reasonably acceptable to Buyer, to reasonably

and prudently direct the defense or settlement of such Third Party Claim, (x)

the fees and expense of such counsel shall be paid by Buyer or the Joint

Venture if and to the extent required by Section 8.02(b), (y) Buyer shall be

entitled to participate in the defense of such Third Party Claim and to employ

separate counsel of its choice for such purpose and (z) Seller shall obtain the

prior written consent of Buyer (which shall not be unreasonably 

 

18

 

withheld or delayed) before

entering into any settlement of such Third Party Claim if the settlement does

not release Buyer or the Joint Venture (as applicable) from all liabilities and

obligations with respect to such Third Party Claim or the settlement imposes

injunctive or other equitable relief against Buyer or the Joint Venture.

(c)   If the Indemnifying Party shall assume the

control of the defense of any Third Party Claim in accordance with the

provisions of this Section 8.03, (x) the Indemnifying Party shall obtain the

prior written consent of the Indemnified Party (which shall not be unreasonably

withheld or delayed) before entering into any settlement of such Third Party Claim

if the settlement does not release the Indemnified Party from all liabilities

and obligations with respect to such Third Party Claim or the settlement

imposes injunctive or other equitable relief against the Indemnified Party and

(y) the Indemnified Party shall be entitled to participate in the defense of

such Third Party Claim and to employ separate counsel of its choice for such

purpose.  If the Indemnified Party

elects to employ separate counsel pursuant to clause (y) above, the fees and

expenses of such separate counsel shall be paid by the Indemnified Party,

unless (i) the Indemnifying Party and such Indemnified Party shall have

mutually agreed in writing to the retention of such counsel or (ii) the named

parties to any Third Party Claim (including any impleaded parties) include the

Indemnifying Party and such Indemnified Party and representation of both

parties by the same counsel would, in the opinion of counsel to such

Indemnified Party, be inappropriate due to actual or potential differing interests

between the Indemnifying Party and such Indemnified Party.  For the avoidance of doubt, the immediately

preceding sentence is not applicable to the employment of counsel by the

Indemnified Party where the Indemnifying Party has no right, or fails to exercise

its right, to direct the defense or settlement of a Third Party Claim.  In such cases, all fees of counsel employed

by the Indemnified Party shall be paid by Indemnifying Party if and to the

extent required by provisions of Section 8.02. 

Upon the assumption of the defense of any Third Party Claim by the

Indemnifying Party, the Indemnified Party shall not pay, or permit to be paid,

any part of any claim or demand arising from such asserted liability unless the

Indemnifying Party consents in writing to such payment.

(d)   If

the Indemnifying Party shall fail promptly to defend such Third Party Claim or

withdraws from such defense, the Indemnified Party shall have the right to

undertake the defense or settlement thereof, at the Indemnifying Party’s expense;

provided

that the Indemnifying Party shall not be liable for any settlement or

compromise of any Third Party Claim made by the Indemnified Party without the

consent of the Indemnifying Party.  If

the Indemnified Party  assumes the

defense of any such Third Party Claim pursuant to this Section and proposes to

forego any appeal with respect thereto, then the Indemnified Party shall give

the Indemnifying Party prompt written notice thereof and the 

 

19

 

Indemnifying Party shall

have the right to assume or reassume the defense of such Third Party Claim.

(e)   Each party shall cooperate, and cause its

Affiliates to cooperate, in the defense or prosecution of any Third Party Claim

and shall furnish or cause to be furnished such records, information and

testimony, and attend such conferences, discovery proceedings, hearings, trials

or appeals, as may be reasonably requested in connection therewith.

Section 8.04.  Calculation of Damages. 

(a) The amount of any Damages payable under Section 8.02 by the

Indemnifying Party shall be net of any amounts recovered or recoverable by the

Indemnified Party under applicable insurance policies.

(b)   The Indemnifying Party shall not be liable

under Section 8.02 for any consequential or punitive Damages or Damages for

lost profits.

(c)   Notwithstanding any other provision of this

Agreement to the contrary, if on the Closing Date the Indemnified Party has

actual knowledge of any information that would cause one or more of the

representations and warranties made by the Indemnifying Party to be inaccurate

as of the date made, the Indemnified Party shall have no right or remedy after

the Closing with respect to such inaccuracy and shall be deemed to have waived

its rights to indemnification in respect thereof.

Section 8.05.  Assignment of Claims. 

If the Indemnified Party receives any payment from the Indemnifying

Party in respect of any Damages pursuant to Section 8.02 and the Indemnified

Party could have recovered all or a part of such Damages from a third party (a

“Potential

Contributor”) based on the underlying Claim asserted against the

Indemnifying Party, the Indemnified Party shall assign such of its rights to

proceed against the Potential Contributor as are necessary to permit the Indemnifying

Party to recover from the Potential Contributor the amount of such payment.

Section

8.06.  Exclusivity.  After the Closing, Section 8.02 will, to the

extent permitted by law, provide the exclusive remedy for any claim hereunder,

misrepresentation, breach of warranty, covenant or other agreement (other than

those contained in Sections 5.01, 5.03, 5.04, 6.01 6.02, 7.02 and 7.05, in each

case as to which the parties agree that the remedy of specific performance or

injunctive relief may be appropriate) or other claim relating to or arising out

of this Agreement or the Notarial Deed and Assignment Agreement, the

transactions contemplated hereby or thereby or the Joint Venture.

 

20

 

ARTICLE

9

MISCELLANEOUS

Section 9.01.  Notices.  All

notices, requests and other communications to any party hereunder shall be in

writing (including facsimile transmission) and shall be given,

if to Buyer, to:

EFM

Holdings GmbH

Palais

Corso

Kärntner-Ring

11-16/6.7.3

A-1010

Vienna

Austria

Attention:  Roland Haas

Fax:

++43-1-51671-600

 

with

a copy to:

 

Golenbock,

Eiseman, Assor & Bell

437

Madison Avenue

40th

Floor

New

York, NY 10022

Attention:  Nathan Assor

Fax:  212-754-0330

 

if

to Seller, to:

 

Alliance Capital Management Corporation

1345 Avenue of the Americas

New York, New York 10105

Attention:  David R. Brewer, Jr.

Fax:  212-969-1334

 

 

with a copy to:

 

Davis Polk & Wardwell

450 Lexington Avenue

New York, New York 10017

Attention:  Phillip R. Mills

Fax:  212-450-4800

 

 

21

 

All

such notices, requests and other communications shall be deemed received on the

date of receipt by the recipient thereof if received prior to 5 p.m. in the

place of receipt and such day is a Business Day in the place of receipt.  Otherwise, any such notice, request or

communication shall be deemed not to have been received until the next

succeeding Business Day in the place of receipt.

Section 9.02.  Amendments and Waivers. 

(a) Any provision of this Agreement may be amended or waived if, but

only if, such amendment or waiver is in writing and is signed, in the case of

an amendment, by each party to this Agreement, or in the case of a waiver, by

the party against whom the waiver is to be effective.

(b)   No failure or delay by any party in

exercising any right, power or privilege hereunder shall operate as a waiver

thereof nor shall any single or partial exercise thereof preclude any other or

further exercise thereof or the exercise of any other right, power or privilege.

Section 9.03.  Expenses.  Except as

otherwise provided in this Agreement, all costs and expenses incurred in

connection with this Agreement shall be paid by the party incurring such cost

or expense.

Section 9.04.  Successors and Assigns. 

The provisions of this Agreement shall be binding upon and inure to the

benefit of the parties hereto and their respective successors and permitted

assigns; provided

that no party may assign, delegate or otherwise transfer any of its rights or

obligations under this Agreement without the consent of the other party hereto.

Section 9.05.  Governing Law.  This

Agreement shall be governed by and construed in accordance with the law of the

State of New York, without regard to the conflict of laws rules of such state.

Section

9.06.  Arbitration.  (a) All disputes, controversies, or claims

arising out of or relating to this Agreement or the Notarial Deed and

Assignment Agreement, or any breach, interpretation of enforcement thereof

shall be resolved by arbitration administered by the  American Arbitration Association under its Commercial Arbitration

Rules then prevailing (the “Rules”). 

Such arbitration shall be held in New York, New York.  Either party may initiate arbitration by

sending written notice of its intention to arbitrate to the other specifying a

description of the dispute and the remedy sought (the “Arbitration Notice”); provided

that in no event may an Arbitration Notice be delivered, or other demand for

arbitration be made, after the date on which the institution of a legal or

equitable proceeding based on such claim, dispute or other matter in question

would be barred by New York law. 

Arbitration shall be by a single arbitrator chosen by the parties; provided

that if the parties fail to agree and approve such single arbitrator within

thirty (30) days after delivery of the Arbitration Notice, 

 

22

 

each

party shall then select an arbitrator and the two arbitrators so selected shall

themselves appoint a third arbitrator. 

The arbitration hearing will commence no later than sixty (60) days

after the arbitrator(s) is selected. 

Expenses of the arbitrator(s) shall be borne by the parties in

accordance with the Rules.  

Notwithstanding the foregoing, the arbitrator(s) shall not be authorized

to award any punitive damages with respect to any such dispute, controversy or

claim, nor may either party seek any such damages relating to any matter

arising out of, or relating to, this Agreement, the Notarial Deed and Assignment

Agreement or the parties’ performance hereunder and thereunder in any other

forum.

(b)   The decision of the arbitrator(s) shall be

final and binding on the parties, their successors and permitted assigns.  Judgment on the award rendered by the

arbitrator(s) may be entered in any court having jurisdiction, and then shall

be enforceable against the parties in accordance with the 1958 Convention on

the Recognition and Enforcement of Foreign Arbitral Awards, as amended.  The parties intend that this agreement to

arbitrate be irrevocable.

Section 9.07.  Counterparts; Third Party Beneficiaries.  This Agreement may be signed in two

counterparts, each of which shall be an original, with the same effect as if

the signatures thereto and hereto were upon the same instrument.  Other than as set forth in Section 5.02, no

provision of this Agreement is intended to confer upon any Person other than

the parties hereto any rights or remedies hereunder.

Section 9.08.  Entire Agreement. 

This Agreement and the Notarial Deed and Assignment Agreement including

the exhibits, annexes and schedules hereto and thereto, constitute the entire

agreement between the parties with respect to the subject matter hereof and

thereof and supersede all prior agreements and understandings, both oral and

written, between the parties with respect hereto and thereto.

Section 9.09.  Severability.  If any

provision of this Agreement or any Notarial Deed and Assignment Agreement  shall be invalid, illegal or unenforceable

in any respect, the validity, legality or enforceability of the other

provisions hereof or thereof shall not be affected or impaired thereby.  Upon such a declaration, the parties shall

modify this Agreement or the relevant Notarial Deed and Assignment

Agreement  so as to effect the original

intent of the parties as closely as possible in an acceptable manner so that

the transactions contemplated hereby and thereby are consummated as originally

contemplated to the fullest extent possible.

Section

9.10.  Captions.  The captions herein are included for

convenience of reference only and shall be ignored in the construction or

interpretation hereof.

 

23

 

IN WITNESS WHEREOF, the parties hereto have caused

this Agreement to be duly executed by their respective authorized officers as

of the day and year first above written.

	

   

  	

  ALLIANCE CAPITAL MANAGEMENT CORPORATION OF DELAWARE

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Robert H. Joseph, Jr.

  
	

   

  	

   

  	

  Name:

  	

  Robert H. Joseph, Jr.

  
	

   

  	

   

  	

  Title:

  	

  Senior Vice President

  & Chief Financial Officer

  

 

	

   

  	

  EFM HOLDINGS GMBH

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Roland Haas

  
	

   

  	

   

  	

  Name:

  	

  Roland Haas

  
	

   

  	

   

  	

  Title:

  	

  Managing Director

  

 

In consideration of the

forgiveness of the

loans owed to Seller by the Joint Venture

pursuant to Section 5.02, and other good 

and valuable consideration, the receipt and

sufficiency of which are hereby

acknowledged, the Joint Venture expressly

acknowledges and accepts the provisions of

Sections 6.03, 6.04, 7.03, 7.04 and 8.02(b)

and agrees to comply with and be bound by

the terms thereof:

 

	

  EAST FUND MANAGEMENTBERATUNG GMBH

  
	

   

  
	

   

  
	

  By:

  	

  /s/ Roland Haas

  
	

   

  	

  Name:

  	

  Roland Hass

  
	

   

  	

  Title:

  	

  Managing Director

  

 

24

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